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 …
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.
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.
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 …
Over the past several years, we’ve handled many customer cases against investment firm Sanders Morris Harris, Inc. arising from sales activities at its Solon/Beachwood branch office in suburban Cleveland, OH. Last month, FINRA announced sanctions against SMH and two of the registered principals at that office, based upon both their failure to properly supervise a broker who …
If you’re a holder of VelocityShares 2x Long VIX Short Term Exchange Traded Notes (“TVIX”), managed by Credit Suisse Group AG, you’re all too aware that TVIX recently plunged off a cliff. But you may not have understood exactly what you owned, how it was supposed to work, or how risky it could be. The …
We recently told you about the insurance agent who was convicted and sentenced to jail for selling an illiquid Allianz equity indexed annuity to an 83-year old woman who showed signs of dementia. The focus of this story has been on the agent’s criminal conviction, but agents get such huge commissions for selling these products …
By now, the NYT op-ed resignation letter of Greg Smith, a former Goldman Sachs employee, has made the rounds on Twitter and the Blogosphere. In an act of professional suicide, Smith has scathingly indicted Goldman for its rancid ethics, declaring that “the environment now is as toxic and destructive as I have ever seen it,” …
Attorneys Hugh Berkson and Joe Peiffer announce that Securities America has agreed to pay $150 million dollars to settle a class action lawsuit. This agreement came after a federal judge rejected a $21 million dollar proposal last month. The victims lost a total of $400 million in this scheme.
A federal judge rejected a 21 million dollar settlement against Securities America. The lead plaintiff’s attorney in the class action lawsuit wanted the deal to go through as he felt it best for the defrauded investors. Hugh Berkson disagreed, believing that Securities America could pay more to victims of their fraud.
Lawsuits filed against Securities America claim fraud for its lack of risk disclosure with regard to the sale of $700 million dollars in private-placement Medical Capital notes. Massachusetts regulators challenge Securities America’s assertion that it was Medical Capital’s responsibility to disclose risk issues. Attorney Jay Salamon, quoted in article above, calls Securities America’s position preposterous.
