1. On September 29, 2023, The SEC instituted administrative proceedings against Maxim Group, LLC, a registered broker-dealer. Maxim engaged in facilitating high volume sales of low-priced OTC stock and did not reasonably design or adequately implement its anti-money laundering (“AML”) policies and procedures (“AML Policies”) to reasonably address the risks associated with this business. Maxim … Read More
1. On August 31, 2023, the SEC charged William Conn, Jr., a certified public accountant, for participating in a Ponzi scheme perpetrated by John Woods using an investment fund Woods created and controlled, Horizon Private Equity, III, LLC (“Horizon III”). The SEC also charged Conn with conducting a fraudulent scheme through a different investment fund … Read More
1. On July 26, 2023, the SEC charged Joseph Lewis, a British billionaire, with insider trading. Lewis is accused of tipping his then-girlfriend, Carolyn Carter, former Miss World U.S. Virgin Islands, and private jet pilots with material nonpublic information. According to the SEC’s complaint, Lewis, a British national who resides principally in The Bahamas, controls … Read More
1. On June 30, 2023, the SEC announced settled charges against Robert Benecke, the proprietor of Benecke Economics, for failing to register as a municipal advisor and for failing to disclose material facts about his registration status to his municipal entity clients. Benecke provided municipal advisory services in connection with eight municipal bond issuances for … Read More
1. On May 30, 2023, the SEC announced its settlement with the former head of Wells Fargo & Co.’s Community Bank, Carrie L. Tolstedt, in which she has agreed to pay a $3 million penalty stemming from charges brought in 2020 for her role in allegedly misleading investors about the success of the Community Bank, … Read More
1. One April 26, 2023, the SEC issued a Risk Alert regarding safeguarding customer records and information at branch (remote) offices. Individuals in branch offices often have access to information technology systems that contain customer records and information. While many advisers have implemented safeguarding policies and procedures at their main office, some firms did not … Read More
1. On March 30, 2023, the SEC settled charges against Sapere Wealth Management, LLC, a Matthews, North Carolina-based investment adviser, and its principal, Scott Trease, for unsuitably recommending that three clients invest $7.3 million in risky, alternative-investment deals. Sapere and Trease did not reasonably understand the investments and thus lacked a reasonable basis to recommend … Read More
1. On February 27, 2023, the SEC instituted administrative proceedings against Shawn Good who was dually registered with Morgan Stanley Smith Barney, LLC (“Morgan Stanley”) as a registered representative and investment adviser representative. Good perpetrated a multi-year Ponzi scheme which involved his clients at Morgan Stanley, and that in doing so, he defrauded his clients … Read More
1. On January 30, 2023, the SEC’s Division of Examinations published a Risk Alert to highlight observations from examinations related to Regulation Best Interest. The Risk Alert is intended to assist broker-dealers in reviewing and enhancing their compliance programs related to Regulation Best Interest. The Risk Alert is helpful to investment advisers in understanding the regulatory … Read More
1. On December 23, 2022, the SEC instituted administrative proceedings against Roger Knox, a private investor. Knox, while acting as an unregistered broker-dealer and working in coordination with others, used omnibus accounts he controlled to provide a layer of disguise to public company insiders and control persons, and intended to defraud investors by secretly dumping … Read More