Securities Fraud Blog | Find out if your broker is liable for your losses

TAG | unregistered securities

May/11

6

Gebharts Sanctioned by FINRA

Comments off · Posted by admin in FINRA

Alvin Waino Gebhart Jr. (CRD #1005905, Registered Principal, Fallbrook, California) and Donna Traina Gebhart (CRD #2708528, Registered Principal, Fallbrook, California).

On the FINRA website, it was reported that Alvin Gebhart was barred from association with any FINRA member in any capacity. Donna Gebhart was fined $15,000, suspended from association with any FINRA member in any capacity for one year, and must requalify by exam in all capacities. The Supreme Court of the United States denied a petition following the United States Court of Appeals for the Ninth Circuit’s denial of petition for review. The SEC had previously sustained the NAC decision.

The sanctions were based on findings that Alvin and Donna Gebhart engaged in private securities transactions without prior written notification to, or prior approval from, their member firm. The findings stated that Alvin and Donna Gebhart sold unregistered securities that were not exempt from registration, and recklessly made material misrepresentations and omissions in connection with the sale of securities.

Donna Gebhart’s suspension is in effect from June 7, 2010, through June 6, 2011. (FINRA Case #C0220020057)

If you have become a victim of the alleged fraudulent schemes of  Alvin Waino Gebhart, Jr., or Donna Taina Gebhart, call a Securities Arbitration Lawyer for a free consultation on how you could potentially recover you losses.  To speak with an attorney, call 888-760-6552, or visit www.stockmarketlawsuit.com. Soreide Law Group, PLLC., representing investors nationwide before FINRA  the Financial Industry Regulatory Authority.

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Apr/11

18

SEC Sues California Broker Involved in Oil and Gas Fraud for $8.2 mill.

Comments off · Posted by admin in FINRA

The United States Securities and Exchange Commission(SEC) filed a civil action against California-resident Paul N. Nicholson, and his former firm, Professional Investment Exchange, Inc. (“PIE”), on April 7, 2011, alleging that they directed two fraudulent oil-and-gas offerings. According to the complaint, from May 2007 through October 2009, Nicholson and PIE fraudulently raised approximately $8.2 million from investors through two limited partnerships, Energy Opportunity Fund — VI, LLLP and Energy Opportunity Fund — VII, LLLP.

The SEC article goes on to say that the Commission’s complaint alleges, in particular, that Nicholson, who formerly operated broker-dealer Macarthur Strategies, Inc. (“Macarthur”), and PIE, an entity Nicholson controlled, misused and misappropriated investor funds, including, among other things, using investor funds to pay undisclosed commissions to unlicensed salespeople, to pay Macarthur’s expenses and to pay undisclosed personal salary and expenses. The complaint also alleges that in communications with potential and existing investors, Nicholson engaged in conduct that operated as a fraud and deceit on investors, including by omitting material information about the use of investor proceeds and about the past performance of Nicholson’s and PIE’s oil-and-gas ventures.  The complaint further alleges that Nicholson sold unregistered securities and that he operated PIE as an unregistered broker-dealer. In early 2010, Nicholson transferred control of PIE to new management and deregistered Macarthur.

We learn through the SEC article that without admitting or denying the allegations in the Commission’s complaint, and subject to court approval, Nicholson and PIE have consented to the entry of judgments that would enjoin them from future violations of Sections 5(a), 5(c), and 17(a) of the Securities Act of 1933, Sections 10(b) and 15(a) of the Securities Exchange Act of 1934, and Rule 10b-5 thereunder. Nicholson has also agreed to pay disgorgement of $234,081 with prejudgment interest of $10,722. The Commission will ask the Court to impose a civil money penalty against Nicholson. Nicholson has also agreed to entry of a Commission order barring him from association with any broker, dealer, investment adviser, municipal securities dealer, municipal advisor, transfer agent, or nationally recognized statistical rating organization, or from participating in an offering of penny stock.

This article is from the SEC’s website.

Call a Securities Arbitration Lawyer for a free consultation on how to recover your losses.  To speak with an attorney, call 888-760-6552, or visit www.stockmarketlawsuit.com. Soreide Law Group, PLLC., representing investors nationwide before FINRA  the Financial Industry Regulatory Authority.

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