As published in the Financial Industry Regulatory Authority (FINRA) disciplinary actions report for February 2012, Jordan Alan Linn of Hallandale, Florida has submitted a Letter of Acceptance, Waiver and Consent in which he was fined $2,500 and suspended from association with any FINRA member in any capacity for 30 days. The fine must be paid either immediately upon Linn’s reassociation with a FINRA member firm following his suspension, or prior to the filing of any application or request for relief from any statutory disqualification, whichever is earlier.

Continue reading...

As published in the Financial Industry Regulatory Authority (FINRA) disciplinary actions report for February 2012, Andrew Michael Lesnak of Franklin Lakes, New Jersey has submitted a Letter of Acceptance, Waiver and Consent in which he was fined $15,000 and suspended from association with any FINRA member in any capacity for two years. The fine must be paid either immediately upon Lesnak’s reassociation with a FINRA member firm following his suspension, or prior to the filing of any application or request for relief from any statutory disqualification, whichever is earlier. Without admitting or denying the findings, Lesnak consented to the described sanctions and to the entry of findings that he failed to completely and timely respond to FINRA requests for information and documents.

Continue reading...

As published in the Financial Industry Regulatory Authority (FINRA) disciplinary actions report for February 2012, Phi Van Le of Altadena, California has submitted a Letter of Acceptance, Waiver and Consent in which he was fined $5,000 and suspended from association with any FINRA member in any capacity for 18 months. The fine must be paid either immediately upon Le’s reassociation with a FINRA member firm following his suspension, or prior to the filing of any application or request for relief from any statutory disqualification, whichever is earlier.

Continue reading...

As published in the Financial Industry Regulatory Authority (FINRA) disciplinary actions report for February 2012, Paul Cragg Larsen and Quentin Marius Silic of Naples, Florida has submitted a Letter of Acceptance, Waiver and Consent in which they were each barred from association with any FINRA member in any capacity.

Continue reading...

As published in the Financial Industry Regulatory Authority (FINRA) disciplinary actions report for February 2012, Dan Evan Landau of Coto de Casa, California was fined $28,116 and suspended from association with any FINRA member in any capacity for two years. The fine shall be due and payable if and when Landau re-enters the securities industry. The sanctions were based on findings that Landau participated in the unregistered sale of securities in violation of Section 5 of the Securities Act of 1933. The findings stated that Landau was involved in the sale of securities that were distributed to employees and consultants of related companies, pursuant to employee benefit plans. Both companies were microcap companies with their stocks traded on the OTC Bulletin Board (OTCBB); the companies had limited operational histories, generated little revenue, were losing money,were short of funds and their auditors had recently expressed doubt about the companies’ ability to continue as going concerns.

Continue reading...

As published in the Financial Industry Regulatory Authority (FINRA) disciplinary actions report for February 2012, Ricardo Carlos Kaufmann of Sao Paulo, Brazil has submitted a Letter of Acceptance, Waiver and Consent in which he was fined $20,000 and suspended from association with any FINRA member in any principal capacity for three months. Without admitting or denying the findings, Kaufmann consented to the described sanctions and to the entry of findings that Kaufmann’s member firm was aware of the SEC enforcement action against a customer, and, in opening his account, tasked Kaufmann with providing heightened supervision over the account. Kaufmann failed to perform such heightened supervision in a reasonable manner.

Continue reading...

On February 28, 2012 U.S. Commodity Futures Trading Commission (CFTC) announced that it filed and simultaneously settled charges that IAG Capital Management, LLC (IAG) and William Patrick Kelly of Weston, Conn., who operated a $6 million commodity pool called the IAG Multi Strategy Fund LP, wrongfully used more than $320,000 of pool participants’ funds for Kelly’s personal use, made false statements to the National Futures Association (NFA), and commingled pool participants’ funds with their own funds. The CFTC order requires IAG and Kelly jointly and severally to pay a $280,000 civil monetary penalty. The order also imposes permanent trading and registration bans against IAG and Kelly. According to the order, from January 2008 to July 2010, IAG and Kelly solicited and obtained almost $6 million from approximately 80 members of the general public to trade commodity futures contracts, among other contracts, on behalf of the IAG Multi Strategy Fund pool.

Continue reading...

On February 27, 2012 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 Michael G. Butcher (“Respondent”). In anticipation of the institution of these proceedings, Respondent has submitted an Offer of Settlement which the Commission has determined to accept. Solely for the purpose of these proceedings and any other proceedings brought by or on behalf of the Commission, or to which the Commission is a party, and without admitting or denying the findings herein, except as to the Commission’s jurisdiction over him and the subject matter of these proceedings, and the findings contained in Section III.2 below, which are admitted, Respondent consents to the entry of this Order Instituting Administrative Proceedings Pursuant to Section 15(b) of the Securities Exchange Act of 1934, Making Findings, and Imposing Remedial Sanctions, as set forth below.

