CFTC Charges Ronnie Gene Wilson and His Company Charged With Operating a $90 Million Ponzi Scheme

Posted on June 8, 2012 by BraunHagey & Borden

CFTC v. Atlantic Bullion & Coin, Inc. and Ronnie Gene Wilson, Case No. 8:12-1503-JMC (D.S.C.).  The CFTC filed a federal civil enforcement action against Ronnie Gene Wilson and Atlantic Bullion & Coin, Inc. (“AB&C”), charging them with with operating a $90 million Ponzi scheme.  From 2001 through 2012, Wilson and AB&C fraudulently offered contracts for sale of silver.  Wilson and AB&C obtained $90.1 million from approximately 945 investors.  Continue reading →

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CFTC Orders Morgan Stanley to Pay $5 Million for Unlawful Noncompetitive Trades

Posted on June 8, 2012 by BraunHagey & Borden

In the Matter of Morgan Stanley & Co., CFTC Docket No. 12-22.  On June 5, 2012, the CFTC issued an order settling charges that, over an 18-month period, Morgan Stanley & Co. unlawfully executed, processed, and reported off-exchange futures trades to the Chicago Mercantile Exchange (“CME”) and Chicago Board of Trade (“CBOT”) as exchanges for related positions (“EFRPs”).  The EFRPs were not lawful as they did not have the corresponding related cash, over-the counter swap, option or other derivative.  Continue reading →

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SEC Charges Richard DeMaria in $4 million Prime Bank Scheme

Posted on June 7, 2012 by BraunHagey & Borden

SEC v. Richard DeMaria, Case No. 1:12-cv-04145 (N.D. Ill.).  On May 30, 2012, the SEC charged Chicago-area resident Richard DeMaria with fraud, alleging that he operated a prime bank scheme that defrauded at least thirteen investors out of approximately $4.3 million.  DeMaria lured investors by making misrepresentations in subscription agreements concerning investments in financial instruments that do not exist.  Continue reading →

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SEC Obtains Emergency Relief Against Jason Konior in $11 Million Fraud

Posted on June 7, 2012 by BraunHagey & Borden

SEC v. Jason Konior, Absolute Fund Advisors, LLC, and Absolute Fund Management, LLC, Case No. 1:12-cv-04145-LLS (S.D.N.Y.).  On May 24, 2012, the SEC obtained a preliminary injunction, asset freeze, and an order for a verified accounting against Jason Konior and his affiliated funds.  Since November 2011, Konior and the funds obtained $11 million through the sale of interests in the Absolute Fund which Konior claimed had $220 million in trading capital.  Konior claimed the fund would provide millions of dollars in matching funds and establish a “first loss” trading program that would allow the hedge fund investors to increase their potential profits.  For at least some investors, the loss trading program was never created.  Instead, Konior took $2 million to pay redemptions from earlier investors, to pay Konior, and to pay other improper personal and business expenses.  When investors demanded return of their capital the assets were only a small fraction of the amount needed to repay investors.

Konior and the funds are charged with violations of Section 10(b) of the Securities Exchange Act and Rules 10b-5(a), (b), and (c) thereunder.  The SEC is seeking civil monetary penalties, disgorgement, and injunctive relief in addition to the emergency relief obtained.

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SEC Charges George Levin and Frank Preve in $157 million Ponzi Scheme

Posted on June 7, 2012 by BraunHagey & Borden

SEC v. George G. Levin and Frank J. Preve, Case No. 1:12-cv-21917-UU (S.D. Fl.).  On May 22, 2012, the SEC charged Levin and Preve, who provided the biggest influx of funds into one of the largest-ever Ponzi schemes in South Florida.  From July 2008 to October 2009, Levin and Preve raised funds to purchase settlements from now-convicted Ponzi schemer Scott Rothstein.  Rothstein perpetrated a massive Ponzi scheme through the sale of fake discounted settlements using his law firm.  Continue reading →

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SEC Settles With Hedge Fund Adviser Charged With Misleading Investors

