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GVC Capital, a FINRA registered broker dealer based in Greenwood Village, CO was fined $17,000 and censured by securities regulator FINRA for the firm’s role in a private offering of securities.  The fine and censure was announced in April, 2016 and relates to an 2013 securities offering.  The acceptance, waiver and consent letter is found here.

GVC Capital had been the subject of two FINRA regulatory investigations alleging the firm failed to maintain an adequate supervisory system pertaining to the issuance of research reports; and that the firm, acting in the capacity of placement agent for a private offering of securities, failed to refund money pursuant to an under-subscribed offering. The two investigations were consolidated, and the AWC signed by the firm resolved both matters.

GVC Capital’s registration and disciplinary history

Update on Lawsuit against IRA Resources

A lawsuit filed in the Texas courts against IRA Resources for its role (or lack thereof) in the Alpha Telecom (“ATC”) unregistered securities scam was finally dismissed by the Texas court of appeals over the issue of jurisdiction.  At issue was Plaintiffs’ claim that IRA Resources “materially aided” the ATC scam.  The company filed a motion to dismiss, arguing that it did not have sufficient contacts with the state of Texas to permit the court to exercise jurisdiction over it in the state’s courts.

Among the allegations against IRA Resources were that they lent an “air of legitimacy” to the ATC scam, materially aided it by providing forms to investors, and that ultimately, should have known that their company was being used by the fraudsters to fleece unsuspecting retirees.

Guy Gentile former StockUSA owner charged by The Securities and Exchange Commission.

On March 23, 2016, the SEC charged Guy Gentile, a former registered representative and owner of StockUSA Execution Services of Carmel, NY with improper manipulation of “penny stocks.”

The SEC complaint alleges that Gentile, who owned and ran StockUSA manipulated trading, improperly made payments, and created fake promotional materials touting natural resources companies such as raven Gold and Kentucky USA Energy.   The SEC claims that most of the activity in the trading of the companies stocks was generated by Gentile as part of an effort to manipulate the price for profit.

Update on Lawsuit against Summit Trust Company

On October 27, 2015 the SEC announced that it settled a lawsuit against Kevin Brown and George  Brown for their roles in the fraudulent, unregistered securities offering by Summit Trust Company.

IRA custodians like Summit Trust allow individuals to make their own investment decisions with their IRA funds.  Investors looking for non-traditional investments  can roll “qualified” pretax funds from a 401k or a pension plan into a self-directed IRA.  Once the funds are in the account the investor “directs” the IRA custodian to purchase an investment, which is usually memorialized by a promissory note, a contract or shares of stock.  Once a year the IRA custodian will contact the investment sponsor and ask for a value on the investment, and will report that value to the IRS to ensure that the investor isn’t charged taxes on the investment.

Update on Lawsuit against Provident Trust Group

A lawsuit filed in the US District Court for the Northern District of California against Provident Trust Group in May, 2013 was voluntarily dismissed by the lawyer for the Plaintiff in September, 2013. Named as a defendant in the lawsuit was IRA custodian Provident Trust Group.

Among the allegations against Provident Trust were that they lent an “air of legitimacy” to ponzi schemes and other scams, and knew or should have known that their company was being used by fraudsters to fleece unsuspecting retirees.

Update of lawsuit against Vantage Retirement Plan IRA.

A lawsuit filed in the US District Court for the Northern District of California was dismissed by the court for failure to state a claim. A court of appeals upheld the dismissal in December, 2015.  Named as a defendant in the lawsuit was IRA custodian Vantage Retirement Plan IRA.

Among the allegations against Vantage Retirement Plan IRA were that they lent an “air of legitimacy” to ponzi schemes and other scams, and knew or should have known that their company was being used by fraudsters to fleece unsuspecting retirees.  After working its way through several courts, including a court of appeal, the case was finally dismissed in late 2015.

Update on lawsuit against Equity Trust Company.

A lawsuit filed in the US District Court for the Northern District of California was dismissed by the court for failure to state a claim. A court of appeals upheld the dismissal in December, 2015.  Named as a defendant in the lawsuit was IRA custodian Equity Trust Company.

Among the allegations against Equity Trust Company were that they lent an “air of legitimacy” to ponzi schemes and other scams, and knew or should have known that their company was being used by fraudsters to fleece unsuspecting retirees.  After working its way through several courts, including a court of appeal, the case was finally dismissed in late 2015.