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1558 Enforcement Actions in the U.S. over past 30 days

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FTC enforcements decreased 55% over the past 30 days

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SEC issued enforcements: $37,812,859 over the past 30 days

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50 Final Rules go into effect in the next 7 days

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49 Mortgage Lending docs published in the last 7 days

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1670 docs with extracted obligations from the last 7 days

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new Proposed and Final Rules were published in the past 7 days

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11906 new docs in pro.compliance.ai within the last 7 days

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Enforcement Report Jan 09 - 15

FTC

Penalties: N/A
Respondent: Altria Group, Inc. and JUUL Labs, Inc
Violation: Complaint Counsel and Respondents Altria Group, Inc. and JUUL Labs, Inc. respectfully move this Court for an order revising certain deadlines in this Court’s August 4, 2020 Scheduling Order in order to accommodate the scheduling of depositions in this matter… Read More

Penalties: N/A
Respondent: KRAMER DUHON & HEALTH RESEARCH LABORATORIES, LLC; WHOLE BODY SUPPLEMENTS, LLC
Violation: The Commission filed this Administrative Complaint alleging that Respondents have “disseminated or [have] caused to be disseminated advertising and promotional materials”1 for four supplements that the Commission contends were “not substantiated at the time the representations were made… Read More

Penalties: N/A
Respondent: FLO HEALTH, INC., a corporation.
Violation: The Commission considered the matter and determined that it had reason to believe that Respondent has violated the Federal Trade Commission Act, and that a Complaint should issue stating its charges in that respect… Read More

Penalties: N/A
Respondent: Everalbum, Inc., d/b/a Ever and Paravision
Violation: According to the proposed complaint, Everalbum published a help article entitled “What is Face Recognition?” on its website in July 2018… Read More

Penalties: N/A
Respondent: FACEBOOK, INC.
Violation: Facebook uses this power to deter and suppress competitive threats to its personal social networking monopoly… Read More

TREAS

Penalties: N/A
Respondent: PT Bukit Muria Jaya
Violation: BMJ directed payments for its DPRK-related exports to its U.S. dollar bank account at a nonU.S. bank… Read More

CFPB

Penalties: N/A
Respondent: 1st Alliance Lending, LLC & John Christopher DiIorio; Kevin Robert St. Lawrence; and Socrates Aramburu
Violation: From no later than 2015 until at least August 2019, unlicensed 1st Alliance employees routinely and illegally engaged in mortgage-origination activities and interactions with consumers that required the employees to be licensed under the applicable state laws, in violation of the Truth in Lending Act and Regulation Z… Read More

FINRA

12 Enforcement Documents

$95,000.00 in Fines

Penalties: N/A
Respondent: Steven Robert Luftschein
Violation: Luftschein’s trading in the Customers’ accounts resulted in annualized turnover rates ranging from 12.5 to 96.3 and annualized cost-to-equity ratios (or break-even points) ranging from 35.6% to 123.8%… Read More

Penalties: N/A
Respondent: Christopher B. Black
Violation: Black refused to provide information and documents that were requested pursuant to FINRA Rule 8210, in violation of FINRA Rules 8210 and 2010… Read More

Penalties: $5,000.00
Respondent: Teresa L. Holwerda
Violation: While registered through State Farm, Holwerda forged an insurance customer’s signature on paperwork that she submitted to the firm’s affiliated insurance company. Holwerda thereby violated FINRA Rule 2010… Read More

Penalties: N/A
Respondent: Bryce R. Scarfone
Violation: In January 2019, Scarfone altered a payroll check issued by HSBC to his roommate, endorsed it, and deposited the check into his personal bank account held at HSBC’s bank affiliate, thereby converting the funds in violation of FINRA Rule 2010… Read More

Penalties: $40,000.00
Respondent: Robert J. Yuloo & Whitehall-Parker Securities, Inc
Violation: During the period January 2016 through November 2017, Yuloo and the firm failed to reasonably review and document the outside business activity (OBA) that one of the firm’s registered representatives disclosed… Read More

Penalties: $35,000.00
Respondent: Growth Capital Services, Inc
Violation: Growth Capital violated FINRA Rules 5123 and 2010 by failing to timely file required documents related to private placements sold by its registered representatives… Read More

Penalties: N/A
Respondent: Cesar Augusto Barrios
Violation: Barrios violated Article V, Section 2(c) of FINRA’s By-Laws and FINRA Rules 1122 and 2010 when he willfully failed to disclose through the timely filing of an amended 2 Uniform Application for Securities Industry Registration or Transfer (Form U4) that he had been charged with, and pleaded nolo contendere to, two felony charges… Read More

Penalties: $5,000.00
Respondent: Myreon S. McCurty
Violation: FINRA found that while McCurty was taking the Series 10 qualification examination, McCurty possessed unauthorized Series 10 study materials, thereby violating FINRA Rules 1210 and 2010… Read More

Penalties: $5,000.00
Respondent: Robert Leslie Mandau
Violation: From January 2012 through December 2019, Mandau violated FINRA Rules 3270 and 2010 by engaging in an undisclosed outside business activity without providing prior written notice to Thrivent… Read More

