Client alleges advisor was involved in fraudulent activity. Alleged Activity Dates: 8/07 - 12/14.

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

SEC Admin Release 34-84226, IA Release 40-5040 / September 20, 2018: The Securities and Exchange Commission ("Commission") deems it appropriate and in the public interest that public administrative proceedings be, and hereby are, instituted pursuant to Section 15(b) of the Securities Exchange Act of 1934 ("Exchange Act") and Section 203(f) of the Investment Advisers Act ("Advisers Act") against Joel N. Burstein ("Burstein" or "Respondent"). The Commission finds that on September 14, 2018, a final judgment was entered by consent against Burstein, permanently enjoining him from future violations of Sections 17(a) of the Securities Act of 1933 and Section 10(b) of the Exchange Act and Rule 10b-5 thereunder, in the civil action entitled Securities and Exchange Commission v. Joel N. Burstein, Civil Action Number 1:18-cv-23636, in the United States District Court for the Southern District of Florida. The Commission's complaint alleged that, in connection with the offer and sale of securities in the form of limited partnership interests in a series of offerings issued by Jay Peak, Inc. ("Jay Peak") and other related entities, Burstein aided and abetted violations of the antifraud provisions of the federal securities laws. Burstein knowingly, or recklessly, provided substantial assistance to one of the principals of Jay Peak in a scheme to misappropriate and misuse millions of dollars of investor funds. Specifically, Burstein, who managed various Jay Peak related brokerage accounts at Raymond James, facilitated the principal's fraudulent use of more than $21 million of investor money raised from two of the limited partnership offerings to purchase the principal's ownership interest in Jay Peak and over $18 million of investor proceeds from another offering to pay off an undisclosed margin debt in the name of Jay Peak.

Order

Bar (Permanent)

association with a broker, dealer, investment adviser, municipal securities dealer, municipal advisor, transfer agent, or NRSRO

Indefinite

with a right to reapply to the SEC after 10 years

9/20/2018

participating in any offering of a penny stock

Indefinite

with a right to reapply to the SEC after 10 years

9/20/2018

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

The Securities and Exchange Commission alleges that from approximately June 2008 through March 2014, Defendant Joel N. Burstein aided and abetted violations of the antifraud provisions of the federal securities laws by substantially assisting a massive fraudulent scheme in which the Miami owner and the chief executive of a Vermont ski resort systematically looted more than $50 million of the more than $350 million raised from hundreds of foreign investors through the U.S. Citizenship and Immigration Service's EB-5 Immigrant Investor Program. The fraudulent scheme spanned seven limited partnership securities offerings all connected to Jay Peak, Inc. ("Jay Peak"), a Vermont ski resort formerly owned by Miami-based Q Resorts, Inc. ("Q Resorts"), which in turn was owned by Miami businessman Ariel Quiros, who was primarily responsible for the fraudulent scheme. Investor funds raised from the Jay Peak offerings were held in, and transferred into, about 15 brokerage accounts at Raymond James & Associates, Inc. ("Raymond James"), and Quiros and the entities he controlled used those accounts to perpetrate the fraud. In fact, most of the investor money that Quiros misappropriated and misused flowed through the Raymond James brokerage accounts. Burstein, who was Raymond James's branch manager and the registered representative who managed the firm's Jay Peak accounts, was Quiros's son-in-law for part of the relevant time period. Burstein substantially assisted in the fraud from its inception. For example, Burstein played a role in facilitating Quiros' misappropriation of more than $21 million of investor money to acquire his ownership interest in the Jay Peak resort. After the acquisition, Burstein continued to play a role in the fraud by assisting Quiros in masking his misappropriation of the investor funds. In addition, Burstein facilitated Quiros' fraudulent use of more than $18 million of investor funds to pay off Jay Peak's margin debt. Through his conduct, Burstein aided and abetted violations of 17(a) of the Securities Act of 1933 ("Securities Act") and Section 10(b) of the Securities Exchange Act of 1934 ("Exchange Act"), and Exchange Act Rule 10b-5.

Judgment Rendered

Civil and Administrative Penalty(ies)/Fine(s)

Injunction

Raymond James & Associates

Voluntary Resignation

The Financial Advisor has been named as a defendant in a fraud related lawsuit involving activity by third parties in client accounts for which he was the broker of record.

Aiding and Abetting Breach of Fiduciary Duty, Conspiracy to Breach of Fiduciary Duty, Fraudulent Transfers Pursuant to Fla. State. 726.105(1)(a), & 726.106(1), Violation of Racketeer Influenced and Corrupt Organizations Act 18 U.S.C. 1962(c) and Conspiracy in Violation of Racketeer Influenced and Corrupt Organizations Act, 18 U.S. C. 1962(d). Incident Dates 7/2009-12/2014.

Common Law Fraud, Negligence, Violation of Florida Statute 726 (Fraudulent Transfers), Aiding and Abetting, Unjust Enrichment, Unsuitable Recommendations, Breach of Contract, Breach of Fiduciary Duty. Activity Dates 7/2009 - 12/2014.

$8,000,000.00

Claimants are pursuing their claim in Collier County, Florida Circuit Court, case number 16-CA-1936-LLB.

Common Law Fraud, Negligence, Violation of Florida Statute 726 (Fraudulent Transfers), Aiding and Abetting, Unjust Enrichment, Unsuitable Recommendations, Breach of Contract, Breach of Fiduciary Duty. Activity Dates 8/2007 - 12/2014.

$500,000.00

Claimant is pursuing this claim in Collier County, Florida Circuit Court, case number 16-CA-1936-LLB.

Common Law Fraud, Negligence, Violation of Florida Statute 726 (Fraudulent Transfers), Aiding and Abetting, Unjust Enrichment, Unsuitable Recommendations, Breach of Contract, Breach of Fiduciary Duty. Activity Dates 8/2007 - 12/2014

$500,000.00

Claimant is pursuing this claim in Collier County, Florida Circuit Court, case number 16-CA-1936-LLB.

Common Law Fraud, Negligence, Violation of Florida Statute 726 (Fraudulent Transfers), Aiding and Abetting, Unjust Enrichment, Unsuitable Recommendations, Breach of Contract, Breach of Fiduciary Duty. Activity Dates 08/2007 - 12/2014.

$500,000.00

Claimant is pursuing this claim in Collier County, Florida Circuit Court, case number 16-CA-1936-LLB.

Common Law Fraud, Negligence, Violation of Florida Statute 726 (Fraudulent Transfers), Aiding and Abetting, Unjust Enrichment, Unsuitable Recommendations, Breach of Contract, Breach of Fiduciary Duty. Activity 8/2007 - 12/2014.

$500,000.00

Claimant is pursuing this claim in Collier County, Florida Circuit Court, case number 16-CA-1936-LLB.

Common Law Fraud, Negligence, Violation of Florida Statute 726 (Fraudulent Transfers), Aiding and Abetting, Unjust Enrichment, Unsuitable Recommendations, Breach of Contract, Breach of Fiduciary Duty. Activity Dates 7/2009 - 12/2014.

$500,000.00