The following are summaries of administrative actions and orders taken from Oct. 1 through Dec. 30, 2016.
Bruce Russell Clark: Reprimand, Fine
Texas Securities Commissioner John Morgan entered a Disciplinary Order Dec. 30 that levied a $5,000 fine and reprimanded Bruce Russell Clark of Longview for failing to timely disclose liens filed against him going back to 1996.
As part of the order, the Securities Commissioner granted the registration of Clark as an investment adviser representative and agent of Wells Fargo Clearing Services LLC.
Clark violated State Securities Board Rules by failing to disclose within 30 days any changes in information previously disclosed in a filing to the Securities Commissioner.
Five liens were entered against Clark from 1996 to 2014, but he did not disclose them until August and September of 2016.
Michael Delao: Reprimand, Suspension
Texas Securities Commissioner John Morgan entered a Disciplinary Order on Dec. 6 that fined and reprimanded Michael Delao, an agent in Georgetown, for not disclosing two felony charges filed against him in 2014. Delao was indicted in Williamson County, but the charges were later dismissed.
Delao paid a $7,500 fine on Dec. 6. The order also granted the registration of Delao as an agent of St. Bernard Financial Services Inc.
Delao was employed by Century Securities Associates Inc. when he was charged and indicted. Delao did not disclose the charges to Century, whose policies required disclosure of arrests, indictments, or convictions on any felony charge. Nor did Delao report the indictments to the Securities Commissioner within 30 days, as required by State Securities Board Rules.
Delao resigned from Century after the firm learned of the charges. He applied for registration with St. Bernard on Oct. 31.
Jesse Shelmire: Suspension
Texas Securities Commissioner John Morgan on Nov. 17 entered a Disciplinary Order suspending Dallas agent Jesse Shelmire for 120 days for failing to disclose IRS tax liens totaling $287,917.
Shelmire was suspended effective Nov. 21. He is a registered agent of Stonegate Capital Markets Inc. of Dallas.
Shelmire violated State Securities Board rules by failing to disclose within 30 days any changes in information previously disclosed to the Securities Commissioner in any application form or filing.
Jens Pinkernell and J. Pinkernell Global Wealth LLC: Suspension
Texas Securities Commissioner John Morgan entered a Disciplinary Order on Oct. 14 that suspended Jens Pinkernell, an investment adviser representative, for five years.
As part of the order, Pinkernell repaid $46,915 to two clients who were charged unauthorized and excessive fees by Pinkernell and his firm, J. Pinkernell Global Wealth LLC. Both clients received the full amount they were overcharged.
The order also suspended the investment adviser registration of Pinkernell Global Wealth for five years. The firm is based in Gunter, 50 miles north of Dallas.
The order found that Pinkernell Global Wealth overcharged two clients for investment advisory services. In one instance, a client agreed to pay the firm 1.35% of the assets Pinkernell managed. Under a separate fee arrangement with Pinkernell and a third-party custodian of the client’s funds, Pinkernell could withdraw $3,000 a month from the client’s account.
From May 2013 to April 2016, Pinkernell made unauthorized monthly withdrawals from the client’s account. The client ultimately paid $19,134 in fees, when the amount due was $1,850.
Pinkernell withdrew excessive funds from a second client’s account from July 2013 to March 2016. The client should have paid $8,803 in fees, but Pinkernell withdrew a total of $38,436.
Intertech Solutions Inc.: Cease and Desist
Texas Securities Commissioner John Morgan on Oct. 6 entered an Agreed Cease and Desist Order prohibiting the sale of unregistered shares in Intertech Solutions Inc., a gold-mining resources company.
Intertech, based in Scottsdale, Ariz., sold its shares through the company and salespersons affiliated with a separate company.
The order found that shares of Intertech stock are not registered for sale in the State of Texas and that neither Intertech nor the salespersons named in the order are registered as dealer, agents, or investment advisers.
Intertech must stop offering for sale any security until it is registered with the Securities Commissioner or offered under an exemption from registration.
M F Long II: Suspension
Texas Securities Commissioner John Morgan on Oct. 4 entered a Disciplinary Order that granted the application for registration of M F Long II of Plano as an investment adviser representative and agent of a Florida firm, and suspended the registrations for 45 days.
Long’s registrations are with Calton & Associates Inc., a Tampa, Fla. investment advisory firm.
As part of the order, Long agreed he would not sell alternative investments while employed at Calton, including non-listed REITs, non-listed business development companies, and any security sold through a private offering.
According to the order, Long had routinely recommended and sold alternative investments to clients while registered with his previous employer from 2003 to June 2016. Long sold interests in oil and gas drilling programs and in non-listed Real Estate Investment Trusts (REITS), among other alternatives.
In certain instances, the amount of alternative investments Long recommended to clients resulted in them holding more of their portfolio in riskier securities than they had agreed to in opening their accounts.
The order requires Calton to institute a plan for heightened supervision of Long, which will be in effect for two years.
Old Security Financial Group, Donald Anthony MacKenzie, Robert S. Davis Jr.: Fine
Old Security Financial Group Inc. of Spring was fined $100,000 for selling unregistered investments in a “mortgage note program” supposedly backed by commercial real estate.
The fine, which will be paid to the General Fund of the State of Texas, was assessed against Old Security, its owner and president, Donald Anthony MacKenzie, and Vice President Robert S. Davis Jr.
The Agreed Order, entered by Securities Commissioner John Morgan on Oct. 3, also prohibits the mortgage-note securities from being sold until they are registered or qualify for an exemption from registration.
MacKenzie and Davis violated the Texas Securities Act by offering the investments for sale while not registered as dealers and agents. The pair remains unregistered. Old Security also is not registered to sell securities in Texas.