In many cases, seniors don’t realize their investment portfolios no longer reflect the risk-tolerances and investment objectives they indicated in their broker-dealer account opening documents. On your account statements, your investor profile may not change. It may still be labeled “Conservative” or “Moderate-risk” while the actual investments or overall allocation of investments you hold are anything but conservative or moderate.
Small Investors, Big Losses
New Hampshire to LPL: Alt Investments Must Be Suitable
Beware Phony Senior-Specific Investment Professionals
The law prohibits the use of senior-specialization designations by any person who lacks certification from an accrediting organization. This law makes clear that using a phony senior-specific designation that falsely implies some financial expertise in the investment needs of our elderly investors is against the law.
Last Year, Energy Stocks Went Bust - Did Your Portfolio Go Bust With Them?
Energy securities once regarded as moderate risk can shift into high or very high risk if the natural resources or benchmarks they’re tied to swing dramatically, as did crude oil prices last year. That means that those oil and gas company stock and bonds your broker recommended or purchased prior to this year may have become unsuitable for you as the fracking boom went bust.
FINRA Disciplinary Action Report: February 2015
Financial Fraud Hurts More Than Just Your Savings
As an important recent report by the Financial Industry Regulatory Authority (FINRA) Investor Education Foundation indicates, nearly two-thirds of financial fraud victims experience severe emotional trauma and hardship.
Investor Choice for Financial Dispute Resolution
Thanks to Democratic Representative from Minnesota, Keith Ellison, “The Investor Choice Act” has been introduced to Congress. The act would ensure that mandatory arbitration agreements are prohibited under US securities laws. As investor advocates ourselves, we support your right to choose, once the facts of your dispute have emerged, the venue most advantageous to you.
FINRA Has Its Eye on These Financial Products
Last month, the Financial Industry Regulatory Authority (FINRA) published its Regulatory and Examinations Priorities Letter. While the express purpose of this letter is to advise stock brokers and compliance officers about the focus of the accreditation exams many of them will be taking in 2015, the letter also indirectly puts investors and securities professionals on notice.
Preventing Elderly Financial Abuse
Broker Conflicts of Interest Cost Investors Billions Every Year
The Chairman of Obama’s Council of Economic Advisors has ruffled some serious Wall Street feathers with the release of a recent report suggesting that Americans with 401(k) retirement accounts could be losing $8 billion to $17 billion per year due to opportunistic trading by the brokers managing their accounts.
FINRA Disciplinary Report January 2015
The Collapse of High Risk, High Yield Oil and Gas MLP Stocks
By introducing an inappropriate amount of risk into your investment portfolio through oil and gas MLP stocks (or any other publicly or privately-traded security or product, for that matter), you may be able to pursue your losses due to bad advice through the FINRA (Financial Industry Regulatory Authority, the securities industry’s self-regulating body) arbitration process.
Former Aegis Capital & Cumberland Broker Malcolm Segal Banned From FINRA
According to a recent FINRA disciplinary action report, former Aegis Capital Corp. broker Malcolm Segal has been permanently barred from FINRA for allegedly transferring client money from their investment accounts to an outside business account under Mr. Segal’s control.
The Green Firm Launches Investigation into Schorsch REITs
Ask Your Broker If They Carry Malpractice Insurance
Wall Street’s Securities-Based Lending Craze
REIT or Wrong?: American Capital Realty REITs Under Fire
The possibility of accounting irregularities have triggered an SEC inquiry into Schorsch’s flagship company, American Realty Capital Properties, because of what may be overstated earnings statements and an alleged cover-up by the company’s management. The general impression in the financial world - that Schorsch may be overextended and/or losing control of his empire - may also be a cause of the steady erosion of the valuation of his companies and funds.
FINRA NOVEMBER DISCIPLINARY REPORT
Each month and again on a quarterly basis, 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. This long list of alleged wrongdoing and misconduct reads a lot like a police blotter. 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.