Ian Charles Kass, of Fort Lauderdale, Florida, a stockbroker formerly registered with Wilson-Davis & Co., Inc., has been identified in a Securities and Exchange Commission (SEC) Order Instituting Administrative and Cease-And Desist Proceedings based upon allegations that Kass aided and abetted securities fraud and facilitated the sale of unregistered securities. In the Matter of Delaney Equity Group, LLC, et al., 33-10122(Aug. 16, 2016).
According to the Order, from September of 2009 to October of 2013, twelve blank check entities had been established in order to be sold to the public. These entities were reportedly misrepresented as legitimate companies that were operated and managed. The Order stated that a Form 211 application was signed and filed by Kass with Financial Industry Regulatory Authority (FINRA) for the twelve entities, in which omissions and misrepresentations were made regarding the business purpose of the entities. The Order further stated that Kass lacked any reasonable basis for concluding that the information presented on the Form 211 applications were reliable.
Moreover, the Order stated that Kass participated in the blank check entities’ penny stock offers and sales, despite the stocks not having been registered with the SEC or containing an exemption from registration. Apparently, applications were filed by Kass with a company concerning the blank check entities, wherein Kass furnished legal opinions that were false. Additionally, potential buyers were referred by Kass to undisclosed control persons in order to make purchases of the blank check entities.
The Order stated that Kass acted willfully in aiding and abetting the control persons’ conduct violative of Securities Act of 1933 Section 5(a) and 5(c) and 17(a), Securities Exchange Act Section 15(c)(2) and SEC Rule 15c2-11, as well as Securities Exchange Act of 1934 Section 10(b) and SEC Rule 10b-5.
FINRA Public Disclosure reveals that on July 28, 2016, Kass was terminated by Wilson-Davis & Co. based upon the firm’s knowledge that Kass was investigated by the Securities and Exchange Commission for alleged federal securities law violations.
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