OFR Press Releases

OFR Issues Second Administrative Complaint in Woodbridge Case

- Ongoing OFR investigation shows victims scammed for nearly $7 million -

Tallahassee, Fla. – The Florida Office of Financial Regulation today announced that an administrative complaint has been filed against seven firms and individuals, who offered and sold unregistered securities of Woodbridge Capital Investments, Inc., and other associated companies, to approximately 57 victims while not being registered as required by Chapter 517, Florida Statutes.

CFO Jimmy Patronis said, “Protecting Floridians from fraud and abuse is one of my top priorities, especially when it deals with our seniors. They have worked their entire life to build a nest egg and cannot afford to have it stolen by scam artists. Let me be clear: if you commit fraud in Florida you will be caught and you will be held accountable.”

Interim Commissioner Pamela Epting said, “Preying on our elderly population for financial gain is a heinous crime. The Florida Office of Financial Regulation is committed to protecting Floridians from bad actors, and our investigative team will continue working this case to ensure those responsible for fraud and illegal financial activity are brought to justice.”

The administrative complaint has been issued against:

• Phillip Larry Ball;
• Gordon Carrington Hannah;
• Retirement Planning Solutions, LLC;
• Bender Wallace “Wally” Mackey;
• Sycamore Group, Inc.;
• Kevin Francis Quinn; and
• LTC Planning, Inc.

In its second wave of actions in this case, the OFR’s administrative complaint alleges that the named sales agents and companies violated the Florida Securities and Investor Protection Act by unlawfully selling unregistered securities to Floridians. The administrative complaint alleges that approximately 57 victims bought nearly $7 million in investments from the named sales agents.

This is an ongoing investigation. In November 2017, the Florida Office of Financial Regulation sent a questionnaire to more than 800 Floridians believed to be investors in Woodbridge. If you invested in Woodbridge and have not received a questionnaire, please contact the Florida Office of Financial Regulation at (850) 487-9687.

Read the administrative complaint here.

Key West Trio Arrested for $7 Million Investment Fraud Scheme

Tallahassee, Fla. - The Florida Office of Financial Regulation today announced that Jose Luis Leon, Richard A. Renner, and Natalie M. Rogers were arrested on charges of racketeering, conspiracy to commit racketeering, securities fraud, organized fraud and grand theft in the first degree for their alleged role in an investment fraud scheme.

Chief Financial Officer Jimmy Patronis said, “No matter the scheme, anyone who defrauds Floridians out of their nest egg are some of the worst fraud criminals. People work their entire lives to save money for their families’ future. I want to make it clear: anyone who preys on our communities to pocket money for their own personal gain, will be found and brought to justice. Thank you to every investigator and law enforcement officer involved in this case for bringing these bad actors to justice.”

Interim Commissioner Pamela Epting said, “I thank our investigators, the Florida Department of Law Enforcement, the Key West Police Department, the Monroe County Sheriff’s Office, and the Florida Attorney General’s Office of Statewide Prosecution for their efforts in this case. The Florida Office of Financial Regulation will continue to work tirelessly with our partners to protect Floridians from financial criminals.

FDLE Commissioner Rick Swearingen said, “These suspects preyed upon their victims stealing their life’s savings, wellbeing and peace of mind just to line their own pockets. FDLE will continue to work with our partners, like the Office of Financial Regulation, to stop devastating financial crimes like this one.”

Leon, Renner and Rogers allegedly used Strategic Holdings Group, a purported investment fund company, to target investors through word-of-mouth and brochure advertising. The trio purportedly represented themselves as sophisticated and experienced money managers with access to exclusive investments, such as energy-related limited partnerships, real estate, tax liens, private equity, precious metals, and other alternative assets, and allegedly offered eight percent per year return to investors. However, the investigation revealed that the trio purportedly used investors’ money to fund their personal lifestyle. More than 20 victims are alleged to have been defrauded out of more than $7 million.

The case was jointly investigated by the Florida Office of Financial Regulation and the Florida Department of Law Enforcement. Arrests were made by the Key West Police Department and the Monroe County Sheriff’s Office. The case is being prosecuted by the Florida Attorney General’s Office of Statewide Prosecution.

Floridians who suspect questionable financial business practices are encouraged to file a complaint online at www.flofr.com, or by calling (850) 487-9687.

OFR Releases New Edition of Fast Facts

Tallahassee, Fla. - The Florida Office of Financial Regulation today announced that the new edition of its Fast Facts is now available. The pocket guide, released annually, provides Floridians with OFR data and trends from the past fiscal year.

