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Articles Posted in SEC Actions

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The Securities and Exchange Commission (SEC) is accusing Florida-based real estate firm EquiAlt LLC, and its owner and managing director, with running a Ponzi scheme that raised over $170 million from 1,100 investors and misappropriated millions of dollars to pay for personal luxury items including sports cars and private jet travel.The Securities and Exchange Commission (SEC) is accusing Florida-based real estate firm EquiAlt LLC, and its owner and managing director, with running a Ponzi scheme that raised over $170 million from 1,100 investors and misappropriated millions of dollars to pay for personal luxury items including sports cars and private jet travel.

Did you lose money with EquiAlt? Call our attorneys toll free at (800)-975-4345 or e-mail ssilver@silverlaw.com for a no-cost confidential consultation about options to recover your losses. Continue reading ›

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The Securities and Exchange Commission (SEC) announced that it obtained a temporary restraining order and filed an emergency enforcement action against Kenneth D. Courtright III and his company, Todays Growth Consultant Inc. The actions by the SEC are related to an alleged “Ponzi-like scheme” that raised more than $75 million from over 500 investors. The Income Store Promised High Returns The SEC’s complaint, unsealed Jan 14, 2020, states that Courtright and Todays Growth Consultant Inc. (TGC), which also did business under the name “The Income Store”, promised investors high rates of return from revenues from websites.The Securities and Exchange Commission (SEC) announced that it obtained a temporary restraining order and filed an emergency enforcement action against Kenneth D. Courtright III and his company, Todays Growth Consultant Inc.

The actions by the SEC are related to an alleged “Ponzi-like scheme” that raised more than $75 million from over 500 investors. Continue reading ›

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Registered Investment Advisor McDermott Investment Advisors (MIA) and its founder Dean Patrick McDermott are the subject of a lawsuit filed by the Securities and Exchange Commission (SEC) for allegedly “double dipping” on fees by investing clients in securities that paid fees to an affiliated broker-dealer, rather than a cheaper alternative. Clients Charged Unnecessary Transaction Fees The lawsuit alleges that McDermott and MIA put over $5.7 million of its client’s assets into unit investment trusts (UITs) that charged a transaction fee, most of which was paid to a broker-dealer that was owned by McDermott, rather than a UIT with no transaction fee.Registered Investment Advisor McDermott Investment Advisors (MIA) and its founder Dean Patrick McDermott are the subject of a lawsuit filed by the Securities and Exchange Commission (SEC) for allegedly “double dipping” on fees by investing clients in securities that paid fees to an affiliated broker-dealer, rather than a cheaper alternative.

Clients Charged Unnecessary Transaction Fees

The lawsuit alleges that McDermott and MIA put over $5.7 million of its client’s assets into unit investment trusts (UITs) that charged a transaction fee, most of which was paid to a broker-dealer that was owned by McDermott, rather than a UIT with no transaction fee. Continue reading ›

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The SEC (Securities and Exchange Commission) has filed a lawsuit against barred advisor Marcus Boggs, who formerly worked for Merrill Lynch, Pierce, Fenner & Smith, for allegedly stealing over $1.7 million from his clients. According to the SEC’s civil complaint, Boggs is accused of transferring money from three of his client’s accounts to his personal credit card account more than 200 times to pay for huge credit card purchases.The SEC (Securities and Exchange Commission) has filed a lawsuit against barred advisor Marcus Boggs, who formerly worked for Merrill Lynch, Pierce, Fenner & Smith, for allegedly stealing over $1.7 million from his clients.

According to the SEC’s civil complaint, Boggs is accused of transferring money from three of his client’s accounts to his personal credit card account more than 200 times to pay for huge credit card purchases. Continue reading ›

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On August 29, 2019, the SEC (Securities and Exchange Commission) announced an award of over $1.8 million for a whistleblower “whose information and assistance were critically important to the success of an enforcement action involving misconduct committed overseas.” According to a press release from the SEC, the whistleblower alerted the agency to the violations and helped greatly during the investigation. The whistleblower, who was not identified, gave sworn testimony, reviewed documents, and gave ongoing new information that helped move the investigation forward.On August 29, 2019, the SEC (Securities and Exchange Commission) announced an award of over $1.8 million for a whistleblower “whose information and assistance were critically important to the success of an enforcement action involving misconduct committed overseas.”

According to a press release from the SEC, the whistleblower alerted the agency to the violations and helped greatly during the investigation. The whistleblower, who was not identified, gave sworn testimony, reviewed documents, and gave ongoing new information that helped move the investigation forward. Continue reading ›

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On February 26, 2019, the SEC announced charges and an asset freeze against the people behind a South Florida investment scheme. One of the people behind the scheme has a felony conviction, was in prison for 20 years, and is now out on parole. Castleberry Financial Services Group LLC, managed by T. Jonathon Turner and CEO Normal Strell, has allegedly taken approximately $3.6 million from investors over the past year. The SEC filed an emergency action against them in district court, stating that Castleberry lied to its investors, claiming that it had hundreds of millions of dollars of capital invested in various businesses. The company also claimed that it had ties with CNA Financial Corp. and Chubb Group. Castleberry claimed that any investments would be protected and insured by those companies, which the SEC alleges is untrue.On February 26, 2019, the SEC announced charges and an asset freeze against the people behind a South Florida investment scheme. One of the people behind the scheme has a felony conviction, was in prison for 20 years, and is now out on parole.

