June 2016

Massachusetts Investment Advisor Goes Up In Smoke
An advisor barred from the industry allegedly conducted multiple fraud schemes, including one involving cigarette filters.

Stockbroker Gets 10.5 Years For Fraudulent CDs
Malcolm Segal built a Ponzi scheme and bought luxuries by fraudulently selling CDs, court says.

SEC Sues ‘Frack Master’ For Spending Investor Cash On Strippers
The Texan built his credibility through interviews on CNBC, CNN, Fox Business News and Bloomberg.

Merrill Lynch Fined $15M For Failing To Disclose Note Fees
The SEC and Finra each fined the Bank of America unit for disclosure failures on the sale of debt notes.

Merrill Lynch To Pay $415M For Misusing Customer Cash
The firm misused customer cash that should have been deposited in a reserve account, the SEC says.

SEC Accuses U.K. Man Of Hacking, Fraudulent Trades
Dayo Mustapha used the hijacked accounts to buy more than $5 million of mostly little-known stocks, the SEC says.

Ameriprise Fined 100K For Closed-End Sales
Ameriprise has agreed to pay the fine to settle Finra charges that the firm failed to supervise closed-end fund sales.

Ex-Jet QB Sanchez Among Athletes Cheated In Investment Fraud
An advisor defrauded athletes by appealing to their Christian faith.

Massachusetts Advisor Jailed For Pilfering Funds
Daniel Thibeault is sentenced to nine years in prison and ordered to pay $15 million in restitution.

Advisor Put Pro Athletes’ Money Into Failing Ticket Business
The SEC has charged a California financial advisor with siphoning off $33 million from his professional athlete clients.

Ex-Banker Caspersen Pleads Not Guilty—For Now—to Fraud
Caspersen's lawyer told the judge that it's "almost a certainty" he will change his plea to guilty.

Hard-Partying Wall Street Scammer Dead At 53
Convicted investor fraudster Dana Giacchetto was found dead in his New York City apartment Sunday.

Conn. Businessman Pleads Guilty To Hiding Assets From SEC
A Connecticut businessman pleaded guilty on Friday to pocketing money he made selling antiques instead of using it to pay a judgment he owed U.S. regulators for illegal stock trading.

Online Don Juan Scams Six Women He Dated, SEC Says
A scam artist conned dates he met online and their friends into investing in medical gloves, the SEC says.

Morgan Stanley To Pay SEC Fine Tied To Advisor’s Data Breach
The firm settled charges it failed to protect customer information improperly taken by a former financial advisor.

Oppenheimer To Pay Nearly $3 Million For Improper ETF Sales
The fine is to settle regulatory charges it improperly sold risky ETFs to risk-averse elderly customers and others.

Fugitive Connecticut Fund Manager Charged In New U.S. Indictment
A new indictment charges a fugitive Connecticut fund manager with embezzlement following insider trading charges.

SEC: Middle-Class Investors Targeted With '1 Percenter' Deals
Two men operated a Ponzi scheme offering "hot pre-IPO stocks" that promised 60% returns to investors, the SEC says.