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SEC Orders Daniel Ives to Cease and Desist

Aug 12, 2022 SEC Complaint

Daniel Ives (CRD #: 4205842), a broker registered with Wedbush Securities, was the subject of a recent SEC action, according to his BrokerCheck record, accessed on July 30, 2022. Read on if you want to learn more about his conduct as a broker.

SEC Regulatory Action

On June 7, 2022, the Securities and Exchange Commission administered cease-and-desist proceedings against Daniel Ives. The SEC alleged that Daniel Ives, as former Executive Vice President of Investor Relations at Synchronoss Technologies, contributed to improper accounting at that company.

Synchronoss Technologies is not a brokerage firm, but a technology company providing software and services to telecommunications companies.

The SEC alleged that, in July 2018, Synchronoss announced a restatement of its 2013, 2014, 2015, and 2016 financial statements, totaling approximately $190 million in revenue. Synchronoss allegedly also announced that it restated revenues that had previously been recognized improperly and in a manner inconsistent with generally accepted accounting principles.

Synchronoss allegedly concealed, through “side letter” agreements, that the revenue recognized by the company from a certain series of transactions would actually be contingent on future events. Daniel Ives, along with other company officials, allegedly negotiated one transaction which Synchronoss improperly recognized as approximating $3.6 million in revenue.

The SEC concluded that Daniel Ives’ alleged actions constituted violations of Section 13(b)(5) of the Securities Exchange Act and Rule 13b2-1 thereunder, and that he allegedly caused Synchronoss Technologies to violate Sections 13(a) and 13(b)(2)(A) of the Securities Exchange Act and Rules 13a-1, 13a-11, and 12b-20 thereunder.

The Securities Exchange Act

Section 13(a) of the Securities Exchange Act requires certain reports to be filed with the SEC by issuers of securities to ensure the protection of investors.

The relevant portions of Section 13(b) require that firms provide financial reports, keep accurate financial records, and provide additional information as necessary to prevent these reports from being misleading.

Section 13(b)(5) specifically prohibits the willful failure to implement an internal system of accounting controls and the willful falsification of accounting records.

Sanctions

Daniel Ives faced the following sanctions:

  • $15,000 fine
  • Cease and desist from committing or causing violations of Sections 13(a), 13(b)(2)(A), and 13(b)(5) of the Exchange Act and Rules 12b-20, 13a-1, 13a-11, and 13b2-1 thereunder
  • Refrain from the following for 3 years: participating as a salesperson in transactions, contracts, or agreements involving side or supplemental contracts, agreements, or letters; participating in sales of goods or services valued at or over $10,000
  • Complete 30 hours of compliance training concerning revenue recognition and/or accounting fraud within one year of the entry of the order to cease and desist

As part of this order, Daniel Ives must also refrain from communicating and negotiating with counterparties, structuring transactions, drafting or revising contracts, drafting or sending invoices, and participating in any aspect of revenue recognition. However, he is still allowed to engage in these activities regarding purchases or sales made in a personal capacity.

Background Information

Daniel Ives has passed the following exams:

  • Series 63 – Uniform Securities Agent State Law Examination
  • SIE – Securities Industry Essentials Examination
  • Series 7 – General Securities Representative Examination
  • Series 87 – Research Analyst Exam – Part II Regulations Module
  • Series 24 – General Securities Principal Examination

He previously worked for FBR Capital Markets & Company (CRD#:25027).

Kurta Law Can Help

If you worked with Daniel Ives and you have concerns about your investments, please contact us today at 877-600-0098 or info@kurtalawfirm.com for a free consultation.

For over 20 years, Kurta Law has advocated on behalf of investors who want to recover their investment losses from brokers and brokerage firms. Kurta Law is a nationally recognized law firm and exclusively represents investors against brokers and brokerage firms on a contingency basis. This means that the firm only earns a fee if our securities attorneys recover money on your behalf.