Broker-Dealer Litigation - Greenberg Traurig LLP

Q.1.c(i)
In re Nicholson, Release No. 64396, 2011 SEC LEXIS 1573 (May 4, 2011).
The Commission accepted an offer of settlement from Nicholson, the president and
owner of a registered broker-dealer and owner of a separate entity that acted as the general
partner for various issuers of limited partnership interests. In a related civil action brought by the
Commission in federal court, a judgment was entered by consent against Nicholson, permanently
enjoining him from violating the antifraud and registration provisions of the federal securities
laws. The Commission’s complaint alleged that, in connection with the sale of limited
partnership interests, Nicholson misused and misappropriated investor funds, failed to disclose
material information regarding the use of investor proceeds, sold unregistered securities and
operated an unregistered broker-dealer. The Commission barred Nicholson from association.
In re Kobayashi, Release No. 64508, 2011 SEC LEXIS 1735 (May 17, 2011).
Q.1.c(i)
The Commission accepted an offer of settlement from Kobayashi, a former registered
financial adviser at a national broker-dealer. In an earlier proceeding brought by the
Commission, a federal district court entered a final judgment by consent against Kobayashi,
permanently enjoining him from future violations of the broker-dealer registration and antifraud
provisions of the federal securities laws. The Commission’s complaint alleged that, in
connection with the sale of securities, Kobayashi misappropriated funds from client accounts at
the broker-dealer where he was employed, and acted as unregistered broker-dealer by selling
interests in a pooled investment fund that he established and managed. The Commission barred
Kobayashi from association and from participating in the offering of any penny stock.
In re Shereshevsky, Release No. 64704, 2011 SEC LEXIS 2098 (June 20, 2011).
Q.1.c(i)
The Commission accepted an offer of settlement from Shereshevsky, who was associated
with a registered broker-dealer. In a related criminal proceeding in federal district court,
Shereshevsky pleaded guilty to one count of securities fraud, one count of conspiracy to commit
securities fraud, mail fraud and wire fraud, and one count of mail fraud. The criminal indictment
alleged that Shereshevsky raised money in a private placement offering and diverted some of the
proceeds to purposes other than those specified in the private placement memoranda, without
disclosure to investors. The indictment also alleged that Shereshevsky made materially false
statements in documents distributed to investors concerning the investments. The Commission
barred Shereshevsky from association and from participating in any offering of penny stock.
In re Icely, Release No. 62215, 2011 SEC LEXIS 3012 (Aug. 29, 2011).
Q.1.c(i)
The Commission accepted an offer of settlement from Icely, a former registered
representative of a registered broker-dealer. In an earlier proceeding brought by the
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