blog

FINRA Disciplinary Action Report: May 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: April 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.

Debate Over Mandatory Arbitration Heats Up

The Investor Choice Act, authored by Rep. Bill Foster (D-Ill.) seeks to bar not only broker-dealers but other corporations from deploying mandatory arbitration agreements. At a recent hearing, the Act met strong opposition from industry groups such as SIFMA as well as the Chamber of Commerce. Tom Quaadman, executive vice president with the Chamber of Commerce, defended the arbitration process as a vital dispute resolution tool that helps clients and advisors alike avoid lengthy and costly litigation.

A Quick Check to Make Sure Your Broker is "Legit"

One of the hardest lessons many investors who have been taken in by a fraudulent financial professional or broker is that they might have known better. In the process of an investigation, they see that there was actually information available to them that indicated that their broker was either “rogue” or, in some cases, “barred” from practicing as a broker at all.

FINRA Disciplinary Action Report: March 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.

New FINRA Rule Could Speed Up Arbitration for Senior Investors

According to FINRA’s latest statistics, all arbitration proceedings take an average of 14.2 months to close. For cases decided by an arbitration panel, the average time is 16.5 months. For those decided “on papers” — claims with no hearings — the average is 6.5 months.

FINRA Disciplinary Action Report: February 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.

Broker-dealers May Be Responsible for Selling Away of Woodbridge

A recent judgment in FINRA arbitration for nearly a quarter of a million dollars against a broker who sold Woodbridge notes to investors has struck fear in the hearts of many firms who weren’t paying attention to their brokers over the past few years. If one firm can be held responsible for the failings of a broker, they all potentially can. And that’s a billion-dollar problem.

FINRA Disciplinary Action Report: January 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.

How to Tell You're Getting a Sound Financial Advice

Here are two things to think about when considering the quality of your financial advisor. These will give you a quick and dirty way of figuring out just how sound your financial base is, and whether you might want to consider other options.

Investor Group Demands Victims Fund for When Brokers Don't Pay

As investor advocacy group, the Public Investors Arbitration Bar Association (PIABA), announced this week, FINRA and the securities industry does not enforce payment of arbitration awards nearly. Far too many awards go unpaid, while disciplined brokers simply drop out of the industry.

As Madoff Drifts into the Mists of Memory, Big Fraud Is Coming Back

Once you're inside a Ponzi Scheme, it can look and feel a lot like a normal investment opportunity, especially if the scheme operator is adept at creating false investment documentation. The key is not to get draw into a Ponzi Scheme in the first place. The most common signs of these frauds are evident from the beginning - that's when you have the greatest chance of identifying them.

Ex-Wells Fargo Broker Stole $1M from Elderly Clients

According to recent information released by the securities industry watchdog, FINRA (Financial Industry Regulatory Authority), over his long 35 year career with major brokerage houses including Stifel and most recently Wells Fargo, former Certified Financial Planner John Gregory Schmidt formed close personal relationships with elderly and infirm clients in order to win their trust and steal their money.

Hedge Fund Ponzi Busted

According to the Massachusetts Depart of Justice, Raymond Montoya ran his Ponzi scheme for almost a decade under the auspices of a fund called RMA Strategic Opportunity Fund, LLC. Over the years, investors transferred millions of dollars to Montoya on the promise that he would invest the money in stocks and bonds.

Ponzi Schemer Paid for Prayers - SEC Probe

An investment advisor charged by the Securities and Exchange Commission with running a multi-million dollar Ponzi scheme spent close to a million dollars on prayers from Hindu priests in order to keep the feds at bay. In spite of her prayers, however, Dawn Bennett was convicted by the federal government of defrauding more than 200 investors of nearly $18 million over the past several years.

Ponzi-scheme Operator Sentenced to 30 years in Prison

According to the US Attorney’s office in Arizona, a group operating a Ponzi Scheme solicited millions of dollars in investments for various companies and projects, including real estate, recycling, and land development in Mexico. The solicitations were made through numerous seminars, magazines articles, radio broadcasts, and private offerings.

Small Investors More Vulnerable Than Ever to Wall Street Predators

In the aftermath of Enron, the Financial Crisis, and the Wolf of Wall Street, you might think that regulators who are charged with protecting small retail investors as much as the markets themselves would sharpen up the rules and regulations governing the financial industry. Unfortunately, a series of announcement recently opined about in the New York Times suggests that small investors are more, not less, vulnerable to Wall Street’s predations than they’ve ever been.

SEC Busts $350 Million Ponzi-like Scheme

The SEC (Securities Exchange Commission) announced today that it has obtained a court order to shut down a major investment operation worth approximately $345 million. According to the SEC complaint, the scheme involved more than 230 investors from the United States and was lead by Kevin B. Merrill and Cameron Jezierski.

Former Eagles Player and Goldman Sachs Banker Accused of Insider Trading

In a reversal of the typical story that grabs the headlines, former NFL linebacker Mychal Kendricks and former Goldman Sachs banker Damilare Sonoiki have been charged with insider trading over profits totally approximately $1.2 million. 

Phony Billionaire Connected to Ponzi Scheme

Financier Steve Stovanovich liked to play the big man. Over the past few years, he has pledged multimillionaire donations to the University of Chicago and institute named on his behalf. But as a recent investigation by the Chicago Maroon has revealed, Stovanovich may not possess the vast wealth he says he has.