Complaint
Complaint
Complaint
vs.
COMPLAINT
RICHARD GOBLE, and THE GOBLE FIRST REVOCABLE FAMILY TRUST MAY 13, 1999
ON BEHALF OF ITSELF AND NORTH AMERICAN CLEARING, INC., by and through their
undersigned counsel, file this complaint for interference with business relations, abuse of
process, defamation, and gross negligence against the above captioned individual Defendants,
alleging as follows:
PRELIMINARY ALLEGATIONS
Jurisdiction
thousand dollars, exclusive of interest and costs, between citizens of different states with each
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Defendant either residing or maintaining its principal place of business in a state other than that
of the Plaintiffs, and this Honorable Court possesses diversity subject matter jurisdiction
"G&G") is a Florida for profit holding corporation with its principal place of business located at
3. Plaintiff THE GOBLE FIRST REVOCABLE FAMILY TRUST MAY 13, 1999
(hereinafter referred to as the "Goble Trust") is a revocable trust created by Richard Goble in
1999, with Richard Goble as trustee. The trust is also the sole shareholder of G&G Holdings,
Inc., the Financial Industry Association, Inc., and North American Clearing, Inc.
person with offices located at 1385 W State Road 434, Suite 102, Longwood, FL 32750.
Plaintiff Richard Goble was the director of North American Clearing Corporation when they
were placed under receivership pursuant to the lawsuit filed by the Securities and Exchange
Commission.
"FIA") FIA was the largest and most successful advocate for small broker dealers in the United
Sates and as a result of FIA’s potential takeover of FINRA’s Board from the New York Financial
Cartel (“CARTEL”), FIA was chiefly responsible to the bylaw and name change of the National
(“FINRA”). FIA elected over 30 FINRA Board Members and Committeemen prior to its
destruction by the defendants. Largely because of FIA’s efforts, there is another pending case
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directly accusing SEC, FINRA, and Mary Schapiro of fraud and is filed in the Southern District
referred to as "SEC") is an agency of the United States government with offices headquartered at
100 F Street N.E., Washington DC 20549. The mission of the Securities and Exchange
Commission according to its website is to protect investors, maintain fair, orderly and efficient
markets, and facilitate capital formation. The Securities and Exchange Commission, through its
officers and employees, embarked on a program to deprive Plaintiffs of due process, and shut
down and destroy the business enterprises of Plaintiffs in retaliation for certain political events
principal place of operations located at 1735 K Street NW, Washington DC 20006. FINRA is a
Delaware corporation, registered with the Securities and Exchange Commission ("SEC") as a
national securities association pursuant to the 1938 Maloney Act Amendments to the Securities
Exchange Act of 1934 ("Exchange Act"), 15 U.S.C. §§ 78o-3, 78s(a)(1). FINRA has been
commissioned by the financial industry to protect investors by making sure the securities
industry operates fairly and honestly. FINRA failed to perform these duties when it deliberately
and intentionally sought to interfere with the businesses of Plaintiffs without adequate cause,
defame Plaintiffs, abuse process, and conduct a wholly inadequate and negligent investigation of
(hereinafter referred to as "DTCC"), is a New York for profit corporation with its principal place
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of business located at General Counsel's Office, 55 Water Street, 22nd Floor, New York, NY
10041. The corporation, through its subsidiaries, provides clearing, settlement, and information
services for the financial industry. The DTCC, through its agent Larry Thompson, shut down the
operations of NACI on the mere allegations of NACI employees Ward and Blatman immediately
before the SEC filed injunctive relief against Goble, and without any investigation or
consultation with the owner Goble. After being confronted immediately thereafter by Goble who
explained the true and compliant state of the company, not only did Larry Thompson refuse to
investigate the differing allegations before continuing to deprive NACI of its ability to operate,
9. CARLTON FIELDS, P.A., while not presently a party to this lawsuit, (hereinafter
referred to as "Carlton") is a Florida professional association and a law firm with its principal
place of business located at Corporate Center Three and International Plaza, 4221 West Boy
Scout Boulevard, Suite 1000, Tampa, FL 33607. Carlton Fields presents itself as a firm that
handles mass tort litigation, mergers, acquisitions, securities offerings, and bankruptcies among
10. SUTHERLAND, ASBILL & BRENNAN, LLP, while not presently a party to this
whose principal place of business is located at 999 Peachtree Street, N.E., Suite 2300, Atlanta,
GA 30309. It is a full service law firm and was the firm of the assigned receiver for North
Chairman of the Securities and Exchange Commission. During the matters at issue in this suit,
she was the Chairwoman of FINRA which was before that time known as the National
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Association of Securities Dealers (or NASD). Mary Shapiro was instrumental in setting in
Vice President of Member Regulation at FINRA. Grace Vogel was acting in consort with Mary
Shapiro to interfere with Plaintiffs' businesses as a result of political activity of the Plaintiffs.
managing director and general counsel of the DTCC and was responsible for gross negligence,
intentional interference, and improperly shutting down Plaintiff's business operations. The
DTCC, through its agent Thompson, shut down the operations of NACI on the mere allegations
of NACI employees Ward and Blatman immediately before the SEC filed injunctive relief
against Goble, and without any investigation or consultation with the owner Goble. After being
confronted immediately thereafter by Goble who explained the true and compliant state of the
company, not only did Thompson refuse to investigate the differing allegations before continuing
to deprive NACI of its ability to operate, but also threatened Goble with more severe sanctions.
14. WILLIAM BRENNAN and FRANK CHANTAYAN, while not presently parties
to this lawsuit, (hereinafter referred to as "Brennan" and "Chantayan" respectively) are attorneys
for the lawfirms Sutherland Asbill and Carlton Fields respectively. They represented Peter
15. PETER J. ANDERSON, while not presently a party to this lawsuit, (hereinafter
referred to as "Anderson") was the receiver assigned to North American Clearing in the SEC
lawsuit, and attorney for the law firm Sutherland Asbill. He is responsible for gross negligence
against the shareholders of NACI, failing to adequately protect the interests of shareholders, and
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responsible for gross negligence against the shareholders of NACI, and recommending a
fraudulent and unnecessary bankruptcy proceeding to the SIPC by falsely representing the
accounting and financial condition of NACI with the assistance of Sam Luque, Jr. and other
party to this lawsuit, is a natural person and an attorney shareholder at Carlton Fields, P.A. who
was appointed trustee to administer the bankruptcy filed by the receiver in the SIPC action
against North American Clearing, Inc. pending before the United States Bankruptcy Court. Mr.
Gilbert has irresponsibility and with gross negligence allowed bankruptcy liquidation of NACI to
continue unabated despite his knowledge that the financial condition of the company did not
is a branch chief at the SEC and was responsible for coordinating and planning improper action
person who was the Chief Financial Officer of North American Clearing, Inc. at the time the
SEC began its action against Plaintiffs. He lied to the SEC regarding the activities of NACI, and
person who was the President of North American Clearing, Inc. at the time the SEC began its
action against Plaintiffs. He lied to the SEC regarding the activities of NACI, and under pressure
from FINRA.
