Investors who have been victims of financial fraud continue to suffer after the financial damage is done. In addition to the anger, regret and betrayal a fraud victim feels, many also report the incident caused them at least one non-financial consequence including extreme stress, anxiety, depression and difficulty sleeping.
The FINRA Department of Enforcement accepted a Letter of Acceptance, Waiver and Consent ("AWC") from Maxim Group LLC on February 6, 2015. According to the AWC, Maxim was fined $17,000 and censured for accepting an underwriting fee in advance of public sale of offered securities and failing to record the underwriting fee accurately in its general ledger. This resulted in the submission of inaccurate FOCUS reports, Annual Audit Reports and net capital computations.
The Financial Industry Regulatory Authority (FINRA) announced that a FINRA hearing panel expelled John Carris Investments, LLC (JCI). George Carris, the firm's CEO has been barred from the securities industry for fraud and suitability violations. The panel found that George Carris and JCI omitted material facts and used misleading statements to "recklessly" sell shares of stock and promissory notes issued by JCI's parent company by not disclosing it was in "poor financial condition."