Corporate & Securities Law

Elder Abuse And Reverse Mortgage Cited In Punitive Damages Award Against StockCross Financial Services

Posted on January 20, 2010
In a rarity, arbitrators last month cited elder abuse in tripling the damages a discount-securities firm must pay to a 95-year-old client. A FINRA panel awarded the investor $1.6 million in a case involving StockCross Financial Services, Inc. of Beverly...

Securities Regulator Urges Caution Relating To The Sale Of Principal-Protected Notes

Posted on January 15, 2010
As investors clamor for investments with growth potential and some degree of safety, the retail market for principal-protected notes ("PPN"s) has increased. However, FINRA (the Financial Industry Regulatory Authority) is concerned that investors mistakenly may believe that these investment products...

SNSFE Investigates Brokerage Firm Entities That Referred Investors To Florida-Based Hedge Fund Frauds (Valhalla Investment Partners, Viking IRA Fund And Viking Fund)

Posted on January 15, 2010
SNSFE attorneys are investigating those brokerage firm entities that would have referred investors to a father-son investment adviser team in Florida now admitting to a massive hedge fund fraud. The SEC has charged two Sarasota, Florida-based investment advisers with securities...

SNSFE Investigates Brokerage Firm Entities That Referred Investors To Florida-Based Hedge Fund Frauds (Valhalla Investment Partners, Viking IRA Fund And Viking Fund)

Posted on January 15, 2010
SNSFE attorneys are investigating those brokerage firm entities that would have referred investors to a father-son investment adviser team in Florida now admitting to a massive hedge fund fraud. The SEC has charged two Sarasota, Florida-based investment advisers with securities...

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Securities Regulator Urges Caution Relating To The Sale Of Principal-Protected Notes

Posted on January 15, 2010
As investors clamor for investments with growth potential and some degree of safety, the retail market for principal-protected notes ("PPN"s) has increased. However, FINRA (the Financial Industry Regulatory Authority) is concerned that investors mistakenly may believe that these investment products...

Investigation Of Loan-to-Own Schemes Launched Following $24 Billion Class Action Against Credit Suisse Relating To Four Prominent Resorts

Posted on January 11, 2010
We are investigating so-called loan-to-own schemes following news that Credit Suisse is accused of defrauding investors in four resorts. Investors at four high-end resorts have filed a $24 billion class-action lawsuit against Credit Suisse and the real estate services company...

Investigation Of Loan-to-Own Schemes Launched Following $24 Billion Class Action Against Credit Suisse Relating To Four Prominent Resorts

Posted on January 11, 2010
We are investigating so-called loan-to-own schemes following news that Credit Suisse is accused of defrauding investors in four resorts. Investors at four high-end resorts have filed a $24 billion class-action lawsuit against Credit Suisse and the real estate services company...

Merrill Lynch Thwarted In Its Efforts To Sue Reps In State Courts To Collect On Promissory Notes

Posted on January 08, 2010
A judge in New York ruled last week that Merrill Lynch & Co. must go to arbitration to pursue a broker for an unpaid promissory note. New York State Supreme Court Judge Bernard Fried rejected the argument by the issuer...

Merrill Lynch Thwarted In Its Efforts To Sue Reps In State Courts To Collect On Promissory Notes

Posted on January 07, 2010
A judge in New York ruled last week that Merrill Lynch & Co. must go to arbitration to pursue a broker for an unpaid promissory note. New York State Supreme Court Judge Bernard Fried rejected the argument by the issuer...

SEC Sends Message That Branch Managers Must Be Vigilant To Protect Investors

Posted on December 30, 2009
A recent enforcement action by the Securities and Exchange Commission (SEC) clearly sends the message that branch managers at financial services firms must be vigilant in supervising their financial advisers in order to protect investors. A branch manager who fails...

SEC Approves Stronger Safeguards To Protect Clients' Assets Controlled By Investment Advisers

Posted on December 23, 2009
The SEC has adopted rules designed to substantially increase the protections for investors who turn their money and securities over to an investment adviser registered with the SEC. The new rules provide safeguards where there is a heightened potential for...

FINRA To Get Tough On Reg D - Private Placement - Offerings Following Investor Complaints

Posted on December 17, 2009
According to InvestmentNews, FINRA is expected to get tough on Reg D offerings. FINRA, the Financial Industry Regulatory Authority, expects to bring cases against brokerage firms involved in selling private-placement offerings next year, its head of enforcement said last week...

FINRA To Get Tough On Reg D - Private Placement - Offerings Following Investor Complaints

Posted on December 17, 2009
According to InvestmentNews, FINRA is expected to get tough on Reg D offerings. FINRA, the Financial Industry Regulatory Authority, expects to bring cases against brokerage firms involved in selling private-placement offerings next year, its head of enforcement said last week...

Securities Regulator Provides Guidance As To Managing Investment Risk

Posted on December 11, 2009
FINRA (the Financial Industry Regulatory Authority) recently published, "Managing Investment Risk" as guidance for investors. It contains helpful advice. Let's overview the key advice contained in the publication. The publication begins with the simple notion that all investors, except those...

Brookstreet Securities Corp And Stanley Brooks Charged With Defrauding Customers In Sales Of Risky Mortgage-Backed Securities (CMOs)

Posted on December 09, 2009
The Securities and Exchange Commission has charged Brookstreet Securities, its President and CEO Stanley Brooks with fraud for systematically selling risky mortgage-backed securities to customers with conservative investment goals. The fraud cost many Brookstreet investors their savings, homes, or retirement...

