K.W. Brown & Company, K.W. Brown Investments, & 21st Century Advisors Are Held Liable in $4.5 Million Cherry-Picking Scam

The U.S. District Court for the Southern District of Florida has found K.W. Brown & Company, K.W. Brown Investments, 21st Century Advisors, the companies’ owner Kenneth Brown, his spouse Wendy Brown, and representative Michael Cimilluca liable for their involvement in a cherry-picking scam that earned them $4.5 million and cost investors $9 million. The three of them were also found liable for violating federal securities laws.

据佛罗里达州法院称，从2002年9月到2006年6月，布朗和他的朋友们参加了一项欺诈性的樱桃挑选计划，该计划帮助他和他的朋友们获得了数百万美元的非法收益，而客户亏损了。

行业监管机构警告布朗，他需要制定适当的程序和政策，以防止这种非法活动，但监督仍然存在。一名bob200体育证券和交流考试人员在2003年6月发现了许多违法行为，包括未公开的利益冲突和违反信托义务的行为。

In 2005, the SEC filed a complaint against Brown and his three companies. The SEC says that Cimilluca, who day-traded in a proprietary account run by Brown Investments, pocketed 50% of the profits from the account as his compensation.

The SEC says that because Cimilluca was only paid 1% of commissions that he earned from executive trades, he was be more likely to move the more profitable trades to the Brown Trading Account while ignoring customer accounts. Because of this, investors lost profits valued at millions of dollars.

现在，被告还必须支付983,586美元的判决前利息，该计划赚取了$ 4.5，并在296,147美元的利润中支付了$ 74,779的利润，而Cimilluca是Brown一家公司的注册代表。

总体而言，布朗拥有的三家公司必须支付450万美元的民事罚款。肯·布朗（Ken Brown）和西米卢卡（Cimilluca）还被命令支付25万美元的第三级民事罚款。温迪·布朗（Wendy Brown）被命令支付100,000美元。

Losing money because of the misconduct of a broker or a broker-dealer can be a huge financial blow to an investor. The best chance you have of recovering your losses is retaining the services of an experiencedstockbroker fraud law firm. Shepherd Smith and Edwards has helped thousands of people in the United States, as well as internationally, recover theirinvestment losses. ContactShepherd Smith and Edwardstoday and one of our stockbroker fraud lawyers would be happy to discuss your situation during your free consultation.

Related Web Resources:
SEC v. K.W. Brown and Company, et al., Civil Action No. 05-CV-80367-JOHNSON (S.D. Fla.), SEC.gov, January 8, 2008