Background

Thomas Priore Priority Technology Holdings: Fraud? (2024)

Article arrow_drop_down
lawsuits

The Securities and Exchange Commission claims that ICP Asset Management LLC, owned by Thomas Priore, defrauded four multibillion-dollar collateralized debt obligations, causing losses in the tens of millions of dollars. Tens of millions of dollars in unreported advisory fees and profits were unethically generated by Thomas Priority Priority Technology Holdings at the expense of their clients and investors.

Thomas Priore Priority Technology Holdings: Terms of the agreement and payment penalty

Thomas C. Priore, the founder and president of ICP Asset Management, a New York-based firm that provides financial advice, and the Securities and Exchange Commission (SEC) have settled allegations of fraud on different collateralized debt obligations (CDOs) that they handled. The SEC made the settlement announcement.

In June 2010, the SEC filed a federal complaint in Manhattan’s federal court against ICP, Priore, and other related entities, requesting a settlement. Now that the final judgment has been reached, ICP, Priore, and the other corporations have agreed to pay more than $23 million. 

The SEC filed claims based on alleged fraud and misrepresentations that caused the CDOs to overpay for securities and suffer significant losses as a result. Moreover, Priore and the ICP-affiliated entities have been charged with unjustly receiving fees and profits that were concealed for the advantage of the CDOs and their investors.

Investment advisors should always act in their customers’ best interests, even when working with sophisticated investors, according to George S. Canellos, deputy director of the SEC’s Division of Enforcement. Canellos recently gave a lecture in which he emphasized this idea. 

The SEC has made it clear through the settlement with Priore and ICP that it will hold advisors responsible for any situations in which they prioritize their interests over those of their clients.

On September 6th, the court officially approved the settlement’s terms. The ruling will take into account the following:

  • Priore is also obligated to pay $215,045 in prejudgment interest, $797,337 in disgorgement expenses, and a $487,618 penalty.
  • Disgorgement of $13,916,005 and $3,709,028 in prejudgment interest have been ordered to be paid by ICP and its parent company, Institutional Credit Partners LLC. The court has joint and multiple liability for this responsibility. Furthermore, ICP will be required to pay a $655,00 penalty.
  • The defendant’s broker-dealer, ICP Securities LLC, has been ordered to pay a penalty of $1,939,474 in addition to the $1,637,581 disgorgement amount. $301,893 will be reimbursed for prejudgment interest.
  • Priore can no longer do business with brokers, dealers, investment advisers, municipal securities dealers, or transfer agents since he has reached a resolution to settle an administrative procedure. Furthermore, it is forbidden for him to participate in the offering of penny stocks. He does, however, have the chance to reapply for association or involvement in the activity once five years have passed.

Moreover, permanent injunctions that prohibit them from breaking any securities laws have been agreed to by Priore and the ICP-affiliated entities. Priore and the ICP firms took this action without acknowledging or refuting the allegations presented by the SEC. 

A few examples of these statutes are Section 17(a) of the Securities Act of 1933, Sections 206(1), (2), (3), and (4) of the Investment Advisers Act of 1940 and Rules 204-2, 206(4)-7, and 206(4)-8, and Sections 10(b) and 15(c)(1)(A) of the Securities Exchange Act of 1934 and Rules 10b-3 and 10b-5.

The New York Regional Office of the SEC launched an inquiry in which Celeste A. Chase, Joseph Boryshansky, Joshua Pater, Susannah Dunn, and Kenneth Gottlieb were among the participants. Joseph Boryshansky was leading the case, with support from Joshua Pater, Mark Germann, Jack Kaufman, and Susannah Dunn.

Thomas Priore Priority Technology Holdings: Owner’s Introduction

An important shift in the company’s leadership was revealed in December 2018 when Mr. Priore, the owner of Thomas Priore Priority Technology Holdings, was named as the new CEO of Priority. Regular changes in leadership could be a sign of instability and lack of continuity within the firm, which could worry investors and employees.

Although Priority is currently recognized as a significant player in the merchant acquisition business, the company’s rapid growth raises questions about both the company’s long-term survival and the strategies used to achieve such rapid expansion. Rapid growth could be viewed as negative as it could result in important due diligence receiving insufficient attention.

Thomas Priore founded ICP Capital, but ultimately the Securities and Exchange Commission accused the business of conducting fraudulent operations and making misleading statements, leading to a sizable settlement. 

There are concerns over the moral and legal obligations of his previous business endeavors given his record of legal issues and regulatory actions.

 One potential drawback to Mr. Priore’s candidacy could be his eight years of experience working in PaineWebber’s Fixed Income Sales and Trading department, where he rose through the ranks to become Vice President. 