Posted on June 7, 2012 by BraunHagey & Borden

In the Matter of Quantek Asset Management, LLC, Bulltick Capital Markets Holdings, LP, Javier Guerra, and Ralph Patino, AP File No. 3-14893.  On May 29, 2012, the SEC issued an Order Instituting Administrative and Cease-And-Desist Proceedings against Quantek, Bulltick, Guerra and Patino.  The case centers around Quantek, a prominent Latin American-focused hedge fund adviser that misled investors about three significant features of the funds it managed.  Continue reading →

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SEC and U.S. Attorney Charge Multiple Company Officers and Penny Stock Promoters in Kickback and Manipulation Schemes

Posted on June 7, 2012 by BraunHagey & Borden

SEC v. Yan K. Skwara and US Farms, Inc., Case No. 0:12-cv-61078-JAL (S.D. Fl.); SEC v. Douglas D. Hague and Clean Coal Technologies, Inc., Case No. 0:12-cv-61076-WJZ (S.D. Fl.); SEC v. Joseph J. Repko, Michael M. Cimino, and Sure Trace Security Corp., Case No. 0:12-cv-61079-KMW (S.D. Fl.); SEC v. Ryan F. Coblin and Delivery Technology Solutions, Inc., Case No. 0:12-cv-80599-KLR (S.D. Fl.); SEC v. Robert L. Cotton and Cotton & Western Mining, Inc., Civil Action No. 0:12-cv-61072-WJZ (S.D. Fl.); SEC v. Harold Steven Bonenberger and Angel Acquisition Corp. n/k/a Biogeron, Inc., Case No. 0:12-cv-61075-WPD (S.D. Fl.); SEC v. Matthew A. Connor, Case No. 0:12-cv-61081-RNS (S.D. Fl.); SEC v. Kevin P. Brennan, Donald G. Huggins, and Marc S. Page and Optimized Transportation Management, Inc., Case No. 0:12-cv-61074-JIC (S.D. Fl.); SEC v. Scott A. Haire and Wound Management Technologies, Inc., Case No. 0:12-cv-61077-CMA (S.D. Fl.) Continue reading →

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Oppenheimerfunds Agrees to Pay $35 Million to Settle SEC Charges for Misleading Statements During Financial Crisis

Posted on June 7, 2012 by BraunHagey & Borden

In the Matter of Oppenheimerfunds, Inc. and Oppenheimerfunds Distributor, Inc., AP File No. 3-14909.  On June 6, 2012, the SEC issued an Order Instituting Cease-And-Desist Proceedings against Oppenheimerfunds, Inc. (“OFI”) and Oppenheimerfunds Distributor, Inc. (“OFDI”) for making misleading statements about two of its mutual funds during the credit crisis in 2008.  In 2008, these two funds experienced losses much greater than their peer funds.  Their underperformance was largely due to exposure to mortgage-backed securities.  The exposure was obtained through derivatives known as total return swaps.  Continue reading →

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SEC Charges Walter Clarke and Investment Firm With Fraud

Posted on June 6, 2012 by BraunHagey & Borden

In the Matter of Oxford Investment Partners, LLC and Walter J. Clarke, AP File No. 3-14899.  On May 30, 2012, the SEC issued an Order Instituting Cease-And-Desist Proceedings against Phoenix-based investment adviser Walter Clarke for concealing his personal stake in the investments he recommended to clients.  Clarke advised clients at Oxford Investment Partners to invest in two businesses without disclosing conflicts of interest, namely that he co-owned one and was financially tied to the other.  Continue reading →

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CFTC Charges CTI Group, LLC, Cooper Trading, Stephen Symons, and James Kline With An $11 Million Fraud in the Sale of Automated Trading Systems

Posted on May 31, 2012 by BraunHagey & Borden

CFTC v. CTI Group, LLC et al., Case No. 1:12-cv-03754-ALC (S.D.N.Y).  On May 25, 2012, the CFTC announced that it had charged CTI Group, LLC, Cooper Trading, Stephen Craig Symons, and James David Kline with fraudulent sales practices in connection with the sale of two automated trading systems, Boomer and Victory Trading Systems.  The complaint was filed under seal until recently when the U.S. District Court entered an emergency order freezing Defendants’ assets and prohibiting the destruction or alteration of books and records.  Continue reading →

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