{"id":5866,"date":"2015-10-08T00:00:00","date_gmt":"2015-10-08T05:00:00","guid":{"rendered":"https:\/\/institutionalinvestorsecuritiesblog.blawgcloud.com\/2015\/10\/securities_headlines_halcyon_c"},"modified":"2022-05-17T13:41:34","modified_gmt":"2022-05-17T18:41:34","slug":"securities-headlines-halcyon-c","status":"publish","type":"post","link":"https:\/\/www.investorlawyers.com\/blog\/securities-headlines-halcyon-c\/","title":{"rendered":"Securities Headlines: Halcyon Cabot Partners is Expelled from Industry by FINRA, Blackstone Settles Disclosure Failure Charges for Nearly $39M,  SEC Approves Proposal to Improve Transparency for OTC Equity Securities"},"content":{"rendered":"<p><strong>FINRA Expels Halcyon Cabot, Bars Chief Executives <\/strong><br \/>\nHalcyon Cabot Partners, Ltd. has been expelled by FINRA. The regulator also has barred its CEO Michael Morris and CCO Ronald Heineman from the securities industry. The reasons for the expulsion and bars include fraud, abusive sales practices, the concealment of private placement fee kickbacks, and other purported acts. <\/p>\n<p>According to the self-regulatory organization, Halcyon, the two men, and previously barred former registered rep. Craig Josephberg hid the discount the issuer gave to a venture capital firm when it bought a private placement in a company. The scam was executed using a fake placement fee deal after the venture capital firm agreed to buy all the offerings. However, FINRA said, because there already was a buyer, Halcyon didn\u2019t conduct any work and gave back nearly all of its $1.75M fee to the investor via bogus consulting agreements. As a result, the company was able to hide that its shares were sold at a reduced rate. <\/p>\n<p>FINRA contends that Halcyon did not properly supervise Josephberg, who was making unauthorized trades and churning retail accounts.  The regulator is accusing Morris of falsifying Halcyon\u2019s records to hide the securities sales that Josephberg made in states where he wasn\u2019t registered, including Texas.\n <\/p>\n<p><strong>Blackstone Group to Pay Almost $39M Over Disclosure Failures<\/strong><br \/>\nThe Securities and Exchange Commission said that three private equity fund advisers that belong to The Blackstone Group have consented to pay close to $39 million to resolve charges that they did not fully inform investors about the benefits they received from discounts on legal fees and accelerated monitoring fees. While Blackstone is settling and has consented to the entry of the regulator\u2019s order stating that it breached its fiduciary duty, failed to put into place policies and procedures that were reasonably designed, and failed to correctly disclose information to investors of the funds, it is not denying or admitting to allegations.<\/p>\n<p><em><strong>The three fund advisers are:<\/strong><\/em><\/p>\n<p>\u2022\tBlackstone Management Partners<br \/>\n\u2022\tBlackstone Management Partners IV<br \/>\n\u2022\tBlackstone Management Partners II<\/p>\n<p> <a href=\"https:\/\/www.investorlawyers.com\/blog\/securities-headlines-halcyon-c\/#more-5866\" class=\"more-link\">Continue Reading \u203a<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>FINRA Expels Halcyon Cabot, Bars Chief Executives Halcyon Cabot Partners, Ltd. has been expelled by FINRA. The regulator also has barred its CEO Michael Morris and CCO Ronald Heineman from the securities industry. The reasons for the expulsion and bars include fraud, abusive sales practices, the concealment of private placement fee kickbacks, and other purported [&hellip;]<\/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":[3739,3759,3760,3761,3741],"tags":[2814,3548,3549],"class_list":["post-5866","post","type-post","status-publish","format-standard","hentry","category-finra","category-reits","category-sec-enforcement","category-securities-and-exchange-commis","category-securities-fraud","tag-arcp","tag-halcyon-cabot","tag-otc-equity-securities"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Securities Headlines: Halcyon Cabot Partners is Expelled from Industry by FINRA, Blackstone Settles Disclosure Failure Charges for Nearly $39M, SEC Approves Proposal to Improve Transparency for OTC Equity