May 5

Austin Concert Promoter's Encore: 10-Year Prison Sentence

One-time entertainment promoter David Elliott Rosen of Austin was sentenced to 10 years to prison on May 4 for for a nearly $2 million fraud based on the sale of investments in his concert-promotion business.

Rosen pleaded guilty to securities fraud in Travis County State District Court...

Apr 10

Oil and Gas Promoter Sentenced to 6 Years

Years before Mark Christopher Parman of Frisco started selling investments in oil and gas projects, he had been sanctioned by regulators, ordered to pay $2 million in restitution to previous investors and clients, and filed for bankruptcy.

Now add convict to Parman’s resume. He was...

Mar 31

Administrative Action Report Jan.-March 2017

The following are summaries of administrative actions and orders taken from Jan. 1 through March 31, 2017.

Robert Yrshus: Suspended, Fined

Texas Securities Commissioner John Morgan suspended the investment adviser representative registration of Robert Yrshus of Houston for 60 days and...

Mar 10

Are You Cyber-Insecure? Resources for Investment Advisers

The Texas State Securities Board has published resources to assist state-registered investment advisory firms and other registered professionals in developing and strengthening cybersecurity plans.

“Cyberattacks are on the rise, and their scope and complexity mean state-registered...

Feb 23

Financial Guidance for the Military

Military Saves Week is Feb. 27 through March 4, and the Texas State Securities Board continues to offer a resource-packed financial guide to help members of our military make confident, informed financial decisions.

A Salute to Smart Investing provides active military members with the...

Jan 24

It's Back: Your Guide to Safer and Smarter Investing

You asked, we answered. The State Securities Board’s flagship publication, the Texas Investor Guide: Strategies for Investing Wisely and Avoiding Financial Fraud , is back in stock, updated for 2017, and available for free.

The Investor Guide provides unbiased, straightforward...

Jan 23

Investor Alert: To Ruin Your Finances, Ignore This Warning

Most New Year's lists of the financial variety are inflicted on the public for no apparent reason. No one consistently predicts the direction of the stock market or can tell you the 10 Best Mutual Funds to buy or which mattresses will best conceal your cash.

The Texas State Securities...

Jan 18

The Year in Enforcement: Tough But Fair Regulation

The State Securities Board assisted in the prosecution of investment fraud cases in 2016 that resulted in prison sentences totaling 82 years and $17.9 million in orders of restitution for investors.

In addition, investigations resulted in the indictment of 13 individuals in nine Texas...

Dec 30

Administrative Action Report: Oct.-Dec. 2016

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...

Dec 20

Guess What? Investment Promoter Arrested In $6M Fraud

Bobby Eugene Guess, who promoted himself as a financial maven through radio advertising and investment seminars in the Dallas-Fort Worth area, was arrested Dec. 19 following his indictment on charges related to the multi-million-dollar sale of investments in an Internet advertising company....

Dec 20

Documents in the Matter of Bobby Eugene Guess, et al.

The following are public documents in the State of Texas criminal case against Bobby Eugene Guess and the Texas State Securities Board's proceedings against Texas First Financial LLC; Bobby Eugene Guess; Mechanical Motion Solutions LLC; and related parties.

Criminal Case

Affidavit for...

Nov 10

Annual Registration Renewal Fees Due

Securities dealer and investment adviser registrations and notice filings for investment advisers, as well as those for their agents and representatives, expire at the end of the calendar year. 

Renewal statements were sent to registrants the week of November 8, 2016.

Failure to pay renewal fees in full or delaying payment of fees may result. . .

Nov 9

North Texas Oil and Gas Scammer Sentenced to 22 Years

Susan Gay Pruitt, who sold interests in phantom oil and gas exploration projects in Texas and three other states, was sentenced to 22 years in prison on Tuesday in Collin County State District Court.

Pruitt pleaded guilty to theft and money laundering on Monday as her trial was about to...

Oct 17

Adviser Suspended 5 Years for Overcharging Clients

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...

Oct 3

Firm Fined $100,000 for Sale of Mortgage-Linked Securities

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...

Sep 30

Administrative Action Report: July-Sept. 2016

The following are summaries of administrative actions and orders taken from July 1 through Sept. 30, 2016.

Charles Schwab: Co. Inc.: Fine, Reprimand

Charles Schwab & Co. Inc. was reprimanded and agreed to pay a $95,000 fine for failing to verify that certain individuals with powers...

Sep 22

Schwab Reprimanded, Fined $95,000 for Supervisory Failures

Charles Schwab & Co. Inc. was reprimanded and agreed to pay a $95,000 fine for failing to verify that certain individuals with powers of attorney in client accounts were required to be registered as investment advisers.

The reprimand and fine are part of a Consent Order entered by...

Sep 19

Travis Iles Named Deputy Commissioner

Texas Securities Commissioner John Morgan announced today that Travis J. Iles has been named Deputy Commissioner of the State Securities Board.

Iles joined the State Securities Board in 2001 and for the past six years served as Assistant Director of the Enforcement Division. He also...

Aug 25

Investor Alert: Scams Target Immigrant Visa Program

An immigrant visa program designed to attract foreign investment in U.S. businesses has also attracted scammers targeting immigrant investors.

At issue is the federal immigrant visa known as the Employment-Based, Fifth Preference (EB-5) visa. Foreign investors who meet certain...

Aug 15

15-Year Sentence for Stock-Trade Scam

Enticed by the promise of quick profits, investors in and around the small South Texas town of Alice sunk at least $5 million into Michael Anthony Collins’ stock-trading operation only to see their money stolen outright or used to fund a Ponzi scheme.

Collins pleaded guilty to charges of...

Aug 15

Emergency Action Filed Against Dallas-Area Investment Promoter

Texas Securities Commissioner John Morgan entered an Emergency Cease and Desist Order on Aug. 15 that requires Bobby Eugene Guess, an unregistered investment promoter, to stop engaging in fraud in marketing promissory notes tied to a wide array of businesses.

The emergency order cites...

Jun 30

Administrative Action Report: April-June 2016

The following are summaries of administrative actions and orders taken from April 1 through June 30, 2016.

Ralph W. Lillard and Stanley B. Catlin: Cease and Desist, Fines

Texas Securities Commissioner John Morgan on May 31 entered consent orders that fined two unregistered individuals...

May 23

Houston Investment Adviser Sanctioned for Violations of 'Custody Rule'

Texas Securities Commissioner John Morgan on May 23 entered a Consent Order against Post Oak Investment Management Inc. , a Houston investment adviser.

Post Oak Investment Management paid a $1,000 fine and was reprimanded for violating the State Securities Board’s “custody rule,” which...

Apr 5

Investor Alert: Pitfalls of Pension Advance Schemes

If you are receiving regular payments from your pension, keep an eye out for sales pitches that ask you to trade the stability of those payments for the opportunity to make a quick buck.

The come-on will probably be as subtle as a used-car ad: Are you earning a pension from your former employer 

Apr 1

Austin Forex Trader Ordered to Stop Fraudulent Offering

Texas Securities Commissioner John Morgan on March 30 entered an Emergency Cease and Desist Order requiring David Del Castillo of Austin to stop offering for sale investments in a foreign exchange trading operation.

Del Castillo promoted his supposed expertise in forex trading –...