{"id":3638,"date":"2016-08-03T00:00:00","date_gmt":"2016-08-03T05:00:00","guid":{"rendered":"https:\/\/stockbrokerfraudblog.blawgcloud.com\/2016\/08\/securities_fraud_unregistered"},"modified":"2022-03-23T10:13:49","modified_gmt":"2022-03-23T15:13:49","slug":"securities-fraud-unregistered","status":"publish","type":"post","link":"https:\/\/www.investorlawyers.com\/blog\/securities-fraud-unregistered\/","title":{"rendered":"Securities Fraud: Unregistered Representatives Bilk Investors of Over $5M & Go Shopping, Broker to Go to Prison Over $131M Market Manipulation Scam, and an Illinois Man is Convicted in $20M Scheme"},"content":{"rendered":"

SEC Files Fraud Charges Against Unregistered Representatives in $5M Fraud<\/strong>
\nThe U.S. Securities and Exchange Commission has obtained an asset freeze against Matthew White, Daniel Merandi, and Rodney Zehner for alleged financial fraud<\/a>. The three men are not registered to sell investments. They are accused of raising over $5M from investors and spending the money on expensive shopping expeditions.<\/p>\n

According to the SEC, Merandi, White, and Zehner fraudulently issued $1B in unsecured corporate bonds using their shell company. They said the funds would go toward developing a resort. Although they never raised enough money to begin the project, they took $5.6M that they did raise from investors and went shopping at Gucci, Prada, Saks Fifth Avenue, Versace, and Louis Vuitton. The men allegedly conducted bogus transactions to raise the bond\u2019s price even though the securities were expired and had no value.<\/p>\n

The Commission is accusing Merandi, White, Zehner, and their companies of violating the Securities Act of 1933\u2019s Section 17(a) antifraud provision, the Exchange Act of 1934\u2019s Section 10(b), and Rule10b-5. It wants permanent injunctions, penalties, and disgorgement.<\/p>\n

Broker Pleads Guilty to Fraud Involving $131M Market Manipulation Scam<\/strong>
\nRegistered broker Naveed Khan has pleaded guilty to securities fraud<\/a>. Khan faces up to 20 years behind bars for his involvement in a $131M pump-and-dump scam that involved the market manipulation of ForceField Energy Inc. (FNRG).<\/p>\n

Between 1\/09 and 4\/15, the defendant and others sought to bilk ForceField investors. The fraudsters are accused of using nominees to sell and buy the LED company\u2019s stock without notifying current investors and potential ones, orchestrating trading to make it seem as if the public was interested in ForceField\u2019s stock, and hiding payments made to brokerage firms and stock promoters. These broker-dealers purportedly marketed and sold the stock under the guise of being independent.<\/p>\n

Continue Reading \u203a<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

SEC Files Fraud Charges Against Unregistered Representatives in $5M Fraud The U.S. Securities and Exchange Commission has obtained an asset freeze against Matthew White, Daniel Merandi, and Rodney Zehner for alleged financial fraud. The three men are not registered to sell investments. They are accused of raising over $5M from investors and spending the money […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[3977,3801,3760,3741],"tags":[],"class_list":["post-3638","post","type-post","status-publish","format-standard","hentry","category-pump-and-dump-scams","category-sec","category-sec-enforcement","category-securities-fraud"],"yoast_head":"\nSecurities Fraud: Unregistered Representatives Bilk Investors of Over $5M & Go Shopping, Broker to Go to Prison Over $131M Market Manipulation Scam, and an Illinois Man is Convicted in $20M Scheme — Investor Lawyers Blog — August 3, 2016<\/title>\n<meta name=\"description\" content=\"SEC Files Fraud Charges Against Unregistered Representatives in $5M Fraud The U.S. Securities and Exchange Commission has obtained an asset freeze against — August 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