Securities &#8212; Investor Lawyers Blog &#8212; October 8, 2015<\/title>\n<meta name=\"description\" content=\"FINRA Expels Halcyon Cabot, Bars Chief Executives Halcyon Cabot Partners, Ltd. has been expelled by FINRA. The regulator also has barred its CEO Michael &#8212; October 8, 2015\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.investorlawyers.com\/blog\/securities-headlines-halcyon-c\/\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:title\" content=\"Securities Headlines: Halcyon Cabot Partners is Expelled from Industry by FINRA, Blackstone Settles Disclosure Failure Charges for Nearly $39M, SEC Approves Proposal to Improve Transparency for OTC Equity Securities &#8212; Investor Lawyers Blog &#8212; October 8, 2015\" \/>\n<meta name=\"twitter:description\" content=\"FINRA Expels Halcyon Cabot, Bars Chief Executives Halcyon Cabot Partners, Ltd. has been expelled by FINRA. The regulator also has barred its CEO Michael &#8212; October 8, 2015\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Shepherd Smith Edwards &amp; Kantas, LLP\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Securities Headlines: Halcyon Cabot Partners is Expelled from Industry by FINRA, Blackstone Settles Disclosure Failure Charges for Nearly $39M, SEC Approves Proposal to Improve Transparency for OTC Equity Securities &#8212; Investor Lawyers Blog &#8212; October 8, 2015","description":"FINRA Expels Halcyon Cabot, Bars Chief Executives Halcyon Cabot Partners, Ltd. has been expelled by FINRA. The regulator also has barred its CEO Michael &#8212; October 8, 2015","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.investorlawyers.com\/blog\/securities-headlines-halcyon-c\/","twitter_card":"summary_large_image","twitter_title":"Securities Headlines: Halcyon Cabot Partners is Expelled from Industry by FINRA, Blackstone Settles Disclosure Failure Charges for Nearly $39M, SEC Approves Proposal to Improve Transparency for OTC Equity Securities &#8212; Investor Lawyers Blog &#8212; October 8, 2015","twitter_description":"FINRA Expels Halcyon Cabot, Bars Chief Executives Halcyon Cabot Partners, Ltd. has been expelled by FINRA. The regulator also has barred its CEO Michael &#8212; October 8, 2015","twitter_misc":{"Written by":"Shepherd Smith Edwards &amp; Kantas, LLP","Est. reading time":"3 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/www.investorlawyers.com\/blog\/securities-headlines-halcyon-c\/#article","isPartOf":{"@id":"https:\/\/www.investorlawyers.com\/blog\/securities-headlines-halcyon-c\/"},"author":{"name":"Shepherd Smith Edwards &amp; Kantas, LLP","@id":"https:\/\/www.investorlawyers.com\/blog\/#\/schema\/person\/e0240e0754684b69f7d6a7de1b9f1431"},"headline":"Securities Headlines: Halcyon Cabot Partners is Expelled from Industry by FINRA, Blackstone Settles Disclosure Failure Charges for Nearly $39M, SEC Approves Proposal to Improve Transparency for OTC Equity Securities","datePublished":"2015-10-08T05:00:00+00:00","dateModified":"2022-05-17T18:41:34+00:00","mainEntityOfPage":{"@id":"https:\/\/www.investorlawyers.com\/blog\/securities-headlines-halcyon-c\/"},"wordCount":700,"keywords":["ARCP","Halcyon Cabot","OTC Equity Securities"],"articleSection":["FINRA","REITs","SEC Enforcement","Securities and Exchange Commission","Securities Fraud"],"inLanguage":"en-US"},{"@type":"WebPage","@id":"https:\/\/www.investorlawyers.com\/blog\/securities-headlines-halcyon-c\/","url":"https:\/\/www.investorlawyers.com\/blog\/securities-headlines-halcyon-c\/","name":"Securities Headlines: Halcyon Cabot Partners is Expelled from Industry by FINRA, Blackstone Settles Disclosure Failure Charges for Nearly $39M, SEC Approves Proposal to Improve Transparency for OTC Equity Securities &#8212; Investor Lawyers Blog &#8212; October 8, 2015","isPartOf":{"@id":"https:\/\/www.investorlawyers.com\/blog\/#website"},"datePublished":"2015-10-08T05:00:00+00:00","dateModified":"2022-05-17T18:41:34+00:00","author":{"@id":"https:\/\/www.investorlawyers.com\/blog\/#\/schema\/person\/e0240e0754684b69f7d6a7de1b9f1431"},"description":"FINRA Expels Halcyon Cabot, Bars Chief Executives Halcyon Cabot Partners, Ltd. has been expelled by FINRA. 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