Scottsdale Capital Advisors Corporation, John Hurry, Timothy DiBlasi, Michael Cruz — Selling Securities without Registration and without an Exemption

investment fraud attorney ClevelandScottsdale Capital Advisors Corporation and John Hurry, Timothy DiBlasi, Michael Cruz Allegedly Sold Microcap Securities worth $1.7 Million without Registration and without an Exemption

Scottsdale Capital Advisors Corporation and its brokers John Hurry, Timothy DiBlasi, Michael Cruz allegedly sold microcap securities worth $1.7 million without registration and without an exemption, according to a Complaint from FINRA’s Department of Enforcement currently under review by attorneys Alan Rosca and James Booker.

Peiffer Rosca Wolf securities practice lawyers are investigating investment recovery options on behalf of investors in issues related to Scottsdale Capital’s alleged sale of securities without registration and without an exemption.

Investors who believe they may have lost money in activity related to Scottsdale Capital’s alleged sale of securities without registration and without an exemption are encouraged to contact attorneys Alan Rosca or James Booker with any useful information or for a free, no obligation discussion about their options.

Scottsdale Capital Advisors Corporation, based in Scottsdale, Arizona, and the aforementioned brokers allegedly helped a Cayman Islands broker-dealer generate more than $1.7 million in proceeds from allegedly illegal sales which was due to the liquidation of microcap stocks in transactions that should have been registered with the SEC, according to the aforementioned Complaint.

Scottsdale Capital allegedly made liquidations of over 74 million shares of the microcap stocks Neuro-Hitech Inc., Voip Pal.com, and Orofino Gold Corp., which subsequently generated at least $1.7 million for a Cayman Islands broker-dealer customer of Scottsdale, the Complaint reports.

FINRA says that said shares were allegedly owned, controlled, and directed by Hurry to establish accounts and sub accounts at Scottsdale and deposited over 650 million microchip stock shares, including 145 million share liquidations, which FINRA claims generated about $5.5 million in proceeds, the Complaint notes.

Scottsdale Capital, Hurry, Cruz and DiBlasi Allegedly Violated NASD and FINRA Rules by Allegedly Failing to Supervise and Fail to Respond to Red Flags Regarding Unlawful Unregistered Distributions; Scottsdale Capital Fined $1.5 Million, Hurry Barred in all Capacities, DiBlasi Suspended and Fined, and Cruz Suspended

Scottsdale Capital and its President, Michael Cruz, purportedly violated NASD Rule and FINRA Rules by allegedly failing to supervise and by failing to respond appropriately to several red flags indicative of unlawful unregistered distributions, according to the aforementioned Complaint currently under review by attorneys Alan Rosca and James Booker.

Hence, Scottsdale has been fined $1.5 million, Hurry has been barred in all capacities, and also would have been fined $100,000, but, in light of the bar, said fine was not imposed, the Complaint reports.

DiBlasi has been suspended for two years and fined $50,000, Cruz has been suspended for two years and fined $50,000, and, finally, said respondents have been ordered to pay costs, for which they are jointly and severally liable, the Complaint notes.

Securities Lawyers Investigating

The Peiffer Rosca Wolf securities lawyers often represent investors who lose money as a result of alleged investment fraud and are currently investigating Scottsdale Capital’s alleged sale of securities without registration and without an exemption. 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 Scottsdale Capital’s alleged sale of securities without registration and without an exemption may contact the securities lawyers at Peiffer Rosca Wolf, Alan Rosca or James Booker, for a free no-obligation evaluation of their recovery options, at 888-998-0520 or via e-mail at arosca@prwlegal.com or jbooker@prwlegal.com.

Alan Rosca (1225 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.