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person and an employee of the SEC, and the NACI receiver. Mr. Luque was originally an
employee of the SEC, and upon information and belief now runs an independent consulting
company that works with the SEC. Luque, with no formal accounting training or education, was
hired by the NACI Receiver Anderson and the SEC to create fabricated NACI financials that
22. Richard Goble opened a company called North American Clearing (NACI) in
1995, a business whose primary purpose was clearing transactions for broker-dealers (the
corporation's latest annual report is hereinafter attached as Plaintiffs' Exhibit "A"). The business
was not itself a broker- dealer but a place where transactions could be cleared efficiently. At the
time of opening and until the present day, NACI was under the regulatory authority of NASD
and now FINRA (since the merger of the New York Stock Exchange with NASD).
23. After Goble opened up his clearing business, a significant number of broker-
dealers and other member firms that were regulated by the National Association of Securities
Dealers (NASD, now FINRA) became increasingly concerned at their diminishing voice within
the self regulatory organization, and the increasingly burdensome regulations imposed on them
by the SEC and NASD (now FINRA), making it more difficult for them to establish and
maintain viable businesses. As a result, NACI decided to utilize its political rights within the
organization to ensure the viability of small broker-dealer firms and NACI's customers.
24. Part of NACI's response was to organize and nominate candidates for local
FINRA district elections around the country, beginning with the district covering the
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25. In response to these issues, Goble opened the Financial Industry Association
(hereinafter referred to as "FIA"), a Florida domestic for profit corporation founded in February
2006 that has been mainly involved in selecting and determining appropriate candidates for
board seats in the regional districts of NASD (now FINRA), and in attempting to secure these
positions to ensure adequate representation for small broker-dealer firms and as directed by the
26. Candidates that ran under the guidance and direction of the FIA were largely
successful, and in 2006 two of three FIA picked candidates were elected NASD Board of
Governor seats. This was a remarkable accomplishment given the history of the NASD (now
FINRA). The one candidate to lose, Goble himself, continued to organize and galvanize the
small firms into asserting their rights within NASD. It was later discovered the possible reason
for Goble's defeat is that Schapiro, then Chairman of FINRA, had allowed many of Goble’s
faxed ballots to be uncounted or discarded. This clearly showed the bias of many in power at
27. The FIA also spearheaded a petition in 2006 demanding the investigation of
NASD (now FINRA) for abusing its powers in favor of large firms against small firms,
especially regarding NASD (now FINRA) audits. It also requested the resignation of NASD's
(now FINRA's) then chief executive Schapiro for being blatantly aligned with the large Wall
28. As a result of the election activities of the FIA, the regional districts and board of
governors of NASD (now FINRA) were coming increasingly under the influence of the small
firms, with the ultimate goal of the FIA to free up burdensome and unfair regulations on these
businesses.
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29. In August 2006, the FIA spearheaded further election activities and announced it
would be selecting independent candidates to contest the handpicked NASD (now FINRA)
candidates in every regional and national position. This was an unprecedented move in the
30. At the time these activities and elections were taking place, Mary Schapiro was
Chief Executive of NASD (now FINRA). Mary Schapiro, realizing that small broker-dealer
firms were beginning to gain increasing influence in the regional districts within NASD, and
having had her position within the organization protected through the influence of Goldman
Sachs and other large financial corporations, including the main Wall Street financial services
firms, became increasingly intent on working within NASD to reduce the influence the activist
31. Mary Schapiro met with Goble and and John Busacca, NACI’s president and the
co-founder of FIA in Spring 2006 over lunch, explaining that Goldman Sachs and other large
financial institutions "paid NASD's bills", and for this reason Schapiro was insisting that FIA
cease attempting to nominate its own members for election to NASD Committee and Board
seats. No FINRA large clearing firm President had ever received any similar Wells notice in
history.
33. During this time many small firms were being threatened with audits and other
burdensome oversight, even to the point of being shut down, to the extent that they were
cooperating with FIA and its attempts to secure a more prominent voice for small firms within
the organization. These threats extended to Richard Goble and NACI. Most of the audits and
disciplinary acts were either completely specious or for minor infractions that could have been
easily resolved.
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34. Two days after Mr Busacca of the FIA announced that all FINRA Board seats
would be contested in the late 2006 election, a "Wells Notice" was issued against Mr. Busacca
and Goble. This notice is supposed to be sent by NASD (now FINRA) when it suspects that
illegitimate and illegal activities are taking place in a particular firm under its authority. It
declared "the staff has made a preliminary determination to recommend that disciplinary action
be brought against North American Clearing (NAC) and the individuals below for various
violations of NASD and other applicable rules and regulations… (1) NAC prepared inaccurate
customer reserve formula computations and failed to make required deposits to its special
reserve account, and failed to notify NASD of its failure to make such required deposit…"
35. At this point, it was becoming clear that the NASD and its financial backers like
Goldman Sachs' response to the petition that was organized by FIA were hostile. Many of the
firms that signed the petition began to be promptly audited by FINRA for insignificant reasons.
36. The petition was hand delivered to Mr. Robert Colby of the SEC and hand
delivered in four individual private meetings with Goble to four SEC Commissioners appointed
by the President of the United States, and Barney Frank Chairman of the House Financial
Committee in a private meeting with the FIA, and to a staff member of Senator Jack Reid
Chairman of the Senate Financial Committee. Aside from audits of the firms that signed the
petition, it was wholly ignored by the SEC and no response was forthcoming.
37. The FIA petition was increasing pressure on Mary Schapiro to resign, and she
began using her position within NASD (now FINRA) to resist this pressure. Through her
authority, numerous small firms were being audited, including those who signed the petition.
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Part of her strategy, developed in consort with the large Wall Street firms, was to merge the
NYSE (owned by Goldman Sachs) with the then NASD (now FINRA).
38. Two weeks after the August 2006 FIA nomination announcement, and twelve
days after the issuance of the "Wells Notice" to NACI, NASD (now FINRA) under the direction
of Mary Schapiro announced their intention to merge NYSE regulatory division owned and
controlled by Goldman Sachs and NASD (now FINRA) into the new self regulatory organization
39. FIA and its supporters immediately began to fight the proposal, because it
reduced the small firm representation on the board of governors to a mere three seats, as opposed
40. Given the majority ownership control of NYSE by Goldman Sachs, the merger
would also in this way serve to solidify the influence of the large broker-dealers. In short, the
ability of small broker-dealer firms to ensure viable representation in making decisions over their
41. During the election following FIA's announcement to contest all open district
seats and announcement of the planned NYSE/NASD merger, FIA candidates are elected to
twenty-one of the thirty-five nationwide regional seats. This was again a stunning victory for
42. This huge success of FIA was the catalyst for the elimination of the small firm
voting rights and small firm control of the NASD, as directed by the United States Congress.
