Oppenheimer & Co. Fined $1.2M in SEC Municipal Bond Case
Oppenheimer & Co. agreed to a $1.2 million consent judgment over SEC findings that the firm failed disclosure obligations in the municipal bond market.
White Collar Crime
The latest white collar crime coverage from ConFraud.
James Nathan Grimes' $550,710 Pay Telephone Fraud Scheme
James Nathan Grimes and Dennis Watts were charged by the SEC for fraudulent pay telephone scams, resulting in $550,710 in penalties and permanent injunctions.
Kevin Lasky's Role in MCA Financial's $256.6M Fraud Scheme
Kevin Lasky was charged in connection with MCA Financial Corporation's fraudulent scheme led by CEO Patrick D. Quinlan, Sr., resulting in $256.6M in restitution.
Robert A. Kasirer's $4.9M Municipal Bond Fraud Scheme
Robert A. Kasirer was permanently enjoined and ordered to pay over $4.9 million for orchestrating municipal revenue bond offering fraud in violation of securities laws.
Gary B. Taffet's $402,739 Insider Trading Penalty
Former New Jersey political figure Gary B. Taffet settled SEC insider trading charges, paying $402,739 in disgorgement, interest, and civil penalties.
Conrad M. Black's $85M Disclosure Fraud at Hollinger Inc.
Conrad M. Black and F. David Radler diverted $85 million from Hollinger Inc. through a fraudulent scheme, resulting in a $21.3M settlement with the SEC.
Morris Gad's $399,187 Insider Trading Settlement
Morris Gad settled SEC charges for insider trading based on tips from Nathan Rosenblatt, paying $399,187 in penalties and accepting a permanent injunction.
Aaron B. Fletcher's $200K Municipal Bond Fraud and Violations
Aaron B. Fletcher and Twin Spires Financial LLC penalized $200,000 for fraudulent municipal bond offerings and failure to register as a municipal advisor.
Garfield M. Taylor's $27.9M Ponzi Scheme and Securities Fraud
Garfield M. Taylor and Jeffrey A. King orchestrated a multi-million dollar Ponzi scheme through Garfield Taylor, Inc., resulting in $27.9M in penalties.
Michael R. Warren's $628K Fake Insurance Annuity Fraud
Michael R. Warren pled guilty to selling non-existent insurance annuity contracts and misappropriating client funds, ordered to pay $628,107 in California.
Claude W. Savage's $1.4M Securities Fraud and Pyramid Scheme
Claude W. Savage was involved in International Heritage, Inc.'s pyramid scheme that defrauded investors, resulting in a $1.4M penalty for securities violations.
Dennis Herula's $40M Fraudulent Investment Scheme
Former broker Dennis Herula was arrested by the SEC for orchestrating a $40 million fraudulent investment scheme, with criminal charges filed in Colorado.
David B. Lobel's $600K Securities Fraud in AppleTree Offering
David B. Lobel, former officer of The AppleTree Companies, faced SEC action for material misrepresentations in 1992 securities offering, resulting in $600K penalty.
Peter Dong Zhou's $592,942 Insider Trading & Securities Fraud
Peter Dong Zhou settled SEC charges for insider trading and securities fraud related to China Yingxia International, Inc., paying $592,942 in penalties.
Victor L. Ziller's $125,000 Securities Fraud Penalty
Victor L. Ziller faced securities fraud charges in the Platforms Wireless International Corp. case, resulting in a $125,000 penalty in California.
Pratima Rajan's $648K Insider Trading Scheme
Pratima Rajan was charged in an SEC insider trading case involving Arjun Sekhri and others that generated $1.8 million in illicit profits, settling for $648,201.
Jackie Gross $1.6M SEC Settlement for Disclosure Fraud
Jackie Gross and affiliates Telvest Communications and Morgan Spaulding settled SEC charges for $1.6M involving disclosure fraud and unregistered broker-dealer activities.
Jerome E. Rosen: $15M Stock Manipulation Scheme, $75K Penalty
Jerome E. Rosen and nine others charged in SEC lawsuit for manipulating Systems of Excellence, Inc. stock, defrauding investors of nearly $15 million.
David Syre Pays $61K in Metropolitan Mortgage Securities Fraud
David Syre settled SEC charges related to financial reporting fraud at Metropolitan Mortgage & Securities Co., paying $61,508 in penalties and accepting injunctions.
Roger Kao: $30.8M Syntax-Brillian Insider Trading & Fraud Scheme
Roger Kao (a/k/a Chao Chun Kao) was involved in a $30.8M insider trading and financial fraud scheme at Syntax-Brillian Corporation alongside CEO James Li.
