The Financial Industry Regulatory Authority (FINRA) announced today that a FINRA hearing panel has sanctioned Avenir Financial Group, fining the NY-based firm $229,000 and suspending it for two years from engaging in any self-offerings of securities for misconduct including the fraudulent sales of equity interests in the firm and promissory notes. Additionally, the firm failed to provide to customers written disclosures regarding compensation from the sales and the use of proceeds in connection with the equity offerings, and inadequately supervised the firm’s capital raising. The hearing panel also barred former Chief Executive Officer and Chief Compliance Officer Michael Todd Clements from the securities industry for fraud, suspended registered representative Karim Ahmed Ibrahim (aka Chris Allen) for two years for fraud, and ordered Ibrahim to disgorge his $25,000 commission. In addition, Avenir, Clements and Ibrahim were ordered to offer rescission to defrauded customers. The hearing panel dismissed the charges that Clements aided and abetted the fraud, as well as the charge that Avenir misused customer funds. The decision resolves charges brought by FINRA's Department of Enforcement in April 2015. Since May 2015, the firm, Clements, and Ibrahim have been subject to a temporary cease and desist order pending the resolution of the charges.
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