Removing small firm voting rights became a high priority for Mary Schapiro, Goldman Sachs,
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43. After the announcement of the proposed NYSE/NASD merger, the FIA and the
Independent Broker Dealer Association (hereinafter known as "IBDA") again called for the
resignation of Shapiro and her top management in December 2006 through a vote of no
confidence among member firms. This vote was solicited in response to the proposed NYSE and
NASD (now FINRA) merger. The press release announcing the vote is attached and
44. One month later, in January 2007, Shapiro and supporters hired an aggressive
proxy firm to threaten small broker-dealers into voting for the merger. This was accomplished
by offering the carrot of thirty-five thousand dollars ($35,000) payment to small firms, based on
the money that already belonged to the small firms through their membership ownership of
FINRA, if the merger was approved. Advertisements and flyers of NASD's efforts are attached
45. In addition, FINRA and SEC enforcement officers responsible for investigations
and audits were enlisted to solicit "get out the vote" calls to member firms, which served the
double purpose of notification and intimidation. The FINRA announcements carried the
implication that their support was necessary, or "anything could happen", including a haphazard
and uncertain regulatory future for the small firms, and retaliation for failure to cooperate.
46. Shapiro traveled the country in January seeking to influence small firms to
approve the merger. Notifications of merger details issued by Shapiro were filled with
deceptions and misrepresentations. It indicated that the minimum amount of small firm
representation would increase, but failed to indicate that total small firm representation would
likely be reduced. It also deceptively failed to indicate the reasonableness of any potential
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47. In reality, FIA believed board membership would now be limited to three seats for
small firms, most of the remaining being essentially handpicked representatives of the large Wall
Street firms. By January 22, 2007 the merger had been approved over the protestations and
48. Soon after Shapiro's national tour, Goble on behalf of NACI and FIA met with
commissioners of the SEC to see what could be done about the proposed merger. Annette
Nazareth, Raul Campos, Paul Akins and Kathleen Casey individually attended the private
meeting.
49. Nazareth bluntly informed FIA at the meeting that the merger was being
promoted by the Wall Street firms, done to solidify their interests and curtail the recent successes
of the small firms in winning elections to regional and board seats, and eventually in the hope of
50. Nazareth further indicated that the Wall Street firms had no intention of
complying with the Maloney Act of 1938 (Section 15A of the Securities Exchange Act of 1934-
particularly subsection b(4)), which required fair representation of all member firms. She
indicated that FINRA was the means by which the large Wall Street firms would ensure their
influence, and hoped to make it almost impossible for small firms to retain their present
influence.
51. In August 2007, FIA and IBDA again announced their intent to offer candidates
for all open seats in that year's elections, this time for a total of seven seats.
52. After this announcement, NACI and Busacca who were both fighting through the
FIA and IBDA for the rights of small firms and helped make the announcement, were both cited
in a FINRA regulatory complaint on August 13, 2007. The allegations on which the complaint
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was based were again mostly unfounded or minor (Exhibit "E"). FIA, NACI, and IBDA felt that
53. In September 2007 FINRA issued a letter (attached as Exhibit "F" and
incorporated by reference) to NACI that it was staying any further disciplinary proceedings
based upon its prior 2006 "Wells Notice", after being unable to find any relevant required
54. This demonstrated the speciousness of the original Wells Notice. Nothing in this
letter indicated abating, cancelling, or modifying the new disciplinary action initiated in August
2007. In short, it appeared FINRA was throwing allegation after allegation at NACI in order to
wear Plaintiffs down, and the moment one specious investigation was closed a new one seemed
to begin.
55. At this same time (late 2007- 2008) it was becoming clear to FINRA insiders and
Plaintiffs that massive fraud was being perpetrated by the large financial services firms on Wall
Street, including Goldman Sachs, regarding their activities and leveraging before the now well-
56. FIA's position was that FINRA had done nothing to investigate or discipline these
firms for their irresponsible violations of numerous FINRA rules. In fact, FINRA appeared to be
57. FIA, through Goble and his membership on the board of FINRA, threatened to
publicize the huge discrepancy between FINRA's minor discipline of these large firms for their
serious transgressions of FINRA regulations, and the FINRA's overbearing discipline against the
small broker-dealer firms. It was during the climate of these discussions and arguments that all
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58. In March 2008, FINRA began its annual audit of NACI. During its audit, FINRA
representatives communicated mostly with Blatman (the President) and Ward (the CFO) of
NACI.
generate cash funds for operations purposes, and manipulating the firm's account processing
system by recording $5.1 million in money market purchases without offsetting this amount by
the money market sales in order to keep available funds for operating expenses at their maximum
requested and directed by Shapiro and Vogel. This was ultimately due to the pressure of
61. At this time while Goble was the only non-hand picked member of the FINRA
Board of Governors , and was also seen by Schapiro and the Firms as the perfect opportunity to
shut down FIA and its successful operations to ensure fair representation for small member firms
in the board and regions would never happen or would be delayed for a very long time.
62. At the time of the FINRA investigation that lead to SEC's federal court complaint,
Ward was delinquent in his child support payments by over $30,000 as calculated by the child
support enforcement agency of his original state of Wisconsin. Ward had been moving from job
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63. NACI and Goble were contacted by the child support enforcement agency about
the time of the FINRA audit. Ward at this time was fearful of being terminated by NACI
64. The recent revelation of Ward's child support issues to NACI and Goble, coupled
with a minor miscalculation Ward made in May 2008 concerning NACI's reserve compilation,
induced him to invent a false story about the insolvency of NACI while under pressure from
mistaken reserve miscalculation in their interviews with Ward. They hoped that he would
succumb to pressure and reveal any additional information about NACI's possible violations.
66. Ward, nervous he could be fired by NACI at any time after the discovery of the
child support evasion problem, and lose his job as CFO of the company- devised a plan with
Blatman (the President of NACI) to fabricate additional false allegations and lie to FINRA.
67. Ward and Blatman were hoping their cooperation with FINRA regulators and
FINOP investigators would enable them to completely control NACI. They felt their positions
would be preserved with a new corporate management introduced by the SEC, and the loss of
Goble. Ward also faced arrest by the State of Wisconsin for child support evasion should he be
fired by Goble.
68. Ward's miscalculation of the May 2008 reserve compilation caused him to be
threatened by FINRA with severe sanctions unless he fully "cooperated" to bring down NACI
69. Ward's inexperience in the industry made him oblivious that these threats from
FINRA were without basis, as threats rarely if ever carried out. Ward did not realize that without
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an intention to defraud these were minor mistakes and rule violations that likely would not result
70. Ward also saw advantages to his own career, and used this opportunity to
fabricate deliberate unauthorized money market transfers stories, combined with his false claim
of corporate insolvency.
