BROWSE BY TOPIC
- Regulatory Sanctions
- Investments - Unsuitable
- Investor Protection
- Investments - Private
- Rules & Regulations
- Investments - Strategies
- Bad Advisors
- Bad Brokers
- Boiler Rooms
- Wall Street News
- Terminations/Cost Cutting
- Compliance Concepts
- General News
- Donald Trump & Co.
- Big Banks
Stories of Interest
- Sarah ten Siethoff is New Associate Director of SEC Investment Management Rulemaking Office
- Catherine Keating Appointed CEO of BNY Mellon Wealth Management
- Credit Suisse to Pay $47Mn to Resolve DOJ Asia Probe
- SEC Chair Clayton Goes 'Hat in Hand' Before Congress on 2019 Budget Request
- SEC's Opening Remarks to the Elder Justice Coordinating Council
- Massachusetts Jury Convicts CA Attorney of Securities Fraud
- Deutsche Bank Says 3 Senior Investment Bankers to Leave Firm
- World’s Biggest Hedge Fund Reportedly ‘Bearish On Financial Assets’
- SEC Fines Constant Contact, Popular Email Marketer, for Overstating Subscriber Numbers
- SocGen Agrees to Pay $1.3 Billion to End Libya, Libor Probes
- Cryptocurrency Exchange Bitfinex Briefly Halts Trading After Cyber Attack
- SEC Names Valerie Szczepanik Senior Advisor for Digital Assets and Innovation
- SEC Modernizes Delivery of Fund Reports, Seeks Public Feedback on Improving Fund Disclosure
- NYSE Says SEC Plan to Limit Exchange Rebates Would Hurt Investors
- Deutsche Bank faces another challenge with Fed stress test
- Former JPMorgan Broker Files racial discrimination suit against company
- $3.3Mn Winning Bid for Lunch with Warren Buffett
- Julie Erhardt is SEC's New Acting Chief Risk Officer
- Chyhe Becker is SEC's New Acting Chief Economist, Acting Director of Economic and Risk Analysis Division
- Getting a Handle on Virtual Currencies - FINRA
We seek to provide information, insights and direction that may enable the Financial Community to effectively and efficiently operate in a regulatory risk-free environment by curating content from all over the web.
Stay Informed with the latest fanancialish news.
NEWSLETTERS & ALERTS
Broker-Dealer and 2 Executives Found Guilty of Fraud by Federal Jury
by Howard Haykin
ACCORDING TO THE SEC … between 2011 and 2013, AGF II, which raised capital from investors to provide loans to businesses, and its owner, Ralph Johnson, promised investors 12% annual returns and falsely claimed in offering documents that its financial statements were being audited each year. AGF II also misrepresented in its offering documents about its management and concealed details about deteriorating loan values that could imperil full payment of the promised returns to investors. [See SEC Litigation Release]
PAA, Allen, and Wasserman were charged by the SEC with knowing that the offering documents were inaccurate. They nonetheless continued using them to solicit sales of AGF II securities. Based on the evidenced presented, the jury found PAA, Allen and Wasserman liable on all counts, finding …
- That all 3 defendants ... violated the antifraud provisions of Section 17(a) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder;
- That Allen and Wasserman ... aided and abetted PAA’s violations of those antifraud provisions;
- That Wasserman ... aided and abetted Allen’s violations of those antifraud provisions.
- That Allen and Wasserman ... were liable as control persons under Section 20(a) of the Exchange Act for PAA’s violations.
THE PLAYERS. Portfolio Advisors Alliance LLC, a FINRA member since 2000, is based in New York, NY. Howard Allen, the indirect owner of PAA, has 28 years’ experience. Kerri Wasserman, the President and CCO of PPA, has 25 years’ experience.