Castleberry Financial Services Group LLC, managed by T. Jonathon Turner and CEO Normal Strell, has allegedly taken approximately $3.6 million from investors over the past year. The SEC filed an emergency action against them in district court, stating that Castleberry lied to its investors, claiming that it had hundreds of millions of dollars of capital invested in various businesses. The company also claimed that it had ties with CNA Financial Corp. and Chubb Group. Castleberry claimed that any investments would be protected and insured by those companies, which the SEC alleges is untrue. Continue reading ›

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Registered investment advisor Direct Lending Investments, LLC (CRD# 282476) has been sued by the SEC with multiple fraud charges relating to $11 million in management and performance fee overcharges on private placements. The company also falsified loan repayment information and inflated their annual returns for many years. The suit was filed on March 22 in Los Angeles.A DLI employee notified the SEC that Direct Lending’s founder, Brendan Ross, “knowingly engaged in a multi-year scheme to mask the poor performance of one of the funds’ largest investments,” the SEC said in its lawsuit. Ross engineered loans that were valued “at par,” but should have been valued at zero. Ross also over-stated the company’s valuation of one of its loans, to a company called Quarterspot, an online small-business lender.Registered investment advisor Direct Lending Investments, LLC (CRD# 282476) has been sued by the SEC with multiple fraud charges relating to $11 million in management and performance fee overcharges on private placements. The company also falsified loan repayment information and inflated their annual returns for many years. The suit was filed on March 22 in Los Angeles. Continue reading ›

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FINRA-Permanently-Bars-Gary-Eugene-Donovan-for-Stock-Manipulation-300x200The SEC obtained a preliminary injunction against two individuals and their companies on October 26, 2018. The fraudulent actions of these individuals resulted in more than $165 million of illegal sales and stock in at least 50 microcap companies.

According to the SEC, U.K. citizen Roger Knox and his Swiss-based company, Wintercap SA, was involved in antifraud and violating federal securities laws. German citizen Michael T. Gastauer and six of his entities were involved in aiding and abetting Knox and Wintercap’s violations of the same provisions. The court had originally entered a temporary restraining order and asset freeze on October 2, 2018.

The SEC’s complaint states that Knox and Wintercap aided microcap securities holders in evading federal securities laws that restrict sales by large shareholders. Knox and Wintercap gave anonymous access to brokerage accounts in order to sell shares in the U.S. market. They also helped sellers conceal the amount of stock they wanted to sell. Gastauer allegedly established several U.S. corporations to aid and abet the fraud, and allowed Knox to use certain bank accounts to distribute the proceeds of his illegal stock sales.

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The SEC has brought additional charges against a Long-Island, New York-based boiler room that was sued for defrauding elderly and unsophisticated investors. The latest charges allege that Christian Romandetti, CEO of First Choice Healthcare Solutions Inc., the boiler room, and four others have committed fraud within the company’s shares and have generated more than $3.3 million of illegal profits. The new charges also allege that the parties generated more than $560,000 in kickbacks for Romandetti.

The SEC’S statement alleges that Romandetti and the other parties lied to more than 100 victims in a scheme that inflated First Choice’s stock price from less than $1 per share to $3.40 per share. From September 2013 until June 2016, the parties used several accounts to disguise their trading, and engaged in fraudulent trading practices. Elite Stock Research, a boiler room run by one of the defendants, Anthony Vassallo, was hired to promote First Choice to investors.

The SEC originally charged Elite Stock Research with bilking victims out of more than $10 million through fraudulent sales tactics and lies about penny stocks. Seven of the 13 individuals have pleaded guilty to criminal charges brought by the U.S. Attorney’s Office for the Eastern District of New York. The litigation against the 13 individuals is still continuing.

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https://www.silverlaw.com/blog/wp-content/uploads/2017/07/Have-You-Lost-Money-with-Cantone-Research-Inc.-300x199.jpgOn October 25, 2018, the SEC obtained a court order to halt the alleged fraudulent actions of a registered stock broker and his companies.

The complaint by the SEC states that Sean Kelly used his companies, Lion’s Share Financial of East Cobb, Inc., Lion’s Share and Associates, Inc., and Lion Share Tax Services, LLC, to raise $1 million from a variety of investors. There were 12 investors, which included retirees. Kelly promised he would invest their funds into different investment products, but his promise was a lie. Instead of investing their funds into private placements and real estate, he used it on his own personal expenses. He continued to steal their money after receiving a SEC subpoena, and didn’t show up to his scheduled testimony. He used their money to buy Super Bowl tickets, expensive vacations, and also for cash withdrawals. The SEC alleges that Kelly has engaged in this fraud scheme since 2014, when he was still affiliated with Capital Financial Services.

Kelly was a representative of Center Street Securities from August 2017 to October 2018. He worked with Capital Financial Services from August 2012 to August 2017 in Marietta, Georgia. His records show that he filed for bankruptcy twice, in 2009 and in 2014.

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