Fiduciary Duty vs Suitability Standards

Confusion or ignorance over the professional standard of the care in the industry unfortunately leads to many investors losing many millions of dollars every year to financial advisors who are upholding one standard while investors think they are upholding another. Let us explain.

Partners Adam Green & Michael Schafle Named to Best Lawyers in America

Green & Schalfe is pleased to announce that partners Adam Green and Michael Schafle have once again been recognized by their peers for selection to the prestigious The Best Lawyers in America list. This honor is bestowed upon the top 5% of private practice attorneys nationwide, as judged by other attorneys.

Hybrid Reps Not Held to Highest Standard of Conduct - Yet.

Hybrid Reps Not Held to Highest Standard of Conduct - Yet.

According to a new study by securities industry watchdog, FINRA, the Financial Industry Regulatory Authority, the number of so-called "hybrid" brokers has exploded in recent years, now comprising 45% of all brokers. In this, the first ever snapshot of the industry's professional growth conducted by FINRA, the number of total broker-dealers has risen steadily over the past decade. Growth in hybrid reps, however, has easily outstripped growth in both of the discrete categories of broker and investment advisor.

All About Non-Traditional Index Funds

Traditional index funds track a market index - hence the name. That may be the S&P 500 or NASDAQ or a smaller segment of the market. Non-traditional index funds, on the other hands, track customized index in order to achieve greater performance than their traditional counterparts. Non-traditional funds may also use leverage, such that they return a multiple of one of these customized indexes, thus ratcheting up potential returns (and potential losses) to an even greater extent.

FINRA Disciplinary Action Report July 2018

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.

How Investors Recover Money Lost in Securities Fraud

Thousands of retail investors lose money every year due to broker misconduct or investment fraud. The amount they lose, if you consider the opportunity cost operating in many of these instances, easily runs into the several billions of dollars. In other words, the losses are staggering, and represent a huge drain on investor wealth and the smooth operating of our financial system. Incredibly, in spite of the enormous sums of money being lost by investors on an annual basis, very few of them know that they may be able to recover some of their losses from fraudsters. 

Do FINRA's Reforms Go Far Enough to Stop Bad Brokers?

FINRA has not only made it costlier for member-firms who hire bad brokers with a checkered past, but it also took over the duty of verifying that brokers provide accurate and truthful information on their employment history forms.

SEC Busts $102 Million Ponzi Scheme

According to the SEC's complaint, a group of financial managers and companies located in different regions of the country, including in New York, Florida, Texas, and Ohio, orchestrated what appears to a massive fraud to bilk unwitting investors out of millions of hard-earned dollars.

How to Run a Background Check on Your Stock Broker - The Right Way

What you may not know, however, is that there is a highly sophisticated system of record-keeping for financial industry professionals administered by the Financial Industry Regulatory Authority (FINRA), and those records are freely available to the public.

FINRA Disciplinary Actions Report: May 2018

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.

Many Investors Drowned by "Hurricane" in VIX Products

Leading up to February, all of 2017 had seen volatility and the VIX at near record low levels. All was calm. Then, suddenly, in one day the percent gain in futures swung 96 percent. The huge leap crushed short-VIX ETPs, which lost nearly all of their value. Some of those products shut down entirely.

How to Protect Yourself Against Investment Fraud: 5 Questions

What can you do, oh unsophisticated investor, to protect yourself against the attacks and traps of some of history's most dastardly fraudsters? For a start you can ask yourself the following 5 questions about investment fraud - and answer them as honestly as possible. Remember, when you're trying to protect yourself from the deception, the last thing you want to do is self-deceive!

FINRA Disciplinary Actions February 2018

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.