Scottsdale Capital Advisors—Sales of Unregistered Securities
Scottsdale Capital Advisors Allegedly Took Part in Unregistered Sales of Securities, Including Liquidation of over 74 Million Shares of Three Microcap Stocks
Scottsdale Capital Advisors Corporation (SCAC), between December 1, 2013 and June 30, 2014, allegedly liquidated over 74 million shares of three microcap stocks, including Neuro-Hitech Inc. (NHPI), Voip Pal.com (VPLM), and Orofino Gold (ORFG), according to a recent FINRA Letter of Acceptance, Waiver and Acceptance (AWC).
The AWC goes on to further allege that a customer, CSCT, a Cayman Islands broker-dealer, deposited said shares into his account at SCAC. Said shares were not registered with the SEC, nor were the sales exempt from registration, according to the AWC.
From the illegal sales, the AWC notes, CSCT allegedly generated over $1.7 million in proceeds for its customers, and its owner, John J. Hurry, was an obligatory participant and major factor in the volatile sales. Under Hurry, CSCT deposited over 650 million shares of microcap stocks, and liquidated nearly 145 million shares, and generated proceeds of approximately $5.5 million, according to the AWC.
Scottsdale’s Supervisory System Allegedly Did Not Make the Grade and Failed to Properly Ensure that the Firm Identified Real Owners of Microcap Stock Shares
Scottsdale’s supervisory system was allegedly inadequate regarding its responsibility to reasonably ensure that the firm identified the true beneficial owners of shares of microcap stocks sold into the U. S. markets for its customers, according to the AWC.
In addition, Scottsdale’s Written Supervisory Procedures did not provide sufficient guidance for identifying the true beneficial owners of securities sold, the AWC further alleges.
As a result of the aforementioned behavior, FINRA has ordered that Scottsdale pay full disgorgement of any and all ill-gotten gains by Scottsdale and/or Hurry, together with interest, and ordered that Scottsdale and Hurry bear such costs of the proceeding as are deemed fair and appropriate, according to the AWC.
The Peiffer Wolf Carr & Kane Investment Recovery Lawyers Often Represent Investors
The Peiffer Wolf Carr & Kane investment recovery lawyers often represent investors who lose money as a result of unregistered sales of securities. 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 unregistered sales of securities may contact the investment recovery lawyers at Peiffer Wolf Carr & Kane, Jason Kane or Joe Peiffer, for a free, no-obligation evaluation of their recovery options, at (585) 310-5140.