Compliance January 5, 2012

SEC Charges Illinois-Based Adviser in Social Media Scam

The Securities and Exchange Commission (SEC) charged an investment adviser for offering fictitious securities through social media websites.
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The SEC’s Division of Enforcement alleges Anthony Fields of Lyons, Illinois offered more than $500 billion in fictitious securities through various social media websites. For example, he used LinkedIn discussions to promote fictitious “bank guarantees” and “medium-term notes.” The postings resulted in interest from multiple purported potential buyers.

“Fraudsters are quick to adapt to new technologies to exploit them for unlawful purposes,” said Robert B. Kaplan, co-chief of the SEC Enforcement Division’s Asset Management Unit. “Social media is no exception, and today’s enforcement action reflects our determination to pursue fraudulent activity on new and evolving platforms.”

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According to the SEC’s order instituting administrative proceedings against Fields, he made multiple fraudulent offers through his two sole proprietorships—Anthony Fields & Associates (AFA) and Platinum Securities Brokers. Fields provided false and misleading information concerning AFA’s assets under management, clients and operational history to the public through its website and in SEC filings. Fields also failed to maintain required books and records, did not implement adequate compliance policies and procedures, and held himself out to be a broker-dealer while he was not registered with the SEC.

 

Deals & People January 5, 2012

Mutual of Omaha and Securities America Form Strategic Alliance

Through a partnership, Mutual of Omaha’s retirement plans will be available to Securities America’s financial professionals nationwide.
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Securities America advisers will have access to Mutual’s educational tools and resources including its 401k Coach Program, fiduciary support programs and third-party investment comparisons from FiRM to help demonstrate a commitment to fair and competitive fees.

The alliance is part of Mutual of Omaha Retirement Plan Division’s goal of doubling its retirement plans product distribution and adviser support programs to producers affiliated with key broker/dealers across the nation, said Chuck Lombardo, president and CEO of Retirement Marketing Solutions, Inc. (RMS), a Mutual of Omaha subsidiary.

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“Securities America is an excellent company with a strong network of advisers across the country,” Lombardo said. “Many of these advisers focus on small- to mid-size employers, which fit into our sweet spot.”

 

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