Brookstreet Securities Corp And Stanley Brooks Charged With Defrauding Customers In Sales Of Risky Mortgage-Backed Securities (CMOs)

Posted on December 09, 2009
The Securities and Exchange Commission has charged Brookstreet Securities, its President and CEO Stanley Brooks with fraud for systematically selling risky mortgage-backed securities to customers with conservative investment goals. The fraud cost many Brookstreet investors their savings, homes, or retirement...

Oppenheimer Pays $20 Million To Settle 529 Plan Lawsuit Over Oppenheimer Core Bond Fund

Posted on November 24, 2009
OppenheimerFunds has reached a $20 million settlement on a lawsuit over heavy losses in Oregon's 529 college savings plan. The New York-based fund company announced the agreement in principle to settle the lawsuit brought by Oregon. The settlement will divide...

Oppenheimer Pays $20 Million To Settle 529 Plan Lawsuit Over Oppenheimer Core Bond Fund

Posted on November 24, 2009
OppenheimerFunds has reached a $20 million settlement on a lawsuit over heavy losses in Oregon's 529 college savings plan. The New York-based fund company announced the agreement in principle to settle the lawsuit brought by Oregon. The settlement will divide...

Advisers Urged To Seek Legal Counsel To Negotiate Protections Associated With The Current 330% Trailing 12 Recruiting Packages Offered By Merrill Lynch And Morgan Stanley Smith Barney

Posted on November 20, 2009
As wirehouses fight to keep brokers from moving to the independent channels, warring wirehouses are adding fuel to the fire. Morgan Stanley Smith Barney LLC and Merrill Lynch are going toe-to-toe by offering top reps a recruiting package of up...

SNSFE Investigates John Leonard, High Net Worth Strategies And Workman Securities Corp.

Posted on November 18, 2009
Lawyers at SNSFE have commenced an investigation into the activities of John M. Leonard who has done business as High Net Worth Securities located in Illinois and Florida. Mr. Leonard formerly was associated with Workman Securities Corp. Specifically, SNSFE is...

SNSFE Investigates John Leonard, High Net Worth Strategies And Workman Securities Corp.

Posted on November 18, 2009
Lawyers at SNSFE have commenced an investigation into the activities of John M. Leonard who has done business as High Net Worth Securities located in Illinois and Florida. Mr. Leonard formerly was associated with Workman Securities Corp. Specifically, SNSFE is...

SEC Chairman's Speech Highlights Key Securities Initiatives And Reforms

Posted on November 12, 2009
SEC Chairman Mary Schapiro's recent speech to the securities industry, entitled, "The Road to Investor Confidence," certainly was not designed to win over friends from Wall Street. Prefacing her remarks by blaming Wall Street for the "recent crisis" (it didn't...

SEC Chairman's Speech Highlights Key Securities Initiatives And Reforms

Posted on November 12, 2009
SEC Chairman Mary Schapiro's recent speech to the securities industry, entitled, "The Road to Investor Confidence," certainly was not designed to win over friends from Wall Street. Prefacing her remarks by blaming Wall Street for the "recent crisis" (it didn't...

SNSFE Investigates 2010 Glide Path Exchange-Traded Funds (ETFs) As Well As Inverse And Leveraged ETFs For Failure To Disclose Risks

Posted on November 09, 2009
SNSFE is investigating exchange-traded funds, known as ETFs. Both the regulators and class action lawyers are paying close attention to that category of exchange-traded funds that are known as leveraged or inverse. These funds made heavy bets either on the...

FINRA Fines Scottrade $600,000 For Inadequate Surveillance System

Posted on November 06, 2009
The Financial Industry Regulatory Authority fined Scottrade $600,000 for failing to have adequate anti-money laundering procedures in place to detect and report suspicious transactions. In a statement, FINRA noted that as an online brokerage executing more than 150,000 trades daily,...

FINRA Fines Scottrade $600,000 For Inadequate Surveillance System

Posted on November 06, 2009
The Financial Industry Regulatory Authority fined Scottrade $600,000 for failing to have adequate anti-money laundering procedures in place to detect and report suspicious transactions. In a statement, FINRA noted that as an online brokerage executing more than 150,000 trades daily,...

Stifel Financial Starting RIA Custody Business

Posted on November 05, 2009
Stifel Financial Corp., which has been expanding its Stifel Nicolaus & Co. retail-brokerage business, is about to make a push into serving registered investment advisers. The firm has hired a veteran from Merrill Lynch and Pershing to run its Century...

Stifel Financial Starting RIA Custody Business

Posted on November 05, 2009
Stifel Financial Corp., which has been expanding its Stifel Nicolaus & Co. retail-brokerage business, is about to make a push into serving registered investment advisers. The firm has hired a veteran from Merrill Lynch and Pershing to run its Century...

Non-Traded REITs May Hurt Independent Broker-Dealers That Were The Biggest Sellers To Investors

Posted on October 30, 2009
The real estate boom and bust is hanging over many independent broker-dealers and their financial advisers as the market for non-traded REITs soured this year. According to an InvestmentNews article, investing largely in commercial real estate, many of the largest...

Schwab And Fidelity Cut Prices And Fees For Investment Advisers

Posted on October 30, 2009
Schwab Adviser Services is eliminating fees on a database that helps advisers sell and buy other firms, a move that's part of a broader effort to enhance its business consulting services for independents. In addition to eliminating fees tied to...

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