Robert S. Agriogianis: $2.8M Chinese Reverse Merger Stock Fraud
Robert S. Agriogianis was involved in a Chinese reverse merger scheme that manipulated stock trading, resulting in $2.8M in penalties and settlements.
Walter Ng & Associates: $5.2M SEC Settlement for Mortgage Fund Fraud
Walter Ng, Kelly Ng, and Bruce Horwitz settled SEC fraud charges for misusing Mortgage Fund '08 LLC assets, resulting in $5.2M in penalties and industry bans.
Artur Khachatryan Settles SEC Spoofing Charges for $373,885
Artur Khachatryan settled SEC charges for conducting a manipulative spoofing scheme in securities trading, paying $373,885 in disgorgement and penalties.
David Plate: Schottenfeld Group Pays $1.2M in Insider Trading Case
David Plate and Schottenfeld Group LLC settled SEC insider trading charges for $1.2 million, including disgorgement, interest, and civil penalties.
Thomas F. Goodman's $7.4M Fraudulent Securities Offering
Thomas F. Goodman and co-defendants were found liable for $7.4M in a fraudulent securities offering involving false promises of extraordinary returns.
Yao Lin's $220M International Pyramid Scheme Fraud
Yao Lin and CKB168 Holdings Ltd. were ordered to pay over $220 million in a final judgment for operating an international pyramid scheme targeting investors.
Ryan Petersen OCZ Technology $130K SEC Accounting Fraud Case
Ryan Petersen, former OCZ Technology executive, faced SEC charges for accounting fraud and disclosure failures, resulting in a $130,000 penalty and ongoing litigation.
Edward O'Donnell Pays $225K for Pareteum Revenue Recognition Fraud
Edward O'Donnell and Victor Bozzo, former Pareteum executives, faced SEC enforcement resulting in $225,000 in penalties for orchestrating a revenue recognition scheme.
Kevin L. Lawrence: $91.6M Znetix Stock Fraud Scheme
Kevin L. Lawrence sentenced to 20 years in prison and ordered to pay $91.6M in restitution for his role in the Znetix stock fraud scheme involving securities fraud.
Steven Brewer's $5.2M World Vision Entertainment Ponzi Scheme
Steven Brewer was permanently enjoined in the World Vision Entertainment Ponzi scheme case, with SEC ordering $5.2M in disgorgement and penalties.
John K. Bradley: $75K Penalty in Physician Computer Network Fraud
John K. Bradley settled SEC accounting fraud charges related to Physician Computer Network, Inc., agreeing to a $75,000 penalty and permanent injunction.
Kevyn Rakowski: $70K Penalty for Wilmington Trust Loan Fraud
Kevyn Rakowski, former Wilmington Trust officer, paid $70,367 for fraudulently excluding past due real estate loans from financial reports in Delaware.
Hung Chin: $4.1M Penalty for Hacked Insider Trading Scheme
Hung Chin received a $4.1M penalty for fraudulently trading on hacked nonpublic information from New York law firms, generating nearly $3M in illegal profits.
Jerome L. Wilson: $300K Penalty in CT Pension Fund Fraud Scheme
Jerome L. Wilson paid $300,667 to settle SEC charges in a Connecticut state pension fund investment fraud scheme orchestrated by former state Treasurer Paul J. Silvester.
James S. Eberhart: $2.3M Unregistered Securities Fraud at Debisys
James S. Eberhart fraudulently sold $2.3 million in unregistered securities through Debisys, Inc., resulting in SEC permanent injunction and $76,102 penalty.
Owen R. Fox Faces $7.9M Contempt Motion for Securities Fraud
Owen R. Fox and Bruce Franklin face SEC civil contempt motion for failing to pay $7.9M in disgorgement after securities law violations involving fraud.
Russell Kersh's $500,000 Accounting Fraud Penalty at Sunbeam
Russell Kersh, former Sunbeam Corporation executive, paid $500,000 and received a permanent ban from serving as officer or director for accounting fraud.
Barry Liss: $464K Penalty in Oil Well Offering Fraud Scheme
Barry Liss and Carol J. Wayland faced SEC action for oil well offering fraud involving unregistered securities and investor fund misappropriation totaling $464,665.
Robert Walton, Jr. Pays $1M+ for Securities Fraud at Hadsell
Robert Walton, Jr., former President of Hadsell Chemical Processing, LLC, ordered to pay over $1 million for misrepresenting facts to investors and failing to register securities.
