Corporate & Securities Law

Former LPL Financial Broker Charged by SEC

Posted on May 24, 2013
A former adviser affiliated with LPL Financial LLC has been charged by the Securities and Exchange Commission (SEC) of defrauding investors and stealing $2 million from at least six clients. According to the civil complaint, former LPL adviser Blake Richards misappropriated client money that ?constituted retirement savings and/or life insurance proceeds from deceased spouses...

B-Ds Address Sales of Alternative Investments

Posted on May 17, 2013
Alternative investments like non-traded REITs and private placements have levied financial havoc on many investors in recent years. Now, facing pressure from regulators, some broker/dealers are making changes to how they sell these kinds of products. Earlier this year, VSR Financial Services, Berthel Fisher & Co...

Report: Senior Designations Can Confuse the Elderly

Posted on May 16, 2013
A May 7 story by NPR highlights some of the ways in which bogus financial advisers use the ?art of confusion? to siphon money from unsuspecting elder Americans. A contributing factor to this type of elder fraud is the myriad of senior designations that exist in the financial industry and the fact that it?s almost [...

B-D Accused of Allegedly Misusing Investors? Money

Posted on May 15, 2013
The Financial Industry Regulatory Authority (FINRA) has filed a complaint against Kimberly Springsteen-Abbott, owner, chief executive and head of compliance for Commonwealth Capital Securities Corp., for allegedly misusing investors? money to pay for personal expenses, including home improvements, trips, meals, holiday decorations and tools...

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Elder Investment Fraud: A Booming Business for Scam Artists

Posted on May 14, 2013
It?s become an increasingly common crime: Elder investment fraud. Every day, there are more stories about elderly individuals – many suffering from dementia – who have been taken advantage of financially by an unscrupulous family member, stranger, friend, or even an investment adviser...

Tips to Consider When Choosing a Financial Adviser

Posted on April 30, 2013
Choosing a financial adviser is a big deal. These individuals are responsible for giving you advice about how to save, invest, and grow your money. A good financial adviser can put you on the path to a solid financial future, while others may steer you in the wrong direction...

Brokers Who Gamble With Your Retirement Savings

Posted on April 26, 2013
A PBS documentary had harsh words for financial advisers, blaming them for many of the struggles facing Americans today as try to save for their retirement. In The Retirement Gamble, Frontline correspondent Martin Smith investigates what happened to retirement in America and the role that financial services companies may be playing in draining your savings [...

SEC's Gallagher Remains Steadfast to Muni ‘Armageddon’ Comment

Posted on April 24, 2013
Daniel M. Gallagher, a member of the Securities and Exchange Commission (SEC), is not backing down from recent comments regarding what he called "Armageddon risks" in the municipal bond market. "I made the comment in the context of credit risk plus interest rate risk being two major factors that maybe investors don’t fully understand," Gallagher [...

CFPB Offers Recommendations to Protect Seniors From Fraud

Posted on April 24, 2013
Senior citizens are twice as likely as younger Americans to become victims of financial fraud. According to AARP, individuals 60 years of age and older account for 15% of the U.S. population, but represent one-third of all financial fraud victims. These statistics are even more alarming given the fact that older investors often rely heavily [...

SEC's Luis Aguilar: End Mandatory Arbitration Clauses

Posted on April 24, 2013
Earlier this week, state securities regulators made an appearance on Capitol Hill in an effort to gain support among lawmakers for restricting or ending the use of mandatory arbitration clauses in client contracts with brokers. As reported April 17 by Investment News, one person who needs no convincing on the matter is Securities and Exchange [...

Sales Practices to Elderly Under FINRA's Radar

Posted on April 24, 2013
Regulators are taking a much closer look at the sales practices of brokers and firms involving high-risk investments targeting seniors. As reported April 14 by Investment News, the Financial Industry Regulatory Authority (FINRA) currently is gathering data from firms regarding the products they market to seniors, the percentage of revenue they derive from those sales [...

SEC?s Gallagher Remains Steadfast to Muni ?Armageddon? Comment

Posted on April 23, 2013
Daniel M. Gallagher, a member of the Securities and Exchange Commission (SEC), is not backing down from recent comments regarding what he called ?Armageddon risks? in the municipal bond market. ?I made the comment in the context of credit risk plus interest rate risk being two major factors that maybe investors don’t fully understand,? Gallagher [...