71. Increasing EBOC reserves were required to be held in May 2008 as FINRA's
72. Before the investigation, in early 2008, a number of "trade breaks" occurred at
NACI. These trade breaks were the result of software glitches as NACI was instituting new
financial software. In addition, FINRA's 2007 complaint filed against NACI was being resolved
at this time. This complaint alleged insufficient funds in the EBOC accounts.
73. At the suggestion of the SEC, it was determined that NACI was able to
recalculate and recategorize some of the EBOC calculations, and that when this was done they
74. In May 2008 a particular trade break occurred that attracted the attention of the
FINOP investigators. As part of the ordinary course of business, Richard Goble as owner of
NACI, along with Blatman and Ward, sought to obtain an approximately five million dollar loan
from the firm's bank, to purchase money market positions and decrease the required regulatory
reserve amounts. These freed up funds would assist the firm in its ordinary clearing obligations,
but were preventative only, and were not required for the company to survive on a day to day
basis.
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75. The bank declined to extend the loan. Faced with this, Blatman and Ward should
have reversed a corresponding money market purchase that they had initiated, in order to ensure
76. Unlike prior "trade breaks" which were really differences based on how the
reserve amount should be calculated, Blatmann honestly forgot to reverse the transaction when
the loan was not approved, and when Ward calculated the reserve requirement, the calculation
77. As a result, the funds were erroneously withdrawn and the EBOC account was
underfunded. This was not intentional or deliberate on the part of NACI. The ongoing FINRA
audit in less than 24 hours discovered this erroneous withdrawl from the reserve account. Since
the withdrawal was purely erroneous, this constituted a "trade break", or an unintended error that
78. Yet FINRA, as part of its investigation, intimidated the inexperienced Ward and
Blatman into "wrongfully confessing" that the entire scheme was intentional, and that NACI was
somehow insolvent.
79. These unintentional "trade breaks", including ones involving millions of dollars
for small firms, happen on occasion without ever resulting in any significant sanctions.
80. Under pressure from FINRA regulators, Ward lied about the supposed insolvency
and capital deposit requirement of NACI. These allegations of insolvency and intentional fraud
were later determined to be falsehoods by Plaintiffs and their counsel then appearing in the SEC
proceedings.
81. After the audit and "investigation" of the FINOPS, Schapiro was faced with a
situation that could be turned into an opportunity to shut down the head of FIA and the voice for
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small firms within FINRA. She immediately pressured the SEC to file a complaint for an
injunction against NACI based upon scanty and unreliable evidence and no clear independent
evidence of any intentional act of fraud on customer accounts. FINRA knew it was relying upon
82. Shapiro and Vogel also intended to destroy and interfere with the contracts and
business relationships of NACI, G&G Holdings, and FIA relating to their customers and
constituents. They did this by recommending that the SEC, on scanty evidence and without a
more thorough investigation, file an action for injunctive relief against NACI and Goble.
83. Thompson, acting on behalf of the DTCC, shut down NACI a day prior to the
SEC filing, and also threatened NACI directly with being permanently shut down, even after
Goble and NACI showed Thompson that it could make a reserve deposit at any time, and that the
84. Thompson, in concert with Shapiro and Vogel of FINRA and on behalf of DTCC,
intended to destroy and interfere with the contracts and business relationships of NACI, G&G
Holdings, and FIA regarding their customers and constituents. Larry Thompson acted to
interfere by shutting down NACI a day before the SEC action was filed. Thompson, as general
counsel of DTCC, issued the letter suspending NACI access to DTCC. (DTCC letter to NACI
85. Thompson's career had been assisted by the large Wall Street firms, he was aware
of the political conflict within FINRA between FIA and the large Wall Street firms, and he
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86. He did this ultimately from the pressure of the Wall Street firms. Thompson
deliberately lied to the board of the DTCC, falsely informing them that NACI was insolvent,
despite being clearly shown that the firm was completely viable.
87. The SEC action (Case No. 6:2008-CV-00829) was filed and served on May 27,
2008 by the SEC under the direction of Shapiro and Vogel, alleging improper liquidation of
customer accounts to save NACI from insolvency. It was based entirely upon the allegations of
Ward and Blatman, without any corroboration from Goble, or questioning of Goble.
88. Prior to filing the complaint, Goble was always able to clearly explain and
demonstrate to FINOP investigators how NACI was complying with the FINRA audit and
federal regulations.
89. Without any substantiation, and only based on the testimony of Ward and
Blatman and a few vague financial statements, FINRA recommended the SEC file a civil action
against NACI to subject it to a temporary restraining order and then eventually shut it down
entirely (the original complaint and memorandum of law for temporary restraining order (Case
90. In this complaint, the SEC alleged that the EBOC accounts were not holding the
reserves required by federal regulations. This was incorrect. The EBOC accounts were holding
the required amount. FINRA and SEC during their investigations, and with Ward's help, were
calculating them a different way than NACI had previously done. NACI's calculations were also
a valid way to calculate the required reserve amounts, and was a method given directly by the
91. Ward knew about both methods of calculating the reserve and used this to his
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from Ward regarding the two or even more ways to calculate the reserve amount authorized by
92. An occasional miscalculation of the EBOC reserve account would not have been a
serious matter had not Ward and Blatman also accused NACI of sweeping customer money
market accounts and moving these amounts into its firm's operating accounts. These allegations
93. The SEC knew that these allegations were not founded on other readily available
evidence. Additionally, the SEC sought no explanation from Goble. They did not even attempt
to question Goble to help resolve these issues. The sweeps and transfers alleged in the SEC
complaint never occurred. No money was ever at any time used to pay NACI's operating
expenses.
94. The account statements provided as exhibits in the SEC suit showed nothing
95. In reality, all transfers from money market to cash positions and back were
documented on all customer statements. The initial agreement signed by all clients indicated that
these transactions could take place, and all customers consented to these transactions. Luque in
his deposition pursuant to the original SEC action admitted that NACI would have the right to
liquidate money market funds for certain allowed purposes, including the purposes actually used
by NACI (a copy of the relevant pages of this deposition is hereinafter attached as Plaintiff's
Exhibit "J").
96. No transfer was ever made to prevent the firm's insolvency. The transfers were
made in the ordinary course of business as preventative measures. At no point was the business
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facing imminent insolvency or a crisis. Testimony from Ward basically admitting as much is
97. Any transfers and sweeps of money market accounts were permitted according to
NACI's agreement with its clients, where it specifically mentions that NACI reserved the right to
transfer money between the money market and other accounts (see Plaintiff's Exhibit "L").
98. The sweep accounts were not business operating accounts, but other allowed
accounts including margin debts, fails to receive and deliver, and the DTCC settlement account.
At no time did NACI use client funds to pay its operating expenses because of insolvency.
99. Schapiro and Vogel knew that the case resulting from the investigation they
headed was without solid basis. The proceeding was intended to interfere with and destroy
NACI's business relationships. The SEC aggressively pursued the case against NACI, asking on
ex parte motion, without any opportunity for NACI or G&G Holdings to properly respond, that a
100. A receiver was also requested for NACI. At no time before the ex parte actions
by the SEC did the SEC even attempt to communicate with Goble about any of the false
allegations from Blatman and Ward. It is clear that the SEC was never seeking the truth about
101. On the same date (May 27, 2008), two motions- the Emergency Motion for
Temporary Restraining Order, and Emergency Motion to Appoint Receiver- were filed by the
SEC.
