Author Archives: FLSecurities
SEC SETTLES WITH GOLDMAN SACHS FOR $550 MILLION
The SEC has settled with Goldman, Sachs & Co. which has agreed to pay $550 million and change its business practices to settle charges that Goldman misled investors in a subprime mortgage product as the housing market was crashing. The SEC alleged that Goldman misstated and omitted key facts regarding a synthetic collateralized debt… Read More »
SEC Charges ENI, S.p.A and Snamprogetti with Foreign Corrupt Practices for Bribery Scheme
The SEC has charged an Italian company ENI, S.p.A. and a Dutch subsidiary Snamprogetti Netherlands B.V. with violating the Foreign Corrupt Practices Act (FCPA) in a bribery scheme tied to Nigerian government officials for the purpose of winning construction contracts. Snamprogetti and ENI will jointly pay $125 million to settle the SEC’s charges, and… Read More »
FINRA Bars Former Deutsche Bank Advisor from Securities Industry for Stock-Price Manipulation
FINRA has barred a former advisor from Deutsche Bank from the securities industry for manipulating the stock price of Monogram Biosciences (MGRM). The purpose of the scam was to enrich himself and a hedge fund client. Edward S. Brokaw engaged in trading designed to decrease the price of MGRM stock and increase the value… Read More »
SEC CLAIMS $27.7 MILLION PONZI SCHEME ORCHESTRATED BY PALM BEACH GARDENS INVESTMENT GROUP
The SEC has filed a civil suit against Trade-LLC, a Palm Beach Gardens investment advisor, and its managing members, Philip Milton (also of Palm Beach Gardens) and William Center. Trade-LLC is alleged to have told investors its trading software could double the investors’ money in a year. In reality, the SEC says the company… Read More »
Coral Gables Broker Accused of “Affinity” Scam Toward Venezuelan Clients
Francisco Alberto Diaz Jr., a broker from Coral Gables who was fired by UBS in 2009, has had new complaints filed against him alleging misuse of his clients’ funds. Diaz had a history of misusing client funds which included a judgment rendered by FINRA in favor of a former client. The new complaints allege… Read More »
SEC Charges Canadians in $300 Million Ponzi Scheme
The SEC has sued two Canadian men for running a $300 million Ponzi scheme that promised returns of as much as 36 percent on investments in gold-mining companies. Milowe Brost, 56, and Gary Sorenson, 66, took the savings of more than 3,000 investors in shell companies from 1999 to 2008 and millions of dollars… Read More »
Scott Rothstein Gets 50 Years in Federal Prison for Orchestrating Florida Ponzi Scheme
Scott Rothstein, a lawyer in Fort Lauderdale, who purportedly was running a powerhouse law firm that, at one time, was seemingly expanding offices faster than any law firm in Florida, was sentenced today to 50 years in federal prison for coordinating one of Florida’s largest Ponzi frauds ever. United District Judge James Cohn, somewhat… Read More »
SEC Charges Miami Fraudster in Ponzi Scheme for “No-Risk” Loan Agreements
On June 2, 2010, the SEC charged Luis Felipe Perez in a $40 million Ponzi scheme who raised funds to purportedly support jewelry businesses and pawn shops. Perez arranged “no-risk” loans with mostly Hispanic investors and promised to pay them guaranteed annual returns of 18 percent to 120 percent. Perez misrepresented to investors that… Read More »
FINRA Issues Regulatory Notice 10-22 on Regulation D Offerings for Private Placements
FINRA recently issued a regulatory notice on Private Placements, reminding broker-dealers of their duty to conduct reasonable investigations in recommending investments in Regulation D offerings. The notice provides that any broker-dealer recommending securities under Regulation D must the suitability requirement under NASD Rule 2310 and must comply with the advertising and supervisory rules of… Read More »
Investor Receives Arbitration Award by Default for Reg D Private Placement Investment
An investor has received the first arbitration award against a broker-dealer over the sale of a private placement investment. When Peak Securities did not show up to defend the claim arising from the purchase of notes offered by Medical Provider Funding Corp., the investor won a $400,000 FINRA arbitration award. Those notes are at… Read More »