The Securities and Exchange Commission (SEC) today, January 29th., 2013, on it’s website announced that it has charged a former managing director of Jefferies & Co., Inc. (Jefferies), a New York-based broker-dealer, with making misrepresentations and engaging in misleading conduct while he sold mortgage-backed securities (MBS) in the wake of the financial crisis.

The SEC alleges that Jesse Litvak, a senior trader on Jefferies’ MBS Desk who worked at Jefferies’ office in Stamford, Connecticut, where he bought and sold MBS from and to his customers. From 2009 to 2011, Litvak allegedly lied to, or otherwise misled, those customers about the prices that Jefferies had purchased the MBS before selling it to another customer and the amount of his firm’s compensation for arranging the trades. Litvak also misled his customer into believing that he was arranging a MBS trade between customers, when Litvak really was selling the MBS out of Jefferies’ inventory. Litvak also misled customers about how much money they were paying in compensation to Jefferies. These customers included investment funds established by the United States government in the wake of the financial crisis to help support the market for MBS as well as other investment funds, including hedge funds.

It was also noted in the article on the SEC website that according to the SEC’s complaint filed in U.S. District Court for the District of Connecticut, Litvak engaged in misconduct on over 25 trades. When Litvak offered his customers MBS, he lied to them about how much Jefferies had paid (or was paying) for the securities. On some occasions, Litvak also pretended to be actively negotiating with an outside party to buy a security that he would then re-sell to his customer. But none of these negotiations were taking place; instead, Litvak fabricated the existence of the seller and every detail about active negotiations with it. In fact, as Litvak knew, Jefferies had purchased these bonds days before and already held them in its inventory.

The SEC’s complaint charges Litvak with violating the antifraud provisions of the federal securities laws. The complaint seeks a final judgment permanently enjoining Litvak from future violations of the federal securities laws, ordering him to disgorge his ill-gotten gains plus prejudgment interest, and order him to pay civil penalties.

Securities Lawyer, Lars K. Soreide, of Soreide Law Group, represents clients nationwide before FINRA. If you or a loved one have sustained investment losses due to your stock broker or financial advisor’s recommendations, call for a free consultation on how to potentially recover your losses. To speak with an attorney call 888-760-6552, or visit our website at: http://www.securitieslawyer.com.

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The Securities and Exchange Commission, also known as the ‘SEC,’ has filed 734 enforcement actions the fiscal year that ended Sept. 30, 2012. That is one less than last year’s record of 735.

The SEC’s report should remind investors that investment fraud is still a threat to investors. The SEC filed 147 enforcement actions in 2012 against investment advisors and investment companies, one more than 2011’s record number. The SEC filed 134 enforcement actions related to broker-dealers, a 19% increase over 2011.

On the positive side for investors, the SEC was able to secure more payments for the victims of the fraud. The SEC was able to secure over $3 billion in penalties and disgorgement in 2012 for wronged investors. This is an increase of 11 % over the 2011.

In 2011 and 2012, the SEC obtained orders for $5.9 billion in penalties and disgorgement for the investors who became victims of fraud.

Securities Lawyer, Lars K. Soreide, of Soreide Law Group, represents clients nationwide before FINRA. If you or a loved one have sustained investment losses due to your stock broker or financial advisor’s recommendations, call for a free consultation on how to potentially recover your losses. To speak with an attorney call 888-760-6552, or visit our website at: http://www.securitieslawyer.com.

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Soreide Law Group is currently investigating the Wells Timberland REIT for the investors who suffered financial losses. FINRA, the Financial Industry Regulatory Authority, fined Wells Investment Securities $300,000 for improper sales materials when selling the Wells Timberland REIT, from May 2007 to September 2009. (Wells Investment Securities neither admitted nor denied the charges.)

FINRA stated that the marketing materials for the Wells Timberland REIT contained 116 “improper, unwarranted or exaggerated statements.” FINRA further stated that various information concerning diversification, distributions and redemptions of the REIT was misleading.

“By approving and distributing marketing materials with ambiguous and equivocal statements, Wells misled investors into thinking Wells Timberland was a REIT at a time when it was not a REIT,” said Brad Bennett, FINRA executive vice president and chief of enforcement, in a statement.

