Other Types of Fraudulent Activity

Thomas Shannon Ensign – Florida Investment and Stock Breach of Fiduciary Duties and Negligence FINRA Arbitration and Litigation Attorney

Published on: January 21, 2013 | By Russell L. Forkey, P.A.

Thomas Shannon Ensign – Registered Representative, Delaware, Ohio:

The Financial Industry Regulatory Authority, Inc. (FINRA) is a self-regulatory authority assigned the responsibility, by the Securities and Exchange Commission, to license, regulate and discipline securities broker/dealers and their employees, including account executives. In the event that FINRA elects to institute and enforcement action, firms and licensed individuals have the responsibility to reflect such action of their U-4 and/or U-5 filings, which can be viewed on the FINRA website under the broker-check section of the site or by viewing the monthly disciplinary information also provided on the FINRA site.

The monthly disciplinary information is referenced on the site generally in alphabetical order. This post relates to the following company or individuals. If the reader would like to review the entire FINRA release or the broker-check information concerning this matter, you can follow these highlighted links:

Angelo A. Alleca – Fort Lauderdale, Florida Securities, Investment and Insurance Fraud Misrepresentation and Litigation Attorney

Published on: December 5, 2012 | By Russell L. Forkey, P.A.

In the Matter of Angelo A. Alleca

On November 29, 2012, the Commission issued an Order Instituting Administrative Proceedings Pursuant to Section 15(b) of the Securities Exchange Act of 1934 and Section 203(f) of the Investment Advisers Act of 1940, Making Findings, and Imposing Remedial Sanctions against Angelo A. Alleca (Alleca) based on the entry of a permanent injunction against him. According to the Order, the Commission’s complaint alleged that Alleca and his company, Summit Wealth Management, Inc. (Summit Wealth Management), incurred substantial losses in Summit Investment Fund, LP (Summit Fund), and that Alleca concealed the losses from investors and provided them with false account statements. The Complaint further alleges that Alleca then raised additional funds from Summit Wealth Management clients for two additional hedge funds that he created, and that Alleca misappropriated money invested in the new funds in a Ponzi-like fashion in order to meet redemption requests in Summit Fund.

Based on the above, Alleca is barred from association with any broker, dealer, investment adviser, municipal securities dealer, municipal advisor, transfer agent or nationally recognized statistical rating organization, and barred from participating in any offering of a penny stock. Alleca consented to the issuance of the Order without admitting or denying any of the findings in the Order, except he admitted to the entry of the injunction.

Derek F.C. Elliott – Florida Sale of Unregistered Securities FINRA, AAA Arbitration and Litigation Attorney

Published on: October 16, 2012 | By Russell L. Forkey, P.A.

Final Judgments Entered Against Derek F.C. Elliott

On October 5, 2012 the Honorable James C. Mahan, United States District Judge for the District of Nevada, entered a Final Judgment against Derek F.C. Elliott (Elliott).

On May 24, 2012, the United States Securities and Exchange Commission filed a complaint, in the United States District Court for the District of Nevada, against James B. Catledge, Derek F.C. Elliott, EMI Resorts (S.V.G.) Inc., EMI Sun Village, Inc. and Sun Village Juan Dolio alleging that James B. Catledge and Elliott, and certain of their related entities, made material misrepresentations to investors in connection with the unregistered sale of interests in two resorts in the Dominican Republic. The Final Judgment against Elliot seeks no civil penalty at this time, waives disgorgement and authorizes the Commission to seek a civil penalty of not more than $250,000 by subsequent motion.

Gilbert G. Lundstrom, James A. Laphen and Don A. Langford – Central Florida Florida Misrepresentation and Mismanagement FINRA Arbitration and Litigation Attorney

Published on: September 26, 2012 | By Russell L. Forkey, P.A.

SEC Charges Bank Executives in Nebraska With Understating Losses During Financial Crisis

September, 2012:

The Securities and Exchange Commission recently announced that it charged three former bank executives in Nebraska for participating in a scheme to understate millions of dollars in losses and mislead investors and federal regulators at the height of the financial crisis. One of the executives and his son also are charged with insider trading.

Roger L. Shoss, Esq. – Conspiracy to Commit Wire Fraud

Published on: September 25, 2012 | By Russell L. Forkey, P.A.

