The Securities and Exchange Commission (SEC) has officially levied charges against Jose D. Rocha, a resident of Brockton, Massachusetts, for orchestrating a Ponzi scheme that targeted members of the Cape Verdean community in the Boston area. This fraudulent scheme involved Rocha collecting approximately $1.2 million from 13 investors. He assured these investors that he would invest their funds into securities, guaranteeing them a fixed return rate of 12% each month. However, instead of adhering to these promises, Rocha utilized a minor portion of the funds for high-risk, and ultimately unsuccessful, trades involving stocks and stock options. Most of the funds were diverted towards fueling his gambling addiction and supporting a lavish lifestyle. Additionally, Rocha resorted to using money from subsequent investments to fulfill payouts for earlier investors, thus perpetuating the fraudulent scheme.

The SEC’s formal complaint, submitted to the U.S. District Court for the District of Massachusetts, charges Rocha with violations of the antifraud provisions within Section 17(a) of the Securities Act of 1933, Section 10(b) of the Securities Exchange Act of 1934, and Rule 10b-5. Furthermore, he is charged with contravening Sections 206(1) and 206(2) of the Investment Advisers Act of 1940. As part of a settlement, Rocha has agreed to a judgment that permanently restrains him from violating the aforementioned federal securities laws provisions and from participating in the offer or sale of securities to potential or existing investors. The specific amounts of disgorgement, prejudgment interest, and civil monetary penalties are yet to be determined by the Court.

Simultaneously, Rocha has pleaded guilty to criminal charges of securities fraud that were brought against him by the U.S. Attorney’s Office for the District of Massachusetts. This parallel legal action underscores the seriousness of his fraudulent activities and the coordinated efforts of both civil and criminal regulatory bodies in holding him accountable.

Sonn Law Group is investigating claims regarding Joel Eziekel Blum (CRD #4905379, Goshen, New York). Blum recently submitted an AWC in which he was fined $10,000 and suspended from association with any FINRA member in any capacity for 20 days. See FINRA Case #2014040186601. Blum was associated with Merrill Lynch from May 2008 until his termination in February 2014. Blum has been associated with Ameriprise Financial Services, Inc., since February 2014. The Form U-5 filed by Merrill Lynch to terminate Blum's registration states that he was discharged for "conduct including failure to contact clients in advance of entering orders in non-discretionary accounts and mismarking order tickets as unsolicited." FINRA found that Blum executed discretionary transactions in customer accounts without written authorization to do so. In addition, Blum mismarked order tickets in connection with these transactions, inaccurately indicating that the trades were unsolicited, according to FINRA. In entering into the AWC, Blum neither admitted or denied FINRA's findings. Pursuant to FINRA Rules, member firms are responsible for supervising a broker's activities during the time the broker is registered with the firm. Therefore, Ameriprise or Merrill Lynch may be liable for investment or other losses suffered by Blum's customers. If you were a client of Ameriprise, Merrill Lynch, or Blum, and have suffered investment losses or financial irregularities, please contact Sonn Law Group to explore your legal options. Sonn Law Group is a nationally recognized law firm representing individuals, trusts, corporations and institutions in claims against brokerage firms, banks and insurance companies. To learn more, please call us at 844-689-5754 or complete our "contact form."
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