If you or a loved one invested in the Wells Timberland REIT due to your stock broker or financial advisor’s recommendation call Securities Lawyer, Lars Soreide, of Soreide Law Group at: 888-760-6552, or visit www.securitieslawyer.com.

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Securities Attorney, Lars Soreide, of Soreide Law Group was recently quoted in an article from the Reno Gazette-Journal, written by Jaclyn O’Malley regarding former broker Gary Harrison Lane. The quote reads as follows:

“Florida securities attorney Lars Soreide said Tuesday he has represented a few clients who have recently settled with broker firms connected to Lane, that he accused of negligently superivising Lane’s activities and “selling away” investments. He said he could not give specifics because the civil cases were resolved under confidential agreements. Soreide said had the brokers properly supervised Lane, they would have uncovered the fraud.”

Soreide Law Group first brought attention to Gary Lane in the website blog entitled, “ATTENTION CLIENTS OF GARY LANE,” dated October 7, 2011. Since then, Lane was indited on federal charges. The above article from the website blog listing the award for Mr. Soreide’s clients, was dated September 5, 2011.

Gary Harrison Lane had worked for Banc of America Investment Services in Reno, Nevada, from July 1999 through October 2009 and for Merrill Lynch in Reno, Nevada, from October 2009 through March 2011, where he was terminated for the alleged improprieties. Lane allegedly targeted inexperienced investors, and the elderly. He is accused of a Ponzi scheme which had bilked his clients over $2 million.

Securities Attorney, Lars Soreide, successfully settled the claims in favor of his clients though a FINRA arbitration.

If you or a loved one experienced financial losses because of Gary Harrison Lane, call Soreide Law Group, and speak to an attorney regarding potential recovery of YOUR losses. Please call 888-760-6552 or visit us on the web at http://www.securitieslawyer.com.

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The Securities and Exchange Commission (SEC) announced that it obtained an emergency court order to halt an alleged Ponzi-like scheme operated by Small Business Capital Corp. and its principal Mark Feathers, who raised $42 million by selling securities issued by Investors Prime Fund LLC and SBC Portfolio Fund LLC – two mortgage investment funds they controlled.

The SEC alleges that over 400 investors were promised that profits from mortgage investments would yield annual returns of 7.5 percent or more. When in fact, Feathers operated a Ponzi-like scheme by paying returns to investors that came partly from fund profits and partly from other investors.

“Feathers raised millions from investors by promising high returns,” said John McCoy, Associate Regional Director of the SEC’s Los Angeles Office. “The returns turned out to be too good to be true and were funded in part with new investors’ money.”

In the SEC article they allege that from 2009 to early 2012, Feathers improperly transferred more than $6 million from the funds to Small Business Capital to pay its expenses, including substantial payments to Feathers.

Additionally, the SEC alleges that investors were not told that in February and March 2012, the defendants caused one fund to sell mortgages to the other fund at an inflated price, thus generating a “profit” for the selling fund so it could pay Small Business Capital management fees of more than $575,000. The SEC charged Feathers and Small Business Capital for Small Business Capital’s effecting transactions in the funds’ securities without being registered as a broker-dealer with the SEC.

If your broker recommended you invest in this product, call and speak to an attorney at Soreide Law Group for a free consultation on how to potentially recover your investment losses. Call 888-760-6552, or visit our website at: http://www.securitieslawyer.com.

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The Securities and Exchange Commission (SEC) recently announced that it has obtained an emergency court order to freeze the assets of a South Florida man who has been charged with fraudulently offering investments in oil drilling projects in an article posted on the SEC’s website.

The SEC’s complaint, unsealed in federal court in West Palm Beach, Fla., alleges that Joseph Hilton made numerous misrepresentations to investors while selling limited partnership units in two oil drilling projects earlier this year through his firm Pacific Northwestern Energy LLC. Hilton falsely told potential investors that Pacific acquired its wells from Exxon Mobil Corp., and he overstated Pacific’s experience in the oil and gas industry and the historical accomplishments of its drillers. Hilton raised approximately $789,000 from investors. The SEC’s action froze the assets of Hilton, Pacific, and the two limited partnerships — Rock Castle Drilling Fund LP and Rock Castle Drilling Fund II LP. Hilton’s securities offerings were not registered with the SEC as required under the federal securities laws.

