SEC charges two unregistered brokers with fraud
Cold-callers Jason Arthur and Christopher Bongiorno were unlicensed when they pitched investors the securities of two U.S. companies
The Securities and Exchange Commission charged two unregistered brokers with engaging in fraud in connection with the sales of securities that netted millions of dollars in commissions.
According to the SEC’s complaint, Jason Allan Arthur of Henderson, Nev., and and Christopher Joseph Bongiorno of Shaker Heights, Ohio, used aliases to convince the management of two energy and manufacturing companies that they held the requisite securities licenses to engage in investor solicitations. From September 2015 through November 2018, the two allegedly solicited individual investors throughout the United States to invest in the securities of US Lighting Group and Petroteq Energy.
Operating under their aliases, the two used lead lists to cold-call prospective investors and hired others to work under them to solicit investors, according to the SEC’s complaint. In order to obfuscate their receipt of commissions, the two allegedly submitted misleading invoices to the companies, the SEC said.
Mr. Arthur allegedly received commissions totaling $1.17 million, while Mr. Bongiorno allegedly received commissions of $2.36 million.
[More: SEC fines Wells Fargo $35 million for unsuitable sales of complex products]
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