Securities Fraud Lawyer Blog

February 11, 2017

SEC wins case vs. Aschere Energy

The SEC won its summary judgment motion (SEC v Aschere ) against Aschere Energy on its claim that Aschere sold unregistered securities to the public. Investors who purchased Aschere securities, especially in the “Wied Field” program should review their legal rights immediately.

On July 8, 2016 a federal judge in the Northern District of Texas affirmed his original Order (issued in March, 2016 ) on the SEC’s motion for summary judgment against Aschere Energy, Arcturus Corp, promoter Leon Ali Parvizian and brokers Robert J. Balunas and Alfredo Gonzalez. The SEC had charged Aschere and the individuals with running an unregistered cold calling boiler room to sell shares of unregistered securities to the public.

In his ruling, Jude Kinkeade made findings that the Defendants acted as unregistered brokers when they sold unregistered securities in the Aschere Energy oil and gas programs. The Judge also found that Parvizian had committed securities fraud by failing to disclose the lack of ownership in a program that Aschere was selling to the public

February 10, 2017

FINRA Bars AllState Broker Michael Farinella

by David Liebrader

In January, 2017 FINRA barred former broker, Allstate Financial’s Michael Farinella

Michael Farinella, a registered representative from Florrisant, Missouri, formerly with AllState Financial Services was suspended from FINRA membership for violations of Rule 9552

FINRA Rule 9552. Failure to Provide Information or Keep Information Current

February 10, 2017

Sam Campos Barred by FINRA

by David Liebrader

In January 2017, former JP Morgan broker Sam Campos was barred by FINRA for violating Rule 9552.

Sam Campos, a registered representative from Forney, Texas, formerly with JP Morgan Securities was suspended from FINRA membership for violations of Rule 9552

FINRA Rule 9552. Failure to Provide Information or Keep Information Current

February 10, 2017

Debbie Sue Arnold Barred by FINRA

by David Liebrader

January, 2017: FINRA announces Debbie Sue Arnold Barred for violating FINRA Rule 9552

Debbie Sue Arnold, a registered representative from Albany, Ohio, formerly with Farmers Financial Solutions was suspended from FINRA membership for violations of Rule 9552

FINRA Rule 9552. Failure to Provide Information or Keep Information Current

December 21, 2016

Marian Young denied license in CA

by David Liebrader

Marian Young of Saving2Retire barred from selling investments by California’s Department of Business Oversight

On March 24, 2016 the State of California’s Department of Business Oversight issued a bar order, denying Marian Young of Saving2Retire permission to act as an investment advisor or a broker dealer in California. The Order also denied Savings2Retire’s Investment Advisor application. The denial relates back to a November, 2015 statement of issues filed by the Commissioner that lays out Marian Young and Saving2Retire’s history of selling investments and providing investment advice in California. The November 2015 statement of issues was brought to deny Saving2Retire’s investment advisor application, and to bar Marian Young from acting as, or working for a broker dealer or investment advisor in California.

The denial and bar order sets forth Marian Young’s history with both the commission and the SEC, including the registration of her prior firm; Young Capital Growth Company, and the SEC and Commission’s correspondence with Young over deficiencies in her application for licensing. According to the statement of issues, Young refused to cooperate with the SEC when the agency asked for information, and also failed to answer questions posed by the Commission during its routine investigation into licensing. The statement also sets forth misrepresentations made by Young on the form ADV, including falsely claiming she was a certified financial planner. When pressed on these issues, Young removed all reference to such licensing.

December 20, 2016

Marc Sarner Barred by CA DOC

by David Liebrader

Marc Sarner of Beacon Financial Advisory Services Hit with Cease and Desist Order by California’s Department of Business Oversight

On June 30, 2016 the State of California’s Department of Business Oversight issued a cease and desist order against Marc Sarner of Beacon Financial Advisory Services over allegations he participated in two unqualified offerings of securities to California residents. The claim relates to the offering of securities in “Image Development” a California company that was issuing bonds in order to purchase distressed real estate, as well as an offering by Usee Corp, a Texas company selling stock and promissory notes to raise money to fund its internet video-phone business.