In the SEC’s complaint, there were allegations against Hilton, Pacific, and another company that was controlled by Hilton called New Horizon Publishing Inc. Through Pacific and New Horizon, Hilton sold $2.5 million worth of investments in oil drilling projects sponsored by United States Energy Corp. while deceiving investors about his identity, the anticipated returns on the investments, the amount of oil being produced by U.S. Energy’s wells, and the existence of natural gas wells.

The SEC’s complaint adds that Hilton changed his name from Joseph Yurkin late last year following a final judgment for fraud in a previous SEC enforcement action against him for securities offerings he made through another company he worked for — Homeland Communications Corp.

It was reported that the SEC is seeking disgorgement of ill-gotten gains plus prejudgment interest, financial penalties, and permanent injunctions against Hilton and his entities.

If you or a family member were sold oil and gas offerings by Joseph Hilton (aka Joseph Yurkin) or any of the above companies, and experienced financial losses, contact an attorney at Soreide Law Group for a free consultation on how to recover your investment losses. To speak with an attorney, call 888-760-6552, or visit http://www.securitieslawyer.com.

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On the SEC’s (Securities and Exchange Commission) website, it was announced they filed an injunctive action in the United States District Court for the Eastern District of Pennsylvania against David L. Rothman of Richboro, PA, a registered representative, Vice President, and minority owner of Rothman Securities, Inc., a registered broker-dealer, for conducting a fraud by issuing false account statements and misappropriating investor funds.

According to the SEC’s investigation, it is alleged that from 2006 to 2011, Rothman created and issued false account statements to certain elderly and unsophisticated investors that overstated the value of their investment accounts. The SEC’s complaint also alleges that when the investors discovered that Rothman had misrepresented the value of their investments, Rothman engaged in a scheme to conceal his fraudulent conduct by agreeing to pay those investors the investment returns he reported on the false account statements. When Rothman could no longer afford to make those payments, he misappropriated funds from another elderly and unsophisticated investor and from two trust accounts for which he serves as trustee. Rothman also used a substantial portion of the misappropriated funds for his personal benefit.

If you invested with David L. Rothman or Rothman Securities, Inc., and experienced financial losses, call and speak at no charge, to a securities attorney who may potentially help you recover those losses. Call: 888-760-6552, or visit our website at: http://www.securitieslawyer.com.

Soreide Law Group, PLLC, representing investors nationwide before FINRA the Financial Industry Regulatory Authority.

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The following information was found on FINRA’s website’s “Disciplinary and Other Actions, November, 2012.”

Charles Eugene Bishop Jr. (CRD #1621380, Registered Principal, Pompano Beach, Florida)

submitted an Offer of Settlement in which he was fined $7,500 and suspended from association with any FINRA member in any capacity for two years. Without admitting or denying the allegations, Bishop consented to the described sanctions and to the entry of findings that he attempted to misappropriate approximately $3 million from an elderly customer of his member firm.

These findings stated that Bishop created paperwork by which the deceased customer’s assets would be transferred to a purported entity that was never
formed, but whose name was virtually identical to a company the customer owned, with a tax identification number assigned by the Internal Revenue Service (IRS) to another entity that was never formed, but whose sole member, according to IRS records, was Bishop.

Bishop had the customer sign a firm form that designated Bishop’s entity, although the customer’s signature on the form was notarized, the customer was not present before the notary when the signature was notarized.

The beneficiary’s tax identification number on another firm form the customer signed was changed to the tax identification number for the purported entity associated with Bishop as sole member. The signature date of the form was not altered or changed, and the customer did not initiate the change of
the tax identification number. The findings also stated that after the customer passed away, Bishop, through his attorney, filed a notice with a Probate Division with his state’s Circuit Court representing that he had an interest in the customer’s estate as a claimant and beneficiary of the deceased customer’s estate.

Following Bishop’s termination of employment from his firm, the court issued an order invalidating the beneficiary designations that were on file at Bishop’s firm for the customer’s securities accounts.

The suspension will be in effect from December 3, 2012, through December 2, 2014. (FINRA Case #2009017699201)
(This ends the information on the Disciplinary Actions.)

