FINRA charged John Carris Investments (JCI) and its CEO George Carris with fraud and stock manipulation, filing a cease-and-desist order against the firm to halt its solicitation of the Fibrocell Science, Inc. stock without making proper disclosures.
The Authority alleges that JCI fraudulently solicited sales of Fibrocell without disclosing that Carris and another registered principle of the firm were selling shares.
FINRA specifically charged JCI, Carris and several others affiliated with JCI with fraud and securities violations in artificially inflating the price of Fibrocell by effecting unauthorized transactions in customer accounts and engaging in pre-arranged trading.
Furthermore, FINRA's complaint alleges that JCI fraudulently sold stock and notes in parent company Invictus Capital, Inc. without disclosing its "poor financial conditions," misleading investors by paying dividends to earlier investors with funds provided or generated by new sales of Invictus investors, an operation that bears resemblance to that of a Ponzi scheme.
FINRA also found that JCI submitted false documentation, failing to declare the firm paid for Carris personal tattoo, pet care and motorcycle expenses.
Even though the firm defaulted on $2 million of Invictus notes as of March 2013, the firm still allegedly is soliciting new investments in Invictus, which FINRA deems "unsuitable" at least and "fraudulent" at most, necessitating FINRA's pursuit of a cease-and-desist order.
If you have invested with John Carris Investments, CEO George Carris or with any broker or firm who has failed to disclose material facts, such as financial troubles, has engaged in unauthorized trading in your account or whose fraudulent and violative conduct has proven harmful to your investments and interests, please call The Law Offices of Jonathan W. Evans & Associates at (800) 699-1881 for an investigation and consultation.