Category Archives: Money Laundering

Mariva Capital Markets Censured/Fined by Regulator-Miami,FL

June 2017-Miami, FL

According to publicly available records Mariva Capital Markets LLC (CRD#2296303) (“MCM”) ,  a  Miami-based broker dealer who has been a FINRA member since 2013 disclose a recent regulatory event.

The Financial Industry Regulatory Authority (FINRA) is the agency that licenses and regulates stockbrokers and brokerage firms. FINRA requires brokers and brokerage firms to report customer complaints and disputes as well as regulatory sanctions. In addition brokers are required to disclose certain financial matters such as personal bankruptcies, judgments and liens.

FINRA alleged that Mariva failed to establish and implement an adequate anti-money laundering program and AML compliance procedures reasonably tailored to the account activity of one of its customers ( a bank affiliate and foreign financial institution) that represented the vast majority of MCM’s revenues.

From September 2013-March 2015 the affiliate engaged primarily in trading of Argentinian debt in an amount in excess of $1 billion dollars. FINRA alleged that MCM failed to adequately identify and investigate red flags of potentially suspicious activity.

Mariva was censured and fined $100,000.

 

If you have questions about an account at Mariva Capital Markets contact us to discuss your legal options.

Rex Securities Law , with offices in Boca Raton, FL,  and  Austin, TX,   provides representation to  investors  nationwide who are seeking recovery of investment losses due to the negligence or fraud of stockbrokers and broker dealers. If you have questions about how your account has been handled, call to speak with an experienced securities attorney.

Most cases handled on a contingent fee basis meaning that you do not pay legal fees unless we are successful.

Nationwide Representation

Rex Securities Law

TollFree: 877-224-3199

Florida-561 391 1900 

Texas-512-329-2870

Texas Attorney & Two Co-Conspirators Found Guilty of Money Laundering and Fraud

October 2016-Tampa, Florida

Licensed Texas attorney Perry Don Cortese, 53, of Little River, Texas, was found guilty of conspiracy to commit international money laundering and conspiracy to commit mail and wire fraud by a federal jury in Tampa, Florida, on October 21, 2016. Priscilla Ann Ellis, 51, of Killeen, Texas and Kenietta Rayshawn Johnson, 35, of Leavenworth, Kansas, were also found guilty of the same charges. They face up to 40 years in federal prison.

According to the news release from the U.S. Attorney’s Office, Cortese, Ellis and Johnson defrauded dozens of victims in the United States by soliciting legal work which was paid for with counterfeit cashier’s checks , phony real estate deals and by posing as fake suitors on dating websites.

Victims were instructed to wire money into accounts held by the conspirators. The wired money was quickly moved to other accounts around the world before the victims discovered they had been defrauded.

Cortese laundered victim money though his lawyer trust accounts. Johnson had worked as a bank employee for Capital One and helped create counterfeit checks and monitor money flow.

Rex Securities Law , with offices in Boca Raton, FL,  and  Austin, TX,   provides representation to  investors  nationwide who are seeking recovery of investment losses due to the negligence or fraud of stockbrokers and broker dealers. If you have questions about how your account has been handled, call to speak with an experienced securities attorney.

Most cases handled on a contingent fee basis meaning that you do not pay legal fees unless we are successful.

Nationwide Representation

Rex Securities Law

TollFree: 877-224-3199

Florida-561 391 1900 

Texas-512-329-2870

Legend Securities Fined $125,000 Over Penny Stock Sales

February 10, 2016

Legend Securities entered into a Letter of Acceptance, Waiver and Consent (AWC) with the Financial Industry Regulatory Authority (FINRA) to resolve allegations that from October 2010 to October 2011, Legend Securities failed to tailor its anti-money laundering (AML) program to its penny stock liquidation business.

FINRA alleged that the firm’s system for reviewing trading activity was not reasonably designed to detect patterns of suspicious activity, given the volume of transactions being executed through the firm and the system for detecting and investigating red flags relating to penny stock trading was not adequate.

AWC 20100225921 01

Legend Securities was censured and fined $125,000 and agreed to an undertaking to retain an independent consultant to review firm policies, systems and procedures and thereafter implement and monitor corrective actions.

Legend Securities  has been a FINRA member firm since November 1998 and employs approximately 146 registered representatives in approximately 14 branch offices. Its principal place of business is New York City.

If you have questions about losses in an account at Legend Securities call to discuss it with an experienced securities lawyer.

Rex Securities Law , with offices in Boca Raton, FL,  and  Austin, TX,   provides representation to  investors  nationwide who are seeking recovery of investment losses due to the negligence or fraud of stockbrokers and broker dealers. If you have questions about how your account has been handled, call to speak with an experienced securities attorney.

Most cases handled on a contingent fee basis meaning that you do not pay legal fees unless we are successful.

Nationwide Representation

Rex Securities Law

TollFree: 877-224-3199

Florida-561 391 1900 

Texas-512-329-2870

Larry & Dixie Masino Indicted in Bingo Related Fraud Scheme-Fort Walton Beach, FL

February 22, 2016- Pensacola, Florida

A federal grand jury returned an indictment charging Larry L. Masino, 65, of Gulf Breeze and Dixie L. Masino, 63, of Pensacola,  with wire fraud conspiracy, operating an illegal gambling business, money laundering conspiracy and money laundering, according to Christopher P. Canova, US Attorney for the Northern District of Florida.