Penalties: $5,000.00
Respondent: Arthur Obermeier
Violation: From January to March 2019, Obermeier violated FINRA Rule 2010 when he executed six trades with a total principal value of approximately $798,000 in two of his LPL customers’ accounts without the customers’ authorization or consent for the trades… Read More

Penalties: N/A
Respondent: Jonathan H. Dudley
Violation: In December 2020 , Dudley violated FINRA Rules 8210 and 2010 by refusing to provide documents and information and on-the-record testimony requested pursuant to FINRA Rule 8210 in connection with Enforcement’s investigation concerning Dudley’s potential conversion of funds from, and participation in undisclosed outside business activities with, his Firm customer… Read More

Penalties: N/A
Respondent: Ryan Raskin
Violation: Raskin violated FINRA Rules 8210 and 2010 by failing to provide documents and information repeatedly requested pursuant to FINRA Rule 8210… Read More

OCC

1 Enforcement Document

$3,500,000.00 in Fines

Penalties: $3,500,000.00
Respondent: James Strother Wells Fargo Bank, National Association
Violation: The Office of the Comptroller of the Currency (“OCC”) initiated cease and desist and civil money penalty proceedings against James Strother (“Respondent”), former General Counsel of Wells Fargo Bank, N.A. (“Bank”), pursuant to 12 U.S.C. § 1818(b) and (i), through the issuance of a Notice of Charges for Orders of Prohibition and Orders to Cease and Desist and Notice of Assessments of a Civil Money Penalty dated January 23, 2020… Read More

FINCEN

1 Enforcement Document

$390,000,000.00 in Fines

Penalties: $390,000,000.00
Respondent: Capital One, National Association
Violation: FinCEN has determined that CONA violated certain of its BSA obligations for a particular business unit, namely, its Check Cashing Group (CCG), from in or about 2008 through in or about 2014… Read More

SEC

18 Enforcement Documents

$579,947,040.00 in Fines

Penalties: $500,000,000.00
Respondent: WELLS FARGO & COMPANY
Violation: Wells Fargo violated the federal securities laws by misleading investors regarding the success of the core business strategy of the Community Bank operating segment, its largest business unit. At all relevant times, Wells Fargo was a publicly traded financial services corporation with common stock registered under Section 12(b) of the Securities Exchange Act of 1934 (“Exchange Act”) and quoted on the New York Stock Exchange (Ticker: WFC)… Read More

Penalties: N/A
Respondent: City of Harvey, et al.
Violation: While under severe financial distress, the City improperly used municipal bond proceeds for the City’s general operations, including payroll… Read More

Penalties: N/A
Respondent: Eric C. Malley, et al.
Violation: In marketing Funds III and IV, Malley and MG Capital falsely claimed that they had previously managed two highly-successful real estate funds with a combined portfolio value of $1.18 billion that had significantly outperformed the S&P 500 Index over a ten-year period when, in fact, those prior funds never existed… Read More

Penalties: $650,000.00
Respondent: Wireline, Inc.
Violation: Wireline also violated the antifraud provisions of the federal securities laws with respect to the offering by making materially false and misleading statements about the viability of its platform and the timetable for the issuance of its tokens… Read More

Penalties: $204,097.00
Respondent: William M. Malloy, II & Fortress Investment Management, LLC
Violation: Commission found that from approximately January 2014 through 2016, Malloy violated the federal securities laws by failing to fully disclose all material facts to advisory clients, including the receipt of fees from Aequitas Enterprise (“Aequitas”) for consulting and business development services that included introducing prospective investors to Aequitas… Read More

Penalties: $20,000.00
Respondent: PAUL C. SPITZER & ADVANCED PRACTICE ADVISORS, LLC
Violation: These proceedings arise out of violations of the Investment Advisers Act of 1940 by Advanced Practice Advisors, LLC (“APA”), an investment adviser formerly registered with the Commission, and its founder and CEO, Paul C. Spitzer (“Spitzer”)… Read More

Penalties: N/A
Respondent: DANIEL J. MERRIMAN
Violation: Any reapplication for association by the Respondent will be subject to the applicable laws and regulations governing the reentry process, and reentry may be conditioned upon a number of factors, including, but not limited to, compliance with the Commission’s order and payment of any or all of the following… Read More

Penalties: $163,788.00
Respondent: Thomas V. Conwell and Kerry L. Hoffman
Violation: According to the complaint, Hoffman, formerly a registered representative and investment advisory representative at a large nationwide financial firm, solicited certain of his investment advisory clients to invest in the securities, but did not disclose certain financial conflicts of interest, including that he received compensation from GT Media and made short-term loans to the company that were repaid using
investor funds…. Read More

Penalties: $204,097.00
Respondent: William M. Malloy, III & Fortress Investment Management, LLC
Violation: Commission found that from approximately January 2014 through 2016, Malloy violated the federal securities laws by failing to fully disclose all material facts to advisory clients, including the receipt of fees from Aequitas Enterprise (“Aequitas”) for consulting and business development services that included introducing prospective investors to Aequitas… Read More

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