SEC Takes Action Against Ann Hiskey
On June 19, 2017, the Securities and Exchange Commission (“Commission”) deemed it appropriate and in the public interest that public administrative proceedings be, and hereby are, instituted pursuant to Section 15(b) of the Securities Exchange Act of 1934 (“Exchange Act”) against Ann Hiskey (“Respondent”).
In anticipation of the institution of these proceedings, Respondent has submitted an Offer of Settlement (the “Offer”) which the Commission has determined to accept. Solely for the purpose of these proceedings and any other proceedings brought by or on behalf of the Commission, or to which the Commission is a party, Respondent admits the Commission’s jurisdiction over her and the subject matter of these proceedings, and the findings contained in paragraph III.2 below, and consents to the entry of this Order Instituting Administrative Proceedings Pursuant to Section 15(b) of the Securities Exchange Act of 1934, Making Findings, and Imposing Remedial Sanctions (“Order”), as set forth below. On the basis of this Order and Respondent’s Offer, the Commission finds that
1. Respondent was a customer service representative of Moneyline Brokers, an offshore brokerage company located in San Jose, Costa Rica, which was not registered as a brokerdealer with the Commission. Ann Hiskey, 43 years old, is a resident of Costa Rica.
2. On December 14, 2015, Ann Hiskey pled guilty to two counts of conspiracy to commit wire fraud in violation of Title 18 United States Code, Section 1349, before the United States District Court for the Eastern District of Virginia, in United States v. Ann Marie Hiskey, No. 1:15- CR-178-3-AJT. On March 25, 2016, a judgment in the criminal case was entered against Ann Hiskey. She was placed on probation for a term of two years and ordered to forfeit $107,197.25, the amount of illegal proceeds Ann Hiskey obtained.
3. In connection with that plea, Respondent admitted that:
(a) Respondent was a customer service representative at Moneyline Brokers whose role was, among other things, to engage in trading stocks through Moneyline’s accounts, to assist in finding promoters for the stocks being traded, and to facilitate the transfer of the proceeds of the trades pursuant to instructions from clients and supervisors.
(b) The purpose of Moneyline was to trade securities, primarily microcap or “penny stocks,” through multiple nominee brokerage accounts in the United States, often in connection with market manipulation or “pump-and-dump” securities fraud schemes, and to launder the proceeds of these schemes by transferring proceeds from the nominee brokerage accounts to and through Moneyline nominee bank accounts in the Unites States and overseas.
(c) Beginning no later than March 2010, Hiskey joined a conspiracy to defraud investors in the common stock of Warrior Girl Corporation (“WRGL”), and participated in the fraudulent promotion of WRGL stock, the coordinated trading of WRGL stock, the liquidation of WRGL shares, and the transfer of proceeds of the sale of WRGL shares from nominee accounts to offshore bank accounts and back to bank accounts in the United States in order to hide the source, ownership and control of the fraudulent proceeds.
(d) Beginning no later than June 2010, Hiskey joined a conspiracy to defraud investors in the common stock of Everock Incorporated (“EVRN”), and effected the liquidation of EVRN shares through Moneyline accounts in coordination with press releases and other promotional activities.
In view of the foregoing, the Commission deems it appropriate and in the public interest to impose the sanctions agreed to in Respondent Hiskey’s Offer. Accordingly, it is hereby ORDERED pursuant to Section 15(b)(6) of the Exchange Act, that Respondent Ann Hiskey be, and hereby is barred from association with any broker, dealer, investment adviser, municipal securities dealer, municipal advisor, transfer agent, or nationally recognized statistical rating organization; and Pursuant to Section 15(b)(6) of the Exchange Act Respondent Ann Hiskey be, and hereby is barred from participating in any offering of a penny stock, including: acting as a promoter, finder, consultant, agent or other person who engages in activities with a broker, dealer or issuer for purposes of the issuance or trading in any penny stock, or inducing or attempting to induce the purchase or sale of any penny stock. Any reapplication for association by the Respondent will be subject to the applicable laws and regulations governing the reentry process, and reentry may be conditioned upon a number of factors, including, but not limited to, the satisfaction of any or all of the following:
(a) any disgorgement ordered against the Respondent, whether or not the Commission has fully or partially waived payment of such disgorgement;
(b) any arbitration award related to the conduct that served as the basis for the Commission order;
(c) any self-regulatory organization arbitration award to a customer, whether or not related to the conduct that served as the basis for the Commission order; and
(d) any restitution order by a self-regulatory organization, whether or not related to the conduct that served as the basis for the Commission order.
For further information about this securities law blog post, please contact Brenda Hamilton, Securities Attorney at 101 Plaza Real S, Suite 202 N, Boca Raton, Florida, (561) 416-8956, or [email protected]. 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
Facsimile: (561) 416-2855