The Securities and Exchange Commission announced that it obtained a final judgment against Louis Martin Blazer III, a Pittsburgh, Pennsylvania-based financial advisor accused of bilking pro athletes to fund movie projects.
According to the SEC, Blazer took money to invest in movie projects and make Ponzi-like payments. The SEC says he then lied to SEC examiners who uncovered the unauthorized withdrawals.
In 2010, according to the SEC, Blazer agreed to raise money for two film projects, "Mafia the Movie" and "Sibling." Between 2010 and 2012, Blazer repeatedly took money from his clients without authorization to invest in the films.
In one instance, Blazer actually pitched the movie project to a client – a former professional athlete – as an investment opportunity, but that client expressly refused to make the investment. Despite that, Blazer allegedly took $550,000 from the client's account and invested the money in the film projects.
The final judgment permanently orders Blazer to pay approximately $1.8 million in disgorgement and prejudgment interest and a civil money penalty of $150,000.
On May 18, 2016, the court entered a partial judgment by consent and Blazer agreed to the entry of an SEC order, based on the partial judgment, imposing a permanent industry bar.
The court's entry of the final judgment resolves this litigation in its entirety.
FINRA Bars 3 Brokers
A FINRA hearing panel barred three brokers from Craig Scott Capital, according to a hearing panel decision on July 31.
The Financial Industry Regulatory Authority has barred Edward Beyn for excessively trading and churning in nine accounts of six customers. Beyn also made qualitatively unsuitable recommendations to a customer.
The panel concluded that the number of trades recommended by Beyn combined with the high costs to the customers — costs that were not adequately disclosed — demonstrated that the trading was undertaken primarily for the benefit of Beyn and CSC, rather than the customers.
FINRA also barred Brent Morgan Porges and Craig Scott Taddonio for failing to exercise reasonable supervision in light of "glaring" red flags indicating that Beyn and other registered representatives were, or might be, excessively trading customer accounts.
