2023-02-02 sec-litreleases litigation_release 65 KB 1,921 chars

SEC v. Steven J. Susoeff; and Steve Susoeff, LLC, No. LR-25629, District of Nevada (Feb. 2, 2023) — Press Release

raw: Steven J. Susoeff and Steve Susoeff, LLC (dba Meritage Financial Group)

Steven J. Susoeff and Steve Susoeff, LLC (dba Meritage Financial Group), No. 2:23-cv-00173 (Feb. 2, 2023)

Caption
Davis v. C.R. Bard Inc
Source PDF JSON
summary

The SEC charged Steven J. Susoeff and Meritage Financial Group for a cherry-picking scheme that misallocated profitable trades to himself and favored clients.

paragraph

The SEC charged Steven J. Susoeff and his firm, Steve Susoeff, LLC (dba Meritage Financial Group), with conducting a fraudulent cherry-picking scheme from January to July 2021. The defendants face charges for violating antifraud provisions of the Securities Exchange Act of 1934, the Securities Act of 1933, and the Investment Advisers Act of 1940. The SEC is seeking permanent injunctions, disgorgement with prejudgment interest, and civil penalties.

narrative

The SEC has charged Steven J. Susoeff and his Nevada-based firm, Steve Susoeff, LLC (dba Meritage Financial Group), for executing a fraudulent 'cherry-picking' scheme. Between January 2021 and July 2021, Susoeff allegedly used an omnibus trading account to place securities trades without immediate allocation to specific clients. The complaint alleges that Susoeff disproportionately allocated profitable trades to himself and two favored clients while directing unprofitable trades to other client accounts. The SEC's complaint, filed in the U.S. District Court for the District of Nevada, alleges violations of the Securities Exchange Act of 1934, the Securities Act of 1933, and the Investment Advisers Act of 1940. The regulatory body is seeking permanent injunctions, disgorgement with prejudgment interest, and civil penalties against the defendants.

Enriched metadata

Scheme
broker-dealer-fraud (95%)
Court
District of Nevada
Case No.
2:23-cv-00173
Entity
Steven J. Susoeff and Steve Susoeff, LLC (dba Meritage Financial Group)
Classified broker-dealer-fraud(confidence 95%). EDGAR detection: forms Form D· recall 29% / precision 9%. detection rule →
Statutes
Section 10(b) of the Securities Exchange ActSections 17(a)(1) and (3) of the Securities ActSections 17(a)(1) and (3) of the Securities ActSections 17(a)(1) and (3) of the Securities ActSections 206(1) and 206(2) of the Investment Advisers ActSections 206(1) and 206(2) of the Investment Advisers Act
Parties
DavisC.R. Bard Inc
Keywords
susoeffsteven susoeffsteve susoeffmeritage financialfinancial groupsecuritiessusoeff stevesecurities exchangemeritagetradesstevenstevellcdbafinancial

Exhibits & Attached Documents (1)

Extracted insights

Entities 9
  • person antifraud provisions
  • person douglas miller
  • person Gary Leung
  • person permanent injunctions
  • agency Securities and Exchange Commission
  • organization Securities and Exchange Commission
  • person Steven J. Susoeff
  • company steve susoeff, llc
  • organization Steve Susoeff, LLC
Triples 9
  • Steven J. Susoeff Conducted Cherry-Picking Scheme
  • Securities And Exchange Commission Charged Steve Susoeff, Llc
  • Steve Susoeff, Llc Defrauded Clients
  • Steven J. Susoeff Placed Securities Trades
  • Securities And Exchange Commission Filed Complaint
  • Steven J. Susoeff Violated Antifraud Provisions
  • Securities And Exchange Commission Seeks Permanent Injunctions
  • Douglas Miller Leads Litigation
  • Gary Leung Supervises Litigation
PDF (from attached: complaint)
1.The Court has jurisdiction over this action pursuant to Sections 20(b), · Source
Text layers
Extracted body text (1,921c) 
SEC Charges Nevada-Based Investment Adviser for Conducting Fraudulent "Cherry-Picking" Scheme Litigation Release No. 25629 / February 2, 2023 Securities and Exchange Commission v. Steven J. Susoeff and Steve Susoeff, LLC (dba Meritage Financial Group), Civil Action No. 2:23-cv-00173 (D. Nev. Feb. 1, 2023) The Securities and Exchange Commission today charged Steve Susoeff, LLC (dba Meritage Financial Group), a Henderson, Nevada-based investment adviser, and Steven J. Susoeff, its sole owner and principal, for conducting a cherry-picking scheme that defrauded their clients. According to the SEC's complaint, from January 2021 through July 2021, Susoeff placed securities trades using Meritage's omnibus trading account, which is intended to facilitate purchases of securities for multiple client accounts. As alleged, Hobbs placed the securities trades early in the trading day but did not allocate the trades to specific clients or Susoeff's personal accounts until later in the day. The complaint alleges that Susoeff disproportionately allocated profitable trades to himself and two favored clients and unprofitable trades to his other clients' accounts. The SEC's complaint, filed in the U.S. District Court for the District of Nevada, charges Susoeff and Meritage with violating the antifraud provisions of Section 10(b) of the Securities Exchange Act of 1934 and Rules 10b-5(a) and (c) thereunder, Sections 17(a)(1) and (3) of the Securities Act of 1933, and Sections 206(1) and 206(2) of the Investment Advisers Act of 1940. The complaint seeks permanent injunctions, disgorgement with prejudgment interest, and civil penalties. The SEC's investigation was conducted by the staff of the Los Angeles Regional Office, with assistance from Rachita Gullapalli and Nicolas Lopez in the Division of Economic and Risk Analysis. The litigation will be led by Douglas Miller and supervised by Gary Leung. SEC Complaint
OCR text (1,921c · html-text · 99% conf) 
SEC Charges Nevada-Based Investment Adviser for Conducting Fraudulent "Cherry-Picking" Scheme Litigation Release No. 25629 / February 2, 2023 Securities and Exchange Commission v. Steven J. Susoeff and Steve Susoeff, LLC (dba Meritage Financial Group), Civil Action No. 2:23-cv-00173 (D. Nev. Feb. 1, 2023) The Securities and Exchange Commission today charged Steve Susoeff, LLC (dba Meritage Financial Group), a Henderson, Nevada-based investment adviser, and Steven J. Susoeff, its sole owner and principal, for conducting a cherry-picking scheme that defrauded their clients. According to the SEC's complaint, from January 2021 through July 2021, Susoeff placed securities trades using Meritage's omnibus trading account, which is intended to facilitate purchases of securities for multiple client accounts. As alleged, Hobbs placed the securities trades early in the trading day but did not allocate the trades to specific clients or Susoeff's personal accounts until later in the day. The complaint alleges that Susoeff disproportionately allocated profitable trades to himself and two favored clients and unprofitable trades to his other clients' accounts. The SEC's complaint, filed in the U.S. District Court for the District of Nevada, charges Susoeff and Meritage with violating the antifraud provisions of Section 10(b) of the Securities Exchange Act of 1934 and Rules 10b-5(a) and (c) thereunder, Sections 17(a)(1) and (3) of the Securities Act of 1933, and Sections 206(1) and 206(2) of the Investment Advisers Act of 1940. The complaint seeks permanent injunctions, disgorgement with prejudgment interest, and civil penalties. The SEC's investigation was conducted by the staff of the Los Angeles Regional Office, with assistance from Rachita Gullapalli and Nicolas Lopez in the Division of Economic and Risk Analysis. The litigation will be led by Douglas Miller and supervised by Gary Leung. SEC Complaint

Related documents (1)