South Florida Broker Charged With Securities Fraud, Targeting Investors Of Religious Faith
On April 17th, 2023, the Securities and Exchange Commission (SEC) announced securities fraud charges against Marcus K. Moon. Mr. Moon is a previously registered FINRA securities broker. From 2017 to 2021, he was an associate of NYLife Securities LLC in Miramar, Florida. In March of 2021, Mr. Moon voluntarily resigned from the brokerage firm after the SEC launched its investigation.
In late 2021, former NYLife Securities broker Marcus K. Moon was barred by FINRA for failure to cooperate with an investigation. The SEC has now taken its own enforcement action against Mr. Moon. In this article, our Miami investment fraud attorney provides an overview of the key points to know about the charges filed by the SEC.
Allegations: Former NYLife Securities Broker Marcus K. Moon Acted as Unregistered Broker
In 2020, while associated with a broker-dealer employer (NYLife Securities in Miramar, FL), Marcus K. Moon incorporated his own investment company and used networking events/financial literacy seminars to promote his business. Among other things, Mr. Moon provided promotional materials to prospective investors. Notably, Mr. Moon’s investment services required investors to give him discretionary authority to trade in brokerage accounts opened at an online brokerage. Mr. Moon also charged the investors a “setup fee” to register their accounts with third party brokerages.
According to the allegations raised in the complaint, Mr. Moon targeted his promotional efforts at African American members of the Christian community in South Florida, including in Broward County, and Miami-Dade County. It is a type of scheme sometimes referred to as affinity investment fraud. In effect, Mr. Moon was engaged in selling away. He participated in private securities transactions. The conduct was not disclosed to his brokerage firm. In total, the SEC alleges that Mr. Moon entered into investment agreements with nine different investors. Collectively, they suffered tens of thousands of dollars of trading losses.
SEC Sanctions: Penalties Imposed Against Former Registered Broker Marcus K. Moon
The SEC filed a complaint against Marcus K. Moon for violating various securities laws, including registration provisions and antifraud provisions. Enforcement action was taken in the United States District Court for the Southern District of Florida. Without admitting to or denying any of the specific allegations raised, Mr. Moon has agreed to a settlement without admitting or denying the allegations, which includes an injunction, disgorgement of $3,000 plus prejudgment interest, a civil penalty of $31,080, and post-judgment interest. The settlement is still subject to approval by the court.
Contact Our Miami, FL Securities Fraud Attorney Today
At Carlson & Associates, P.A., our Miami securities fraud lawyers are standing by, ready to fight to protect your rights as an investor. If you or your loved one suffered losses due to broker misconduct or brokerage firm misconduct, we are here to help. Give us a call now or connect with us online to arrange your confidential, no obligation case assessment. From our Miami office, our securities fraud lawyers advocate for the rights of investors in South Florida and beyond.