U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 22961 / April 1, 2014
Securities and Exchange Commission v. Alan Sheinwald and Alliance Advisors LLC, Civil Action No. 12-Civ-5811 (S.D.N.Y.)
District Court Enters Final Judgment Against Defendants in Broker-Dealer Registration Action
The Securities and Exchange Commission announced today that on March 17, 2014, the Honorable Ronnie Abrams of the United States District Court for the Southern District of New York entered a final judgment against defendants Alan Sheinwald and Alliance Advisors LLC. The final judgment permanently enjoins Sheinwald and Alliance Advisors from future violations of Section 15(a) of the Securities Exchange Act of 1934, and orders Sheinwald and Alliance Advisors to pay disgorgement in the amount of $177,166 plus prejudgment interest of $18,022, and civil penalties of $25,000 to be paid by each Sheinwald and Alliance Advisors. In its complaint, as amended, the Commission alleged that Sheinwald and his investor relations firm Alliance Advisors acted as unregistered brokers in connection with securities offerings for two companies, including China Yingxia International, Inc. The complaint alleged that defendants acted as unregistered brokers by, among other things, receiving transaction-based compensation in exchange for actively soliciting investors to participate in securities offerings.
Sheinwald and Alliance Advisors consented to the entry of final judgment without admitting or denying the Commission's allegations. Based on the final judgment, the Commission issued an Order Instituting Proceedings Pursuant to Section 15(b) of the Securities Exchange Act of 1934, Making Findings, and Imposing Remedial Sanctions that bars Sheinwald and Alliance Advisors by consent from association with any investment adviser, broker, dealer, municipal securities dealer, or transfer agent, and from participating in any offering of a penny stock, with the right to apply for reentry after two years.
The litigation in this and other China Yingxia related matters has been handled by Paul Gizzi and Osman Nawaz. The SEC's investigation was supervised by Celeste Chase. For more information on earlier actions relating to China Yingxia, see Litigation Release 22430 (July 30, 2012), Litigation Release 22704 (May 20, 2013), and Litigation Release 22854 (October 23, 2013).