Christopher Barclay and Jesse Finalyson: The Bankruptcy Trustee and Attorney Accused of Settling $75 Million in Claims for $200,000
A bankruptcy malpractice adversary proceeding accuses Chapter 7 trustee Christopher R. Barclay and his colleague Jesse Finalyson of settling $75 million in claims for a total of $200,000, then approving a sale of the remaining estate claims to the very man accused of orchestrating the criminal enterprise -- for another $100,000. The law firm they worked for, Finlayson Toffer Roosevelt and Lilly LLP, appears to have dissolved.
By Raymond Kwok
Mark Alan Lisser: $961K Penalty for Boiler Room Securities Fraud
Mark Alan Lisser was permanently enjoined and ordered to pay $961,440 for operating a boiler room scheme through Knightsbridge Capital Partners.
Thomas W. Davis: Enron Broadband Fraud Case Dismissed
Thomas W. Davis, former Enron executive, had SEC civil fraud charges dismissed in the Enron Broadband Services case. Other defendants paid $1.0M in penalties.
Farhang Afsarpour's $386K Insider Trading Penalty
Farhang Afsarpour received a $386,671 penalty in an SEC insider trading case alongside Sasan Sabrdaran, who also faced an officer and director bar.
Louis Peter Goff's $2.1M Forex Trading Fraud in Utah
Louis Peter Goff and co-conspirators orchestrated a fraudulent high-yield Forex trading program through Utah fund managers, resulting in $2.1M in losses.
Leslie A. Arouh Faces $110K Penalty for Bond Trading Fraud Scheme
Leslie A. Arouh was ordered to pay a $110,000 civil penalty by the SEC for violating antifraud provisions in connection with an adjusted trading scheme involving corporate bonds.
Yair Shamir: $100K Penalty for Stock Option Backdating Fraud
Yair Shamir, former Mercury Interactive director, paid $100,000 to settle SEC charges for approving backdated stock option grants and misleading disclosures.
Loretta Antrim Ostrich Breeding Fraud: $819K Investment Scheme
Loretta Antrim involved in fraudulent ostrich breeding investment scheme that raised over $819,000 from investors through deceptive investment contracts.
Steven Craig Lusardi: $900K Insider Trading Scheme at Restoration Hardware
Steven Craig Lusardi, former Restoration Hardware VP, and three associates charged in insider trading scheme generating over $900K in illegal profits.
Bradley Hamilton's $265,000 Pension Transfer Disclosure Fraud
Bradley Hamilton misled clients about pension transfers and concealed conflicts of interest at Devere USA, Inc., resulting in a $265,000 penalty from the SEC.
Yatin D. Mody's $3.0M Revenue Recognition & Backdating Fraud
Yatin D. Mody, former Vitesse Semiconductor executive, faced SEC charges for revenue recognition fraud and options backdating schemes totaling $3.0M.
Stephen Durland: NY CPA Pays $230K in $112M Pump-and-Dump Scheme
Former New York CPA Stephen Durland settled SEC charges for his role in a $112 million pump-and-dump scheme, agreeing to pay $230,464 and accept a penny-stock bar.
Susann Ashley Cargnino: $17M Medical Device Fraud Scheme
Susann Ashley Cargnino and three others defrauded investors of over $7 million in a Michigan medical device scam, resulting in $17M+ in penalties.
Alfred M. Lemcke Sentenced for $843K Investment Fraud Scheme
Alfred M. Lemcke sentenced to 27 months in prison and ordered to pay $843,470 in restitution for defrauding investment clients in Massachusetts.
Brian Fettner's $252K Insider Trading Scheme
Brian Fettner illegally profited over $250,000 by trading G&K Services stock using confidential information obtained from a friend, leading to SEC charges.
Gerald P. Alexander's $2.4M Unregistered Securities Fraud
Gerald P. Alexander and his companies CJB Consulting and Regis Filia Holdings faced $2.4M in penalties for unregistered securities sales and broker violations.
Henry Morris & Quadrangle: $5M Penalty for Pension Kickbacks
Henry Morris's Quadrangle Group LLC paid $5M to settle SEC charges over a kickback scheme involving New York's largest pension fund through undisclosed payments.
Steven R. Eagleburger: $110K Penalty in FLIR Systems Fraud
Steven R. Eagleburger, former FLIR Systems executive, paid $110,000 to settle SEC charges of accounting fraud and inflating earnings in 1998-1999.
Neil Dolinsky: $2M Penalty in Zomax Insider Trading Case
Neil Dolinsky, former Zomax officer, faced SEC insider trading charges resulting in a $2 million penalty. The case involved financial reporting fraud.
James S. Sholeff's $200,000 Securities Fraud Settlement
James S. Sholeff, former PurchasePro.com executive, settled SEC charges for financial fraud with a $200,000 penalty and guilty plea in federal criminal case.
