The Financial Industry Regulatory Authority (FINRA) announced on October 20, 2016 that it is seeking SEC approval of proposed rules to help prevent the financial exploitation of seniors and other vulnerable adults. FINRA’s proposed rules would require firms to make reasonable efforts to obtain the name of and contact information for a trusted contact person …
The Stockbroker Malpractice team of McCarthy, Lebit, Crystal & Liffman Co., LPA is investigating claims against Mark N. Wesley, a former broker with Ameriprise Financial Services. Wesley, who worked in Independence, Ohio, now is out of the industry. Mark Wesley’s Fraudulent Practices According to his public record, Wesley recently was “permitted” by the Ameriprise to resign …
On October 17, 2016, broker-dealer ProEquities, Inc. of Birmingham, Alabama was censured and fined $165,000 by FINRA. The firm consented to the sanctions and to the entry of findings that (among other things) it failed to establish, maintain, and enforce adequate written procedures to supervise sales of non-traditional Exchange Traded Funds or “ETFs”. The findings …
This summer, the Financial Industry Regulatory Authority (FINRA) and the Securities and Exchange Commission (SEC) both fined Merrill Lynch, the brokerage arm of Bank of America Corporation, for negligently failing to adequately disclose information in connection with the sale of a product called “Strategic Return Notes” (“SRNs”). These structured notes were issued by Merrill Lynch’s …
The Stockmarketloss investment fraud team at McCarthy, Lebit, Crystal & Liffman Co. LPA is investigating claims against stockbroker Dominic Tropiano, formerly of America Northcoast Securities in Cleveland, OH. During much of Tropiano’s tenure with America Northcoast Securities, he allegedly serviced customers’ accounts and solicited securities sales despite the fact that he was neither registered with …
On October 17, 2016, broker-dealer ProEquities, Inc. of Birmingham, Alabama was censured and fined $165,000 by FINRA. The firm consented to the sanctions and to the entry of findings that (among other things) it failed to establish, maintain, and enforce adequate written procedures to supervise sales of non-traditional Exchange Traded Funds or “ETFs”. The findings …
Our financial advisor malpractice team is now accepting cases for review involving thirteen investment advisory firms penalized by the Securities and Exchange Commission (SEC). These firms provided customers with false information about AlphaSector Index Funds, a series of products designed by defunct investment manager F-Squared Investments and its former CEO Howard Present. F-Squared’s False Reporting …
Hugh Berkson, a Principal with the law firm of McCarthy, Lebit, Crystal & Liffman Co. LPA and a member of the firm’s Investor Advocacy team, has just concluded his one-year term as President of the Public Investors Arbitration Bar Association (“PIABA”). PIABA is national bar association dedicated to protecting investors’ rights. Hugh’s term was marked …
Put as simply as possible, a Ponzi scheme is an investment fraud in which funds contributed by new investors are used to pay purported “returns” or “profits” to existing, earlier investors. A Ponzi schemer usually attracts new investors by promising to invest their funds in opportunities claimed to generate high returns with little or no …
Although FINFA received 51 recommendations from a task force designed to improve the arbitration process, it recently announced only a few modest changes to the system. The number of public arbitrators is expanded from 10 to 15 and attorneys can chair arbitrations after participating in one. Also, it will be easier to dismiss arbitration cases …
New FINRA rules regarding nontraded REITs have some advisors crying off this investment. The rule requires advisers to report the actual value of those investments – less commissions to their clients, a practice many had avoided. Several experts view nontraded REITs as a money-maker for the advisor but not the client, as there is no …
The SEC is struggling with the concept of an accredited investor, a system that was established in 1982 and has remained largely unchanged. The call to modify these rules comes at a time when more companies are choosing to stay private longer and avoid the expense of meeting the regulatory compliance requirements of a public …
FINRA’s new CEO, Robert Cook, faces many challenges as long-simmering issues over transparency and investor protections are likely to boil over during his tenure. The organization has received sharp criticisms from congress and industry experts complain that efforts to address concerns are not effective. PIABA President Hugh Berkson notes that the BrokerCheck system developed by …
Many investors buy exchange-traded funds, more commonly called ETFs. ETFs are usually registered investment companies whose shares represent an interest in a portfolio of securities that track an underlying benchmark or index. Shares of ETFs trade daily on a securities exchange at prices established by the market. But watch out if your financial adviser is recommending …
When stockbrokers who commit fraud or other sales abuses are barred from working in the securities industry, they often keep their insurance licenses. This occurs because state governments generally have separate departments regulating securities and insurance. This means that the insurance agent who wants to sell you variable life insurance or annuities may be a bad broker who, …