102. Receiver Anderson of Sutherland Asbill was appointed for NACI. Through
appointment of the Receiver, Goble was denied access to his e-mails, records, statements and
other important items, including many items that related to the political activities of FIA. Thus,
22
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on the very same day, the judge in the case entered orders implementing the SEC's requests.
Defendants had no time to respond to these motions. NACI's business was immediately
103. Ultimately, the goal of Shapiro, Vogel, Anderson, and Cartel was to use the
Receiver to keep Goble from important FIA records and activities, immediately remove Goble
from FINRA’s Board of Governors, and eventually use the Securities Investor Protection Act of
1970 to force NACI into fraudulent bankruptcy referral. This was intended to forever destroy
104. FINRA's ultimate goal of forcing NACI into and fraudulent bankruptcy and
liquidation was implemented by the formal application of the Securities Investor Protection
Corporation filed and served in the SEC action by Securities Investor Protection Corporation
(SIPC) lawyers (Case No. 6:2008-CV-00829) on July 24, 2008. This was a formal SIPC
105. The misguided and fraudulent liquidation proceedings began a mere two months
after the filing of the original action. Four days after the SIPC application was entered, Judge
Scriven ordered the case transferred to the United States Bankruptcy Court for the Middle
District of Florida, and the appointment of Gilbert as Trustee to oversee the continued liquidation
of NACI.
106. SIPC requested this decree at the direction of the SEC. SIPC performed its
functions grossly negligently, failing to seek a protective decree in the proper manner. SIPC,
through its employees and agents, sought to interfere with the business of NACI by filing a
frivolous action based upon unreliable evidence including negligently and fraudulently prepared
23
Case 6:10-cv-00408-ACC-DAB Document 1 Filed 03/16/10 Page 24 of 34
financial statements and coerced witnesses who received substantial amount of wages and
107. This included Blatman and Ward who were paid more than their average normal
wages by the SEC after the ex parte TRO and ex parte Receiver were put in place under false
pretenses.
108. SIPC based its action for the protective decree on the financial statements of
Luque, at the time an employee of the SEC. Luque had no formal accounting education. The
financial statements falsely purported that NACI was insolvent to the extent of 2.5 million
dollars, when in fact it was solvent by approximately 3 million dollars. The fraudulent and false
109. Based upon these fraudulent and negligently prepared financials, ultimately
designed for shutting down and interfering with Plaintiffs' businesses including NACI and FIA,
the protective order was entered in the SEC case and bankruptcy liquidation was allowed to
110. Luque has no formal education and no degrees in the field of accounting. SIPC
based its request for protective order on the basis of financials filed by someone with no formal
accounting training.
111. SIPC conducted its own professional financial analysis after the bankruptcy
filing. These financials were provided to Gilbert. Gilbert's SIPC financials, in October, 2008,
clearly demostrated that NACI had actually been solvent to the extent of approximately three
million dollars.
24
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112. There was thus a vast difference between the fraudulently prepared financials of
Luque's analysis commissioned by the receiver at the request of the SEC, and SIPC's prepared
113. Despite becoming aware of these new financials soon after the protective order
was entered, Gilbert as Trustee of the estate continued to liquidate Plaintiffs' businesses pursuant
to the protective order. Gilbert intentionally continued to liquidate the business even after
finding that the protective order had no basis. No motion to reconsider the protective order was
filed, and nothing was accomplished to mitigate damages to Plaintiffs as a result of the loss of
NACI.
114. Plaintiffs have since hired an expert to review the financials and this expert has
independently concluded that NACI's financials were not violating FINRA or SEC regulations
such as to warrant the action that was taken against NACI. The report of the expert is hereinafter
116. All Defendants, jointly and severally, did intend and did interfere with the
business relationships of Plaintiff. Defendants knew that NACI had multiple valuable contracts
with numerous clients. These contracts were also essentially the business relationships of
Plaintiffs The Goble Trust and Goble, who took substantial efforts to forge these relationships
117. FINRA, through its agents Schapiro and Vogel, conducted deliberately fraudulent
and irresponsible investigation practices in order to interfere with Plaintiffs' business, and
recommended to the SEC the filing a frivolous injunction action designed to destroy NACI's
25
Case 6:10-cv-00408-ACC-DAB Document 1 Filed 03/16/10 Page 26 of 34
operations. FINRA's investigations were unjustified and intended to deter NACI's present clients
118. Plaintiffs, through NACI, had developed and fostered numerous relationships
with broker-dealers across the country. These relationships were the source of income for NACI
119. FINRA, through its agents Schapiro and Vogel, conducted a wholly baseless and
improper investigation. FINRA failed to investigate all the information readily available to it
before filing its complaint in federal district court. When the complaint was filed, NACI's and
Goble Trust's business relationships with its present clients were for all intents and purposes
effectively annihilated.
120. Once the injunction was filed, Anderson and Sutherland Asbill conducted the
receivership with the ultimate view to the destruction of Plaintiffs' stock value in NACI, by
liquidating and closing down accounts, and destroying the relationships developed between
121. Once the SIPC liquidation proceeding was initiated, Gilbert and Carlton Fields
unjustifiably conducted the fraudulent bankruptcy proceeding with a view to forever destroying
122. Defendant Luque deliberately assisted the receiver in fabricating false financial
statements about NACI in an attempt to reduce the confidence of NACI's clients and destroy its
business relationships, ultimately with a view to sending the company into SIPC liquidation
proceedings.
and on behalf of themselves were all destroyed. The destruction of these relationships have
26
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resulted in substantial lost revenue to NACI, future dividend and distribution income to Plaintiff
Goble Trust through its ownership of NACI, lost rent to G&G Holdings, indirectly caused the
destruction of the property of FIA, as well as the destruction of Plaintiff Goble Trust's stock
value in NACI, all to the extent of one hundred million dollars or more.
amount of one hundred million dollars, costs of this suit, and such other and further relief as this
134. Defendant SIPC, through its agents, in filing its recommendation for protection,
did issue process and suit against NACI for a purpose other than the intended litigation- namely
to assist FINRA and the SEC in shutting down NACI, and through that Goble and FIA's
receivership proceedings of NACI and recommend the liquidation of NACI, engaged in litigation
other than for its intended purpose- namely for the improper and unnecessary purpose of shutting
down NACI no matter what the finances and accounting of the company indicated would be in
bankruptcy liquidation proceedings against NACI and throughout the proceedings continuing to
liquidate NACI, engaged in litigation before the Courts other than for its intended purpose-
namely for the improper and unnecessary purpose of shutting down NACI no matter what the
27
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finances and accounting of the company indicated would be in the best interests of creditors and
through NACI and on behalf of themselves were all destroyed. The destruction of these
relationships have resulted in substantial lost revenue to NACI, future dividend and distribution
income to Plaintiff Goble Trust through its ownership of NACI, lost rent to G&G Holdings,
indirectly caused the destruction of the property of FIA, as well as the destruction of Plaintiff
Goble Trust's stock value in NACI, all to the extent of one hundred million dollars or more.
