SEC Wins Nearly $70M In Judgments Against Financial Firms
By Cara Salvatore
Law360, New York (August 1, 2014, 9:07 PM EDT) -- A Tennessee federal judge ordered a brokerage and a financial holding company on Friday to disgorge $9.4 million and pay $55.9 million in penalties after a jury agreed with the U.S. Securities and Exchange Commission that they ran a Ponzi-style scheme targeting unsophisticated investors.
U.S. District Judge Thomas Varlan delivered the judgments against Community Bankers Securities LLC, AIC Inc. and former AIC CEO Nicholas Skaltsounis on Friday.
The severe penalties were merited by "the egregiousness of the violations, their recurrent nature, as well as the level of...