You may have seen articles lately referring to “the DOL” and “Fiduciaries.” If you didn’t have time to read more than the headlines, you might wonder what these terms mean and what all the fuss is about. Well, wonder no more. We have answers for you. The letters “DOL” stand for Department of Labor, the …
Individual investors across the country have invested heavily in Master Limited Partnerships (MLPs) — tax-exempt, publicly traded companies that own pipelines, storage tanks, and other cash-generating infrastructure related to energy production. Energy MLPs are commonly divided into three types: upstream, midstream, and downstream. These designations pertain to the movement of energy-related natural resources from producing …
Hugh Berkson, a principal with McCarthy, Lebit, Crystal & Liffman, is the current President of the Public Investors Arbitration Bar Association. More than 400 PIABA members represent investors nationwide in mandatory arbitration conducted under the auspices of the Financial Industry Regulatory Authority (FINRA). PIABA also promotes the interests of the public investor in securities arbitration, …
We members of the Stockmarketloss.com securities litigation group – attorneys Hugh Berkson, and Jay Salamon — are pleased to announce that we have become principals in the prominent Cleveland, Ohio law firm of McCarthy, Lebit, Crystal & Liffman, Co. LPA. We are joined at McCarthy Lebit by our team’s stellar paralegal, Laurie Wilde. With the …
Don’t Get Trapped in a Class Action for Pennies on the Dollar. Learn About Opting Out and McCarthy Lebit’s Individual or Group Claim Solution. UDF IV is a non-traded real estate investment trust (REIT) that issues loans to acquire and develop single-family residential lots or mixed-use master planned residential communities across Texas. UDF IV is …
Economists have suggested for years that while stockbrokers and brokerage firms will occasionally outperform the market, those instances are pretty much a product of random chance. Over a longer period than one year, the recommendations of these “expert” advisors add no value to investors’ portfolios. Investors would likely receive the same results by throwing darts …
Former Merrill Lynch broker Thomas J. Buck has been named in several complaints, already costing the company over $4.1 million in settlements. Many of the complaints allege that Mr. Buck steered clients toward commission-based accounts versus lower cost fee-based accounts. Highly active accounts quickly racked up charges. Although the settlement amounts seem high, they were …
A report from a FINRA task force recommends 51 changes to the arbitration process. Among these changes is increasing the stipend for arbitrators, explanation of arbitration decisions unless one party opts out, and revamping the expungement process for advisors. It also recommends adding a mediation process to a system. FINRA’s arbitration system has been viewed …
FINRA’s arbitration task force presented 51 recommendations to improve the arbitration process. Of special focus was the issue of the expungement of advisor’s disciplinary records. Hugh Berkson, president of the Public Investors Arbitration Bar Association, discussed the proposals his organization contributed to the process. The current system heavily favors the advisors, leaving their clients with …
On November 17, 2015, The Financial Industry Regulatory Authority (“FINRA”) filed a disciplinary action against David Miller, formerly a stockbroker employed by the Huntington Investment Company. FINRA has charged that Miller acted improperly in recommending and selling investments known as Unit Investment Trusts (“UITs”). Specifically, FINRA asserts that Miller failed to perform required due diligence …
We’re proud to report that our partner, Hugh Berkson, has begun his term as President of PIABA, the Public Investors’ Arbitration Bar Association. PIABA, an international bar association with more than 400 members, is the largest US organization of lawyers who represent investors in arbitrations against stockbrokers. PIABA’s mission statement reads: The mission of PIABA …
PIABA recently released a disappointing update to its 2013 report on the expungement of broker records following a settlement. Despite FINRA’s adopting PIABA recommendations two years ago, there continues to be a high rate (89%) of expungements granted. New recommendations were presented and Hugh Berkson stated that the wholesale changes must be made.
According to a recent PIABA report, almost 90% of brokers who are found guilty of misconduct successfully have this information expunged from their records. Although expungement is deemed an extraordinary measure it has become commonplace, which places investors at risk. Hugh Berkson believes that a “wholesale change” in the system must occur.
If your broker ever sends you a letter saying he or she is leaving for another firm and would like you transfer your accounts, don’t just acquiesce. This is a big red flag and you need to investigate further. Reasons Brokers Move Brokers move to new firms for many reasons, most of which involve a …
On April 3, 2015, we mentioned that Thomas J. Buck, who was Merrill Lynch’s top financial adviser in Indiana by assets under management –reportedly $1.3 billion – had been suddenly and unexpectedly terminated for alleged compliance violations. We quoted the publication Investment News as saying: Mr. Buck was ultimately terminated because of ‘conduct including failing …
