Enforcement: Ex-Jet Mark Sanchez, 2 MLB Pitchers Bilked by Advisor, SEC Says

UNO did breach the agreement when, at Rangel’s direction, it contracted with its COO’s brothers, agreeing to pay approximately $11 million to one brother’s window company and approximately $1.9 million to another brother for services during construction.

However, UNO never notified IDCEO in writing about either transaction, and its offering statement disclosed only the $1.9 million contract, not the larger $11 million contract. In addition, the offering document never mentioned that a breach by UNO meant that IDCEO could seek to recover the grants, requiring UNO to liquidate its charter schools to repay them and losing the assets it depended on to repay bond investors.

Without admitting or denying the charges, Rangel agreed to pay a $10,000 civil penalty and to be barred from participating in municipal bond offerings, other than for his personal account. The settlement is subject to court approval. UNO settled with the SEC in 2014 for defrauding investors in the same 2011 bond offering. Medical Device Manufacturer Fined for Funneling Cash to Foreigners

Massachusetts-based medical device manufacturer Analogic Corp. and its wholly owned Danish subsidiary BK Medical ApS were charged by the SEC with violations of the Foreign Corrupt Practices Act after the agency found that the latter engaged in hundreds of sham transactions with distributors that funneled about $20 million to third parties, including individuals in Russia and apparent shell companies in Belize, the British Virgin Islands, Cyprus, and Seychelles.

According to the agency, from at least 2001 through early 2011, at the direction of its distributors, BK Medical participated in hundreds of highly suspicious transactions that posed a significant risk of bribery or other improper conduct, such as embezzlement or tax evasion.

At its distributors’ request, BK Medical would issue fake and inflated invoices to the distributors and direct the overpayments it received to third parties identified by the distributors. BK Medical did not have a relationship with the third parties and did not know if the payments had any business purpose.

BK Medical’s Russian distributor accounted for at least 180 payments totaling more than $16 million. BK Medical participated in similar arrangements, but to a lesser degree, with distributors in Ghana, Israel, Kazakhstan, Ukraine and Vietnam, for which BK Medical acted as a conduit for at least 80 payments totaling approximately $3.8 million.

Lars Frost, BK Medical’s former chief financial officer, who was BK Medical’s CFO from 2008 to 2011, personally authorized approximately 150 conduit payments and submitted false quarterly subcertifications to Analogic.

Analogic has agreed to pay $7.67 million in disgorgement and $3.8 million in prejudgment interest to settle charges that it failed to keep accurate books and records and maintain adequate internal accounting controls. In determining the settlement, the SEC considered Analogic’s self-reporting, remedial acts, and general cooperation with the SEC’s investigation. BK Medical has agreed to pay a $3.4 million criminal fine in a nonprosecution agreement announced by the U.S. Department of Justice.

Frost, a Danish citizen, consented to the SEC’s order without admitting or denying findings that he caused Analogic’s violations and that he violated provisions of the federal securities laws and a related SEC rule that prohibit the knowing circumvention of internal controls and knowing falsification of books and records.

SEC Freezes Assets of U.K.-Based Trader for Account Intrusion Scheme

The SEC has frozen the assets of U.K.-based trader Idris Dayo Mustapha, who it says hacked into the online brokerage accounts of numerous U.S. investors so that he could make stock trades that let him make a profit on trades in his own account.

According to the agency, Mustapha placed stock trades without the customers’ knowledge and then traded in the same stocks through his own brokerage account.

In one case, he hacked into a brokerage account, then quickly purchased shares at increasing prices. He then then profited by selling his own shares of the stock in his brokerage account. Mustapha’s scheme made at least $68,000 in profits for himself and caused losses in the victims’ accounts of at least $289,000.

The emergency asset freeze covers more than $100,000 of Mustapha’s assets; the order also prohibits him from destroying evidence. The SEC seeks return of allegedly ill-gotten gains with interest and financial penalties.