WHEREFORE Plaintiffs request against all Defendants SEC and SIPC compensatory
damages in the amount of one hundred million dollars, costs of this suit, and such other and
139. Defendants and their agents, through their actions at various stages before and
during the SEC proceeding against NACI, each breached a duty of care they had toward
Plaintiffs. These breaches of this duty of care constituted not mere negligence only, but gross
negligence.
140. Defendants FINRA and SIPC had a duty to Plaintiffs to thoroughly and fairly
investigate all claims suspected or arising pursuant to their regulatory authority. Defendants had
a duty to be impartial and fair in their evaluation of the evidence, and only impose sanctions and
28
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141. At the very least, SIPC had a duty to ensure the financials of NACI were being
accurately assessed and justified a bankruptcy liquidation of the company prior to initiating
bankruptcy proceedings.
142. Defendant FINRA breached its duty to Defendants when Defendant FINRA
misleadingly recommended to SEC that the action for relief be filed in Federal District Court.
Defendant failed to adequately investigate the allegations of Ward and Blatman, and compile all
relevant evidence (including thoroughly interviewing Goble) before making this hasty
143. FINRA was not only negligent, but grossly negligent and was aware that there
was considerable risk no action worthy of sanctions had taken place. FINRA knew there was
considerable risk in not interviewing Goble and seeking a proper explanation from all of NACI's
officers.
144. Defendant SIPC breached its duty to make a thorough and accurate accounting of
NACI and determine that its recommendation for liquidation/bankruptcy proceedings was truly
in the best interest of creditors. SIPC failed to make this accurate and proper accounting, and
used inaccurate information. SIPC was not merely negligent, but grossly negligent and
knowingly failed to fulfill all of its obligations under the statute. SIPC proceeded knowing the
145. Carlton Fields, Gilbert, Sutherland Asbill, and Anderson all negligently
contributed to the unnecessary destruction of NACI by failing to address the issue of NACI's
solvency, and appropriately fulfill their fiduciary duties to the company's creditors, shareholder
and clients when it was determined that NACI was not insolvent or facing financial distress that
29
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146. Carlton Fields, Gilbert, Sutherland Asbill, and Anderson failed to stay, abate, or
otherwise appropriately address the continued dismantling of NACI when it was realized NACI
was never in danger of insolvency, distress, or a danger to its clients, creditors, and shareholders.
They had a fiduciary and common law duty to NACI's shareholders to manage the company
appropriately.
147. These Defendants were not only negligent, but also grossly negligent in that they
were aware there was a substantial risk that the dismantling of NACI was not being done in the
148. These Defendants failed to adequately manage the company and determine the
extent of its solvency, as well as the propriety and necessity of dismantling the company in
149. Defendant Thompson decided to shut down the operations of NACI prior to the
SEC filing without proper or adequate investigation into the matter. Thompson had no intention
of conducting an appropriate investigation into the allegations and recklessly was the first to shut
down the operations of NACI, even before the action and injunction were filed by the SEC.
150. As a result of the decision of Thompson, the DTCC failed to abide by its own
standards and regulations in the closing of NACI, and failed to perform its applicable duty to
fairly regulate NACI's industry and protect NACI and its shareholders from unfair practices of
the agency.
151. Defendant Thompson was even contacted by owner Goble who attempted to
explain that no violations were occurring. Thompson not only refused to listen to Goble's
explanation, but threatened that NACI would be permanently dismantled and liquidated if Goble
30
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sought to file an appeal within the DTCC against Thompson's temporary order to shut down
NACI.
152. Thompson knew there was substantial risk that NACI and its shareholders would
be unnecessarily harmed by his threats and actions against the company. Thompson therefore
operations of NACI. They also spoke regarding issues of which they had no knowledge to SEC
and FINRA investigators, recklessly made numerous unfounded allegations against NACI, and
breached their duties as employees of NACI and in their service to NACI's clients. Defendants'
summarizing the books of NACI, and failed to carefully compile the recordkeeping of NACI to
present an accurate picture of the company's solvency. Luque, Jr. failed to accurately determine
the condition of NACI pursuant to the duties of his employment under the receiver, and thereby
breached his duties to the shareholders of NACI, by failing to act in the best interest of the
company.
proximately caused the damages suffered by Plaintiffs. These damages were the foreseeable
156. As a result of Defendants' negligence, Plaintiffs have been damaged to the extent
of millions of dollars due to loss of corporation share value through the dismantling of NACI,
loss of rental revenues, loss of prospective corporate earnings and distributions, and loss of assets
of the company held as collateral by G&G Holdings and Richard Goble. As a result of
31
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Defendants' actions, Plaintiffs' business relationships through NACI and on behalf of themselves
were all destroyed. The destruction of these relationships have resulted in substantial lost
revenue to NACI, future dividend and distribution income to Plaintiff Goble Trust through its
ownership of NACI, lost rent to G&G Holdings, indirectly caused the destruction of the property
of FIA, as well as the destruction of Plaintiff Goble Trust's stock value in NACI, all to the extent
compensatory damages in the amount of one hundred million dollars, costs of this suit, rental
proceeds, and such other and further relief as this Honorable Court deems proper
158. Defendant FINRA, by itself and through its agents Mary Schapiro and Grace
Vogel, did knowingly and intentionally utter false statements, or alternatively uttered statements
that it should have known were false, regarding the condition of NACI to officers of the SEC.
These statements included statements to investigators at the SEC just prior to its last
investigation of NACI, stating and implicating the officers of NACI were intentionally shifting
funds to its operating account to remain solvent. Defendants knew that these statements were
159. As a result of FINRA's false allegations to Defendant SEC, the SEC itself
launched a campaign to publish erroneous information about the condition of NACI. (See
32
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160. As a result of Defendants' actions, NACI's business was destroyed due to the
overzealous and inappropriate investigation of the SEC into allegations that were baseless.
161. Defendant Luque formulated and defamed NACI by understating its solvent
position to regulators. Luque's computations falsely indicated that NACI's financial position was
insolvent and that it was incapable of properly running its business without great danger to its
clients. This information was then widely published and destroyed NACI's viability as a
business. Luque knew or should have known that these accounting statements he prepared about
162. Plaintiffs have suffered substantial injury as a result of these acts of Defendants
into the millions of dollars. As a result of Defendants' actions, Plaintiffs' business relationships
through NACI and on behalf of themselves were all destroyed. The destruction of these
relationships have resulted in substantial lost revenue to NACI, future dividend and distribution
income to Plaintiff Goble Trust through its ownership of NACI, lost rent to G&G Holdings,
indirectly caused the destruction of the property of FIA, as well as the destruction of Plaintiff
Goble Trust's stock value in NACI, all to the extent of one hundred million dollars or more.
