Rule 506 of Regulation D Recent Amendments Regarding General Solicitation and General Advertising - South Florida Private Placement Fraud and Misrepresentation Litigation and FINRA Arbitration Attorney:
In the Matter of Steven J. Brewer:
The Securities and Exchange Commission Sanctions Johnny Clifton for Antifraud and Failure to Supervise Violations
The Securities and Exchange Commission (Commission) recently announced that it barred Johnny Clifton, who was president, chief executive officer, and principal of MPG Financial, LLC, a former Commission-registered broker-dealer, from associating with any broker, dealer, investment adviser, municipal securities dealer, municipal advisor, transfer agent, or nationally recognized statistical rating organization, entered a cease-and-desist order, and imposed a $150,000 third-tier civil money penalty. The Commission found that Clifton violated Sections 17(a)(1), 17(a)(2), and 17(a)(3) of the Securities Act of 1933 because he made material misrepresentations and omissions in the offer and sale of oil-and-gas limited partnership interests, and through those misrepresentations, omissions, and other misconduct he engaged in a fraudulent scheme and course of business that operated as a fraud on prospective investors. The Commission also found that Clifton violated Section 15(b) of the Securities Exchange Act of 1934 because he failed reasonably to supervise at least one MPG Financial sales representative with a view towards detecting and preventing the sales representative's securities law violations. Concluding that it was in the public interest to impose a full collateral bar on Clifton, the Commission stated that "[h]is repeated and egregious misconduct evidences an unfitness to participate in the securities industry that goes beyond the professional capacity in which he was acting" and "demonstrates his unfitness to participate in the securities industry in any capacity."
The Securities and Exchange Commission Bars Alfred Clay Ludlum III Following His Injunction for Anti-Fraud Violations of the Securities Laws
The Securities and Exchange Commission recently announced that it has barred Alfred Clay Ludlum III, a registered investment adviser and the founder, president, and sole control person of Printz Capital Management, LLC, Printz Financial Group, Inc., and PCM Global Holdings, LLC, from association with any investment adviser, broker, dealer, municipal securities dealer, municipal advisor, transfer agent, or nationally recognized statistical rating organization. The Commission found that Ludlum agreed, among other things, to be permanently enjoined from future violations of the antifraud provisions of the federal securities laws. Based on the circumstances underlying that injunction, the Commission determined that the public interest required a full securities industry bar, noting that Ludlum defrauded investors-including several to whom he owed a fiduciary duty-out of approximately $850,000 and that he subsequently attempted to mislead regulators and thwart their investigations. The Commission concluded that an industry-wide bar was necessary because "Ludlum's repeated and egregious misconduct evidences an unfitness to participate in the securities industry that goes beyond just the professional capacity in which Ludlum was acting when he engaged in the misconduct underlying these proceedings." Commissioners Paredes and Gallagher concurred in the Commission's decision, but dissented with respect to Commission's decision to bar Ludlum from association with municipal advisors and nationally recognized statistical rating organizations.
The Securities and Exchange Commission Obtains Final Judgments against Martin C. Hartmann III and Laura Ann Tordy
The Securities and Exchange Commission recently announced that on July 9, 2013, the Honorable Denis R. Hurley of the United States District Court for the Eastern District of New York entered final judgments against defendants Martin C. Hartmann III and Laura Ann Tordy, sales agents for Agape World, Inc. ("Agape"), an offering fraud and Ponzi scheme that raised $415 million from at least 5,000 investors nationwide.
South Florida Securities and Precious Metals FINRA Arbitration and Litigation Attorney:
Securities and Exchange Commission v. Duncan J. MacDonald, III and Gloria Solomon, Civil Action No. 3:13-cv-02275 (Northern District of Texas filed June 17, 2013)
Securities and Exchange Commission v. John A. Grant, Sage Advisory Group, LLC and Benjamin Lee Grant, Civil Action No. 1:11-CV-11538 (GAO) (D. Mass.)
Securities and Exchange Commission v. Blake Richards, Civil Action No. 1:13-CV-1729 (N.D. Ga.)
Final Judgments Entered against Connecticut-Based Investment Adviser and His Firm Charged with Stealing Investor Funds
The Securities and Exchange Commission ("Commission") recently announced that on May 16, 2013, the United States District Court for the District of Connecticut entered final judgments by consent in a previously filed enforcement action against Stephen B. Blankenship and his investment advisory firm, Deer Hill Financial Group, LLC. The judgments enjoin Blankenship and Deer Hill from future violations of the federal securities laws.