Miami, Hollywood, Dania, Fort Lauderdale, Pompano Beach and Lighthouse Point, Florida Prime Bank Investment and Program Trading Scheme Litigation, FINRA Arbitration and Elder Abuse Attorney:
Securities and Exchange Commission v. Bernard H. Butts, Jr., Fotios Geivelis, Jr., also known as Frank Anastasio, Worldwide Funding III Limited LLC, Douglas J. Anisky, Sidney Banner, Express Commercial Capital LLC, James Baggs (Defendants), Bernard H. Butts, Jr. PA, Butts Holding Corporation, Margaret A. Hering, Global Worldwide Funding Ventures, Inc., and PW Consulting Group LLC (Relief Defendants), Civil Action No. 13-23115-CIV-MARTINEZ-MCALILEY (Southern District of Florida)
Florida-Based Attorney Ordered to Pay Nearly $4 Million in Court Judgment of Prime Bank Investment Scheme Case
The Securities and Exchange Commission recently announced that a federal judge has ordered a Miami-based attorney to pay nearly $4 million in a consent judgment of an SEC case against him for orchestrating a prime bank investment scheme. The money will be returned to harmed investors.
Bernard H. Butts Jr. was charged by the SEC in September 2013 for acting as an escrow agent for a supposed international trading program that raised approximately $3.5 million from investors. However, the program didn’t really exist, and Butts instead doled out investor funds to enrich himself and others. The SEC obtained an emergency order in U.S. District Court for the Southern District of Florida to freeze the assets of Butts and his companies Bernard H. Butts Jr. PA and Butts Holding Corporation before investor proceeds could be fully dissipated.
The Honorable Jose E. Martinez issued an order dated July 10, 2014, requiring Butts and his companies to pay $1,691,608 in disgorgement and $96,232.99 in prejudgment interest as well as a penalty of $2,059,284.19. Butts and his wife Margaret A. Hering also must pay an additional $100,000 in disgorgement and $4,570.82 in prejudgment interest.
The SEC will return the money to investors through a Fair Fund. More than $1.9 million already has been deposited from accounts belonging to Butts and his companies into the registry of the court following the asset freeze instituted at the SEC’s request last year. And the court’s order requires the transfer to the court of more than $2 million separately seized by the U.S. Secret Service from accounts belonging to Butts and his companies. The SEC will then submit a plan to the court for distribution of these collected funds back to investors.
Butts has consented to be barred from the securities industry or offering penny stock, and agreed to be suspended from practicing as an attorney on behalf of any entity regulated by the SEC.
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.