On FINRA’s website under ‘BrokerCheck’ there are pending customer disputes and 7 final customer disputes listed. He also has 1 regulatory event, 1 pending financial, and 1 final termination. The last three firms of employment, all in Ft. Lauderdale, Florida, were listed as, National Asset Management, Merrill Lynch, Pierce, Fenner and Smith, Inc., and Morgan Stanley.

Currently, Soreide Law Group has pending FINRA arbitrations against Charles E. Bishop, Jr. If you had invested with Charles Eugene Bishop, Jr., and experienced financial losses, call and speak at no charge to a securities attorney who may potentially help you recover your losses. Call 888-760-6552, or visit http://www.securitieslawyer.com.

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Jane E. O’Brien, 59, of Needham, MA, is facing securities fraud for allegedly bilking her client out of $240,000. O’Brien was working for Merrill Lynch in Boston as a financial advisor at the time. O’Brien allegedly told an elderly woman she was investing her money in thousands of shares of a New Hampshire-based company called A.C. Corp. When actually O’Brien was using her client’s money to pay off her own mortgage and settle her legal fees involving a dispute with another client, according to charges filed November 18th., 2012, by federal prosecutors.

This alleged scheme began in 2009, when O’Brien had her client sign a bogus promissory note for $500,000. The client began making payments on the note in late November 2009, prosecutors said. She wrote the checks to a man O’Brien said was an employee at A.C. Corp., but was in reality O’Brien’s husband, the filing said. The husband has not been named and has since separated from O’Brien, according to the filing.

It was reported that after the checks were paid to O’Brien’s husband, he then wrote her checks from the account where the money had been deposited. O’Brien then wired money to her mortgage company to pay her mortgage. Other payments made were used for payment to a law firm representing O’Brien in another dispute with a former client.

Securities Lawyer, Lars Soreide, of Soreide Law Group, has begun an investigation into this matter. If you have invested with Jane E. O’Brien, formerly of Merrill Lynch in Boston, call and speak at no charge to a securities attorney who may potentially help you recover your losses. Call 888-760-6552, or visit http://www.securitieslawyer.com.

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FINRA Case Number 11-01278, awards $158,250.00 to the defrauded Claimants for the alleged supervisory failures of Harvest Capital, LLC, of Gregg Rennie and his branch office. Rennie is now serving a prison sentence for selling fictitious notes to investors.

Since early 2007, Gregg Rennie, the popular radio host and financial advisor, defrauded numerous clients approximately $3,200,000.00. Rennie told clients that their money would be invested in “federal housing certificates” that paid up to 12% per year, tax free, and that were offered by real estate investment companies, Ambit Funding, and Boston Capital, LLC.

Rennie’s scam included providing his clients documentation for their investments, in some instances “certificates” as well as periodic account statements purporting to show substantial returns. Unfortunately, there were no such “federal housing certificates”, and Rennie had no relationship with Boston Capital,LLC. Rennie occasionally provided some of the clients with small payments that purportedly reflected a return on their investment, but made no legitimate investments on any client’s behalf. Instead, Rennie diverted his client’s funds for his personal use and admitted to “co-workers” at the various firms he was registered, with that he “borrowed” funds while the fraud was ongoing.

With the assistance of the Financial Industry Regulatory Authority (FINRA), the Securities and Exchange Commission (SEC) and the Massachusetts District Attorney, Rennie plead guilty to 13 counts of securities fraud and 1 count of wire fraud. Rennie did not steal from the fabulously wealthy. Rennie stole no less than $3.2 million from a number of victims, including the elderly, childhood friends, a church congregation and individuals who listened to Rennie’s radio show, “Money Matters.”

The Claimants are Massachusetts residents and are very happy with the result of the FINRA arbitration against Harvest Capital, LLC, which was the firm that Rennie was registered with at the time of the sale of the notes to the Claimants. The Claimants, although Massachusetts residents, hired the Florida-based firm, Soreide Law Group, PLLC, headed by Massachusetts native, Lars Soreide. The Claimants located the firm though the firm’s website: http://www.securitieslawyer.com. Soreide Law Group handles FINRA arbitrations and mediations for investors nationwide and can be reached at (888) 760-6552.

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