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Florida Office of Financial Regulation

Tarpon Springs Man Enters Guilty Plea in Investment Fraud Scheme

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Fake Security System Pitch Used to Dupe Investors

The Florida Office of Financial Regulation (OFR) today announced that John Edward Simpson, 64, entered a plea of guilty to eight felony counts of grand theft, 12 felony counts of securities fraud, 12 felony counts of failing to register a security, and 12 felony counts of failing to register as a securities dealer. Simpson, a resident of Tarpon Springs, perpetrated an investment fraud scheme out of Safety Harbor.
“Protecting Floridians from financial fraud is our top priority. This scammer falsely promised a return on investment using a fake security system pitch to deceive victims,” said OFR Commissioner Drew J. Breakspear. “I am proud of our investigative team, which gathered evidence, conducted interviews, and financial analyses, to ensure that Floridians received a positive outcome in this case.”
Simpson told at least 20 victim investors across the country that his company, Defense Technology Corporation DTC, LLC (DTC), had developed a security system to be manufactured and marketed to schools and universities in the United States. Simpson issued stock and promissory notes in DTC, but never established any revenue or customers. Contrary to representations, the majority of victims’ money was not used to further the business, but instead was used to pay Simpson’s “salary” and personal living expenses.
The OFR appreciates the assistance of the Tarpon Springs Police Department and Pinellas County Sheriff’s Office. The Pinellas County State Attorney’s Office prosecuted the case.
If you feel that you may be a victim of fraud or to report suspicious activity, please file a complaint with the OFR online, www.flofr.com, or call (850) 487-9687.

Industry Alert: Check Cashing Compliance

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The Florida Office of Financial Regulation (OFR) reminds all check cashers to be fully aware of and adhere to the requirements of Chapter 560, Florida Statutes.
Check cashers are reminded to comply with all reporting and record-keeping requirements and to ensure strict adherence to their anti-money laundering programs. Chapter 560, Florida Statutes, requires businesses operating as check cashers to develop, implement and maintain an effective anti-money laundering policy and to report suspicious activity to the OFR. Florida law also requires check cashers to maintain all books, records and other information necessary for determining compliance, as well as file all reports timely, and include information as specified in administrative rule.
In addition, when cashing checks in excess of $1,000 or cashing corporate checks, a check casher has additional compliance responsibilities, including entering information into Florida’s check cashing database. Compliance with these requirements is essential to preventing check cashers from becoming a conduit for criminal activity. We encourage check cashers to review and fully understand compliance requirements. The OFR supports check cashers who comply with the law and provide important services to Floridians. The OFR routinely examines all check cashers to ensure they are complying with Chapter 560, Florida Statutes.

For more information, please contact the OFR’s Customer Service Help Line at (850) 487-9687.

Attorney General Bondi and OFR Commissioner Breakspear File Action Against Ocwen

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TALLAHASSEE, Fla.—Attorney General Pam Bondi and Florida Office of Financial Regulation Commissioner Drew J. Breakspear today filed a federal civil consumer protection lawsuit against Ocwen Financial Corporation of West Palm Beach and its subsidiaries, Ocwen Loan Servicing, LLC and Ocwen Mortgage Servicing, Inc., for mortgage servicing misconduct. According to the complaint, Ocwen harmed Floridians by filing illegal foreclosures, mishandling loan modifications, misapplying mortgage payments, failing to pay insurance premiums from escrow and collecting excessive fees.
“It is my office’s duty to protect the more than 125,000 Ocwen borrowers in Florida. Since 2014, when we first entered the multistate settlement with Ocwen, we have listened to Ocwen’s promises that they would ‘right the ship’ and resolve the improper mortgage servicing and foreclosure misconduct that has plagued it,” said Attorney General Bondi. “Enough is enough. Florida’s distressed Ocwen borrowers should no longer have to endure costly servicing errors and unfair practices.”
“Protecting Florida consumers is a top priority at the Office of Financial Regulation. We appreciate the partnership of Florida Attorney General Bondi in this joint effort to take action against Ocwen and prevent further harm to Floridians. Florida continues to be focused on assisting homeowners in our state who have made or currently make mortgage payments to Ocwen,” said OFR Commissioner Breakspear.
The complaint filed in federal court in West Palm Beach alleges violations of the Real Estate Settlement Procedures Act, the Florida Deceptive and Unfair Trade Practices Act and Chapter 494, Florida Statutes. According to the complaint, Ocwen failed to adequately perform basic mortgage servicing functions that resulted in widespread errors and financial harm to borrowers. The complaint seeks financial and other relief for harmed borrowers and an order preventing Ocwen from servicing loans in violation of Florida and federal law.  
In 2014, a court approved a $2.1 billion settlement between Ocwen and 49 states, as well as the District of Columbia and the Consumer Financial Protection Bureau, to address allegations of Ocwen’s mortgage servicing misconduct. Attorney General Bondi’s Office has since continued to receive complaints regarding Ocwen’s mortgage servicing failures. Despite the national settlement and numerous other lawsuits and regulatory actions brought against Ocwen throughout the nation, Ocwen allegedly violated consumer protection laws through its use of a fundamentally flawed and unreliable system of record, operational deficiencies and inadequate controls to ensure compliance and prevent errors.
To view the complaint filed against Ocwen, click here.
For more information on the previous settlement, click here.

Former Flagler Beach Pastor Sentenced in Investment Fraud Case

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The Florida Office of Financial Regulation (OFR) today announced that former Flagler Beach pastor, Wesley Alan Brown, was sentenced to 7.5 years in prison followed by 22.5 years of probation for his role in an investment scheme that defrauded members of his congregation. Today’s sentencing follows Brown’s conviction in January 2017, where he was found guilty of multiple felony charges, including organized scheme to defraud. Restitution is anticipated once the amounts owed to the victims have been verified by the court.
Commissioner Drew J. Breakspear said, “Abusing a position of trust for personal financial gain is heinous and will not be tolerated in Florida. I applaud the work of OFR’s investigators and the Flagler County State Attorney’s Office to end this scheme and prevent additional unsuspecting victims from experiencing financial harm.”
Brown, who was an associate pastor at a Flagler Beach area church, solicited church members to invest in the stock of Maverick International, Inc., telling them that Maverick was a diversified private company that invested in precious metals and commodities. He led victims to believe that investments in the company had high growth potential and no risk. However, OFR’s investigation revealed that Brown deposited at least $60,000 of investors’ money into his personal account, and that Maverick paid Brown’s personal credit card bills, totaling more than $84,000.
If you feel that you may be a victim of fraud or to report suspicious activity, please file a complaint with the OFR online, www.flofr.com, or call (850) 487-9687.
For tips on avoiding investment fraud, check out OFR’s Consumer Alert: Top Red Flags of Investment Scams.