In the Matter of Roger L. Shoss, Esq.

On September 24, 2012, the Commission issued an Order of Suspension Pursuant to Rule 102(e)(2) of the Commission’s Rules of Practice (the “Order”) against Roger L. Shoss, Esq. (“Shoss”). The Order finds that Shoss is licensed as an attorney in Texas with an office in Houston, Texas. The Order also finds that on May 22, 2012, a jury returned a guilty verdict against Shoss on one count of conspiracy to commit wire fraud, in violation of 18 U.S.C. § 371, in a proceeding before the United States District Court for the Middle District of Florida captioned United States v. Shoss, et al., Case # 8:11-cr-00366-T-30TBM. The criminal proceeding stemmed from Shoss’s activities in connection with four defunct, publicly-traded issuers during the period February 2005 through at least July 2006. The Order further finds that on August 9, 2012, a judgment of conviction was entered against Shoss and as a result, Shoss was sentenced to 18 months in federal prison, followed by 36 months of home confinement on supervised release. Finally, the Order finds that a final forfeiture money judgment, in the amount of $800,000, was also entered and that a final order of forfeiture was entered for Shoss’s residence in Houston, which was purchased with proceeds traceable to the wire fraud conspiracy.

Based on the above, the Commission forthwith suspended Shoss from appearing or practicing before the Commission. (Rel. 34-67914; File No. 3-15041)

Oil and Gas Fraud and Misrepresentation Florida Litigation and FINRA Arbitration Attorney

Published on: July 31, 2012 | By Russell L. Forkey, P.A.

SEC V. MICHAEL A. BODANZA ET AL., Case No. 1:12-CV-1954 (N.D. Ohio, filed July 27, 2012)

July, 2012:

SEC Charges Ohio Oil and Gas Concern with Offering Fraud

Investment Fraud and Mismanagement Boca Raton, Florida FINRA Arbitration and Litigation Attorney

Published on: July 26, 2012 | By Russell L. Forkey, P.A.

Securities and Exchange Commission v. Ladislav “Larry” Schvacho, Civil Action No. 1:12-cv-2557-WFD (N.D. Ga.)

SEC CHARGES CLOSE FRIEND OF STAFFING COMPANY CEO WITH INSIDER TRADING AROUND ACQUISITION

Recently, the Securities and Exchange Commission charged the close friend of a CEO with insider trading in the stock of a Houston-based employment services company by exploiting confidential information he learned while they were spending time together.

Options and Short Selling Fraud and Misrepresentation Florida FINRA Arbitration and Litigation Attorney

Published on: July 18, 2012 | By Russell L. Forkey, P.A.

Short Selling Brothers Agree to Pay $14.5 Million to Settle SEC Charges

July, 2012:

The Securities and Exchange Commission recently announced that two options traders who the agency charged earlier this year with short selling violations have agreed to pay more than $14.5 million to settle the case against them.

Precious Metals Boiler Rooms – Precious Metals Fraud Attorney

Published on: July 6, 2012 | By Russell L. Forkey, P.A.

Precious Metals Boiler Rooms:

Historically, “Boiler Rooms” were associated with securities and commodity futures trading. Generally, a “boiler room” is defined as a place where high-pressure salespeople use banks of telephones to “cold” call lists of potential investors (known in the trade as sucker lists) in order to peddle speculative, even fraudulent investments. Generally, as part of the sales pitch, the caller initially relies on sales scripts based upon false and misleading information. If that does not work, it is not uncommon for the sales person to just make facts up with no knowledge as to whether what is being said is in fact true.

This post is being provided for education purposes only. It is not designed to be complete in all material respects. Thus, you should not rely upon this post as providing legal or investment advice. If you have any questions, you should contact a qualified professional.

Boca Raton, Florida Stock Fraud and Misrepresentation Attorney

Published on: June 21, 2012 | By Russell L. Forkey, P.A.

Securities Fraud, Mismanagement and Misrepresentation FINRA Arbitration and Litigation Attorney, Russell L. Forkey, Esq.

June, 2012:

SEC Charges Two New Jersey-Based Firms and Owner in Stock-Lending Scheme