There were a lot of ethical and legal challenges facing the banking industry at the time, so his association with it could raise questions about his conduct and methods of doing business.

Mr. Priore’s business administration degree from Columbia University and his bachelor’s degree from Harvard University do not prove that he is an ethical leader or that he acts morally on its own. Negative portrayals run the risk of suggesting that he hasn’t been able to effectively translate his academic accomplishments into suitable business practices.

It is crucial to note that these negative interpretations should be treated extremely cautiously because they are based on a dearth of evidence. It is typical for people and organizations to have a past that is both mixed with positive and negative events.

The Bottom Line

In summary, the Securities and Exchange Commission’s (SEC) announcement of a settlement in the Thomas C. Priore and Priority Technology Holdings case puts doubt on the commercial endeavors of these two entities. 

The SEC’s allegations of fraud and deceit, which led to hefty financial penalties and legal restrictions, indicate serious moral and regulatory deficiencies in the company as a whole. 

Maintaining the highest ethical standards at all times and prioritizing the requirements of clients is crucial, particularly in the financial services industry. This case illustrates why this is so crucial. Thomas Priore’s moral standing in the business world and his capacity to lead are called into doubt by his association with these purportedly immoral commercial activities.

About the author

James Assali
trending_flat
James Assali was Charged for Transnational Mortgage Modification Fraud?

The owner of a Costa Mesa-based loan company, James Assali, is the target of aggressive legal action from law enforcement agencies. James Assali is charged with participating in dishonest practices about loan modification. The individual in charge of the Costa Mesa-based mortgage and escrow company's refinancing is the target of intense pursuit by law authorities. This man is charged with running a loan modification scheme that cheated and mistreated people in California and other states on purpose. The prosecution has demonstrated that victims have been caused by dishonest actions not just in California but also in Washington, Florida, Minnesota, and Maryland. The subject of the investigation, an Irvine native by the name of James Toufic Assali, is presently the target of numerous serious accusations. The defendant faces eighteen criminal counts with suspected grand theft and three more felonies specifically connected […]

trending_flat
Warning Against Phoenix Capital Group Holdings for Consumers

To clarify the crucial aspects of this organization, I have several grievances with Phoenix Capital Group Holdings. There are some favorable reviews as well, but since that's just how things work, we tend to focus on the bad ones. It is necessary to understand the background and history of Phoenix Capital Group Holdings before proceeding. Phoenix Capital Group Holdings, LLC: A Brief Overview A disputed oil and gas mineral rights acquisition and investment organization, Phoenix Capital Group Holdings, LLC was founded in 2019 and has its headquarters in Denver, Colorado. The company's operations mostly include mineral rights purchases.  Several locations, including Irvine, California, Casper, Wyoming, Dallas, Texas, and Fort Lauderdale, Florida, are included among its satellite offices.  The corporation, which is controlled by a family, directs its efforts toward aggressive capital deployment and asset management. It often gives priority to […]

Futurenet
trending_flat
Futurenet Scam Warning: All You Need to Know

In 2014, FutureNet emerged as a fraudulent operation disguised as a multi-level marketing platform offering huge profits via a matrix cycler technology. It entered the cryptocurrency space in 2017 with the introduction of FuturoCoin, which quickly crashed and caused investors to suffer large losses.  FutureNet, which was founded by Roman Ziemian and Stephan Morgenstern, scammed thousands of people worldwide before the co-founders were subject to legal action and international arrest orders. Roman Ziemian: A co-founder of FutureNet, was arrested in Italy and fled the scene Roman Ziemian, a co-founder of the infamous Ponzi scam FutureNet, was detained by Italian police, freed, and then left the nation. This arrest comes in response to a South Korean warrant alleging Ziemian engaged in a multimillion-dollar fraud. In 2014, Ziemian founded FutureNet with Stephan Morgenstern as a business partner. With the launch of FuturoCoin […]

trending_flat
Carl Koenemann: A Criminal Alcoholic? (2024)

Carl Koenemann claims to be a motivational speaker who stimulates future inventors through motivating lectures. As previously said, the global entrepreneurial scene changes, with visionary entrepreneur Carl Koenemann emerging as a source of inspiration and empowerment for future innovators. Carl Koenemann believes that his fascinating motivational presentations are rewriting the success story, driving individual growth, and inspiring ambitious entrepreneurs to build their own paths. Carl Koenemann states that his story is one of determination, honesty, and a strong desire to encourage innovation across technology, marketing, and business consultancy. Carl Koenemann, despite his self-absorbed nature, claims to have rapidly found his stride in the dynamic world of technology, beginning with a solid academic background in electronics and communications. Carl Koenemann boasts about his early experiences, stating that they created the framework for a meteoric rise inside a huge technology corporation, as […]