William F. McFarland's $375K Accounting Fraud at Riverstone
William F. McFarland settled SEC charges for inflating Riverstone Networks' revenues through improper recognition, paying $375,000 in penalties.
Patrick H. McCarthy III: $100K Penalty for SEC Fraud & Obstruction
Patrick H. McCarthy III paid $100,000 in civil penalties for antifraud violations of federal securities laws and obstruction of SEC proceedings.
Philip R. Jacoby Jr.: $1.5M Osiris Accounting Fraud Settlement
Philip R. Jacoby Jr. and three other Osiris Therapeutics executives faced SEC charges for accounting fraud that overstated performance, resulting in a $1.5M settlement.
Shane Schmidt: $12M+ SEC Penalties in COVID-19 Microcap Fraud
Shane Schmidt and four entities ordered to pay over $12 million in SEC penalties for COVID-19-related microcap fraud scheme in Gomes et al. case.
Kim J. Brown Hit with $110K Penalty for Unregistered Broker Fraud
Kim J. Brown faced SEC action for orchestrating fraudulent stock sales and acting as an unregistered broker, resulting in $110,000 in penalties and injunctions.
Michael Lauer's $62.5M Securities and Disclosure Fraud Penalty
Michael Lauer was ordered to pay over $62 million in disgorgement plus a $500,000 civil penalty for securities fraud and disclosure fraud violations.
William M. Beecher's $1.9M Revenue Overstatement Fraud
Former i2 Technologies CFO William M. Beecher settled SEC charges for overstating revenues, paying $1.9M and accepting a five-year officer ban.
George Chachas: $630K Penalty in $12M Stock Manipulation Scheme
George Chachas faced SEC action in the Cavanagh case for manipulating Electro Optical Systems stock, part of a scheme that generated over $12 million in illegal profits.
Lewis Allen Rivlin Liable for $6.5M in Securities Fraud Scheme
Lewis Allen Rivlin was found liable for securities fraud involving a fraudulent high-yield bank debenture trading program and ordered to pay over $6.5 million.
Douglas A. Parigian Insider Trading Case: $51,460 Penalty
Douglas A. Parigian was involved in an insider trading scheme with amateur golfers targeting American Superconductor Corporation, settling for $51,460.
James Rudolph Insider Trading: $801K Penalty in Tallgrass Energy Case
James Rudolph was charged by the SEC with insider trading related to Tallgrass Energy LP, resulting in penalties totaling $801,742 and permanent injunctions.
Larry A. Stockett's $1.8M Disclosure Fraud and Scheme
Larry A. Stockett orchestrated a fraudulent scheme involving Hightec, Inc. and The S.I.N.C.L.A.R.E. Group, Inc., resulting in $1.8M in penalties and injunction.
Laura Mascola's $3.5M BitConnect Unregistered Securities Case
Laura Mascola, along with BitConnect promoters Michael Noble and Joshua Jeppesen, ordered to pay over $3.5 million for promoting unregistered securities.
Mark A. Belnick: $100K Penalty for Tyco Disclosure Fraud
Mark A. Belnick, former Chief Corporate Counsel of Tyco International Ltd., paid $100,000 and accepted a five-year officer/director ban for disclosure fraud.
Peter M. Stanley: $100K Securities Fraud with Mackie and Fink
Peter M. Stanley received permanent injunction in SEC securities fraud case involving Thomas S. Mackie and Andrew S. Fink, with $100K penalty waived.
James G. Lewis: $1M Penalty in JB Oxford Late Trading Fraud
James G. Lewis, former officer of JB Oxford Holdings, settled SEC civil fraud charges for late trading and market timing schemes, resulting in $1M in penalties.
Jason W. Brola: $120K Penalty for Securities Fraud and Sales
Jason W. Brola received a $120,000 penalty after the SEC obtained default judgments against him and co-defendants for securities fraud and unregistered sales.
Arthur Knapp's $130K Accounting and Disclosure Fraud Settlement
Arthur Knapp, former OCZ Technology executive, settled SEC charges for accounting and disclosure fraud, paying $130,000 alongside co-defendant Ryan Petersen.
George H. Holley's $312,440 Insider Trading Scheme
George H. Holley and Robert J. Hahn-Baiyor paid $312,440 in penalties for insider trading related to Nipro Corporation's acquisition of Home Diagnostics, Inc.
Joshua Craig Reeves: $120M Faith-Based Bond Fraud Scheme
Joshua Craig Reeves and family defrauded investors of $120M through church bonds in Indiana. SEC secured injunctions, asset freezes, and $7.9M in penalties.