According to an order issued in December, 2015, Sarner persuaded several of his clients to cash out annuities to purchase Image Development securities which he described as “conservative investments.” The clients incurred significant surrender penalties when redeeming the annuities. Sarner also solicited his clients to invest in Usee’s securities for which he received sales commissions of ten percent. Neither Image Development nor Usee were successful ventures, and neither returned the investors’ principal.

December 19, 2016

Derrick Stephens hit with cease and desist in California

by David Liebrader

Derrick Stephens, D Stephens Management and Consulting, Lola Korneevets Hit with Cease and Desist Order by California’s Department of Business Oversight

On June 22, 2016 the State of California’s Department of Business Oversight issued a cease and desist order against Derrick Stephens and D Stephens Management and Consulting over allegations they participated in an unqualified offering of securities to California residents. Also named in the desist order was Olena Korneevets aka Lola Korneevets. D Stephens Management and consulting had been the subject of a 2008 desist order issued by the Department of Business Oversight.

The present desist order relates to the offer and sale of investment contracts (securities) with a purported return of over 20%, guaranteed by Stephens. According to the desist order, the investor was told that the only way he wouldnt get his principal returned was if the entire United States financial system collapsed. the investor was also not told about the existence of the 2008 desist order, a material omission of fact. The order also alleges that D Stephens Management and Consulting and Derrick Stephens offered and sold unqualified securities, as the investment contracts were neither qualified for sale, nor exempt from qualification.

December 18, 2016

Eric Grace Barred by CA

by David Liebrader

The State of California stripped Eric Grace of his ability to legally sell investments in California

On May 18, 2016 Eric Grace, a former registered representative and investment advisor with Grace Capital Management of Torrance, CA was barred from acting as an investment advisor or broker dealer by the California Department of Business Oversight

The State of California earlier in the year had filed an accusation against Eric Grace, after he refused to provide them information relating to his business with Grace Capital Management. The state had demanded access to Grace Capital Management’s offices for a routine examination in December, 2015 but found it closed. They then left voice messages with Grace Capital Management, and sent certified letters, but received no response.

December 17, 2016

Paul Moore Coast Capital Hit with C&D

by David Liebrader

Paul Moore Coast Capital Management Hit with Cease and Desist Order by California’s Department of Business Oversight

On May 18, 2016 the State of California’s Department of Business Oversight issued a cease and desist order against Paul Moore of Coast Capital Management over allegations they participated in an unqualified offering of securities to California residents. The claim relates to an offering of securities in Paul Moore’s Coast Capital “Hedge fund” which sought outsized returns using high risk securities such as derivatives and options.

The Desist order states that beginning in October, 2010 Paul Moore sold interests in Coast Capital, which was an unqualified offering of securities. The order further states that the sale of securities was done via misrepresentations of material facts and omissions of material facts, including misrepresentations about Paul Moore’s investment management experience and success, and how the funds raised by Paul Moore and Coast Capital would be used. According to the allegations made by the Commissioner, Moore used funds raised in the offering in a manner inconsistent with prudent investment management, including using the funds to pay personal expenses.

December 16, 2016

Source Capital’s James Duhon Hit with C&D

by David Liebrader

James Duhon and Source Capital Hit with Cease and Desist Order by California’s Department of Business Oversight

On October 10, 2016 the State of California’s Department of Business Oversight issued a cease and desist order against Source Capital and James Duhon over allegations they participated in an unqualified offering of securities to California residents. The claim relates to an offering of securities in oil and gas programs overseen by the Blue Ridge Group, and includes the Belmont Drilling Program, the Galveston Bay Drilling Program and three other oil and gas drilling programs sold by among others, James Duhon and Source Capital. The order also alleges that Source Capital and James Duhon offered and sold unqualified securities to the public by way of material omissions of fact.

The Commissioner alleges that from September 2010 through November, 2012, James Duhon and Source Capital sold oil and gas securities to investors without those securities being qualified for sale, and by way of either material omission of fact or through material omissions, including the rate of return that investors could expect from the programs managed by Blue Ridge Group. One California based investor was told he could receive his money back any time he asked for it, which the Commissioner found to be materially inaccurate.