WHEREFORE, Plaintiffs Goble Trust and Goble seek compensatory damages in the
amount of one hundred million dollars, costs of this suit, attorney's fees, and such other and
Respectfully submitted,
33
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EXHIBIT C
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EXHIBIT F
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EXHIBIT G
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DTC 0001
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DTC 0002
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DTC 0003
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DTC 0004
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DTC 0005
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DTC 0006
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DTC 0007
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DTC 0008
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EXHIBIT I
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Page 23
1 was the one that had to certify the FOCUS reports, and the
3 computations.
6 A Never.
13 between the debits and the credits are what you need to
17 A No, never.
19 from?
Page 24
1 board.
6 calculations.
8 computation by yourself?
10 BY MR. LEE:
15 A Monthly.
19 equities firm.
20 BY MR. LEE:
Page 25
1 keep objecting, or we can agree to a standing
2 objection on net capital.
3 MR. LEE: If you're not objecting to the
4 form of the question, it's preserved anyway, so
5 I don't have problem with if you want --
6 MS. PAULOSE: I'll just keep objecting.
7 MR. LEE: Okay.
8 A What was the question, again? I apologize.
9 BY MR. LEE:
10 Q What does liquidity mean?
11 A Liquidity is how much of the firm's capital they
12 have access to on a short-term basis. It is really the
13 equity of a firm, less any fixed assets, less any assets
14 that cannot be converted into a form of cash within 12
15 months. Examples of that would be fixed assets, any
16 intangible assets there may be, any receivables that are
17 over 12 months in nature, items like that.
18 Q In August of '07 when you first started doing net
19 capital computations, was there some minimum requirement
20 that North American Clearing had to have, in net capital?
21 MS. PAULOSE: Objection. Relevance.
22 A They had to have a minimum 5 percent of the total
23 allowable debits, if memory serves me right. It's been a
24 while since I've done this.
25
EXHIBIT J
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74
1 to the customer.
4 settling a trade --
5 A. Correct.
15 correct?
23 answer.
75
1 that the customer did give their written
2 permission.
3 BY MR. LEE:
8 used for?
23 A. Not to my knowledge.
76
1 any money market funds?
12 account?
15 operating account.
19 what I've seen, the firm had more than one bank
21 money went.
77
1 to the operation of the money market fund, would not
9 A. It appeared so.
11 A. Okay.
12 Q. -- in paragraph 27 --
13 A. Yes.
19 A. Yes, I do.
22 violation?
78
1 to satisfy the settlement with NSCC.
89
1 identification.)
3 Mr. Luque.
4 BY MR. LEE:
11 A. Correct.
17 fund?
19 referring to.
90
1 A. Yes. It's reflected as debits and credits.
6 A. That's correct.
11 A. Yes.
14 A. Not to my knowledge.
91
1 MR. LEVENSON: Yes.
3 identification.)
6 BY MR. LEE:
9 report?
17 inaccurate or incorrect?
19 point.
92
1 inaccurate?
9 2008?
13 exhibit, please.
15 identification.)
17 Mr. Luque.
18 BY MR. LEE:
EXHIBIT K
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Page 52
1 BY MR. LEE:
4 and answered.
14 BY MR. LEE:
22 BY MR. LEE:
Page 53
1 2008, which is two pages; then a profit-and-loss for January
14 that, no.
Page 54
1 MS. PAULOSE: Objection. Form.
3 BY MR. LEE:
6 I asking you if, for example, you had terminated all the
9 BY MR. LEE:
10 Q No? Yes?
17 BY MR. LEE:
23 A $382,000.
24 BY MR. LEE:
Page 55
1 Clearing was actually making a profit, through June of 2008?
10 would have a tough time believing that the company went from
12 in one month.
13 BY MR. LEE:
19 sheets, as of April 30, May 31, and June 30; do you know?
20 A I do not.
23 BY MR. LEE:
Page 56
1 A I assisted them in the wind-down process. I also
13 BY MR. LEE:
17 BY MR. LEE:
22 from May 1st through May 21st, when the wind-down process
23 began.
EXHIBIT L
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EXHIBIT M
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EXHIBIT N
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EXHIBIT O
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Washington, D.C., May 28, 2008 — The Securities and Exchange Commission today
announced that it has obtained an asset freeze and other emergency relief to protect
investors whose funds were at risk due to fraudulent misconduct at North American
Clearing, Inc., a Longwood, Fla., based general securities and clearing brokerage firm.
Additional Materials
• Litigation Release No. 20602
• SEC Complaint
The SEC requested the relief when it filed a complaint on May 27, 2008, against North
American Clearing, its founder and director Richard L. Goble, its president Bruce B. Blatman,
and its former financial and operations principal Timothy J. Ward, charging them with fraud
and other securities laws violations. The SEC's complaint alleges that the defendants
engaged in illegal activities, including the misuse of customer funds, in order to hide North
American Clearing's financial problems and to pay for its daily business operations.
In addition to the asset freeze, the SEC obtained a temporary restraining order against the
defendants and an order appointing a receiver over North American Clearing.
Linda Chatman Thomsen, Director of the SEC's Division of Enforcement, said, "Protecting
customer funds from misuse by a broker-dealer, as we allege here, is a fundamental part of
our enforcement efforts. Today's action demonstrates our ongoing commitment to investor
protection."
David Nelson, Director of the SEC's Miami Regional Office, added, "The federal securities
laws include important safeguards designed to protect investor assets from misuse by
broker-dealers. We will take swift action to protect investors when misconduct occurs that
puts their money at risk."
The SEC's complaint alleges that the defendants' fraud began earlier this year, when North
American Clearing began experiencing severe financial problems. To ease its financial
difficulties, North American Clearing secured a bank loan using customer securities as
collateral. To comply with the federal securities laws and remain in operation, North
American Clearing increased its reserves in an account it maintained for the benefit of
customers, which limited funds available to North American Clearing to meet its daily
operating expenses.
Case 6:10-cv-00408-ACC-DAB Document 1-15 Filed 03/16/10 Page 3 of 3
According to the SEC's complaint, on several occasions in March and April 2008, North
American Clearing improperly sold customer money market funds as a means of temporarily
freeing up funds that it then used to pay for daily operating expenses. The SEC's complaint
also alleges that on May 13, 2008, the defendants manipulated North American Clearing's
processing system to overstate net customer money market purchases. This enabled North
American Clearing to illegally withdraw more than $3 million from the reserves it was
required to maintain for the benefit of customers.
The SEC's complaint, filed in the United States District Court for the Middle District of Florida
in Orlando, seeks preliminary and permanent injunctions, disgorgement of ill-gotten gains
against North American Clearing and Goble, and civil penalties against all defendants. The
SEC's complaint alleges that the defendants violated the antifraud, customer protection and
books and records provisions of the Securities Exchange Act of 1934.