The indictment alleges that, between 2006 and 2015, Larry and Dixie Masino conspired to defraud local charities out of millions of dollars by operating Racetrack Bingo Inc. in Fort Walton Beach on behalf of a number of charitable organizations in Okaloosa County.

According to the indictment, Racetrack Bingo Inc. was an illegal gambling business in violation of Florida law because the Masinos compensated themselves and their employees, instead of using bona fide charity members, to run bingo games.  The indictment further alleges that the Masinos charged the charities grossly inflated lease fees.  By law, those proceeds should have gone to the charities.  The indictment also alleges that Larry and Dixie Masino conspired to launder more than $5.8 million in proceeds of their illegal bingo operation through the deposit of profit distribution checks from Racetrack Bingo Inc.

Rex Securities Law , with offices in Boca Raton, FL,  and  Austin, TX,   provides representation to  investors  nationwide who are seeking recovery of investment losses due to the negligence or fraud of stockbrokers and broker dealers. If you have questions about how your account has been handled, call to speak with an experienced securities attorney.

Masino Indictment

Most cases handled on a contingent fee basis meaning that you do not pay legal fees unless we are successful.

Nationwide Representation

Rex Securities Law

TollFree: 877-224-3199

Florida-561 391 1900 

Texas-512-329-2870

Miami Based Brickell Global Markets (formerly E.S. Financial Services) Pays $1 Million to Settle SEC Charges

February 4, 2016- Miami, Florida

The Securities & Exchange Commission (SEC) announced that Miami based Brickell Global Markets (formerly E.S. Financial Services) agreed to pay a $1 million penalty to settle charges that it violated anti-money laundering rules for failing to identify non-U.S. citizen customers.

See this for the SEC press release. 

Rex Securities Law , with offices in Boca Raton, FL,  and  Austin, TX,   provides representation to  investors  nationwide who are seeking recovery of investment losses due to the negligence or fraud of stockbrokers and broker dealers. If you have questions about how your account has been handled, call to speak with an experienced securities attorney.

Most cases handled on a contingent fee basis meaning that you do not pay legal fees unless we are successful.

Nationwide Representation

Rex Securities Law

TollFree: 877-224-3199

Florida-561 391 1900 

Cape Securities Fined $125K by Securities Regulators

May 5, 2015

Cape Securities  entered into a Letter of Acceptance Waiver and Consent (AWC)  with the Financial Industry Regulatory Authority (FINRA) to resolve allegations that:

  • from 2/2012-9/2012 Cape Securities failed to establish, maintain and enforce supervisory systems designed to detect and prevent fraudulent wire transfer activity by its brokers.
  • Cape Securities Anti-Money Laundering (AML) systems and procedures were inadequate to ensure appropriate reporting of potentially suspicious money movement
  • from 10/2011-2/2013 Cape Securities supervisory system was inadequate and failed to identify and prevent unsuitable excessive trading and churning in customer accounts

Cape Securities was censured and  fined $125,000 .

FINRA AWC 2013035211002

Cape Securities has been a FINRA member since 1976. It has 118 registered representatives who operate out of a main office in McDonough, Georgia, and 20 branch offices and 79 non-registered office locations.

If you have an account with Cape Securities that has suffered losses, you may be entitled to damages. Call to discuss your legal options.

Rex Securities Law , with offices in Boca Raton, FL,  and  Austin, TX,   provides representation to  investors  nationwide who are seeking recovery of investment losses due to the negligence or fraud of stockbrokers and broker dealers. If you have questions about how your account has been handled, call to speak with an experienced securities attorney.

Most cases handled on a contingent fee basis meaning that you do not pay legal fees unless we are successful.

Nationwide Representation

Rex Securities Law

TollFree: 877-224-3199

Florida-561 391 1900 

Texas-512-329-2870

North Carolina Securities Division July 2015 Newsletter

July  2015- Raleigh, North Carolina

The North Carolina Securities Division of the Department of the Secretary of State issues a monthly newsletter highlighting recent enforcement actions for securities violations and other matters designed to educate and protect investors.

The July 2015 Securities Newsletter, which can be accessed here, includes the following:

  • The SEC alleges that Equity Trust Company, an Ohio based IRA provider, played an  active role in marketing the investments offered by Ephren Taylor, who was charged with running a Ponzi scheme targeting church members, and Randy Poulson. The SEC charges that  Equity Trust, ignored red flags which allowed Taylor and Paulson to raise over $5 million in their scheme.
  • Kristine Louse Johnson, 60, of Aurora, Colorado, charged in criminal complaint with operating a $6.8 million Ponzi scheme through sham internet company, The Achieve Community (TAC).
  • David Christopher Mayhew convicted of mail fraud, conspiracy and money laundering.
  • Investor Alert for Seniors: Five Red Flags of Investment Fraud

Rex Securities Law , with offices in Boca Raton, FL,  and  Austin, TX,   provides representation to  investors  nationwide who are seeking recovery of investment losses due to the negligence or fraud of stockbrokers and broker dealers. If you have questions about how your account has been handled, call to speak with an experienced securities attorney.

Most cases handled on a contingent fee basis meaning that you do not pay legal fees unless we are successful.

Nationwide Representation

Rex Securities Law

TollFree: 877-224-3199

Florida-561 391 1900 

Texas-512-329-2870