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ENFORCEMENT PROCEEDINGS - In the Matter of Divine Capital Markets, LLC, Danielle Hughes, and Michael Buonomo
1 days 21 hours 25 minutes ago - FGI via Comtex
FIND Government Press Releases
On Feb. 25, 2011, the Commission issued an Order Instituting Administrative and Cease-and-Desist Proceedings Pursuant to Section 8(A) of the Securities Act of 1933 and Section 15(b) of the Securities Exchange Act of 1934 against registered broker-dealer Divine Capital Markets, LLC; its former registered representative, Michael Buonomo, 36 of Wood-Ridge, New Jersey and its CEO and majority owner Danielle Hughes, 41, of Jersey City, New Jersey.
The Division of Enforcement alleges in the Order that Buonomo and Divine participated in the unregistered offer and sale of over 9.8 billion shares of Advanced Optics Electronics, Inc. The Order alleges that beginning in February 2006, Buonomo established an account on behalf of JDC Swan Inc., a Florida corporation controlled by Jason Claffey, for the purpose of liquidating bulletin board and pink sheet companies. From approximately February 28, 2006 through June 2007, Divine and Buonomo publicly offered and sold over 9.8 billion shares of ADOT for over $2 million on behalf JDC Swan. According to the Order there was no effective registration statement pertaining to the offers and sales, and no valid exemptions from registration.
The Order also alleges that Danielle Hughes, Divine's CEO, ignored red flags and failed to maintain adequate supervisory procedures that would have detected and prevented the registration violations.
The Division of Enforcement alleges that through their conduct, Divine and Buonomo willfully violated Sections 5(a) and 5(c) of the Securities Act and that Divine and Hughes failed reasonably to supervise Buonomo with a view to detecting and preventing his violations of the Securities Act.
An administrative hearing will be scheduled to determine whether the allegations in the Order are true, and to provide Divine, Hughes and Buonomo an opportunity to establish any defenses to the allegations. The proceedings also will determine whether remedial sanctions should be imposed. As directed by the Commission, the administrative law judge shall issue an initial decision in this matter no later than 300 days from the date of service of the Order. (Rel. 34-63980; File No. 3-14274)