On May 27, 2008, the Honorable Gregory A. Presnell granted the SEC's ex parte motion for
emergency relief, entering a temporary restraining order against the defendants and
freezing North American Clearing's assets. The order also provides for a sworn accounting
from North American Clearing and preservation of its records. The Court further appointed
Peter J. Anderson, an attorney in the law firm of Sutherland Asbill & Brennan LLP of Atlanta,
Ga., as a receiver over North American Clearing. Among other things, the receiver is
responsible for marshaling and safeguarding assets held by North American Clearing. A
show cause hearing has been set for June 6, 2008, to determine whether the emergency
asset freeze and other relief should remain in effect.
The Commission acknowledges the assistance of the Financial Industry Regulatory Authority
(FINRA) in this matter.
###
David Nelson
Regional Director, SEC's Miami Regional Office
(305) 982-6332
Glenn S. Gordon
Associate Regional Director (Enforcement), SEC's Miami Regional Office
(305) 982-6360
Eric Busto
Assistant Regional Director (Enforcement), SEC's Miami Regional Office
(305) 982-6362
http://www.sec.gov/news/press/2008/2008‐97.htm
Case 6:10-cv-00408-ACC-DAB Document 1-16
OJS 44 (Rev. 12/07) CIVIL COVER SHEETFiled 03/16/10 Page 1 of 2
The JS 44 civil cover sheet and the information contained herein neither replace nor supplement the filing and service of pleadings or other papers as required by law, except as provided
by local rules of court. This form, approved by the Judicial Conference of the United States in September 1974, is required for the use of the Clerk of Court for the purpose of initiating
the civil docket sheet. (SEE INSTRUCTIONS ON THE REVERSE OF THE FORM.)
Philip Bartlett, Esq., The Bartlett Law Firm, P.A., 230 East Marks Unknown
Street, Orlando, FL 32803
II. BASIS OF JURISDICTION (Place an “X” in One Box Only) III. CITIZENSHIP OF PRINCIPAL PARTIES(Place an “X” in One Box for Plaintiff
(For Diversity Cases Only) and One Box for Defendant)
’ 1 U.S. Government ’ 3 Federal Question PTF DEF PTF DEF
Plaintiff (U.S. Government Not a Party) Citizen of This State ’ 1 ’ 1 Incorporated or Principal Place ’ 4 ’ 4
of Business In This State
’ 2 U.S. Government ’ 4 Diversity Citizen of Another State ’ 2 ’ 2 Incorporated and Principal Place ’ 5 ’ 5
Defendant of Business In Another State
(Indicate Citizenship of Parties in Item III)
Citizen or Subject of a ’ 3 ’ 3 Foreign Nation ’ 6 ’ 6
Foreign Country
IV. NATURE OF SUIT (Place an “X” in One Box Only)
CONTRACT TORTS FORFEITURE/PENALTY BANKRUPTCY OTHER STATUTES
’ 110 Insurance PERSONAL INJURY PERSONAL INJURY ’ 610 Agriculture ’ 422 Appeal 28 USC 158 ’ 400 State Reapportionment
’ 120 Marine ’ 310 Airplane ’ 362 Personal Injury - ’ 620 Other Food & Drug ’ 423 Withdrawal ’ 410 Antitrust
’ 130 Miller Act ’ 315 Airplane Product Med. Malpractice ’ 625 Drug Related Seizure 28 USC 157 ’ 430 Banks and Banking
’ 140 Negotiable Instrument Liability ’ 365 Personal Injury - of Property 21 USC 881 ’ 450 Commerce
’ 150 Recovery of Overpayment ’ 320 Assault, Libel & Product Liability ’ 630 Liquor Laws PROPERTY RIGHTS ’ 460 Deportation
& Enforcement of Judgment Slander ’ 368 Asbestos Personal ’ 640 R.R. & Truck ’ 820 Copyrights ’ 470 Racketeer Influenced and
’ 151 Medicare Act ’ 330 Federal Employers’ Injury Product ’ 650 Airline Regs. ’ 830 Patent Corrupt Organizations
’ 152 Recovery of Defaulted Liability Liability ’ 660 Occupational ’ 840 Trademark ’ 480 Consumer Credit
Student Loans ’ 340 Marine PERSONAL PROPERTY Safety/Health ’ 490 Cable/Sat TV
(Excl. Veterans) ’ 345 Marine Product ’ 370 Other Fraud ’ 690 Other ’ 810 Selective Service
’ 153 Recovery of Overpayment Liability ’ 371 Truth in Lending LABOR SOCIAL SECURITY ’ 850 Securities/Commodities/
of Veteran’s Benefits ’ 350 Motor Vehicle ’ 380 Other Personal ’ 710 Fair Labor Standards ’ 861 HIA (1395ff) Exchange
’ 160 Stockholders’ Suits ’ 355 Motor Vehicle Property Damage Act ’ 862 Black Lung (923) ’ 875 Customer Challenge
’ 190 Other Contract Product Liability ’ 385 Property Damage ’ 720 Labor/Mgmt. Relations ’ 863 DIWC/DIWW (405(g)) 12 USC 3410
’ 195 Contract Product Liability ’ 360 Other Personal Product Liability ’ 730 Labor/Mgmt.Reporting ’ 864 SSID Title XVI ’ 890 Other Statutory Actions
’ 196 Franchise Injury & Disclosure Act ’ 865 RSI (405(g)) ’ 891 Agricultural Acts
REAL PROPERTY CIVIL RIGHTS PRISONER PETITIONS ’ 740 Railway Labor Act FEDERAL TAX SUITS ’ 892 Economic Stabilization Act
’ 210 Land Condemnation ’ 441 Voting ’ 510 Motions to Vacate ’ 790 Other Labor Litigation ’ 870 Taxes (U.S. Plaintiff ’ 893 Environmental Matters
’ 220 Foreclosure ’ 442 Employment Sentence ’ 791 Empl. Ret. Inc. or Defendant) ’ 894 Energy Allocation Act
’ 230 Rent Lease & Ejectment ’ 443 Housing/ Habeas Corpus: Security Act ’ 871 IRS—Third Party ’ 895 Freedom of Information
’ 240 Torts to Land Accommodations ’ 530 General 26 USC 7609 Act
’ 245 Tort Product Liability ’ 444 Welfare ’ 535 Death Penalty IMMIGRATION ’ 900Appeal of Fee Determination
’ 290 All Other Real Property ’ 445 Amer. w/Disabilities - ’ 540 Mandamus & Other ’ 462 Naturalization Application Under Equal Access
Employment ’ 550 Civil Rights ’ 463 Habeas Corpus - to Justice
’ 446 Amer. w/Disabilities - ’ 555 Prison Condition Alien Detainee ’ 950 Constitutionality of
Other ’ 465 Other Immigration State Statutes
’ 440 Other Civil Rights Actions