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FINRA Complaint against Delaney Equity Group LLC and

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nodummy   Tuesday, 12/25/12 10:11:39 AM
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FINRA Complaint against Delaney Equity Group LLC and David C Delaney

The very detailed Complaint basically explains how David C Delaney knowing helped Big Apple Consulting illegal dump billions of shares into the open market.

http://disciplinaryactions.finra.org/viewDocument.aspx?DocNb=32755

During the period from December 2008 through July 2010, Delaney Equity Group, LLC (DEG), acting through David Delaney (Delaney), its President, Chief Compliance Officer (CCO) and Anti-Money Laundering Compliance Officer (AMLCO), allowed customer B.A. [Big Apple] and its numerous affiliated accounts to sell almost a billion newly issued, unregistered equity shares of five issuers: Connectyx (CTYX), ProPalms USA, Inc. (PRPM), Shot Spirits (SSPT), Solos Endoscopy (SNDY) and Green Bridge (GRBG). As a result, DEG and Delaney participated in the distribution of almost a billion shares of unregistered and non-exempt securities, in contravention of Section 5 of the Securities Act of 1933 (Securities Act), and in violation of FINRA Rule 2010.

Moreover, DEG, acting through Delaney, failed to establish, maintain and enforce a supervisory system, including written supervisory procedures (WSPs), reasonably designed to ensure compliance with Section 5 of the Securities Act and the applicable rules and regulations with respect to the distribution of unregistered and non-exempt securities, in violation of NASD Conduct Rule 3010(a) and (b) and FINRA Rule 2010.

Additionally, DEG, acting through Delaney, failed to abide by the terms of its membership agreement by failing to enforce its WSPs for supervising individuals with prior disciplinary disclosures at a heightened level, in violation of NASD Membership and Registration Rule 1017, NASD Conduct Rules 3010(a), 3010(b), 2110 and FINRA Rule 2010.

Finally, DEG, acting through Delaney, failed to adequately implement anti-money laundering (AML) policies, procedures, and internal controls and enforce its AML compliance program (AMLCP) by failing to identify a customer who had a regulatory history, failed to detect highly suspicious activity, properly investigate the suspicious activity and report suspicious activity as required. This suspicious activity included, but was but not limited to, deposits of almost a billion shares of low-priced equity securities into multiple related accounts, the liquidation of those shares soon after they were deposited, and the wiring of the sales proceeds out to the accounts soon after their liquidation. Additionally, the suspicious activity included the deposit, journaling, sale and wiring of the sales proceeds involving low-priced biotech stocks in accounts related to or referred by a customer with a regulatory history. As a result of such conduct, DEG and Delaney violated NASD Conduct Rule 3011(a) and FINRA Rules 3310(a) and 2010.



The Complaint goes on for several pages getting into great detail about how David Delaney assisted in this illegal stock dilution scheme in such tickers as:

Artfest International, Inc. (ARTS)
Connectyx (CTYX)
ProPalms USA, Inc. (PRPM)
Shot Spirits (SSPT)
Solos Endoscopy (SNDY)
Green Bridge (GRBG)


The Complaint further goes on to giving great details about David Delaney's involvement in another illegal share selling scheme with two individuals by the initials A.P. and J.R. in such tickers as:

RX for Africa (RXAF)
Medasorb Technologies (MSBT)
Collexis Holdings (CLXS)
Stem Cell Innovations (SCLL)
Intellect Neurosciences, Inc. (ILNS)


http://disciplinaryactions.finra.org/viewDocument.aspx?DocNb=32755










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