Each month, the agency that regulates the financial industry, FINRA (Financial Industry Regulatory Authority), produces a detailed report that runs down all disciplinary actions recently taken against brokerage firms and brokers. We strongly encourage any investor who suspects their broker and/or broker-dealer of having lost them money on dubious terms to at least skim this report to see if you recognize any names, schemes, products, or securities.
FINRA and SEC Warnings about Cyber-Threats
With the economy on a rocky footing, the climate is right for investment scams. These scams can impact investors of all ages, but those hit hardest are the seniors. Often isolated and suffering a diminishing capacity to discern truth from lies, elderly investors are particularly vulnerable to clever investment scams that promise high returns for low or no risk.
FINRA COMPENSATES WIDOW SCAMMED BY ADVISOR
A FINRA arbitration panel has ordered the National Planning Corporation to give over $2.6 million to an 84-year-old woman who was sold false promissory notes.
In a September 2017 petition, Sandra Alford of St. Louis sued National Planning of negligent misrepresentation, common law fraud, breach of contract and negligent supervision. Sandra Alford of St. Louis, was William Glaser's client, a past certified representative of the firm.
Brokers Banned for Mistreating Elderly Clients
FINRA Fines Firms for Failing to "Know Your Customer"
The Financial Industry Regulatory Authority (FINRA) sanctioned Citigroup Global Markets, J.P. Morgan Securities, LPL Financial, Morgan Stanley Smith Barney and Merrill Lynch for failure to ensure compliance with FINRA Rule 2090 “Know Your Customer” rule, dealing with custodial accounts. The Rule requires member firms and their associated representatives to use reasonable diligence to determine the “essential facts” about each customer and “the authority of each person acting on behalf of such customer.”
SEC Charges REIT with Fraud
The Securities and Exchange Commission (SEC) on Friday, 13th December, 2019 charged the CEO and owner of a small nontraded real estate investment trust, First Capital Real Estate Trust Inc. (First Capital REIT), with fraud. Allegedly he lied about owning a dozen hotels and adding them to the REIT to close a deal.
FINRA Disciplinary Action Report: Dec 2019
Each month, the agency that regulates the financial industry, FINRA (Financial Industry Regulatory Authority), produces a detailed report that runs down all disciplinary actions recently taken against brokerage firms and brokers. We strongly encourage any investor who suspects their broker and/or broker-dealer of having lost them money on dubious terms to at least skim this report to see if you recognize any names, schemes, products, or securities.
FINRA: Suitability and Sales Practice Issues Linger
Financial Industry Regulatory Authority Inc (FINRA) released its “2019 Report on Examination Findings and Observations”, in October 2019. The report reflected key finding/observations identified in FINRA’s recent examinations of broker-dealers and practices FINRA deems to be effective in helping firms improve their compliance and risk management programs. In this article, we summarize aspects of FINRA’s report, relevant to the structured products industry.
Broker Impersonates Client, Falls Afoul of FINRA
Harold A. Schwartz, a former Broker at Royal Alliance Associates INC allegedly impersonated one of his clients, in two telephone calls with the customer services hotline of an annuity company. Schwartz wound up being “permitted to resign voluntarily” from Advisor Group’s Royal Alliance wealth management firm.
Ex-Canuck Sues Financial Advisor Alleging Fraud
Former Vancouver Canucks’s Defenseman, Jason Garrison, is suing his financial advisers, alleging fraudulent financial advice for the purpose of personal profit. The suit claims the financial adviser, Richard Jones sold Jason Garrison a series of unsuitable investment vehicles and insurance policies, which cost him more than $27.6 million.
Unpaid Arbitration Awards Plague Industry
The Financial Industry Regulatory Authority Inc (FINRA)., along with the rest of the securities industry, is staring at a fresh wave of unpaid and embarrassing arbitration awards against it. Arb awards go unpaid when investors win lawsuits against broker-dealers that sold them unsuitable, faulty or troubled products only to see the B-Ds go belly up and run out of money before they can pay investor damages.
FINRA Disciplinary Action Report: Nov 2019
Each month, the agency that regulates the financial industry, FINRA (Financial Industry Regulatory Authority), produces a detailed report that runs down all disciplinary actions recently taken against brokerage firms and brokers. We strongly encourage any investor who suspects their broker and/or broker-dealer of having lost them money on dubious terms to at least skim this report to see if you recognize any names, schemes, products, or securities.
FINRA Disciplinary Action Report: Oct 2019
Each month, the agency that regulates the financial industry, FINRA (Financial Industry Regulatory Authority), produces a detailed report that runs down all disciplinary actions recently taken against brokerage firms and brokers. We strongly encourage any investor who suspects their broker and/or broker-dealer of having lost them money on dubious terms to at least skim this report to see if you recognize any names, schemes, products, or securities.
FINRA Disciplinary Action Report: Sept 2019
Each month, the agency that regulates the financial industry, FINRA (Financial Industry Regulatory Authority), produces a detailed report that runs down all disciplinary actions recently taken against brokerage firms and brokers. We strongly encourage any investor who suspects their broker and/or broker-dealer of having lost them money on dubious terms to at least skim this report to see if you recognize any names, schemes, products, or securities.
Philadelphia Woman Charged in $100M Investment Fraud
According to documents filed in the case by the US Attorney’s office, from February 2016 to August 2019, Philadelphia investment fund manager Brenda Smith used her investment fund, Broad Reach Capital, to collect more than $100 million in funds from investors who believed her lies about the funds assets and performance.
Investment Scams Target Elderly Investors
With the economy on a rocky footing, the climate is right for investment scams. These scams can impact investors of all ages, but those hit hardest are the seniors. Often isolated and suffering a diminishing capacity to discern truth from lies, elderly investors are particularly vulnerable to clever investment scams that promise high returns for low or no risk.
FINRA Disciplinary Action Report: August 2019
Each month, the agency that regulates the financial industry, FINRA (Financial Industry Regulatory Authority), produces a detailed report that runs down all disciplinary actions recently taken against brokerage firms and brokers. We strongly encourage any investor who suspects their broker and/or broker-dealer of having lost them money on dubious terms to at least skim this report to see if you recognize any names, schemes, products, or securities.
Why Is Investor Fraud So Common?
There are different degrees of investor fraud, ranging from the lack of alignment between your interests and those of your stock broker to the notoriety of billion-dollar scam artists like Bernie Madoff. How do you calculate a figure like this? It’s difficult. But between structural problems like a lack of fiduciary duty between investors and advisors to criminal enterprises like Ponzi Schemes, the losses to investors are in the many billions.
Investors: Ask These Five Questions
We are often asked how investors can best protect themselves against unscrupulous financial advisors and toxic investments. The truth is, most investors simply don’t ask the right questions before they sign on with a broker or put their hard-earned money into the next hot complex investment product. These five questions will at least give you a measure of protection against the worse depredations of the securities industry.
Investors Awarded $1.16M for REIT Sales
In a case that points up many of the problems that have been plaguing the securities industry for years, a FINRA panel of arbitrators awarded six investors more than $1M in relief after they alleged that a financial advisor and three executives for Berthel Fisher & Co sold them unsuitable complex products.