Policy Patty Toolkit 

Making the world a little more compliant one toolkit at a time.


DFS Takes Action Against National Integrity Life Insurance

Posted on December 6, 2018 at 11:50 AM
New York's Department of Financial Services announced that National Integrity Life Insurance Company will pay a $240,000 civil monetary penalty for violations of New York Insurance Regulations 187 and 60 that govern practices for replacing deferred annuity contracts with immediate annuity contracts. In addition, National Integrity has agreed to make restitution to individual consumers affected by its former replacement practices. The settlement is part of DFS???s on-going investigation into... Read Full Post »

SEC Charges Self-Described Promoter With Microcap Market Manipulation Scheme

Posted on November 29, 2018 at 4:10 PM

The SEC charged a self-described penny stock promoter and an entity he controlled with orchestrating a scheme to manipulate trading in at least 97 microcap stocks.

According to the SEC’s complaint:

  • Eric Landis of Charlottesville, Virginia, falsely claimed to third-party media buyers for microcap companies that he would distribute promotional materials for the stocks via email lists with tens of thousands of subscribers.
  • In reality, his distribution lists were a ...
Read Full Post »

Citigroup Global Markets to Pay $409K for Overcharging Customers

Posted on November 27, 2018 at 8:55 AM

As reported in Financialish.com (https/www.financialish.com/):

Citigroup Global Markets agreed to pay a $100K fine plus $309K in restitution to eligible customers, to settle FINRA charges that it disadvantaged certain retirement plan and charitable organization customers that were eligible to purchase Class A shares in certain mutual funds without a front-end sales charge.

CGMI, a New York, NY-based broker-dealer since 1936, is a full-service firm providing investment...

Read Full Post »

FINRA suspends former UBS broker who traded excessively in elderly clients' accounts

Posted on November 26, 2018 at 5:40 PM
FINRA suspended, David H. Fagenson, a former UBS Financial Services Inc. broker for eight months. Fagenson made a number of unsuitable trades in the accounts of three senior citizens, creating steep losses for the clients and generating hundreds of thousands of dollars in commissions and markups for himself and UBS. FINRA found that Fagenson's trading in the accounts of the three clients was "excessive and unsuitable" given the clients' ages and levels of risk tolerance, according to FINRA. Fage... Read Full Post »

NY Attorney General Announces Judgment Against Ithaca Auction House For Failing To Pay Over $230K To Consumers

Posted on November 15, 2018 at 8:15 AM

New York Attorney General Barbara D. Underwood announced a judgment obtained against Finger Lakes Estate and Auction, Inc. and its owner, Charles Dorsey, for fraudulently inducing consumers into giving up their personal property for auction sales and failing to return the proceeds as promised. The judgment requires Finger Lakes and Dorsey to pay $237,739 in full consumer restitution and $12,000 in civil penalties and costs, and retain a Trustee to handle all of the money from future auction s...

Read Full Post »

SEC Settles Insider Trading Claims Against Former Chairman and CEO of Advanced Medical Optics

Posted on November 14, 2018 at 1:20 PM

The SEC announced that it has agreed to resolve its insider trading claims against James V. Mazzo, the former Chairman and Chief Executive Officer of Advanced Medical Optics, Inc. (AMO) for allegedly tipping information about his company's acquisition to his close personal friend, former professional baseball player Douglas V. DeCinces. 

The SEC's complaint alleged:

  • In October 2008 Mazzo executed a nondisclosure agreement with Abbott Laboratories, Inc., as Abbott expl...

Read Full Post »

PR Firm and Publisher Settle FTC Allegations They Misrepresented Product Endorsements

Posted on November 13, 2018 at 2:35 PM

Two Georgia-based companies and their principals agreed to settle Federal Trade Commission allegations that, in connection with promoting a new insect repellent during the 2016 Zika virus outbreak, they misrepresented that paid endorsements were independent consumer opinions and commercial advertising was independent journalistic content.

Under two proposed Commission orders, the respondents are prohibited from making such misrepresentations going forward, and must disclose material con...

Read Full Post »

SEC Charges Unregistered Sales of Securities Issued Under EB-5 Immigrant Investor Program

Posted on September 24, 2018 at 8:50 AM

The SEC announced that an Illinois-based regional center, its CEO, and 37 affiliated limited partnerships have agreed to settle charges related to securities issued under the EB-5 Immigrant Investor Program, which provides foreigners who invest in the U.S. a potential path to becoming a U.S. resident.

According to the SEC’s order:

  • From 2011 to 2015, 37 entities affiliated with CMB Export LLC offered EB-5 securities in the form of limited partnership interests without re...
Read Full Post »

FTC Gives Final Approval to Settlement with Phone Maker BLU

Posted on September 10, 2018 at 2:25 PM

The Federal Trade Commission (FTC) gave final approval to a settlement with mobile phone manufacturer BLU Products, Inc. and its co-owner over allegations that they deceived consumers about the disclosure of their personal information and BLU’s data security practices.

In its complaint, the FTC alleged that:

  • BLU and its co-owner and President Samuel Ohev-Zion falsely claimed that they limited third-party data collection from BLU device users to only information needed t...
Read Full Post »

DFS Reminds Institutions That Engage in Indirect Auto Lending to Comply With New York???s Fair Lending Law

Posted on August 29, 2018 at 9:25 AM

New York's Department of Financial Services (DFS) issued guidance to remind supervised institutions and sales finance companies that engage in indirect automobile lending through third parties that they must comply with New York State’s Fair Lending Law, despite federal supervisory lapses and rollbacks in enforcement. New York’s Fair Lending Law prohibits discrimination in, among other things, the granting, withholding, extending, or renewing, or in the fixing of the rates, terms...

Read Full Post »