Continue reading...

On February 27, 2012 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 James B. Mooring (“Respondent”). In anticipation of the institution of these proceedings, Respondent has submitted an Offer of Settlement which the Commission has determined to accept. Solely for the purpose of these proceedings and any other proceedings brought by or on behalf of the Commission, or to which the Commission is a party, and without admitting or denying the findings herein, except as to the Commission’s jurisdiction over him and the subject matter of these proceedings, and the findings contained in Section III.2 below, which are admitted, Respondent consents to the entry of this Order Instituting Administrative Proceedings Pursuant to Section 15(b) of the Securities Exchange Act of 1934, Making Findings, and Imposing Remedial Sanctions, as set forth below.

Continue reading...

On February 27, 2012 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 Michael W. Averett (“Respondent”). In anticipation of the institution of these proceedings, Respondent has submitted an Offer of Settlement which the Commission has determined to accept. Solely for the purpose of these proceedings and any other proceedings brought by or on behalf of the Commission, or to which the Commission is a party, and without admitting or denying the findings herein, except as to the Commission’s jurisdiction over him and the subject matter of these proceedings, and the findings contained in Section III.2 below, which are admitted, Respondent consents to the entry of this Order Instituting Administrative Proceedings Pursuant to Section 15(b) of the Securities Exchange Act of 1934, Making Findings, and Imposing Remedial Sanctions, as set forth below.

Continue reading...

On February 28, 2012 U.S. Securities and Exchange Commission (SEC) published that, upon motion by the Commission, the United States District Court for the District of Colorado dismissed the remaining claims against Frank T. Noyes. Noyes was a senior manager and then director of financial reporting at Qwest Communications International Inc., a Denver-based telecommunications company, between April 1999 and September 2000 and a senior director of finance in April 2001.

Continue reading...

On February 28, 2012 U.S. Securities and Exchange Commission (SEC) published that the United States District Court for the District of Colorado entered a Final Judgment dated February 3, 2012, in a civil action against Robert S. Woodruff, the former chief financial officer of Qwest Communications International Inc., a Denver-based telecommunications company. Woodruff, without admitting or denying the Commission’s allegations, consented to the entry of a Final Judgment that enjoins him from violations of Section 17(a) of the Securities Act of 1933, Sections 10(b) and 13(b)(5) of the Securities Exchange Act of 1934 (Exchange Act) and Rules 10b-5 and 13b2-1 thereunder, and from aiding and abetting violations of Sections 13(a) and 13(b)(2) of the Exchange Act and Rules 12b-20, 13a-1, 13a-11, and 13a-13 thereunder; finds that he is liable for disgorgement of $1,731,048, plus prejudgment interest of $640,427, imposes a civil penalty of $300,000; and prohibits him from acting as an officer or director of a public company for a period of five years.

Continue reading...

On February 27, 2012 U.S. Commodity Futures Trading Commission (CFTC) announced that it obtained a federal court order requiring former Chicago Board of Trade (CBOT) floor trader and registered floor broker David Sklena of Skokie, Ill., to pay a disgorgement and civil monetary penalty of $6,608,750 for aiding and abetting another trader’s scheme to cheat customers who placed orders in Five-Year Treasury Note futures contracts.The court’s order, entered February 10, 2012, by Judge Virginia M. Kendall of the U.S. District Court for the Northern District of Illinois, stems from a CFTC complaint filed in January 2008, charging Sklena with fraud and non-competitive trading (see CFTC Press Release 5434-08, January 10, 2008).

Continue reading...

As published in the Financial Industry Regulatory Authority (FINRA) disciplinary actions report for February 2012, Ronald John Kambic of Evergreen, Colorado has was barred from association with any FINRA member in any capacity and ordered to pay a total of $9,282.40, plus interest, in restitution to customers. The sanctions were based on findings that Kambic converted retirement contributions from employees of an entity he owned. The findings stated that the employees had funds withheld from their paychecks to serve as contributions to a tax-deferred retirement account.

Continue reading...

As published in the Financial Industry Regulatory Authority (FINRA) disciplinary actions report for February 2012, Rodney Magic Jennings of Portsmouth, Virginia has submitted a Letter of Acceptance, Waiver and Consent in which he was fined $5,000 and suspended from association with any FINRA member in any capacity for six months. The fine must be paid either immediately upon Jennings’ reassociation with a FINRA member firm following his suspension, or prior to the filing of any application or request for relief from any statutory disqualification, whichever is earlier.

Continue reading...