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 Warns about Broker Imposter Scams
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
Legislation Could End Mandatory Arbitration for Securities Disputes
On Friday a ranking Democratic member of the Senate Banking Committee, Sen. Sherrod Brown, introduced a bill aimed at ending pre-dispute arbitration agreements that have become commonplace in business-to-consumer businesses. The bill, called the Arbitration Fairness for Consumers Act, is specifically focused on student loan and credit card contracts; however, it has enormous implications for the securities industry, in which almost every brokerage contract includes a binding arbitration clause.
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.
FINRA Bans Broker Who Sold $3.5M in Woodbridge Ponzi
In order to strengthen the message that such schemes will not be tolerated, and will be punished tot he fullest extent of the law, the financial industry watchdog agency, FINRA, has begun to look at the role of individual brokers in shoring up the Woodbridge scam. After all, Woodbridge’s success, during which it swelled to a value of over $1.2 billion at its peak, relied heavily upon an extensive network of brokers and investment professionals who sold Woodbridge promissory notes to retail investors.
SEC Takes Aim at Unregistered Advisors in New Alert
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.
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.
$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.
FINRA's Suitability Standard vs the SEC's "Best Interest" Standard
Over much of last year, heated debate raged within the securities industry and among some politicians about the “best interest” standard and how it should be applied to registered financial advisors and stock brokers alike. Right now, two different standard apply to the industry. Bringing them all under one standard would unify a fractured industry and give greater clarity and increased protection to investors who may be unaware of which standard they are subject to.
How to Tell You're Getting a Sound Financial Advice
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
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.
FINRA Disciplinary Action Report - November 2018
November 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.
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.