Interim Commissioner Pamela Epting said, “Our annual Fast Facts is a useful booklet that helps consumers and stakeholders understand more about who we are and what we do. It's important that consumers are aware of the resources available to them, including how to verify a license and file a complaint with OFR. We’re excited to release this newly-redesigned version for 2019.”

Reduce your risk of identity theft by:

• Increasing Taxpayer Value: Licenses under regulation by the OFR have increased 3.2 percent in the past year and have increased 13 percent in the last five years. The OFR now oversees more than 458,000 licensees.
• Improving Customer Service: In Fiscal Year 2017-18, the OFR answered more than 37,000 consumer calls in an average of 16 seconds.
• Delivering Value to Businesses: In Fiscal Year 2017-18, the OFR approved more than 76,000 license applications. Licenses are approved in an average of 5 days.

Download a copy.

Request printed copies.

Orlando Man Sentenced to Prison in $3.6 Million Investment Fraud Scheme

Tallahassee, Fla. - The Florida Office of Financial Regulation today announced the sentencing of Justin Troy Spearman to more than four years in prison and eight years of probation after pleading no contest to charges of grand theft, securities fraud, selling unregistered securities and selling securities as unregistered agent.

Interim Commissioner Pamela Epting said, “The Florida Office of Financial Regulation is committed to working with our state and federal partners to protect Floridians from financial criminals. Thank you to our investigators, the Winter Park Police Department and the Office of Statewide Prosecution for their efforts in this case.”

Spearman solicited investments from Florida victims in a scheme involving royalty interest from oil and gas leases. He presented investors with documents that purported to demonstrate that he had rights to an oil and gas leasing enterprise, so that they would invest with him. The investigation revealed that the documents were fake and that Spearman used most of investors’ money to fund his extravagant lifestyle. Spearman defrauded victims out of more than $3.6 million.

This case was investigated by the Florida Office of Financial Regulation and the Winter Park Police Department. The case was prosecuted by the Office of Statewide Prosecution.

Texas Man Arrested for Allegedly Stealing Florida Little League Participation Fees

Tallahassee, Fla. - The Florida Office of Financial Regulation today announced the arrest of Daniel Ptak for grand theft and allegedly acting as a money services business without a license.

Interim Commissioner Pamela Epting said, “Thank you to our investigators and our partners for their hard work in this case. I encourage all Floridians who suspect questionable financial business practices to file a complaint online at www.flofr.com or call OFR at (850) 487-9687.”

Ptak, through his company Jevin, Inc., allegedly misappropriated more than $37,000 of little league participation fees. The OFR investigation revealed that Jevin, an online scheduling and payment service company, purportedly accepted payments from more than 250 Florida little league families on behalf of Northeast Little League, which is based in St. Petersburg, FL. Ptak failed to transmit the participation fees back to Northeast Little League. Instead, the money was allegedly used to fund Ptak’s personal lifestyle.

The case originated from a complaint referred to the OFR by a constituent tip from the Office of Florida Senator Jeff Brandes. The Pinellas County State Attorney’s Office is prosecuting the case.

OFR to Participate in a $26 Million Multi-State Settlement with LPL Financial LLC

Tallahassee, Fla. – The Florida Office of Financial Regulation today announced that the agency will participate in a settlement with LPL Financial LLC to repurchase from investors certain securities sold since October 2006 and to pay administrative penalties of $499,000 to Florida upon entering the final order.

Interim Commissioner Pamela Epting said, “The Florida Office of Financial Regulation is committed to protecting Floridians and will continue to work with our partners in other states to hold financial services businesses accountable.”

The settlement stems from an investigation led by state securities regulators from Alabama and Massachusetts regarding the failure to establish and maintain reasonable policies and procedures to prevent the sale of unregistered, non-exempt securities by LPL to its customers.

In July 2017, the North American Securities Administrators Association (NASAA), of which the Florida Office of Financial Regulation is a member, established a task force with Massachusetts and Alabama as lead states to investigate LPL’s failure to establish and maintain reasonable policies and procedures to prevent the sale of unregistered, non-exempt securities by LPL to its customers. LPL fully cooperated with the NASAA task force.

State securities regulators concluded that LPL offered and sold unregistered, non-exempt securities and failed to reasonably supervise the flow of information to ensure full and proper compliance with state securities registration requirements.

