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Articles Posted in SEC Actions

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After discovering that four of its financial advisors had committed fraud with automatic bank transfers, Morgan Stanley Smith Barney (MSSB) has agreed to pay $15 million in fines and other sanctions for failing to have reasonable theft detection in place. Prior to December of 2022, MSSB did not have a system that screened and detected unauthorized transfers and payments made by Automatic Clearing House (ACH) and other types of cash transfers. Both methods were unauthorized, and the financial advisors were able to transfer millions of customer funds to their own accounts.After discovering that four of its financial advisors had committed fraud with automatic bank transfers, Morgan Stanley Smith Barney (MSSB) has agreed to pay $15 million in fines and other sanctions for failing to have reasonable theft detection in place. Continue reading ›

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Silver Law Group’s managing partner Scott Silver was interviewed by Investment News for a news article about the SEC revoking the license of Lufkin Advisors of San Mateo, California. The license was revoked after its president and chief compliance officer, Chauncey Forbush Lufkin, III, was charged with fraudulent contact related to crypto assets and private funds. “Nobody knows what’s happening internally in these pooled funds at the retail level. How are these firms really managing these types of funds? It’s a recipe for disaster,” Scott said. Lufkin Advisors managed $115.8 million in client assets and operated three pooled investment vehicles, as reported in their latest Form ADV. These pooled funds, which combine capital from multiple investors, have raised concerns among some financial professionals regarding their suitability for retail investors. The primary issue stems from the potential difficulty in tracking and accounting for individual contributions within these collective investment structures.Silver Law Group’s managing partner Scott Silver was interviewed by Investment News for a news article about the SEC revoking the license of Lufkin Advisors of San Mateo, California. The license was revoked after its president and chief compliance officer, Chauncey Forbush Lufkin, III, was charged with fraudulent contact related to crypto assets and private funds.

“Nobody knows what’s happening internally in these pooled funds at the retail level. How are these firms really managing these types of funds? It’s a recipe for disaster,” Scott said. Continue reading ›

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Aegis Capital Corporation (CRD#15007) has reached an agreement with the US Securities and Exchange Commission (SEC) regarding the recommendations and sales of a complex and risky investment called variable interest rate structured products, or VRSP. The SEC filed a cease-and-desist order on July 28, 2022. In response, Aegis submitted an offer of settlement. The action is the result of Aegis representatives making highly unsuitable recommendations to customers in two of their branch offices: Melville, NY, and Boca Raton, Fl. In both cases, the company’s supervisory procedures were not properly followed in relation to these recommendations to retail customers as well as material misstatements and omissions. Institutional customers were not affected. VRSPs These high-risk, illiquid investments are known as “principal at risk” investments because investors may or may not lose their principal. They have 15-year maturity periods and are not traded on any public market. Investors may have to keep them the entire 15-year period, since they are unlikely to be able to sell them on a secondary market.Aegis Capital Corporation (CRD#15007) has reached an agreement with the US Securities and Exchange Commission (SEC) regarding the recommendations and sales of a complex and risky investment called variable interest rate structured products, or VRSP. The SEC filed a cease-and-desist order on July 28, 2022. In response, Aegis submitted an offer of settlement. Continue reading ›

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On September 1, 2022 the Securities and Exchange Commission (SEC) announced through a press release that the commission had filed an enforcement action against the managing partners of Broadway Strategic Return Fund, LP, Curtis Wayne Cronin and John Joseph. The action seeks an order directing Cronin and Joseph to comply with subpoenas for documents and testimony. Silver Law Group is a securities and investment fraud law firm that represents investors in claims for breach of fiduciary duty, negligent due diligence and other losses relating to securities and investments. Broadway Strategic Return Fund, LP is a fund “that invests in securities related to theatrical productions”, according to the press release.On September 1, 2022 the Securities and Exchange Commission (SEC) announced through a press release that the commission had filed an enforcement action against the managing partners of Broadway Strategic Return Fund, LP, Curtis Wayne Cronin and John Joseph. The action seeks an order directing Cronin and Joseph to comply with subpoenas for documents and testimony. Continue reading ›

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The SEC announced that it has filed a temporary restraining order against Ron Harrison (Ron K. Harrison), a former registered broker and investment advisor (CRD#: 1785805) to freeze the assets of his company, Global Trading Institute, and his girlfriend since 2017, Irina Parfyonova. She is named as a relief defendant after receiving more than $279,000 from Harrison’s fraudulent activities, using the funds for their own living expenses. The US District Court in the Central District of California granted the SEC’s restraining order on September 30, 2021, freezing assets and requiring a full accounting of all funds. The court also set another hearing on October 14th to extend the emergency relief with a preliminary injunction.  The complaint states that Harrison and Parfyonova live in Ladera Ranch, CA. Harrison was unregistered, and ran his company, Global Trading Institute (GTI) since 2016 and the now-defunct Trading Advisement Program, LLC (TAP.) Neither were ever registered with the SEC. Harrison charged 22 clients $900,000 based on alleged gains he’d made trading options in the client’s accounts.The SEC announced that it has filed a temporary restraining order against Ron Harrison (Ron K. Harrison), a former registered broker and investment advisor (CRD#: 1785805) to freeze the assets of his company, Global Trading Institute, and his girlfriend since 2017, Irina Parfyonova. She is named as a relief defendant after receiving more than $279,000 from Harrison’s fraudulent activities, using the funds for their own living expenses. Continue reading ›

