Another day, more advisers alleged of fraud

On June 11, 2009, the Securities and Exchange Commission filed two fraud actions against different financial/investment advisers.

Morgan European Holdings ApS, et al.

On June 11, the SEC obtained an emergency court order and asset freeze to shut down a fraudulent prime bank scheme. The action was filed in the United States District Court for the Middle District of Flordia against Morgan European Holdings ApS, a/k/a Money Talks, Inc. ApS, John Morgan, Marian Morgan, Bowman Marketing Group, Inc., Stephen E. Bowman, and Thomas D. Woodcock, Jr.

According to the Litigation Release, the SEC has alleged that the Defendants solicited investments in fictitious prime bank trading programs. As noted in the Release,

the Complaint alleges that, during 2006 and 2007, the defendants raised millions of dollars from investors to participate in a fictitious investment program involving the trading of financial instruments among top financial institutions. The defendants told investors that their principal was guaranteed or never placed at risk. However, according to the Complaint, the defendants used investor funds for various undisclosed purposes, including Bowman’s gambling expenses, mortgage payments by the Morgans, and Ponzi payments to some investors. The SEC claims that John Morgan, Marian Morgan, and Stephen Bowman have continued to lull investors into remaining complacent by promising the imminent payment of their principal and returns. None of the relevant offerings was registered with the Commission, nor were any of the defendants registered as a broker-dealer or associated with a registered broker-dealer.

The SEC claims that the Defendants’ actions violated Sections 5(a), 5(c), and 17(a) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder. In addition the individual defendants were charged with violation of Section 15(a) of the 1934 Act. A hearing on the preliminary injunction is scheduled for June 25.

Aura Financial Services, Inc.

The SEC also charged an Alabama Broker-Dealer, Aura Financial Services, Inc., with engaging in fraudulent sales practices and high pressure sales tactics to convince customers to open an account and invest money with the firm. The SEC alleges that the firm and six of its representatives unfairly enriched themselves by more than $1 million in commissions and fees. At the same time, the customers’ accounts were largely depleted “through trading losses and excessive transaction costs.”

More information about this matter can be found by reading the SEC’s Litigation Release.

Share

Subscribe / Share

Article by Jason M. Kueser

Jason M. Kueser has spent his legal career representing individuals, groups, and companies in litigation and arbitration. In addition, he has, and continues to represent clients in class action litigation. Jason is currently admitted to the Missouri Bar, the Kansas Bar, as well as the U.S. District Court for the Western District of Missouri, the U.S. District Court for the District of Kansas, and the Eighth Circuit Court of Appeals. In addition, he is a member of the American Bar Association, the Kansas City Metropolitan Bar Association, and PIABA (Private Investors Arbitration Bar Association). He currently serves on the editorial board of the PIABA Bar Journal. Jason has also written articles that have been published in law reviews, industry legal publications, and newspapers.
Jason M. Kueser tagged this post with: , , Read 26 articles by

Comments are closed

Maintained by The Kueser Law Firm

The Kueser Law Firm | Securities Arbitration Attorney | Securities Arbitration Lawyer | Missouri Securities Arbitration Lawyer | Kansas Securities Arbitration Attorney

Social Media – Follow The Kueser Law Firm

DISCLAIMER

The choice of an attorney is an important one and should not be based solely upon advertisements such as this website. Past results afford no guarantee of future results. Every case is different and must be judged on its own merits.

*Any information submitted via this website may not be secure and/or confidential. Merely contacting this firm does not establish an attorney-client relationship.

Contact The Kueser Law Firm

Mailing Address:
P.O. Box 612
Lee's Summit, Missouri 64063
Phone: 816.374.5865
E-mail: Click Here
CONTACT FORM
Your Name (required)

Your Email (required)

Phone Number (optional)

Subject

Your Message:

To eliminate spam, please type the following code in the line below and press the Send button:
captcha

RSS News – Securities Fraud

RSS SEC – Press Releases

  • SEC Charges Former New York Investment Advisor and Daughter With Conducting a Ponzi Scheme
    The Securities and Exchange Commission today charged a former Rockland County, New York-based investment adviser and his daughter with conducting a multi-million dollar Ponzi scheme that defrauded local community members as well as members of their family and close friends. The SEC alleges that Hector May, an investment adviser representative and the president and chief compliance officer […]
  • SEC, MSRB, FINRA to Hold Compliance Outreach Program for Municipal Advisors
    The Securities and Exchange Commission (SEC), Municipal Securities Rulemaking Board (MSRB), and Financial Industry Regulatory Authority (FINRA) today announced the opening of registration for the Compliance Outreach Program for Municipal Advisors.  There is no cost to attend the program, which provides an open forum for municipal advisory industry professionals to discuss regulatory and compliance issues […]
  • Jeffrey Minton, Office of the Chief Accountant Chief Counsel, to Retire from the SEC After 20 Years of Service
    The Securities and Exchange Commission today announced that Jeffrey Minton, Office of the Chief Accountant (OCA)'s Chief Counsel, will be retiring from the agency next month after more than 20 years of service at the SEC, with over half of that time spent in his role in OCA.  The Office of the Chief Accountant is […]
  • Executives Settle ICO Scam Charges
    Two former executives behind an allegedly fraudulent initial coin offering (ICO) that was stopped by the Securities and Exchange Commission earlier this year have been ordered in federal court to pay nearly $2.7 million and prohibited from serving as officers or directors of public companies or participating in future offerings of digital securities. AriseBank’s then-CEO […]
  • Three Developers Settle Charges of Fraudulent EB-5 Offering
    The Securities and Exchange Commission today announced that three Houston-area developers have agreed to settle charges that they misused investor funds raised from 90 Chinese investors under the EB-5 Immigrant Investor Program on unrelated projects. The three developers – America Modern Green Senior (Houston) LLC, America Modern Green Community (Houston) LLC, and America Modern Green […]