While no evidence was found of willful, reckless, or fraudulent conduct by LPL, investigators did find that the firm failed to maintain adequate systems to reasonably supervise agents, staff, and employees to prevent the sale of unregistered, non-exempt securities. LPL failed to invest sufficient and appropriate resources in personnel, expertise, systems, and operations to adequately comply with state securities registration statutes, rules, and regulations.

In addition to an administrative penalty, the settlement calls for LPL to offer to repurchase from investors securities held in LPL accounts determined to have been unregistered, non-exempt equity or fixed-income securities sold since October 1, 2006. Each offer also shall include 3 percent simple interest per year.

OFR Donates Food and Supplies to Hurricane Micheal Relief Efforts

Tallahassee, Fla. - The Florida Office of Financial Regulation today announced the donation of more than 385 lbs., of non-perishable food and other items to support ongoing Hurricane Michael relief efforts.

Interim Commissioner Pamela Epting said, “I am proud of our team, and their generous efforts to help friends and neighbors in the Panhandle region who were impacted by this devastating storm. As the Thanksgiving holiday approaches, these donations will benefit families who need them most.”

Left to right: Chief of Investigations Steve Horn, Interim Commissioner Pam Epting, Director of Securities Lee Kell, Director of Financial Institutions Jeremy Smith, Director of Consumer Finance Greg Oaks. Donations were delivered to Second Harvest of the Big Bend, a regional food bank serving 11 counties in the Big Bend area.

Interim Commissioner Epting Receives Stetson's Distinguished Alumni Award

DeLand, Fla. - Florida Office of Financial Regulation Interim Commissioner Pam Epting received the Stetson University Distinguished Alumni Award on Saturday, Nov. 3, as part of the university's 2018 homecoming celebration. The award honors Stetson University alumni who have brought distinction and special recognition to their alma mater through outstanding achievement in their lives and professions.

Interim Commissioner Pamela Epting said, "I am humbled by this recognition, and I offer sincere thanks to the university administration and the Stetson family for selecting me for this honor. I’m incredibly grateful to this institution and my family for providing me with a foundation for public service, integrity and leadership."

Bay Area Man Arrested for Alleged Investment Fraud Scheme

Tallahassee, Fla. – The Florida Office of Financial Regulation today announced the arrest of James Harold Hosner, of Safety Harbor, for his alleged role in an investment scam. He is charged with the sale of an unregistered security, sale of a security by an unregistered dealer, securities fraud, and grand theft.

Interim Commissioner Pamela Epting said, “The Florida Office of Financial Regulation is committed to working with our state and federal partners to bring financial criminals to justice. I thank OFR's investigators and the Pinellas County State Attorney’s Office for their assistance in this case.”

Hosner, Chief Executive Officer of the former Phoenix Insurance Services, Inc., based in St. Petersburg, allegedly sold and issued promissory notes totaling more than $48,000 to an elderly victim. He is believed to have exploited his existing relationship as the victim’s insurance agent. Hosner purportedly represented that he was in negotiations to purchase another insurance agency, and the victim’s investment would be used to complete the sale. However, Hosner allegedly used the investment to pay routine business expenses, and failed to disclose that he and the company were in financial distress.

This case is being prosecuted by the Pinellas County State Attorney’s Office.

Five Sentenced for Roles in $6 Million Investment Fraud

Tallahassee, Fla. – The Florida Office of Financial Regulation today announced the sentencing of Angela Monaco (more than six years), Pasquale Rubbo (more than eight years) and Steven Dykes (nine years) to prison after pleading guilty to charges of conspiracy to defraud and money laundering. Previously sentenced to prison were co-defendants Joseph Rubbo (five years) and Nicholas Rubbo (four years) after pleading guilty to conspiracy to defraud. All defendants were also ordered to serve three years of supervised release, and pay restitution totaling more than $6 million.

Interim Commissioner Pamela Epting said, “Thank you to our investigative team, along with the U.S. Securities and Exchange Commission, the Federal Bureau of Investigation, the Internal Revenue Service’s Criminal Investigation team, and the U.S. Attorney’s Office in Denver, CO, for their assistance in bringing these scammers to justice. The Florida Office of Financial Regulation remains committed to working with our partners to protect Floridians from financial criminals.”

Through their companies, VIP Television, Inc. (VIP TV), The Spongebuddy, LLC (The Scrubbieglove, LLC), and ANJ Productions, Inc., the group defrauded investors out of more than $6 million by making false statements and representations related to securities offerings. The group promised unrealistically high returns, fake proposed mergers, exaggerated demands for the spongebuddy product and the existence of celebrity investors to entice victims to invest.

Visit OFR’s Consumer Resources.