U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 21568 / June 24, 2010
Securities and Exchange Commission v. Aura Financial Services, Inc. et al., Civil Case No. 1:09-CV-21592-FAM, U.S.D.C., S.D. Florida (Miami)
SEC DISMISSES CASE AGAINST DEFENDANT DIPIN MALLA
The United States Securities and Exchange Commission (Commission) announces that it has dismissed its case against defendant Dipin Malla, formerly a registered representative in the Miami branch office of Aura Financial Services, Inc.
On June 11, 2009, the Commission filed its complaint against Aura Financial Services, Inc. (Aura); Ronald E. Hardy, Jr. (Hardy); Peter C. Dunne (Dunne); Qais R. Bhavnagari (Bhavnagari); Dipin Malla (Malla); Sandeep Singh (Singh); and Raymond Rapaglia (Rapaglia) for violations of Section 17(a) of the Securities Act of 1933 (Securities Act) [15 U.S.C. § 77q(a)] and Section 10(b) of the Securities Exchange Act of 1934 (Exchange Act) [15 U.S.C. § 78j(b)] and Rule 10b-5 [17 C.F.R. § 240.10b-5] thereunder.
In its complaint, the Commission alleged that between approximately October 2005 and April 2009, defendants fraudulently induced customers, most of whom had limited investment experience and moderate to conservative investment objectives or risk tolerances, to open and fund brokerage accounts with Aura. Defendants then executed numerous trades that negatively impacted customer accounts through brokerage commissions, mark-ups, trading losses, and excessive transaction costs. In at least some cases, trades were unauthorized and/or inconsistent with customers' investment objectives or risk tolerances. During 2008, Aura generated gross commissions of more than $1,000,000 while its customers suffered combined losses of over $3,500,000.