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March 06, 2015 3:31 PM ET

Capital Markets

Company Overview of John Carris Investments, LLC

Company Overview

John Carris Investments, LLC is a boutique investment banking firm that provides financial advisory services. The firm offers mergers and acquisitions, private debt and equity placements, restructurings and recapitalization, and private investment in public equity (PIPE) advisory services. It also provides follow-ups and registered direct transactions advisory services. Additionally, the firm offers capital structure, management buyout, share repurchase, growth capital, and refinancing advisory services. Its clientele include Fibrocell Science Inc. and AMP Holdings Inc. John Carris Investments, LLC is based in New York, New York.

40 Wall Street

17th Floor

New York, NY 10005

United States

Phone:

212-742-2500

Fax:

212-742-2510

Key Executives for John Carris Investments, LLC

John Carris Investments, LLC does not have any Key Executives recorded.

John Carris Investments, LLC Key Developments

Financial Industry Regulatory Authority Hearing Panel Bans John Carris Investments and Bars CEO George Carris for Fraud

The Financial Industry Regulatory Authority (FINRA) reported that a FINRA hearing panel has expelled John Carris Investments (JCI) and barred CEO George Carris from the securities industry for fraud and suitability violations. The panel found that JCI and George Carris recklessly sold shares of stock and promissory notes issued by JCI's parent company using misleading statements and by omitting material facts. Andrey Tkatchenko, a registered representative, was suspended for two years and fined $10,000 for recommending the stock and promissory notes without a reasonable basis. JCI and Carris were also expelled and barred for manipulating the price of Fibrocell stock. The panel found that JCI and Carris manipulated the price of Fibrocell stock through unfunded purchases of large blocks of the stock and pre-arranged trading accomplished through reported matched limit orders. Head Trader Jason Barter was suspended for 18 months, fined $5,000 and must re-qualify to enter the securities industry for his role in the manipulation of the Fibrocell stock. The ruling resolves charges brought by FINRA's Department of Enforcement in September 2013. The panel found that JCI and Carris fraudulently sold stock and notes in its parent company by not disclosing its poor financial condition. According to the decision, the firm and Carris omitted material facts in the Offering documents, including omissions in the Bridge Offering documents that JCI was out of net capital compliance. JCI should have ceased operating when it was out of net capital compliance, but instead it continued to sell Bridge Offering notes to investors and used the proceeds from sales of the Offerings to cure its net cap deficiency. Carris failed to inform investors that proceeds would be used to cure JCI's net cap deficiencies. He also omitted other material information from the Offering documents regarding how proceeds would be used. For instance, Carris used proceeds from the sales of the Offerings to pay for personal expenses such as purchases at liquor stores, clothing stores and dry cleaning. Carris also failed to remit hundreds of thousands of dollars in employee payroll taxes to the United States Treasury; although during the same time period, he paid dividends to investors in the Offerings. The panel noted in its decision that it did not find Carris credible. For example, when confronted about emails pertaining to employee payroll taxes, Carris asserted he never received or read his emails, claiming that a friend set up a personal email account for him so that Carris could "get on the PlayStation and also some other games that I was playing at the time," when in fact Carris used an iPhone to send emails. In addition to the violations stated above, the panel found that JCI and George Carris kept inaccurate books and records, failed to remit payroll taxes for employees, maintained insufficient net capital, failed to implement its anti-money laundering policies and procedures, and failed establish and enforce a reasonable supervisory system. The panel dismissed charges against Randy Hechler, the firm's Chief Compliance Officer, related to supervisory violations that occurred during a time period unrelated to the above violations. Unless the hearing panel's decision is appealed to FINRA's National Adjudicatory Council (NAC), or is called for review by the NAC, the hearing panel's decision becomes final after 45 days.

FINRA Files for Temporary Cease and Desist Order Against John Carris Investments

FINRA alleged that, among other things, the company and its CEO engaged in fraudulent activity and manipulation of Fibrocell Science stock. FINRA announced that Sept. 30 that it has filed for a temporary cease and desist order against John Carris Investments LLC and its CEO, George Carris, to immediately halt solicitations of its customers to purchase Fibrocell Science Inc. stock without making proper disclosures. The regulator alleged that during May, the company fraudulently solicited its customers to buy Fibrocell stock without disclosing that during the same time period, Carris and another firm principal were selling their shares. In an amended complaint, FINRA alleged that the firm, Carris and five other principals engaged in additional fraudulent activity and securities violations. FINRA said that while John Carris Investments acted as a placement agent for Fibrocell, Carris and the firm artificially inflated the price of Fibrocell stock by engaging in prearranged trading and by making unauthorized purchases of Fibrocell stock in customers' accounts. Carris and the company allegedly, through fraudulent means, sold stock and notes in its parent company, Invictus Capital Inc., by not disclosing its poor financial condition. FINRA also alleges that John Carris Investments issued false documentation that failed to reflect its payments for Carris' personal expenses and failed to remit hundreds of thousands of dollars in employee payroll taxes to the U.S. Treasury Department.

The Financial Industry Regulatory Authority Seeks Cease-And-Desist Order Against John Carris Investments, LLC for Fraud

The Financial Industry Regulatory Authority announced that it has filed for a Temporary Cease-and-Desist Order against John Carris Investments, LLC and its CEO, George Carris, to immediately halt solicitations of its customers to purchase Fibrocell Science, Inc. stock without making proper disclosures. FINRA alleges that during May 2013, JCI fraudulently solicited its customers to buy Fibrocell stock, without disclosing that during the same time period, Carris and another firm principal were selling their shares. FINRA also issued an amended complaint against JCI, Carris, and five other firm principals alleging additional fraudulent activity and securities violations. In the complaint, FINRA alleges that while JCI acted as a placement agent for Fibrocell, Carris and the firm artificially inflated the price of Fibrocell stock by engaging in pre-arranged trading and by making unauthorized purchases of Fibrocell stock in customers' accounts. In addition, FINRA alleges that JCI issued false documentation that failed to reflect the firm's payments for Carris' personal expenses (such as tattoos, pet care and a motorcycle), and failed to remit hundreds of thousands of dollars in employee payroll taxes to the United States Treasury.

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