Halcyon Cabot Partners, LTD., Michael Trent Morris, and Ronald Mark Heineman– Investment Fraud and Kickbacks, Falsification of Documents

Halcyon Cabot Partners, LTD., Michael Trent Morris, and Ronald Mark Heineman Allegedly Executed a Scheme Wherein Discounts to Socius Capital Group, LLC Were Concealed

Halcyon Cabot Partners, LTD., Michael Trent Morris, and Ronald Mark Heineman allegedly operated an investment scheme, in May of 2012, to hide discounts provided to Socius Capital Group, LLC (a venture capital firm), when purchasing a private placement in a cancer drug development company, Cell Therapeutics, Inc., according to a Complaint from FINRA’s Department of Enforcement.

Halcyon is also alleged to have engaged in a bogus agreement to act as Cell Therapeutics placement agent, wherein Halcyon would receive a 5% fee (amounting to $1M per $40M tranche offer), and where another bogus agreement in which Halycon nearly siphoned the full %5 fee back to Socius Capital Group, LLC, according to the Complaint.

What is more, Morris, acting on behalf of Halcyon, engaged with Felix Investments, LLC (now a defunct FINRA firm) to receive commissions from both purchasers and sellers in private securities transactions, an alleged conflict of interest, the Complaint notes.

Halcyon Cabot Partners, LTD. Expelled by FINRA, and Michael Trent Morris, and Ronald Mark Heineman Barred by FINRA over Alleged Investment Fraud

Felix would then, according to said Complaint, allegedly represent buyers, while Halcyon would allegedly represent sellers.

The sellers, meanwhile, were left in the dark, and were allegedly unaware that Halcyon was in a secret arrangement with Felix to act as Felix’s agent and channeled commissions obtained from the sellers to Felix, according to the Complaint.

The aforementioned alleged behavior violates FINRA and NASD Rules, and hence, Halycon Cabot Partners, LTD. has been expelled by FINRA and Michael Trent Morris, and Ronald Mark Heineman have been barred by FINRA, according to the Complaint.

The Peiffer Rosca Wolf Investor Rights Lawyers Aid and Support Investors

The Peiffer Rosca Wolf investor rights lawyers often represent investors who lose money as a result of alleged investment fraud. They take most cases of this type on a contingency fee basis and advance the case costs, and only get paid for their fees and costs out of money they recover for their clients.

Investors who believe they lost money as a result of alleged investment fraud may contact the investor rights lawyers at Peiffer Rosca Wolf, Alan Rosca or Joe Peiffer, for a free, no-obligation evaluation of their recovery options, at 888-998-0520.

Alan Rosca (1247 Posts)

Alan is a securities lawyer. He also teaches Securities Regulation at the Cleveland-Marshall College of Law. He focuses his legal practice on complex commercial and financial litigation and arbitration, particularly in the areas of securities and investment fraud. His office is in Cleveland, Ohio.

In our legal system, every person is innocent until and unless found guilty by a court of law or a tribunal. Whenever we reference “allegations” or charges that are “alleged,” such allegations or charges have not been proven, and are merely accusations, not findings of fault, as of the date of the blog. We do not have, nor do we undertake, a duty to continue to monitor or follow cases about which we report, and/or to publish subsequent blogs regarding various developments that may occur in such cases. Readers are encouraged to conduct their own research regarding any such cases and any developments that may or may not have occurred in such cases.