FINRA’s Department of Enforcement investigated Biley’s alleged misconduct and determined he participated in the sale of unregistered penny stocks on behalf of three customers. According to FINRA, the shares were not registered and the transactions were not exempt from registration. Between January and April 2011, the three customers deposited and liquidated over 3.5 billion penny stock shares of four issuers, including Encounter Technologies. Inc. (ENTI), Strategic Management & Opportunity Corp, (SMPP), All-State Properties Holdings Inc. (ATPT), and Greene Concepts, Inc. (LKEN), and received over $1.6 million in proceeds from the sale of the aforementioned stock.
Based upon the foregoing alleged misconduct, FINRA contends Biley violated Section 5 of the Securities Act of 1933 and FINRA Rule 2010. Specifically, Section 5 of the Securities Act of 1933 prohibits the offer or sale of any security unless there is a registration statement in effect as to that security or there is an exemption available for the securities transaction. FINRA Rule 2010 requires a member to observe high standards of commercial honor and just and equitable principles of trade.
Lufrano Law, LLC is a national securities litigation firm and has experience representing investors who have investment disputes with brokers and broker-dealers. If you suffered investment losses and damages investing with Biley through Spencer Edwards, you may be able to recover your losses through FINRA arbitration. Our firm only receives a fee if you recover money. Please complete the contact form below or contact one of our attorneys at (800) 627-2179 to schedule a free consultation.