In a comment letter to the SEC, Hugh Berkson stated that the Thrift Savings Plan program should be made available to military personnel who do not serve on military bases and to military personnel’s dependents. In addition, he believes more financial education should be provided to all those who serve in the military.
In our May 18th post, we discussed stockbrokers (sales persons who purportedly dispense advice only in conjunction with selling investment products) and investment advisors (who give investment advice but don’t sell products.) Although stockbrokers are fiduciaries under the law of some states — including our own state, Ohio — many courts have held otherwise, concluding …
We continue to see lots of activity involving unsuitable sales of non-traded Real Estate Investment Trusts (“non-traded REITs”). If you’re a retail customer who was sold one of these things with promises of higher yields, guaranteed returns, principal protection, or other bogus enticements, you’ve probably already lost money and may now find yourself stuck. Call …
A stockbroker is not permitted to indiscriminately sell any available investment product to any customer he or she chooses, nor may a broker follow a “one-size-fits-all” sales strategy. Such activities are forbidden by what is generally known as the “suitability rule.” The rule dictates that brokers’ recommendations to buy, sell, or hold securities or to …
Do you dream of finding an omniscient stockbroker who will guard your principal from loss, invest it wisely, generate above-average returns, and never cause you aggravation or harm? Well, if so, wake up. You’re dreaming, remember? A Stockbroker’ Job Is To Sell Stuff Stockbrokers are just commissioned salesmen trying to make a buck. Many are …
An Investment News article reports today that Thomas J. Buck, who was Merrill Lynch’s top financial adviser in Indiana by assets under management – reportedly $1.3 billion — was suddenly and unexpectedly terminated for alleged compliance violations. The article states in part: Ultimately, Merrill Lynch officials pointed to a number of problems they said had …
As securities lawyers, we always argue on behalf of our arbitration clients (usually successfully) that stockbrokers are fiduciaries who owe the highest duty of care and fidelity to customers. The relationship an investor has with his or her stockbroker or financial advisor is considered by most to be one of absolute trust. An investor entrusts …
We’re not tax attorneys and consequently we never give tax advice. But as the federal income tax deadline looms, we can tell you that victims of investment fraud may be able to deduct their losses from their yearly federal income tax bills. Overall the procedure for taking this type of deduction is both complex and …
Hugh Berkson coauthored a letter to the FINRA Dispute Resolution Task Force regarding three ongoing issues of concern: investor mandatory arbitration, decline of investor rights after Dodd-Frank, and lack of public disclosure of arbitration data. The current arbitration structure is inherently biased against investors and changes must be enacted.
Commenting on the proposed FINRA regulation regarding pricing information of retail fixed income trading transactions, Hugh Berkson, Executive Vice-President/President-Elect, PIABA, explains that he supports the transparencies the regulation would require but believes it should extend beyond its current scope. Rather than be limited to 100 bonds or a face value of $100,000 or less, the …
It’s always nice to have one of our lawyers receive national recognition from our peers in the investor advocacy bar. Thus, we’re pleased to announce that Hugh D. Berkson, one of our team members in Stockmarketloss practice group, has been named Executive Vice-President and President-Elect of PIABA, the Public Investors Arbitration Bar Association. PIABA, an …
“Irrespective of Whether a Firm Must Meet A Suitability Or Fiduciary Standard” We always have contended in arbitrations – usually successfully – that under the common law of most states, stockbrokers are fiduciaries. Under a fiduciary standard, the broker is required to make recommendations guided solely by the best interests of the customer. But stockbrokers …
The Financial Industry Regulatory Association (FINRA), a self-regulatory organization created and funded by the brokerage industry, wields powers ceded to it by its benevolent overseer, the Securities and Exchange Commission. One way the industry regulates itself is to have FINRA operate a mandatory dispute resolution system by which aggrieved investors are prohibited from suing brokers …
The Ohio Division of Securities recently initiated an administrative action against an online binary options platform operating from the United Kingdom. The Division alleges that Vault Options lured at least one Ohio investor into investing $50,000 based on false and fraudulent statements, including touting the security of the investment and inflated returns up to 500 …
The lawyers of the stockmarketloss.com and lifeinsurancefailure.com practice groups of Cleveland, OH law firm McCarthy, Lebit, Crystal & Liffman, are receiving a growing number of inquiries from victims of variable life insurance fraud. How do you know if you’re a victim. Look At What You Were Sold Some people don’t even realize they were sold variable life insurance. …
