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U.S. SECURITIES AND EXCHANGE COMMISSION

Litigation Release No. 22980 / April 29, 2014

Securities and Exchange Commission v. Charles Vista, LLC, Civil Action No. 14-cv-2643 (E.D.N.Y. Filed April 28, 2014)

SEC Files Action Against Broker-Dealer to Enforce Compliance with Order to Pay Civil Penalty

The Securities and Exchange Commission announced today that it filed an application in U.S. District Court for the Eastern District of New York against Charles Vista, LLC alleging that it violated an SEC Order requiring it to pay civil penalties of $4,350,000. According to the application, Charles Vista, LLC failed to make any payments by November 25, 2013, despite the SEC’s Order and its consent to do so.

According to the SEC’s November 20, 2013 order making findings and imposing remedial sanctions in a settled administrative proceeding, Charles Vista, LLC, a registered broker-dealer, violated the antifraud provisions of the federal securities laws by reason of false and misleading statements made by Gregg Lorenzo and Frank Lorenzo (not related) to induce investors to purchase certain debentures. The SEC Order found as to Charles Vista, LLC that it had willfully violated Section 17(a) of the Securities Act; Sections 10(b) and 15(c)(1) of the Exchange Act; and Rules 10b-3(a) and 10b-5 thereunder.

The Order directed Charles Vista, LLC to cease and desist from committing or causing any violations or future violations of Section 17(a) of the Securities Act and Sections 10(b) and 15(c)(1) of the Exchange Act and Rules 10b-5 and 10b-3(a) thereunder. The Order directed Gregg Lorenzo and Charles Vista, LLC, among other things, to pay $130,000 in disgorgement and $20,000 in prejudgment interest; Gregg Lorenzo paid these amounts, along with a civil penalty of $375,000. The SEC Order further ordered Charles Vista, LLC, among other things, to pay a civil penalty of $4,350,000. No portion of this civil penalty has been paid.

The SEC’s application seeks a district court order enforcing its November 20, 2013 Order requiring Charles Vista, LLC to pay $4,350,000 in civil penalties. On April 29, 2014, Judge Pamela K. Chen issued an order, returnable on June 10, requiring Charles Vista, LLC to show cause why the SEC’s application should not be granted.

For further information, see Securities Act Release No. 33-9480.

 

http://www.sec.gov/litigation/litreleases/2014/lr22980.htm


Modified: 04/29/2014