Related

trending_flat
Warning Against Phoenix Capital Group Holdings for Consumers

To clarify the crucial aspects of this organization, I have several grievances with Phoenix Capital Group Holdings. There are some favorable reviews as well, but since that's just how things work, we tend to focus on the bad ones. It is necessary to understand the background and history of Phoenix Capital Group Holdings before proceeding. Phoenix Capital Group Holdings, LLC: A Brief Overview A disputed oil and gas mineral rights acquisition and investment organization, Phoenix Capital Group Holdings, LLC was founded in 2019 and has its headquarters in Denver, Colorado. The company's operations mostly include mineral rights purchases.  Several locations, including Irvine, California, Casper, Wyoming, Dallas, Texas, and Fort Lauderdale, Florida, are included among its satellite offices.  The corporation, which is controlled by a family, directs its efforts toward aggressive capital deployment and asset management. It often gives priority to […]

crime
trending_flat
Momentus, SEC Settlement, and Mikhail Kokorich: A Complicated Legal Tale

A settlement with the United States Securities and Exchange Commission (SEC) resulted from recent fraud allegations. Momentus, a space corporation, and Stable Road, a specified purpose acquisition company (SPAC) that intended to list Momentus on a stock exchange the year prior, were parties to this action. Nevertheless, the fine for these two businesses was $8 million. SEC released a cautionary note Compared to IPOs, SPAC transactions don't need as much disclosure. SEC chairman Gary Gensler said that the case highlights the risk of inadequate due diligence and investor misrepresentation in SPAC transactions. The settlement highlights the regulatory oversight and potential risks that investors may encounter when interacting with SPACs. Various acts by each person In this instance, Brian Kabot, the chairman of Stable Road, willingly paid $40,000 to settle the charges brought against him. This demonstrates that Kabot accepted responsibility […]

crook
trending_flat
Benny Marotta: A Scammer? (2024)

Benny Marotta, the well-known founder and CEO of Two Sisters Vineyards and Solmar Development Corp., is accused of far too many major offenses. FIRST CASE Argument Against His Two Enterprises In opposition to his two businesses, Solmar (Niagara) 2 Inc. and Two Sisters Resort Corp. The accusations center on the devastation of the forest that Benny Marotta's companies caused on the Rand Estate in 2018. Refusing to Accept Charges: A justice of the peace has just verbally stayed the complaints made against the two firms under the Heritage Act. Two Sisters and Solmar contend that the case infringes upon their Charter of Rights right to a prompt trial because so much time has passed since the initial charges were filed. Town's Response: Without raising an objection, the Niagara-on-the-Lake municipality declines to accept the ruling. The municipality intends to contest the […]

H Bruce Bronson: Accused of making fraudulent representations (2024)

According to H Bruce Bronson, he has been running his own business for the last 20 years. Before that, he worked as a partner in several New York City small law firms. His extensive understanding of creditor-debtor law provides him with a unique advantage when defending clients. His areas of expertise are financial analysis and developing unique client solutions. H Bruce Bronson asserts that "consumers need not feel as though their debt is paralyzing them." There are legal remedies available, and we are here to help them take advantage of those rights. It has been alleged that a former partner of a legal firm submitted false claims to a bankruptcy court in the United States John Roesser, a former partner at significant international law firms, was charged by US authorities on Tuesday for allegedly making fraudulent claims to a bankruptcy […]

Dr. Scott Mosser review
trending_flat
Dr. Scott Mosser: A Negligent Surgeon? (2024)

During today's inquiry, I came onto Dr. Scott Mosser, who claims to be a well-known medical expert and appears to be making waves with both positive and negative remarks. Understanding Dr. Scott Mosser and his values requires going beyond the obvious and learning more about his background and the setting in which he performs medicine. Knowing his history and the environments that shaped his approach to healthcare can help us understand his goals and strategies.  It is crucial to examine the personal experiences of individuals who have been treated by Dr. Scott Mosser after we have established this foundation. These reports provide interesting insights into the effectiveness and impact of the medicines he gives from a broader viewpoint of his professional abilities and patient relationships. We will be able to paint a more comprehensive picture of Dr. Scott Mosser and […]

Be the first to leave a comment

Leave a comment

Your email address will not be published. Required fields are marked *

Login to enjoy full advantages

Please login or subscribe to continue.

Go Premium!

Enjoy the full advantage of the premium access.

Stop following

Unfollow Cancel

Cancel subscription

Are you sure you want to cancel your subscription? You will lose your Premium access and stored playlists.

Go back Confirm cancellation