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November 4, 2015

Former broker John D’Auria pleads guilty to fraud

On October 27, 2015 the Securities and Exchange 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 Advisors Act of 1940 against John D’Auria.

On July 13, 2015, D’Auria pled guilty to one count of wire before the United States District Court for the District of Connecticut, in United States v. John D’Auria, Case No. 3:15-cr-00121-MPS. On July 13, 2015, the U.S. District Court Judge accepted D’Auria’s guilty plea.

In response to the SEC’s action, John D’Auria submitted an offer of settlement which the SEC accepted. In the offer of settlement D’Auria admitted that beginning in or about 2010 and continuing to in or about 2014, D’Auria engaged in a scheme to defraud investors by failing to invest the funds as represented and by using the majority of the investment funds for his personal use. D’Auria also provided some investors with false valuation numbers and false documentation that fraudulently suggested that the investors’ investments had appreciated in value, while D’Auria knew this information was false. As a result of D’Auria’s fraudulent scheme, D’Auria defrauded investors of approximately $2.4 million.

November 4, 2015

SEC opens proceedings against Jonathan Warren Brooks

by David Liebrader

On November 2, 2015 the Securities and Exchange 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 Advisors Act of 1940 against Jonathan Warren Brooks.

Brooks is currently incarcerated in Kershaw, South Carolina. He was a registered investment adviser representative of J. Brooks Financial and also worked as a registered representative with High Street Securities, Inc., from November 2011 to November 2012; and with Sicor Securities, Inc. from September 2009 to November 2011.

On September 18, 2014, Brooks pleaded guilty to three felony counts of securities fraud and two felony counts of forgery in Aiken County, South Carolina. On the same day, the court sentenced Jonathan Warren Brooks to fourteen years in prison, and ordered him to pay over six million dollars in restitution.

November 3, 2015

SEC charges William Apestelos with running a ponzi scheme

by David Liebrader

On October 30, 2015 in the Southern District of Ohio The Securities and Exchange Commission filed an enforcement action against William Apostelos and his companies WMA Enterprises, LLC, Midwest Green Resources, and OVO Wealth Management. The complaint alleged that Willlaim Apostelos and his companies conducted a fraudulent investment scheme.

The SEC’s complaint alleges that William Apostelos, WMA, Midwest Green, and OVO raised over $66 million from over 300 investors since January, 2010 and that throughout the alleged scheme, William Apostelos made multiple misrepresentations to recruit new investors. The SEC alleges that Apostelos told investors that their funds would be invested in stock, precious metals, real estate, and used to make short-term loans to small businesses and farmers.

The SEC alleges that, in fact, William Apostelos funneled nearly all the investor funds to WMA’s bank accounts and used them to make ponzi scheme like payments to earlier investors and promoters of the scheme; to finance other businesses that he owned; and to support his lavish lifestyle, including the payment of gambling expenditures.

October 31, 2015

Frank Savigne FINRA membership suspended

by David Liebrader

Frank Savigne a registered representative formerly with Wells Fargo Advisors in Sarasota, FL was suspended from FINRA membership for violations of Rule 9554

FINRA Rule 9554. Failure to Comply with an Arbitration Award or Related Settlement or an Order of Restitution or Settlement Providing for Restitution

provides that a registered representative or a firm that fails to comply with a FINRA arbitration award or a settlement agreement entered into as a result of a FINRA arbitration or mediation proceeding, shall have their license suspended 21 days after notice of the intent to suspend has been sent. In October, 2015 Frank Savigne was suspended from FINRA membership for violating Rule 9554.

October 31, 2015

Jason Mininger FINRA membership suspended

by David Liebrader

Jason Mininger a registered representative formerly with Kovack Securities in Rocklin, CA was suspended from FINRA membership for violations of Rule 9554

FINRA Rule 9554. Failure to Comply with an Arbitration Award or Related Settlement or an Order of Restitution or Settlement Providing for Restitution

provides that a registered representative or a firm that fails to comply with a FINRA arbitration award or a settlement agreement entered into as a result of a FINRA arbitration or mediation proceeding, shall have their license suspended 21 days after notice of the intent to suspend has been sent. In October, 2015 Jason Mininger was suspended from FINRA membership for violating Rule 9554.

October 31, 2015

Peter Gouzos FINRA membership suspended

by David Liebrader

Peter Gouzos a registered representative formerly with Hunter Scott Securities in DelRay Beach, FLwas suspended from FINRA membership for violations of Rule 9554

FINRA Rule 9554. Failure to Comply with an Arbitration Award or Related Settlement or an Order of Restitution or Settlement Providing for Restitution

provides that a registered representative or a firm that fails to comply with a FINRA arbitration award or a settlement agreement entered into as a result of a FINRA arbitration or mediation proceeding, shall have their license suspended 21 days after notice of the intent to suspend has been sent. In October, 2015 Peter Gouzos was suspended from FINRA membership for violating Rule 9554.

October 31, 2015

Hugh Dyson FINRA membership suspended

by David Liebrader

Hugh Dyson a registered representative formerly with Ameriprise Financial Services in Raleigh, NC was suspended from FINRA membership for violations of Rule 9554

FINRA Rule 9554. Failure to Comply with an Arbitration Award or Related Settlement or an Order of Restitution or Settlement Providing for Restitution

provides that a registered representative or a firm that fails to comply with a FINRA arbitration award or a settlement agreement entered into as a result of a FINRA arbitration or mediation proceeding, shall have their license suspended 21 days after notice of the intent to suspend has been sent. In October, 2015 Hugh Dyson was suspended from FINRA membership for violating Rule 9554.

October 31, 2015

Robert Altemus FINRA membership suspended

by David Liebrader

Robert Altemus a registered representative formerly with Merrill Lynch in Walnut Creek, CA was suspended from FINRA membership for violations of Rule 9554

FINRA Rule 9554. Failure to Comply with an Arbitration Award or Related Settlement or an Order of Restitution or Settlement Providing for Restitution

provides that a registered representative or a firm that fails to comply with a FINRA arbitration award or a settlement agreement entered into as a result of a FINRA arbitration or mediation proceeding, shall have their license suspended 21 days after notice of the intent to suspend has been sent. In October, 2015 Robert Altemus was suspended from FINRA membership for violating Rule 9554.

October 31, 2015

James Ackerman FINRA membership suspended

by David Liebrader

James Ackerman a registered representative formerly with Sloan Securities in Englewood Cliffs, NJ was suspended from FINRA membership for violations of Rule 9554

FINRA Rule 9554. Failure to Comply with an Arbitration Award or Related Settlement or an Order of Restitution or Settlement Providing for Restitution

provides that a registered representative or a firm that fails to comply with a FINRA arbitration award or a settlement agreement entered into as a result of a FINRA arbitration or mediation proceeding, shall have their license suspended 21 days after notice of the intent to suspend has been sent. In October, 2015 James Ackerman was suspended from FINRA membership for violating Rule 9554.

October 31, 2015

Donald McBirney FINRA membership suspended

by David Liebrader

Donald McBirney a registered representative formerly with Sterne Agee in San Francisco, CA was suspended from FINRA membership for violations of Rule 9554

FINRA Rule 9554. Failure to Comply with an Arbitration Award or Related Settlement or an Order of Restitution or Settlement Providing for Restitution

provides that a registered representative or a firm that fails to comply with a FINRA arbitration award or a settlement agreement entered into as a result of a FINRA arbitration or mediation proceeding, shall have their license suspended 21 days after notice of the intent to suspend has been sent. In June, 2015 Donald McBirney was suspended from FINRA membership for violating Rule 9554.