Monthly Archives: May 2019

SEC Charges IA Overcharges

On May 28, SEC charged advisor with overcharging client fees. Stephen Anderson defrauded clients due to overcharging advisory fees by $367k. Anderson owned River Source Wealth, a now-defunct investment advisory firm. The fees were based on each customer’s assets under management, as agreed. Allegations Order finds, that during 2015 to 2016, Anderson overcharged most of…
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SEC Stop Crypto Pyramid Scheme

On May 23, SEC charged perpetrator of crypto pyramid scheme. Daniel Pacheco is the alleged perpetrator of a multimillion-dollar pyramid scheme. Defendants fraudulent pyramid scheme promised investors cryptocurrency riches. Pacheco conducted a fraudulent, unregistered offering of securities through two companies which he controlled, IPro Solutions LLC and IPro Network LLC. IPro raised \$26mn by selling…
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DoJ Mozambique $2bn Bribery

On May 20, 2019, news outlets reported Detelina Subeva entered a guilty plea. Plead guilty pursuant to a sealed agreement to one count conspiracy to launder. Reportedly admitted laundering secret payments to bankers paid by Privinvest. Background On Mar. 8, DoJ indicted officials from Mozambique in $2bn fraud. Mozambique ex-finance minister was charged with other…
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FINRA Client Terminated Broker

On May 10, FINRA issued investor alert on when a broker leaves. Follows FINRA Apr. 2019 notice communication for departing reps. Investor alert on how clients will be communicated with, when a broker leaves. Investor Guidance Complete answers about departing broker allows informed decision on account. Broker departure should not disrupt the service the firm…
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CAN BC FIC Money Laundering

On May 9, CAN BC FIC issued report on real-estate laundering. Expert panel on money laundering in real estate, reported that the over C$7bn in dirty money laundered in BC in 2018 had increased cost of a home about 5%. Expert Reports Report released with remainder of Peter German review on money laundered in real…
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SEC Insider Trading Settlement

On May 7, SEC settled in a case of insider trading worth $250k. Brian Fettner traded on confidential information taken from a lifelong friend. Alleged Violations While a guest at his friend’s house Fettner surreptitiously viewed confidential information re a pending corporate acquisition of G&K Services Inc. by Cintas. Using this information and without telling…
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