Yearly Archives: 2012
SEC Charges Former Morgan Keegan Directors in Connection With Valuation of Funds’ Assets
The Securities and Exchange Commission (“SEC”) charged eight ex-Morgan Keegan mutual fund directors with violations of the federal securities laws for allegedly failing to properly oversee the valuation of assets in the funds. Morgan Keegan was acquired from Regions Financial Corp. by Florida-based Raymond James in April 2012. The funds at issue are the… Read More »
South Florida Attorney Charged With Securities Violations
The Securities and Exchange Commission (“SEC”) has filed a civil complaint charging attorney Guy M. Jean-Pierre a/k/a Marcelo Dominguez de Guerra with issuing fraudulent attorney opinion letters. According to the SEC, Jean-Pierre currently resides in the Dominican Republic although the Florida Bar reflects his address as Boca Raton, Florida. In its Complaint dated December… Read More »
DFB Pharmaceuticals Agrees to Settle Whistleblower Allegations
DFB Pharmaceuticals, Inc. and its subsidiary Healthpoint Ltd. based in Ft. Worth, Texas, have agreed to settle allegations that they violated the False Claims Act in connection with the prescription drug Xenaderm. According to the U.S. Department of Justice, the terms of the agreement call for the companies to pay $28 million, plus an… Read More »
Wellington Man Convicted of Defrauding Elderly Tampa Couple
Jeff Atwater, Florida’s Chief Financial Officer (“CFO”), announced that Wellington resident, Richard Incandela, was convicted of defrauding two Tampa senior citizens out of nearly $490,000. Incandela was sentenced to 34 months in prison to be followed by 25 years’ probation. In addition, he was ordered to pay full restitution to the victims. According to… Read More »
FINRA Investigates Firms That Sold Sun Life Annuities Containing Hedge Funds
According to InvestmentNews, the Financial Industry Regulatory Authority (“FINRA”) is investigating sales of certain variable annuities issued by Sun Life Financial, Inc. that contained subaccounts invested in hedge funds: the Foresee Strategies Insurance Fund and the Foresee Strategies 3(c)(1) Insurance Fund LP (collectively “Foresee Funds”). The Foresee Funds were part of the SALI Multi-Series… Read More »
Banner Year for False Claims Act Recoveries
The Department of Justice announced that it recovered $4.9 billion for cases filed under the False Claims Act during the fiscal year ending September 30, 2012. It is the largest one-year recovery in the department’s history. Since January 2009, the government has recovered $13.3 billion in settlement and judgments in civil False Claims Act… Read More »
New Jersey Resident Sentenced for His Role in Half-Billion Dollar Fraud Scheme
Fifty-seven year old Jorge Luis Castillo of New Jersey, was sentenced to more than four years in prison for his role in a scheme that allegedly defrauded thousands of U.S. and foreign investors out of nearly half-billion dollars. Castillo, a certified public accountant and outside auditor for Provident Capital Indemnity Ltd. (“PCI”), pleaded guilty… Read More »
Former South Florida Broker Suspended for 2 Years
Pompano Beach resident and former Merrill Lynch broker, Charles E. Bishop, Jr., has been suspended by the Financial Industry Regulatory Authority (“FINRA”) for two years for allegedly attempting to misappropriate $3 million from one of his clients. According to Bishop’s Central Registration Depository BrokerCheck Report, he is suspended from association with any FINRA member… Read More »
ThinkEquity Partners Hit With $1.4 Million Award
A three-member panel of Financial Industry Regulatory Authority (“FINRA”) arbitrators has rendered a $1,475,000 arbitration Award against ThinkEquity Partners, LLC. The Award was related to investments in auction rate securities. According to the Award, the claimant, Brigette Roberts, M.D. alleged that ThinkEquity and broker Pascal Besman made fraudulent and/or or negligent misrepresentations concerning auction… Read More »
David Lerner Associates, Inc. Restitution Information
The Financial Industry Regulatory Authority (“FINRA”) has released the restitution information for certain David Lerner Associates, Inc. (“DLA”) customers who purchased municipal bonds or Apple REIT 10. Municipal Bond Customers In October, FINRA fined DLA $2.3 million for charging excessive markups on certain municipal bond and collateralized mortgage obligations during the period January 2005… Read More »