Joshua A. Yudell has agreed to pay almost $4.5 million to settle charges by the Securities and Exchange Commission (SEC) that he violated the broker-dealer registration provisions of Section 15(a) of the Securities Exchange Act.

According to the SEC allegations, starting in 2010, Yudell acted in the capacity of an unregistered broker when he marketed a “private shareholder secondary offering” to securities owners.

Under the terms of a written agreement, Yudell would cause their securities to be re-registered in the name of various corporate egos he controlled. Once the securities were in the name of his corporate ego, Yudell would deposit them into a brokerage account under his control and sell the securities at or above agreed price floors.  After settlement of the trades, Yudell deducted his fee of between 10% to 35% and sent the remaining proceeds to the securities owners.

Yudell created receipts for his trading activity which were provided to the investors. According to the SEC, Joshua Yudell engaged in at least 88 transactions over a period of four years, while not registered as a broker-dealer or as a registered representative of a broker-dealer.  As such, the SEC determined that Yudell’s conduct violated Section 15(a)(1) of the Exchange Act.

For further information about SEC’s broker-dealer registration requirements, please contact Brenda Hamilton, Securities Attorney at 101 Plaza Real S, Suite 202 N, Boca Raton, Florida, (561) 416-8956, by email at info@securitieslawyer101.com.  This securities law blog post is provided as a general informational service to clients and friends of Hamilton & Associates Law Group and should not be construed as, and does not constitute legal advice on any specific matter, nor does this message create an attorney-client relationship.  Please note that the prior results discussed herein do not guarantee similar outcomes.

Hamilton & Associates | Securities Lawyers
Brenda Hamilton, Securities Attorney
101 Plaza Real South, Suite 202 North
Boca Raton, Florida 33432
Telephone: (561) 416-8956
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www.SecuritiesLawyer101.com