SEC Charges Equity Research Firm Founder Tai Nguyen with Insider Trading

Posted on July 11, 2012 by BraunHagey & Borden

Securities and Exchange Commission v. Tai Nguyen, Case No. 12-CIV-5009 (S.D.N.Y.).  On June 26, 2012 the SEC charged Tai Nguyen, owner of equity research firm Insight Research, with insider trading.  The Nguyen case stems from the SEC’s investigation of “expert networks,” which provide specialized information to investment firms.  To date, the SEC has charged 23 defendants due to the expert networks investigation.  The SEC claims that the expert networks insider trading has amassed more than $117 million in illicit gains, mainly in shares of technology companies such as Apple, Dell, Fairchild Semiconductor, and Marvell Technology. Continue reading →

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SEC Charges Aubrey Lee Price With Fraud and Freezes His Assets

Posted on July 6, 2012 by BraunHagey & Borden

Securities And Exchange Commission v. Aubrey Lee Price; PFG, LLC; PFGBI, LLC; Montgomery Asset Management, LLC f/k/a PFG Asset Management, LLC, (Florida limited liability company); and Montgomery Asset Management, LLC f/k/a PFG Asset Management, LLC, (Georgia limited liability company), Case No. 1:12-CV-2296 (N.D. Ga.).  On July 2, 2012 the SEC obtained a court order to freeze the assets of Aubrey Lee Price, a Georgia-based investment adviser who is responsible for $40 million of investment fraud.  Price is apparently in hiding after allegations of raising money from more than 100 investors in Georgia and Florida by selling shares in an unregistered investment fund (PFG). Continue reading →

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Fund Adviser AMMB Consultant Sendirian Berhad Agrees to Pay More than $1.5 million to settle SEC Charges

Posted on July 6, 2012 by BraunHagey & Borden

Securities and Exchange Commission v. AMMB Consultant Sendirian Berhad, Case No. 1:12-cv-01052 (D.D.C.).  On June 26, 2012, the SEC sued AMMB Consultant Sendirian Berhad (“AMC”), a Malaysian investment adviser, for charging a U.S. registered fund for over a decade for advisory services that AMC did not provide.  Continue reading →

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SEC Charges Wayne Palmer and National Note of Utah with $100 Million Real-Estate Based Ponzi Scheme

Posted on July 6, 2012 by BraunHagey & Borden

Securities and Exchange Commission v. National Note of Utah, LC and Wayne LaMar Palmer, Case No. 2:12-cv-00591.  On June 25, 2012, the SEC obtained a temporary restraining order and asset freeze against Wayne L. Palmer and his firm, National Note of Utah, LC, for operating a real estate-based Ponzi scheme that raised $100 million from investors.  Palmer told investors their money would be used to buy mortgage notes and real estate assets, or to make real estate loans.  Approximately 600 investors participated due to the promise of annual returns of 12 percent. Continue reading →

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FINRA Fines Merrill Lynch $2.8 for Overcharging Customers

Posted on July 6, 2012 by BraunHagey & Borden

On June 21, 2012, the Financial Industry Regulatory Authority announced that it fined Merrill Lynch, Pierce, Fenner & Smith, Inc. $2.8 million for supervisory failures and the resulting overcharge to customers of $32 million in unwarranted fees, and for failing to provide required trade notices.  Merrill Lynch provided $32 million in remediation, plus interest, to the affected customers. Continue reading →

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CFTC Obtains Order requiring Linda Harris, Chance Harris, CDH Forex Investments, LLC, and CDH Global Holdings, LLC, to Pay More than $5.4 Million in Forex Fraud.

Posted on July 6, 2012 by BraunHagey & Borden

CFTC v. CDH Forex Investments, LLC et al., Case No. 3:11 cv-02862-F (N.D. Tex.).  On June 12, 2012, the CFTC obtained a federal court order requiring Linda Harris, Chance Harris, and their companies, CDH Forex Investments, LLC and CDH Global Holdings to pay more than $5.4 million in restitution and civil monetary penalties.  The CFTC accused the defendants of committing fraud in connection with the operation of a commodity pool and managed accounts trading off-exchange foreign currency (Forex) contracts.  Continue reading →

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Illinois Federal Court Orders Richard C. Regan and Pro Trading Course, LLC to Pay $600,000 Restitution and Civil Monetary Penalties

Posted on June 20, 2012 by BraunHagey & Borden

CFTC v. Richard Regan et al., Case No. 1:11-cv-08679 (N.D. Il.).  On June 14, 2012, the CFTC announced an order of default judgment and permanent injunction against Richard C. Regan and Pro Trading Course, LLC (“PTC”) of La Jolla, CA.  The order stems from an enforcement action filed on December 7, 2011, which charged both with fraudulently soliciting members of the public to enroll in a commodity futures training program.  Continue reading →

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SEC Charges 14 Sales Agents in $415 million Ponzi Scheme

Posted on June 15, 2012 by BraunHagey & Borden

SEC v. Bryan Arias et al., Case No. CV12-2937 (E.D.N.Y.).  On June 12, 2012, the SEC charged 14 sales agents who misled investors and illegally sold securities for a Long Island-based investment firm at the center of a $415 million Ponzi scheme.  The Defendants were the principal sales agents for Agape World, Inc. (“Agape”), a $415 million Ponzi scheme organized by Nicholas J. Cosmo, the president of Agape that, from 2005 through January 2009, impacted more than 5,000 investors nationwide.  Continue reading →

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CFTC Charges Jose S. Rubio in $1.8 Million Commodity Pool Fraud

Posted on June 12, 2012 by BraunHagey & Borden

CFTC v. Jose Rubio et al., Case No. 1:12-cv-22128 (S.D. Ga.).  On June 7, 2012, the CFTC filed an enforcement action against Jose S. Rubio and Rubio Wealth Management, LLC (RWM) alleging they violated the Commodity Exchange Act by defrauding investors in connection with operating a commodity pool to trade commodity futures and off-exchange foreign currency contracts.  From 2008 through the present, Rubio and RWN solicited more than $1.8 million from at least 21 investors.  Continue reading →

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CFTC Settles Forex Fraud Action Against Luis Salazar-Correa For $2.6 Million

Posted on June 11, 2012 by BraunHagey & Borden

In the Matter of Prosperity Team, LLC and Luis Salazar-Correa, CFTC Docket No. 12-23.  On June 6, 2012, the CFTC ordered Luis Salazar-Correa and his Nevada-based company, Prosperity Team, LLC, to pay more than $2.6 million in a settled administrative proceeding.  From February 2009, through June 2012, Salazar-Correa and Prosperity Team fraudulently solicited and accepted $2,482,000 from approximately 183 customers to trade leveraged or margined off-exchange foreign currency (“forex”) contracts through a pooled investment vehicle, also known as Prosperity Team.  Continue reading →

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