We want to give you a snapshot of the cases that the SEC settled and charged last week. There are so many of these every week that unless the facts are stunning , unique or original, we’ll only provide a highlight. At least you know who to avoid.
PROVIDENCE FINANCIAL
Providence Financial Investments Inc. A bankrupt Florida investment firm settles an SEC case on selling fraudulent securities settled for $49.5 million. $64 million was stolen from 400 investors.
BOBBY EUGENE GUESS
Host of Texas show Dollars & Sense stole $6 million in an internet advertising company fraud. 12 years in jail.
JESKY ESQ, AND DeSTEFANO
The SEC filed charges against attorney T.J. Jesky and his law firm’s business affairs manager, Mark F. DeStefano, who made approximately $1.4 million by selling shares in UBI Blockchain Internet Ltd. over a 10-day period from Dec. 26, 2017 to Jan. 5, 2018. The sales stopped when the SEC stopped trading in UBI blockchain for “irregularities” due to concerns about the accuracy of assertions in its SEC filings and unusual and unexplained market activitY. They allegedly sold the $3.70 security for between $21 and $48.
CREDIT SUISSE
Charged with violations of the Foreign Corrupt Practices Act (FCPA), Credit Suisse agreed to pay a $47 million criminal penalty to the U.S. Department of Justice and $30 to the SEC. The SEC called corruptly influencing officials “bribery”
ITT EDUCATIONAL SERVICES
The SEC announced settlements with two former senior executives of ITT Educational Services Inc., which the SEC charged hid its true financial condition from investors.
Former CEO Kevin Modany and former CFO Daniel Fitzpatrick are barred from holding senior positions at public companies and ordered to pay penalties in the settlement.
Monday paid $200,000 and Fitzpatrick$100,000. Both lost their ability to appear befoe the SEC as accountants because they they fraudulently concealed the poor performance and looming financial impact of two student loan programs that ITT financially guaranteed. An earlier fraud case nailed the company. Can you say “Corinthian’?
OWINGS GROUP
The SEC Charged Owings Group, a Convicted Felon and Others in $5 Million Offering Fraud
CLUBCORP HIOLDINGS
A former Vice President at ClubCorp Holdings, Inc. has agreed to settle charges that he engaged in insider trading after learning about a possible sale of the company. The SEC’s complaint alleges that Nelson “Frank” Molina, the former Vice President of Investor Relations and Treasury at ClubCorp, discovered that ClubCorp was exploring significant transactions involving the company.
UNITED DEVELOPMENT FUNDING:
PONZI on cash flow bait and switch; transferring between funds inflated revenues. Charges filed. Sounds like an Aequitas clone
MALACHI FINANCIAL:
And its principal, Porter B. Bingham of Roswell, Georgia, for defrauding the City of Rolling Fork, Mississippi
AXESSTEL:
According to the SEC’s complaint, Axesstel, Inc., Chief Financial Officer Patrick J. Gray, and former Chief Executive Officer Harold Clark Hickock III, aided and abetted by Director of Contract Fulfillment and Sales Operations Steven R. Sabin, inflated the company’s revenues by prematurely recognizing revenue on sales and by improperly recognizing revenue despite entering into undisclosed side agreements that relieved customers of payment obligations.