investment fraud

FINRA Disciplinary Action Report: July 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.

Can I Trust My Broker?

You might think you know who’s investing your hard-earned money because you meet and talk with them on the phone now and then. But how do you really know you’re dealing with a financial advisor you can trust? Or at least, one who isn’t an outright crook?

FINRA Disciplinary Action Report: June 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.

Unit Investment Trusts May Present Opportunity for Churning

At the end of the maturity period of a Unit Investment Trust, you and your financial advisor may decide to rollover the investment into a new UIT. While this is a perfectly legitimate transaction, it also opens up the opportunity for an unscrupulous broker to rollover the investment more than once — perhaps many times.

When this excessive rolling-over of a UITs is done to gain a financial advisor illegitimate fees, it’s called churning. Churning is considered a form of misconduct and may open a financial advisor up to regulatory action, fines, and disbarment from FINRA.

What Happens When Your Broker Leaves a Firm

As an investor, you may have already experienced the disorientation that comes with having your financial advisor switch from one broker-dealer to another; or to an investment advisory or insurance company. The practice is not at all common, and the reasons for such switches are by no means always a bad thing for investors. Often a high-performing broker will be poached from a smaller firm by a larger one; or an ambitious broker will move from one company to another because of the higher quality of support, compliance, and information offered at another shop. That’s all well and good — but where does it leave the investor?

FINRA Compiles List of "Bad Brokers"

As the securities industry regulator, FINRA, looks at new ways of cleaning up the brokerage business, it has zeroed in on “rogue brokers” as being responsible for a disproportionate number of infractions and instances of misconduct. FINRA has been motivating a new rule that would target a few hundred individual brokers who have checkered backgrounds by forcing firms that employ them to heighten supervision of high-risk financial professionals.

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.

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.

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.

SEC Takes Aim at Unregistered Advisors in New Alert

In a new alert, the SEC is seeking the help of investors to do background checks on new and existing brokers who may or may not be registered financial and investment advisors.

FINRA Could Learn From Jay-Z's Demand for Diversity in Arbitration

FINRA has recently faced similar criticism of the suspicious old, white, and male composition of its arbitrator pool. Specifically, of the more than 7,700 arbitrators available through FINRA, around 70% of them are male and most are white. While those numbers have been improving over the past few years thanks to efforts by FINRA toward reform, there is still a long way to go.

$1B Award by Judge in Florida-based Ponzi Scheme Litigation

In one of the largest ever investment fraud schemes in US history, a federal judge in Florida has ordered the operator of a ponzi scheme to pay $1 billion in restitution and fines. Former investors, many of whom were elderly and unsophisticated, can look forward to at least some return on their original investment in the massive ponzi scheme perpetrated by the Woodbridge Group of Companies and its former owner, Robert Shapiro.

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.

FINRA Disciplinary Action Report: December 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.

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.

What is FINRA Arbitration?

Most retail investors have never heard of FINRA, or the Financial Industry Regulatory Authority, until they’ve lost a lot of money due to broker misconduct or investment fraud. The first time they are likely to learn about the financial industry’s watchdog is when they attempt to sue their broker in a court of law and find that they can’t.

Investor Alert: Affinity Fraud

Affinity scams are frauds that rely on affinity groups in order to perpetuate themselves, hence the name. Affinity groups are groups of people, from small to very large groups, who are affiliated based on a common interest or identity. Examples of large affinity groups include religious groups and racial minorities, ethnic groups, law enforcement personnel, members of a country club, or an alumni network.