All information in this report was compiled from public records maintained by the SEC.
Money-Making Market Maker Manipulation
James P. Anglim, 50, of Manasquan, New Jersey, on Aug. 15, entered into an SEC offer of settlement for allegedly helping to facilitate market manipulation schemes.
From Nov. 2016 through Feb. 2022, Anglim is accused of helping individuals sell large quantities of stock on the public market while hiding their identities to avoid federal disclosure laws. According to the SEC complaint, these individuals created artificial stock demand through boiler rooms and aggressive sales techniques.
Anglim was associated with two brokerage firms during this time that acted as market makers and acted as their registered representatives. Anglim entered market-maker arrangements with groups who were not customers of these broker-dealer firms, entering into mutually beneficial pre-arranged transactions, the SEC said.
As a result, his activities artificially increased liquidity for the OTC stocks the groups wanted to liquidate. Then Anglim used these firms’ market-making status to facilitate the groups’ manipulative trading on an unsuspecting mark.
The SEC ordered Anglim to pay $405,991 in disgorgement plus pre-judgement interest of $82,009 and imposed a penny stock bar.
Financial Gain for Selling Unregistered Securities Without a License
Stacey Marie Porter, 51, of Anaheim, California, on Aug. 16 entered into an SEC offer of settlement for allegedly acting as an unregistered broker-dealer and selling unregistered securities.
From Aug. 2017 to Jan. 2021, Porter was the investor relations representative for Secured Income Group (SIG). She never held a securities license nor registered with the SEC but acted as an unregistered broker for the SIG’s secured debentures.
Porter sold SIG securities, provided investors with information, and received compensation based on how much money she raised. She sometimes solicited investors, provided offering documents, helped investors fill out documentation, and received investor funds. Porter also sold unregistered securities, according to the SEC.
The SEC barred Porter from associating with any dealer, broker, transfer agent, municipal security dealer, statistical ranging organization, or investment adviser and from offering any penny stock.
Fraud and Misappropriation of Client Funds
Joseph Michael Todd, 59, of Panama City, Florida, on Aug. 17 entered into an SEC offer of settlement for alleged fraud and misappropriation of client funds.
From 2002 through Aug. 2016, Todd was dually registered as a broker-dealer and investment adviser. Then, from Aug. 2016 through July 2022, Todd was a registered representative and investment adviser associated with an SEC dually-registered broker-dealer and investment adviser.
The SEC complaint alleged that from at least Aug. 2016 through at least Nov. 2022, Todd misappropriated investor funds and told investors they would be invested in securities. He sent out false statements indicating the investors’ funds were invested and earning returns while funds were being diverted into his pocket.
The SEC barred Todd from associating with any broker, dealer, transfer agent, municipal security dealer, statistical ranging organization, or investment adviser and from offering any penny stock.