(FINRA Case #2013036799501)
J. Michael Casas (CRD #4422064, San Antonio, Texas) was barred from association with any FINRA member in any capacity and ordered to pay $50,000, plus prejudgment interest, in restitution to an investor. The National Adjudicatory Council imposed the sanctions following an appeal of an Office of Hearing Officers decision. The sanctions were based on findings that Casas converted investors’ funds and fraudulently sold securities issued by a company he owned and controlled on the basis of false statements of material fact regarding the use of investor funds.
The findings stated that Casas made material misrepresentations when soliciting two investors to invest a total of $83,000. The purpose of the investments was to fund the development and execution of a reverse merger transaction, which never took place. As a result of his conduct, Casa willfully violated Section 10(b) of the Securities Exchange Act of 1934 (Exchange Act) and Rule 10b-5 and violated FINRA Rule 2020.
The findings also stated that Casas used the majority of the investors’ investments for his own personal use. Casas told both investors that their investments would be used to facilitate the reverse merger transaction, particularly with respect to the payment of accounting fees and legal fees, as well as other operational expenses of the company. Casas paid less than $31,000 to accounting and legal firms.
The company’s subscription agreement warned investors of the risks associated with an investment in Casas’ company. Although, the subscription agreement did not notify potential investors of Casas’ intention to use investor funds for his personal expenses.
J. (Jesus) Michael Casas also has a FINRA pending dispute for $50,000 from 2012 while doing business as MCB Capital Partners LLC.
Casas also worked for Riverstone Wealth Management Inc. from 07/2011 to 11/2012 and The Champion Group, Inc. from 07/2001 to 07/2004.
If you feel you have been misled or taken advantage by Michael Casas or any Broker and wish to discuss legal action, please contact Darren Blum at 1-877-786-2552 (1-877-STOCK LAW), www.stockattorneys.com for a free consultation.