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Silver Law Group, a national securities and investment fraud law firm that represents Ponzi scheme victims, is investigating Harbor City Capital Corp. and its founder, Melbourne, Florida resident Jonathan P. Maroney (JP Maroney, Jonathan Paul Maroney), for running an alleged Ponzi scheme. Jonathan P. Maroney Alleged To Have Sold Unregistered Fraudulent Securities An emergency action filed April 20, 2021, by the Securities and Exchange Commission (SEC) in federal court in the Middle District of Florida alleges that Maroney used Harbor City Capital, a purported "online lead generation campaign business," and a number of entities to raise $17.1 million through offerings of unregistered fraudulent securities. Jonathan P. Maroney allegedly used those proceeds to maintain his Ponzi scheme and for his personal use. Maroney, 50, sold unregistered fraudulent securities as either promissory notes, fixed-rate funding agreements, or high yield, secured bonds while promising investors monthly returns ranging from 1 percent to 5 percent—and annual returns from 10 percent to 60 percent. Through marketing videos and social media, Jonathan P. Maroney ensnared over 100 victims across the United States, according to the SEC.Silver Law Group, a national securities and investment fraud law firm that represents Ponzi scheme victims, is investigating Harbor City Capital Corp. and its founder, Melbourne, Florida resident Jonathan P. Maroney (JP Maroney, Jonathan Paul Maroney), for running an alleged Ponzi scheme. Continue reading ›

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The Securities and Exchange Commission (SEC) has obtained a temporary restraining order and asset freeze against Melbourne, Florida resident Jonathan P. Maroney, accusing him of running an ongoing Ponzi scheme through his company Harbor City Capital Corp., LLC and other entities. Although characterized as an internet marketing company, Maroney allegedly structured the company to raise money from investors who would profit from Harbor City Capital’s operations placing ads on the internet.  In reality, according to the SEC allegations, Maroney used investor money for his own use and benefit and was operating a Ponzi scheme. The SEC emergency action, filed April 20, 2021, in federal court in the Middle District of Florida, halted the alleged Ponzi scheme and marketing scam that the SEC said was ongoing. Maroney, 50, raised more than $17.1 million by offering fraudulent unregistered securities to finance his business of online “customer lead generation campaigns,” in which online sales leads are created and sold to third party businesses. In fact, very little of the capital that Maroney raised through his securities offerings went into this business, the SEC alleges, and was instead misappropriated for Maroney’s personal use, to make payments to entities unrelated to the purported purpose of the offerings, and to keep his Ponzi scheme going. Maroney and two relief defendants, Celtic Enterprises, LLC, a company he runs, as well as Maroney’s wife, Tonya L. Maroney, are charged with violating the antifraud and registration provisions of the federal securities laws. In addition to the emergency relief granted by the Court, the complaint seeks preliminary and permanent injunctions, disgorgement, prejudgment interest, and a civil penalty from each of the defendants.The Securities and Exchange Commission (SEC) has obtained a temporary restraining order and asset freeze against Melbourne, Florida resident Jonathan P. Maroney, accusing him of running an ongoing Ponzi scheme through his company Harbor City Capital Corp., LLC and other entities. Although characterized as an internet marketing company, Maroney allegedly structured the company to raise money from investors who would profit from Harbor City Capital’s operations placing ads on the internet. In reality, according to the SEC allegations, Maroney used investor money for his own use and benefit and was operating a Ponzi scheme. Continue reading ›

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Scott Silver, Silver Law Group’s managing partner, was interviewed for a CNBC article about the GameStop (GME) bull who is behind the Roaring Kitty YouTube streams. GameStop Surges With Help From Reddit, Social Media Bulls According to news reports, GameStop stock’s incredible rise in price was helped by social media posts by people like Roaring Kitty and a Reddit user named DeepF***ingValue who posted on the WallStreetBets thread. The posts contributed to large amounts of retail investment money pouring into GameStop stock, which drove up the price and harmed the hedge funds who had shorted the stock.Scott Silver, Silver Law Group’s managing partner, was interviewed for a CNBC article about the GameStop (GME) bull who is behind the Roaring Kitty YouTube streams.

GameStop Surges With Help From Reddit, Social Media Bulls

According to news reports, GameStop stock’s incredible rise in price was helped by social media posts by people like Roaring Kitty and a Reddit user named DeepF***ingValue who posted on the WallStreetBets thread. The posts contributed to large amounts of retail investment money pouring into GameStop stock, which drove up the price and harmed the hedge funds who had shorted the stock. Continue reading ›

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On February 4, 2021, the Securities and Exchange Commission (SEC) announced that it charged three people and their affiliated entities with running a “Ponzi-like scheme” that raised more than $1.7 billion by selling private placements issued by alternative asset management firm GPB Capital Holdings. Silver Law Group represents investors in claims against the broker-dealers who sold GPB to investors. Claims to recover investment losses allege that the broker-dealers failed to conduct adequate due diligence on the investment, among other causes. Our securities fraud attorneys have already filed multiple FINRA arbitration claims. Silver Law Group reportedly filed the first GPB-related stockbroker arbitration claim in 2019.  Since that time, our attorneys have recovered substantial damages for investors around the country. The SEC action further demonstrates the gross misconduct allegedly at GPB and although most brokerage firms refused to sell GPB, investors have alleged that the selling brokerage firms failed to do adequate due diligence or turned a blind eye to red flags because GPB paid substantial commissions to the selling stockbrokers.On February 4, 2021, the Securities and Exchange Commission (SEC) announced that it charged three people and their affiliated entities with running a “Ponzi-like scheme” that raised more than $1.7 billion by selling private placements issued by alternative asset management firm GPB Capital Holdings. Continue reading ›

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