SEC Charges New York-Based Financial Advisor With Stealing $20 Million From Customers

The Securities and Exchange Commission today announced fraud charges against a New York City-based financial advisor accused of stealing at least $20 million from customers to fund his own brokerage accounts and then squandering the bulk of the money in highly unprofitable options trading.

The SEC alleges that Michael J. Oppenheim abused his position as a private client advisor at a global bank and persuaded some customers to withdraw millions of dollars out of their accounts by promising he would purchase safe and secure municipal bonds on their behalf.  Instead, Oppenheim bought himself cashier’s checks and deposited them into his own brokerage account or his wife’s account that he controlled.  Almost immediately after each theft and deposit, Oppenheim allegedly... Read More

SEC Staff and FINRA Issue Report on National Senior Investor Initiative

With the Social Security Administration estimating that each day for the next 15 years, an average of 10,000 Americans will turn 65, the staff of the Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA) today issued a report to help broker-dealers assess, craft, or refine their policies and procedures for investors as they prepare for and enter into retirement.   

The National Senior Investor Initiative report includes observations and practices identified in examinations that focused on how firms conduct business with senior investors.  The examinations by the SEC’s Office of Compliance Inspections and Examinations (OCIE) a... Read More

SEC Halts Investment Scheme Targeting Military Personnel

The Securities and Exchange Commission today announced fraud charges and an asset freeze against a man living in central Texas accused of telling false tales about his stockbroking experience to lure current and former U.S. military personnel into investing with him.

The SEC alleges that Leroy Brown Jr. touted his own military connection as an Army veteran while soliciting members of the military and other investors through his firm LB Stocks and Trades Advice LLC.  Brown falsely assured investors, including some stationed at nearby Fort Hood, that he had many years of experience in the securities markets.  He specifically claimed to have all the necessary licenses and registrations to conduct securities business.  In reality, Brown is not a licensed securities pr... Read More

SEC Announces Fraud Charges Against Former Accounting Executive at Japanese Subsidiary

The Securities and Exchange Commission today announced fraud charges against the former controller of a suburban Chicago company’s Japanese subsidiary who cost his company millions of dollars in trading losses and manipulated accounting records to avoid detection.

The SEC alleges that Katsuichi Fusamae, who was a senior accounting officer at Molex Japan Co. Ltd., engaged in unauthorized equity trading in the company’s brokerage accounts that resulted in losses of more than $110 million.  He concealed the massive trading losses by taking out unauthorized and undisclosed company loans with Japanese banks and brokerage firms, and he used loan proceeds to replenish account balances and engage in additional trading.  When Fusamae’s long-running scheme came to light and the pare... Read More

SEC Names Marc Wyatt as Acting Director of the Office of Compliance Inspections and Examinations

The Securities and Exchange Commission today announced that Marc Wyatt will serve as Acting Director of the agency’s Office of Compliance Inspections and Examinations (OCIE).  He succeeds Andrew Bowden, who announced that he will be leaving the SEC to rejoin the private sector at the end of April.

Mr. Wyatt has served as the Deputy Director of OCIE since October 2014, where he has led the Technology Controls Program and served as a member of the office’s Operating and Executive Committees.  He also is the national co-coordinator of OCIE’s Private Fund Specialized Working Group and recently participated in the creation of its Private Fund Examination Unit, whose attorneys, accountants, and examiners specialize in examinations of advisers to private funds.  Mr. Wyatt joined ... Read More

SEC Halts Microcap Scheme in South Florida

The Securities and Exchange Commission today announced fraud charges and an asset freeze against the operators of a South Florida-based microcap scheme, including three boiler room brokers caught trying to conceal from investors that they have been barred from the industry.

The SEC alleges that investors were defrauded in cold calls placed to investors through a boiler room spearheaded by Dean A. Esposito of Boca Raton, Fla., Joseph DeVito of Brooklyn, N.Y., and Frederick Birks of Orlando, Fla.  These brokers and their sales agents were hired by Joseph J. Azzata of Boca Raton, Fla., CEO of eCareer Holdings, Inc., to sell unregistered stock shares in the company.  Investors were told their money would be used as working capital to develop eCareer’s online job staffing busin... Read More

SEC Charges Oregon-Based Defense Contractor With FCPA Violations

The Securities and Exchange Commission today charged Oregon-based FLIR Systems Inc. with violating the Foreign Corrupt Practices Act (FCPA) by financing what an employee termed a “world tour” of personal travel for government officials in the Middle East who played key roles in decisions to purchase FLIR products.  FLIR earned more than $7 million in profits from sales influenced by the improper travel and gifts. 

FLIR, which develops infrared technology for use in binoculars and other sensing products and systems, agreed to settle the SEC’s charges by paying more than $9.5 million and reporting its FCPA compliance efforts to the agency for the next two years.  The SEC previously char... Read More

Gregg E. Berman, Associate Director in the Division of Trading and Markets, to Leave SEC

The Securities and Exchange Commission today announced that Gregg E. Berman, Associate Director of the Office of Analytics and Research in the Division of Trading and Markets, is leaving the agency later this month.

The Office of Analytics and Research, established in 2012, conducts quantitative research and data analysis to inform the Commission’s policies on markets and market structure.  Mr. Berman has headed the office since January 2013 and came to the Division of Trading and Markets in June 2010 as a senior advisor to the division director.  He joined the SEC staff in October 2009 as a senior advisor in the Division of Economic and Risk Analysis.

During his tenure, Mr. Berman worked on an analysis of the causes of the May 6, 2010 “flash crash,” on rulemaking... Read More

SEC Charges L.A.-Based Pacific West Capital Group With Fraud in Sale of Life Settlement Investments

The Securities and Exchange Commission today charged Los Angeles-based Pacific West Capital Group Inc. and its owner Andrew B. Calhoun IV with fraud in the sale of “life settlement” investments.

Life settlements are securities structured around when life insurance policies “mature” after the insured individual dies and benefits are paid.  Life settlement investors purchase an interest in a life insurance policy and in exchange receive a share of the death benefit.

The SEC’s complaint alleges that since 2004, Pacific West and Calhoun, a Beverly Hills-based life insurance agent, have raised nearly $100 million from life settlement investors.  Since at least 2012, Pacific West and Calhoun allegedly defrauded investors by using proceeds from the sale... Read More

OCIE Director Andrew Bowden to Leave SEC

The Securities and Exchange Commission today announced that Andrew Bowden, Director of the Office of Compliance Inspections and Examinations (OCIE), will leave the agency at the end of April to return to the private sector.

Mr. Bowden joined the SEC in November 2011, serving as OCIE’s National Associate for the Investment Adviser/Investment Company examination program.  He was named Deputy Director of OCIE in September 2012 and became the Director of OCIE in June 2013.

“Drew has served as a thoughtful, creative, and dedicated advocate for investors, OCIE, and the Commission,” said SEC Chair Mary Jo White. “Under his leadership, OCIE has effectively engaged with investors and the industry to promote compliance, worked to detect and prevent fraud, and advised the Co... Read More