Litigation Release No. 25695 / April 18, 2023
Securities and Exchange Commission v. Marcus K. Moon, No. 0:23-cv-60715 (S.D. Fla. filed April 17, 2023)
SEC Charges South Florida Broker with Misrepresenting Securities Registrations to African-American Investors of the Christian Faith
The Securities and Exchange Commission today announced charges against former Broward County, Florida resident Marcus K. Moon for improperly offering investment advisory and brokerage services, predominately to African-American investors of the Christian faith.
The SEC’s complaint alleges that, from at least 2020 to 2021, Moon – an insurance agent and registered representative of an SEC-registered broker-dealer – through Increase Financial Strategies LLC and Faith Financial Strategies, two companies he owned and controlled, entered into brokerage agreements and engaged in trading activity with investors, without his employer’s knowledge or consent. As alleged in the complaint, Moon stated that he was a “financial services professional” who held “various registrations in the financial services space” and portrayed Increase Financial as a brokerage services firm. The SEC alleges that, in fact, Moon was neither authorized by his employer, nor licensed by FINRA, to purchase or sell common stock for others. As alleged in the complaint, Moon entered into brokerage agreements with nine investors, and with their consent accessed their online brokerage accounts and conducted hundreds of trades. Moon’s trading resulted in approximately $31,800 in losses to investors, who collectively paid Moon $3,000 in fees for his services.
The SEC’s complaint, filed in U.S. District Court for the Southern District of Florida, charges Moon with violating the registration provisions of Section 15(a)(1) of the Securities Exchange Act of 1934. The complaint also charges Moon with violating the antifraud provisions of Sections 17(a)(2) and (3) of the Securities Act of 1933, and Section 206(2) of the Investment Advisers Act of 1940. Moon has consented, without admitting or denying the allegations, to an injunction, disgorgement of $3,000 with $158 in prejudgment interest, a $31,080 civil penalty, plus post judgment interest. The settlement is subject to court approval.
The SEC’s investigation was part of the Miami Regional Office’s Fraud Against Minority Groups Initiative and was conducted by Paul Hopker and Hughens Dolisca in the Miami Regional Office and supervised by Jason R. Berkowitz and Glenn S. Gordon, and with the assistance of George Franceschini and Andrew G. Murray. The SEC’s litigation is being led by Teresa J. Verges, Messrs. Hopker and Dolisca.