As published in the Financial Industry Regulatory Authority (FINRA) disciplinary actions report for March 2011, Angelo Xagoraris was named as a respondent in a FINRA complaint alleging that he made unsuitable recommendations to a customer of his member firm to purchase variable universal life (VUL) policies without offering any alternative investment recommendations even though the customer’s investment objectives were income, and she neither wanted nor needed life insurance; Xagoraris received commissions totaling $3,736.02 from the customer’s investment in the VUL policies.

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As published in the Financial Industry Regulatory Authority (FINRA) disciplinary actions report for March 2011, Mack Henry Wheat was named as a respondent in a FINRA complaint alleging that he knowingly permitted a relative of an individual to falsely sign the individual’s name to a life insurance application of which the relative was the beneficiary. The complaint alleges that Wheat instructed the relative to sign the individual’s life application in different handwriting from his own to make it look as if the individual really signed it and submitted the application to his firm’s non-member affiliate in order to obtain a life insurance policy in the individual’s name.

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As published in the Financial Industry Regulatory Authority (FINRA) disciplinary actions report for March 2011, Andrew George Spotts was named as a respondent in a FINRA complaint alleging that he wrongfully misappropriated approximately $197,860 from a coworker at his member firm. The complaint alleges that Spotts took blank personal checks from the coworker, making the checks payable to himself and to third parties, without the coworker’s knowledge or authorization, and forged the coworker’s name on the checks, which were then deposited into his personal account or issued to third parties.

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As published in the Financial Industry Regulatory Authority (FINRA) disciplinary actions report for March 2011, Lazaro E. Salado was named as a respondent in a FINRA complaint alleging that he misappropriated $186,114.28 from customers of his member firm. The complaint alleges that Salado caused a bank to issue checks made payable to his personal account over which the customers had no possession or control.

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As published in the Financial Industry Regulatory Authority (FINRA) disciplinary actions report for March 2011, John Duncan Montfort was named as a respondent in a FINRA complaint alleging that he exercised discretion in customers’ accounts and also exercised discretionary trades in the account of a business entity owned by these customers without the customers’ prior written authorization or his member firm’s written acceptance of the accounts as discretionary.

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On March 29, 2011 U.S. Securities and Exchange Commission (SEC) published that the commission issued its Order Instituting Proceedings against Joseph R. Porche on January 19, 2011, pursuant to Section 15(b) of the Securities Exchange Act of 1934. The OIP alleged that Porche participated in a fraudulent offering of unregistered securities, and, as a result, he was enjoined from future violations of various provisions of the Securities Act of 1933 and the Exchange Act in SEC v. Porche, No 8:10-cv-01165-DOC (C.D. Cal.).

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On March 29, 2011 U.S. Securities and Exchange Commission (SEC) charged a U.S. Food and Drug Administration (FDA) chemist with insider trading on confidential information about upcoming announcements of FDA drug approval decisions, generating more than $3.6 million in illicit profits and avoided losses. The SEC alleges that Cheng Yi Liang illegally traded in advance of at least 27 public announcements about FDA drug approval decisions involving 19 publicly traded companies.

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On March 29, 2011 Commodities and Futures Trading Commission (CFTC) announced that a federal court entered a default judgment order requiring defendants Willie L. Cloud, Jr. and his company, C & R Financial, Inc., both of Houston, Texas, to pay restitution of $280,170.66 and a $5,070,000 million civil monetary penalty for operating an offexchange foreign currency (forex) Ponzi scheme. The order stems from a CFTC complaint filed on March 4, 2010, that charged the defendants with violating the anti-fraud provisions of the Commodity Exchange Act.

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On March 18, 2011 Federal Reserve Board (FRB) published the execution of Written Agreement by and between First American International Corporation, a registered bank holding company, owns and controls First American International Bank, Brooklyn, New York, a state chartered nonmember bank, and various nonbank subsidiaries with Federal Reserve Bank of New York.

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1. Impact Cash L.L.C.
2. Impact Payment Systems L.L.C.
3. Royal West Properties Inc.
4. Creswell Equities Inc.
5. Sporlox Corp.
6. Clarion Internet Inc.
7. The Clarke Corp.
8. Clement Corp.
9. Cochstedt International Airport Inc.
10. Coded Communications Corp.
11. Collaborative Financial Network Group Inc.
12. Commercial International Corp.
13. Convergent Communications Inc.

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On March 28, 2011 U.S. Securities and Exchange Commission (SEC) published that the commission deems it appropriate and in the public interest that public administrative proceedings be, and hereby are, instituted pursuant to Section 15(b) of the Securities Exchange Act of 1934 against Anthony Fareri. After an investigation, the Division of Enforcement alleges that: From December 2003 through December 2006, Respondent was the president of Fareri Financial Services, Inc. d/b/a Amerifinancial, a broker-dealer registered with the Commission. At all relevant times, Respondent held Series 7, 24 and 63 licenses.

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On March 28, 2011 U.S. Securities and Exchange Commission (SEC) published that the Honorable George B. Daniels of the United States District Court for the Southern District of New York March 25, 2011, entered a final judgment on consent against Defendant Jose O. Vianna, Jr., a former registered representative of Maxim Group LLC, a registered broker-dealer. The judgment (i) permanently enjoined Vianna from violating Section 17(a) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder and from violating, or aiding and abetting violations of, Section 17(a) of the Exchange Act, and Rule 17a-3, thereunder; (ii) ordered Vianna to disgorge $306,412 in ill-gotten gains plus $47,442 in prejudgment interest thereon; and (iii) ordered Vianna to pay a $130,000 civil penalty.

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On March 07, 2011 New York State Insurance Department (NYSID) published that Nathan J. Brenowitz signed the names of two clients on supplements to their life insurance applications without the clients’ knowledge or consent; signed a client’s name on an amendment to a long term care insurance application, a policy delivery acknowledgment, a long term care unreported change form and two personal health and status declarations without the client’s knowledge or consent; and signed a client’s name on a supplement to life insurance application, a numeric summary and a policy delivery acknowledgement without the client’s knowledge or consent.

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On March 07, 2011 New York State Insurance Department (NYSID) published that Eric W. Lerner solicited, negotiated and sold in the State of New York annuity and long term care contracts issued by a life insurance company ,an unauthorized insurer, and otherwise aided and facilitated said unauthorized insurer in doing an insurance business in the State of New York and in connection with the aforementioned annuity and long term care contracts, Respondent knowingly submitted applications which falsely stated that the annuitant signed the application in Florida or Connecticut when in fact the application was signed in the State of New York.

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On March 07, 2011 New York State Insurance Department (NYSID) published that Thomas F. Westcott violated Section 2123 of the Insurance Law and Department Regulation 60 (11 NYCRR 51) in connection with the placement of life insurance policies that involved replacements within the meaning of Department Regulation 60 by presenting to the applicants Disclosure Statements that failed to provide required information with respect to the guaranteed premium and guaranteed surrender values for the existing policies, and that stated a primary reason for recommending the new policies that was inapplicable to the policies.

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