Securities Fraud Lawyer Blog

November 4, 2015

FINRA suspends Patrick Bray from membership

Patrick Bray, a registered representative formerly with Newbridge Securities in Boca Raton, FL was suspended from FINRA membership for violations of Rule 9554

FINRA Rule 9554. Failure to Comply with an Arbitration Award or Related Settlement or an Order of Restitution or Settlement Providing for Restitution

provides that a registered representative or a firm that fails to comply with a FINRA arbitration award or a settlement agreement entered into as a result of a FINRA arbitration or mediation proceeding, shall have their license suspended 21 days after notice of the intent to suspend has been sent. In May, 2015 Patrick Bray was suspended from FINRA membership for violating Rule 9554.

November 4, 2015

Broker Niyukt Bhasin suspended from FINRA membership

by David Liebrader

Niyukt Bhasin, a registered representative formerly with NSM Securities in West Palm Beach, FL was suspended from FINRA membership for violations of Rule 9554

FINRA Rule 9554. Failure to Comply with an Arbitration Award or Related Settlement or an Order of Restitution or Settlement Providing for Restitution

provides that a registered representative or a firm that fails to comply with a FINRA arbitration award or a settlement agreement entered into as a result of a FINRA arbitration or mediation proceeding, shall have their license suspended 21 days after notice of the intent to suspend has been sent. In May, 2015 Niyukt Bhasin was suspended from FINRA membership for violating Rule 9554.

November 4, 2015

Broker Gregg Berger suspended from FINRA membership

by David Liebrader

Gregg Berger, a registered representative formerly with Newbridge Securities in New York, NY was suspended from FINRA membership for violations of Rule 9554

FINRA Rule 9554. Failure to Comply with an Arbitration Award or Related Settlement or an Order of Restitution or Settlement Providing for Restitution

provides that a registered representative or a firm that fails to comply with a FINRA arbitration award or a settlement agreement entered into as a result of a FINRA arbitration or mediation proceeding, shall have their license suspended 21 days after notice of the intent to suspend has been sent. In May, 2015 Gregg Berger was suspended from FINRA membership for violating Rule 9554.

November 4, 2015

FINRA suspends broker Enver Alijaj

by David Liebrader

Enver Alijaj registered representative formerly with Avenir Financial Group in New York, NY was suspended from FINRA membership for violations of Rule 9554

FINRA Rule 9554. Failure to Comply with an Arbitration Award or Related Settlement or an Order of Restitution or Settlement Providing for Restitution

provides that a registered representative or a firm that fails to comply with a FINRA arbitration award or a settlement agreement entered into as a result of a FINRA arbitration or mediation proceeding, shall have their license suspended 21 days after notice of the intent to suspend has been sent. In May, 2015 Enver Alijaj was suspended from FINRA membership for violating Rule 9554.

November 4, 2015

Khaled “Kal” Eldaher FINRA membership suspended

by David Liebrader

On October 13, 2015 the Securities and Exchange Commission announced that the initial decision of the administrative law judge with respect to Khaled Eldaher was declared effective. The initial decision ordered Khaled Eldaher to cease and desist from committing or causing violations of Section 15(a)(1)of the Exchange Act and also required that Khaled Eldaher disgorge $15,478. The order stems from a proceeding brought by the SEC against Eldaher accusing him of violations while he was associated with ACAP Financial Inc. a registered broker-dealer, based in Salt Lake City.

According to the SEC’s initial decision, in April 2012 Khaled Eldaher began communication with Efstratios “Elias” D. Argyropoulos, the President of Prima Capital Group. Argyropoulos claimed that Prima Capital was offering an opportunity to invest in pre-IPO Facebook shares through a secondary market created by Facebook employees, advisors, and contractors who had held an equity stake in the company and wanted to sell their shares before Facebook’s upcoming IPO.

Eldaher referred twelve investors to Prima Capital, who purchased Facebook shares for $362,887.52. Eldaher acknowledged in the SEC proceeding that he engaged in “selling away” in referring his clients to Prima Capital. The SEC decision ordered that pursuant to Section 15(b)(6) of the Exchange Act, Khaled Eldaher is suspended for six months from being associated with a broker, dealer, investment adviser, municipal securities dealer, municipal advisor, transfer agent, or nationally recognized statistical rating organization or from participating in an offering of penny stock.