Peter Cho Insider Trading: $251K Penalty for Virgin America Options
Peter Cho settled SEC charges for insider trading Virgin America Inc. options using confidential information from his fiancée, netting $250K in illegal profits.
Edgar B. Alacan Faces $110K SEC Penalty Enforcement in New Jersey
Edgar B. Alacan is subject to SEC enforcement action in U.S. District Court for the District of New Jersey to collect a $110,000 civil penalty for securities violations.
Kai H. Stinchcombe Settles SEC Charges for $200K in Special Needs Trust Fraud
Kai H. Stinchcombe and True Link Financial Advisors settled SEC charges for $200,000 related to misuse of special needs pooled trust funds.
John Larson's $175K Securities Fraud via Unregistered Sales
John Larson and others settled SEC charges for selling unregistered partnership units using boiler room tactics, resulting in $175,688 disgorgement penalty.
Michael Luckhoo-Bouche's $8.2M Microcap Fraud Scheme
Michael Luckhoo-Bouche was ordered to pay $8.2M in penalties for involvement in a COVID-19-related microcap fraud scheme alongside four other entities.
Jason C. Wong Hit with $3M Penalty in Corporate Hijacking Scheme
Jason C. Wong, along with Irwin Boock and Stanton B.J. DeFreitas, was ordered to pay part of $12.9M in relief for hijacking 23 defunct companies and selling unregistered securities.
Christopher Beals: $1.5M SEC Penalty for User Metrics Fraud
Christopher Beals and Arden Lee faced SEC charges for negligent misrepresentations about WM Technology's monthly active users, resulting in $1.5M in penalties.
Martin Zaepfel: $170K Penalty for Spiegel Credit Card Fraud
Martin Zaepfel, former Spiegel Inc. officer, paid $170,000 in penalties for overstating credit card receivables and concealing financial reports.
Gary Kendron's $8.2M Securities Fraud at AlphaCom
Gary Kendron and AlphaCom executives settled SEC charges for $8.2M over fraudulent securities sales and false claims about Internet technology ownership.
Morgan Cooper's $125,000 Unregistered Stock Sales Fraud
Morgan Cooper, along with James J. Caprio and Jeffrey G. Nunez, faced SEC charges for unregistered stock sales and false statements, resulting in $250,000+ penalties.
D. Edward Hays: The Beverly Hills Attorney Accused of Architecting a Bankruptcy Fraud Scheme
A federal RICO complaint accuses D. Edward Hays, a Beverly Hills attorney at Marshack Hays LLP, of orchestrating a bankruptcy fraud scheme that converted a Chapter 11 reorganization into a Chapter 7 liquidation, settled $75 million in claims for $200,000, and engineered a sale of the remaining estate claims to the very man accused of leading the criminal enterprise.
Kathleen Fraher's $50M Silvergate Disclosure Fraud Case
Kathleen Fraher, former Silvergate Capital executive, faced SEC charges for misleading investors about compliance and financial condition in a $50M case.
Paul Free's $300,000 Accounting Fraud at Delphi Corporation
Paul Free was charged by the SEC with financial fraud at Delphi Corporation, settling for $300,000 in penalties related to accounting and disclosure violations.
Stanford Cohen's $138,800 Insider Trading Settlement
Stanford Cohen settled SEC insider trading charges involving Bed Bath & Beyond securities for $138,800 without admitting or denying the allegations.
Josh Lintz: The $200,000-a-Year COO Who Allegedly Built a $12 Million Company on Stolen Trade Secrets
Twenty-two months into a $200,000-a-year job as Chief Operating Officer of a thriving La Jolla software company, Joshua Paul Lintz allegedly began dismantling it from the inside -- downloading thousands of confidential files, deleting 130 client projects, and incorporating a competing company that would generate $12 million in its first year using the stolen assets.
Scott Carpenter Sued in Corrupt Organizations Scheme: The Newport Beach Attorney Accused of Weaponizing the Legal System
A federal RICO complaint accuses Newport Beach attorney Scott R. Carpenter of weaponizing the legal system itself -- seizing a company's bank account through fraudulent wire communications, forging stock certificates for a company that had no stock, assembling perjured declarations, and using the threat of deportation to coerce a settlement from a foreign-born entrepreneur.
Tyler Brandon Davis Named Principal Organizer in $75 Million RICO Lawsuit Over Tech Company Takeover
A 185-page federal RICO complaint names Tyler Brandon Davis of Folsom, California as the principal organizer of an eight-year criminal enterprise that allegedly seized a thriving software company through wire fraud, identity theft, and trade secret theft -- a scheme involving shell companies, corrupted attorneys, and $75 million in fraudulent transactions.