Boca Raton, Delray Beach and Lake Worth, Florida Debenture Fraud and Misrepresentation FINRA Arbitration and Litigation Attorney:
Securities and Exchange Commission v. Charles Vista, LLC, Civil Action No. 14-cv-2643 (E.D.N.Y. Filed April 28, 2014)
SEC Files Action Against Broker-Dealer to Enforce Compliance with Order to Pay Civil Penalty
The Securities and Exchange Commission recently announced that it filed an application in U.S. District Court for the Eastern District of New York against Charles Vista, LLC alleging that it violated an SEC Order requiring it to pay civil penalties of $4,350,000. According to the application, Charles Vista, LLC failed to make any payments by November 25, 2013, despite the SEC’s Order and its consent to do so.
According to the SEC’s November 20, 2013 order making findings and imposing remedial sanctions in a settled administrative proceeding, Charles Vista, LLC, a registered broker-dealer, violated the antifraud provisions of the federal securities laws by reason of false and misleading statements made by Gregg Lorenzo and Frank Lorenzo (not related) to induce investors to purchase certain debentures. The SEC Order found as to Charles Vista, LLC that it had willfully violated Section 17(a) of the Securities Act; Sections 10(b) and 15(c)(1) of the Exchange Act; and Rules 10b-3(a) and 10b-5 thereunder.
The Order directed Charles Vista, LLC to cease and desist from committing or causing any violations or future violations of Section 17(a) of the Securities Act and Sections 10(b) and 15(c)(1) of the Exchange Act and Rules 10b-5 and 10b-3(a) thereunder. The Order directed Gregg Lorenzo and Charles Vista, LLC, among other things, to pay $130,000 in disgorgement and $20,000 in prejudgment interest; Gregg Lorenzo paid these amounts, along with a civil penalty of $375,000. The SEC Order further ordered Charles Vista, LLC, among other things, to pay a civil penalty of $4,350,000. No portion of this civil penalty has been paid.
The SEC’s application seeks a district court order enforcing its November 20, 2013 Order requiring Charles Vista, LLC to pay $4,350,000 in civil penalties. On April 29, 2014, Judge Pamela K. Chen issued an order, returnable on June 10, requiring Charles Vista, LLC to show cause why the SEC’s application should not be granted.
With extensive courtroom, arbitration and mediation experience and an in-depth understanding of elder abuse, exploitation and securities law, our firm provides all of our clients with the personal service they deserve. Handling cases worth $25,000 or more, we represent clients throughout Florida and across the United States, as well as for foreign individuals that invested in U.S. banks or brokerage firms. Contact us to arrange your free initial consultation.
At the Fort Lauderdale Law Office of Russell L. Forkey, we represent clients throughout South and Central Florida, including Fort Lauderdale, West Palm Beach, Boca Raton, Sunrise, Plantation, Coral Springs, Deerfield Beach, Pompano Beach, Delray, Boynton Beach, Hollywood, Lake Worth, Royal Palm Beach, Manalapan, Jupiter, Gulf Stream, Wellington, Fort Pierce, Stuart, Palm City, Jupiter, Miami, Orlando, Maitland, Winter Park, Altamonte Springs, Lake Mary, Heathrow, Melbourne, Palm Bay, Cocoa Beach, Vero Beach, Daytona Beach, Deland, New Smyrna Beach, Ormand Beach, Broward County, Palm Beach County, Dade County, Orange County, Seminole County, Martin County, Brevard County, Indian River County, Volusia County and Monroe County, Florida. The law office of Russell L. Forkey also represents South American, Canadian and other foreign residents that do business with U.S. financial institutions, investment advisors, brokerage and precious metal firms.