November 4, 2015

Barred broker Jason Muskey sued by SEC

by David Liebrader

On October 15, 2015 the Securities and Exchange Commission issued an Order instituting administrative proceedings pursuant to section 15(b) of the Securities Exchange Act of 1934 and Section 203(f) of the Investment Advisors Act of 1940 against Jason Muskey.

The complaint against Jason Muskey arises from his guilty plea to mail fraud, money laundering, and identity theft before the United States District Court for the Middle District of Pennsylvania, in United States v. Jason Muskey, Criminal Action No. 3-CR-15-18.

From June 2006 through June 2014 Jason Muskey was a registered representative with Ameritas Investment Corporation in Moosic, PA and also owned and operated Muskey Financial Services.

November 4, 2015

Former broker Fred McMenimen sued by SEC

by David Liebrader

On October 16, 2015 the Securities and Exchange Commission issued an Order instituting administrative proceedings pursuant to section 15(b) of the Securities Exchange Act of 1934 and Section 203(f) of the Investment Advisors Act of 1940 against Fred McMenimen.

McMenimen was employed as a registered representative at Pruco Securities in Portsmouth, New Hampshire. FINRA permanently barred McMenimen from the securities industry in 2013.

On October 31, 2014, Fred McMenimen agreed to plead guilty to: one count of mail fraud before the United States District Court for the District of New Hampshire in United States of America v. Frederick V. McMenimen, Case No. 12-CR- 130-01-SM.

November 4, 2015

Former broker John D’Auria pleads guilty to fraud

by David Liebrader

On October 27, 2015 the Securities and Exchange Commission issued an Order instituting administrative proceedings pursuant to section 15(b) of the Securities Exchange Act of 1934 and Section 203(f) of the Investment Advisors Act of 1940 against John D’Auria.

On July 13, 2015, D’Auria pled guilty to one count of wire before the United States District Court for the District of Connecticut, in United States v. John D’Auria, Case No. 3:15-cr-00121-MPS. On July 13, 2015, the U.S. District Court Judge accepted D’Auria’s guilty plea.

In response to the SEC’s action, John D’Auria submitted an offer of settlement which the SEC accepted. In the offer of settlement D’Auria admitted that beginning in or about 2010 and continuing to in or about 2014, D’Auria engaged in a scheme to defraud investors by failing to invest the funds as represented and by using the majority of the investment funds for his personal use. D’Auria also provided some investors with false valuation numbers and false documentation that fraudulently suggested that the investors’ investments had appreciated in value, while D’Auria knew this information was false. As a result of D’Auria’s fraudulent scheme, D’Auria defrauded investors of approximately $2.4 million.

November 4, 2015

SEC opens proceedings against Jonathan Warren Brooks

by David Liebrader

On November 2, 2015 the Securities and Exchange Commission issued an Order instituting administrative proceedings pursuant to section 15(b) of the Securities Exchange Act of 1934 and Section 203(f) of the Investment Advisors Act of 1940 against Jonathan Warren Brooks.

Brooks is currently incarcerated in Kershaw, South Carolina. He was a registered investment adviser representative of J. Brooks Financial and also worked as a registered representative with High Street Securities, Inc., from November 2011 to November 2012; and with Sicor Securities, Inc. from September 2009 to November 2011.

On September 18, 2014, Brooks pleaded guilty to three felony counts of securities fraud and two felony counts of forgery in Aiken County, South Carolina. On the same day, the court sentenced Jonathan Warren Brooks to fourteen years in prison, and ordered him to pay over six million dollars in restitution.

November 3, 2015

SEC charges William Apestelos with running a ponzi scheme

by David Liebrader

On October 30, 2015 in the Southern District of Ohio The Securities and Exchange Commission filed an enforcement action against William Apostelos and his companies WMA Enterprises, LLC, Midwest Green Resources, and OVO Wealth Management. The complaint alleged that Willlaim Apostelos and his companies conducted a fraudulent investment scheme.

The SEC’s complaint alleges that William Apostelos, WMA, Midwest Green, and OVO raised over $66 million from over 300 investors since January, 2010 and that throughout the alleged scheme, William Apostelos made multiple misrepresentations to recruit new investors. The SEC alleges that Apostelos told investors that their funds would be invested in stock, precious metals, real estate, and used to make short-term loans to small businesses and farmers.

The SEC alleges that, in fact, William Apostelos funneled nearly all the investor funds to WMA’s bank accounts and used them to make ponzi scheme like payments to earlier investors and promoters of the scheme; to finance other businesses that he owned; and to support his lavish lifestyle, including the payment of gambling expenditures.