Hallmark Investments, Inc. Allegedly Sold Roughly 195,000 Unregistered Shares of Microphase Corporation to Clients of the Firm
Hallmark Investments, Inc. allegedly sold approximately 195,000 unregistered shares of Microphase Corporation to firm customers, according to a Complaint from FINRA’s Department of Enforcement under review by attorney Alan Rosca.
Attorney Alan Rosca, of the Goldman, Scarlato & Penny law firm, is investigating activity related to Hallmark Investments, Inc.’s alleged sales of unregistered shares. Investors who believe they may have lost money in activity related to Hallmark Investments, Inc.’s alleged sales of unregistered shares are encouraged to contact attorney Alan Rosca with any useful information or for a free, no obligation discussion about their options.
Hallmark, from March 2014 through July 2014, allegedly sold approximately 195,000 unregistered shares of Microphase Corporation to seven customers of the Firm when said Microphase shares were not registered with the SEC nor were the sales exempt from registration, said Complaint states.
Stephen Zipkin, specifically, allegedly made sales of approximately 67,500 of unregistered Microphase shares to three customers of the firm and William Coons sold approximately 127,500 unregistered Microphase shares to four firm customers, the Complaint reports.
What is more, Hallmark and Dash each allegedly failed to timely and completely respond to FINRA Staff’s request for information, and thus violated FINRA Rules, the Complaint notes.
Steven G. Dash, Stephen P. Zipkin, William H. Coons & Hallmark Investments, Inc. and Allegedly Made Sales 39,600 Unregistered Shares of Avalanche Int’l (AVLP)
Hallmark Investments, Inc., in conjunction with Steven Dash and Stephen Zipkin allegedly made sales of 39,600 unregistered shares of Avalanche International Corp. (AVLP), according to a Complaint from FINRA’s Department of Enforcement currently under review by attorney Alan Rosca.
Hallmark, via Dash, and also related to the sale of the 39,600 AVLP shares to fourteen customers, allegedly charged excessive mark-ups, the aforementioned Complaint also notes. The Complaint further alleges that Hallmark Investments, Inc. & Steven Dash, Stephen Zipkin allegedly sold said shares at allegedly fraudulently inflated prices, the Complaint reports.
Hallmark Investments had acquired said shares pursuant to a consulting agreement, and on at least eight occasions, Hallmark allegedly conducted a securities business while failing to maintain its required minimum net capital, the Complaint notes.
As a result of the aforementioned behavior, Hallmark and Dash allegedly violated FINRA Rules.
Hallmark Allegedly Acquired 40,000 Shares of AVLP for Purportedly Unspecified Consulting Services
Avalanche got in business began back in April of 2011 when it became incorporated and was in the business of distributing glass tiles, the Complaint reports, and the business kept changing its business model. Around September 9, 2014, Hallmark allegedly received 40,000 shares of AVLP for purportedly unspecified consulting services, according to the Complaint under review by attorney Alan Rosca.
Dash, on behalf of Hallmark, allegedly acquired said shares for the alleged price of $500.19 and Hallmark also allegedly tried to deposit the 40,000 shares with its clearing firm, COR Clearing LLC, the Complaint states. COR, however, allegedly refused the deposit based on several so-called “red flags” with regards to the receipt, the Complaint states.
Dash then allegedly opened up an account in Hallmark’s name at Scottrade around October 16, 2014, of which he was purportedly the sole signatory, and on October 17, 2014, Dash then allegedly made a deposit of 40,000 AVLP shares into the aforementioned Scottrade account, the Complaint notes.
Next, on November 21, 2014, and under Dash’s alleged direction, Hallmark allegedly implemented pre-arranged trading to sell 39,600 shares of the aforementioned 40,000 and Dash even allegedly place a “good until cancelled” sell order on 39,600 shares at Scottrade for $3.00 per share, the Complaint states.
Afterward Zipkin allegedly placed a limit order on Hallmark’s behalf to buy 39,600 shares at about $3.00 per share, the Complain notes. The Complaint then alleges that ALVP, which was thinly-traded, held a bid price in the open market of about $2.05 per share and the closing price on November 21, 2014, was $2.36.
On the very same day, November 21, 2014, the Complaint reports, Hallmark, Dash and Zipkin allegedly sold the 39,600 AVLI’ shares to fourteen Hallmark customers at $3.00 per share which led to total proceeds to Hallmark of approximately $118.740.60.
In summation, based on the aforementioned alleged actions Hallmark allegedly violated the Securities Act and thus FINRA Rules and Zipkin and Coons, as well as Hallmark, also acted in contravention of the Securities Act, and thus violated FINRA Rules, the Complaint states.
Securities Lawyer Investigating
The Goldman, Scarlato & Penny law firm represents investors who lose money as a result of investment-related fraud or misconduct and are currently investigating Hallmark Investments, Inc.’s alleged sales of unregistered shares. The firm takes most cases of this type on a contingency fee basis and advance the case costs, and only gets paid for their fees and costs out of money recovered for clients. Attorney Alan Rosca, a securities lawyer and adjunct professor of securities regulation, has represented thousands of victimized investors across the country and around the world in cases ranging from arbitrations to class actions, and has helped recover tens of millions of dollars on behalf of investors.
Investors who believe they lost money as a result of Hallmark Investments, Inc.’s alleged sales of unregistered shares may contact attorney Alan Rosca for a free no-obligation evaluation of their recovery options, at 888-998-0530, via email at firstname.lastname@example.org, or through the contact form on this webpage.