Maroof Miyana, of Pompano Beach, Florida, a stockbroker formerly registered with Legend Securities, Inc., has been subject to a customer initiated investment related arbitration claim from November 24, 2014, which settled for $72,000.00 in damages based upon allegations that Miyana effected unsuitable transactions in the customer’s investment account.
FINRA Public Disclosure also reveals that on May 3, 2016, Miyana was charged by the Securities and Exchange Commission (SEC) in a Complaint alleging that he, along with nine other individuals, participated in a fraudulent investment scheme. SEC Litigation Release 23529 (May 3, 2016).
According to the Complaint, investors were persuaded by Miyana and others into purchasing stock from certain issuers, where at least one issuer’s chairman provided kickbacks and bribes to brokers in order for such brokers to solicit investors to purchase the company’s stock. The Complaint stated that Miyana had been a recipient of cash bribes which were paid by other individuals named in the Complaint. Miyana was charged by the SEC with violating Securities Exchange Act of 1934 Section 10(b), SEC Rule 10b-5, as well as Securities Act of 1933 Section 17(a).
According to the SEC’s complaint against St. Julien, purported investor relations professional Jared Mitchell, and investment newsletter publisher Christopher F. Castaldo along with registered representatives Richard L. Brown, Gerald J. Cocuzzo, Naveed A. (Nick) Khan, Maroof Miyana, and Pranav V. Patel and unregistered brokers Herschel C. (Tres) Knippa and Louis F. Petrossi:
- St. Julien sought to conceal his illegal conduct by using a company in Belize to pay the kickbacks, wiring money from a company bank account to Mitchell, who called himself the “brown bag man” and withdrew the payments and paid cash bribes in person to Brown, Cocuzzo, Khan, Miyana, and Patel.
- Castaldo lured his victims to invest in ForceField through a nationwide cold calling campaign he conducted from his Long Island, N.Y. office. Castaldo recorded the prices and amounts sold to investors and sent the information to St. Julien so he could receive the kickbacks, which were wired to him through the Belizean company.
- Neither Petrossi nor Knippa was registered as a broker to solicit investments in ForceField’s private placement offerings, and they received undisclosed kickbacks from St. Julien.
- Petrossi falsely told one investor in an e-mail that “I can not [sic] be bought,” and Knippa went so far as to appear on the Fox Business Network’s “Varney & Co.” show and the Business News Network as a purported market commentator to tout ForceField as a great investment. In neither appearance did Knippa tell the host or viewers that he was being paid to solicit investors for ForceField. Meanwhile Knippa told St. Julien in text message exchanges, “I can pitch (ForceField) as good as anyone in the world.”
The SEC’s complaint charges: (i) St. Julien with violations of Sections 5 and 17(a)(1) and (3) of the Securities Act of 1933 (“Securities Act”) and Section 10(b) of the Securities Exchange Act of 1934 (“Exchange Act”) and Rules 10b-5(a) and (c) thereunder; (ii) Mitchell with violations of Sections 17(a)(1) and (3) of the Securities Act, and Section 10(b) of the Exchange Act and Rules 10b-5(a) and (c) thereunder; (iii) Castaldo with violations of Sections 17(a) and 17(b) of the Securities Act and Sections 10(b) and 15(a) of the Exchange Act and Rule 10b-5 thereunder; (iv) Petrossi with violations of Sections 5 and 17(a) of the Securities Act and Sections 10(b) and 15(a) of the Exchange Act and Rule 10b-5 thereunder; (v) Knippa with violations of Sections 5, 17(a), and 17(b) of the Securities Act and Sections 10(b) and 15(a) of the Exchange Act and Rule 10b-5 thereunder; and (vi) Brown, Cocuzzo, Khan, Miyana, and Patel with violations of Section 17(a) of the Securities Act and Section 10(b) of the Exchange Act and Rule 10b-5 thereunder.
Since 2002, Miyana has been associated with four different broker dealers, three of which have been expelled by securities regulators for violation of federal securities laws or is otherwise defunct.
Guiliano Law Group
Our practice is limited to the representation of investors. We accept representation on a contingent fee basis, meaning there is no cost to you unless we make a recovery for you. There is never any charge for a consultation or an evaluation of your claim. For more information, contact us at (877) SEC-ATTY.