CFPB Offers Recommendations to Protect Seniors From Fraud

Posted on April 22, 2013
Senior citizens are twice as likely as younger Americans to become victims of financial fraud. According to AARP, individuals 60 years of age and older account for 15% of the U.S. population, but represent one-third of all financial fraud victims. These statistics are even more alarming given the fact that older investors often rely heavily [...

Sales Practices to Elderly Under FINRA?s Radar

Posted on April 18, 2013
Regulators are taking a much closer look at the sales practices of brokers and firms involving high-risk investments targeting seniors. As reported April 14 by Investment News, the Financial Industry Regulatory Authority (FINRA) currently is gathering data from firms regarding the products they market to seniors, the percentage of revenue they derive from those sales [...

SEC?s Luis Aguilar: End Mandatory Arbitration Clauses

Posted on April 18, 2013
Earlier this week, state securities regulators made an appearance on Capitol Hill in an effort to gain support among lawmakers for restricting or ending the use of mandatory arbitration clauses in client contracts with brokers. As reported April 17 by Investment News, one person who needs no convincing on the matter is Securities and Exchange [...

Battle Emerging Between Tony Thompson & REIT Board

Posted on April 17, 2013
Real estate powerhouse Tony Thompson and the independent directors of a non-traded real estate investment trust are going head to head over why the dividend of the TNP Strategic Retail Trust was cut last month and what the management of the REIT is going to be moving forward...

Wells Fargo and Medical Capital Holdings Case to Move Forward

Posted on April 17, 2013
Earlier this week, a federal judge rejected an attempt by Wells Fargo & Co. to throw out a class action lawsuit brought by investors who say the bank failed in its role as a trustee for debt issued by Medical Capital Holdings. The decision by Judge David Carter of the U...

FINRA Sides With Victim in Case of Spousal Theft From a Brokerage Account

Posted on April 17, 2013
For some ex-spouses, the marriage vow of "for richer or poorer" weighs heavily on the side of poorer. More cases are coming forth involving ex-spouses stealing from each other through a brokerage account. Recently, Maddox Hargett & Caruso, P.C...

TNP Strategic Retail Trust Halts Dividends

Posted on April 17, 2013
It seems the bad news just keeps getting worse for longtime real estate dealer Tony Thompson. Now, Thompson's non-traded REIT – the TNP Strategic Retail Trust – is cutting its dividend. In a recent filing with the Securities and Exchange Commission (SEC), the REIT cited short-term liquidity issues, including an accelerated maturity date of loans, lender [...

FINRA Fines Increase by 15% in 2012

Posted on April 17, 2013
Suitability, misrepresentation and complex investment products like structured notes, non-traded REITs, and private placements played a key role for the increase in fines and disciplinary actions brought by the Financial Industry Regulatory Authority (FINRA) against firms and brokers in 2012...

Troubles Grow for Real Estate King Tony Thompson

Posted on April 17, 2013
Failed deals in non-traded real estate investment trusts (REITs) and private placements have plagued more investors in recent years, with problems ranging from suspension of share redemptions to inaccurate valuations to outright fraud. Such issues have garnered the attention of the Financial Industry Regulatory Authority (FINRA), which is now investigating real estate developer Tony Thompson and his broker/dealer, TNP Securities [...

FINRA Fines Ameriprise, Clearing Firm For Failing to Detect Fraud

Posted on April 17, 2013
The Financial Industry Regulatory Authority (FINRA) has fined Ameriprise Financial Services and its affiliated clearinghouse firm, American Enterprise Investment Services (AEIS), $750,000 for failing to properly supervise wire-transfer requests and the transmittal of customer funds to third-party accounts...

Red Flags of Elderly Fraud: Is Your Loved One Potential Scam Bait?

Posted on April 17, 2013
Investment fraudsters are highly skilled at what they do and view people of all ages as potential targets for their crimes. The elderly, however, may be especially vulnerable to investment fraud and financial abuse because they often have nest eggs to invest, say aging experts...

Battle Emerging Between Tony Thompson & REIT Board

Posted on April 15, 2013
Real estate powerhouse Tony Thompson and the independent directors of a non-traded real estate investment trust are going head to head over why the dividend of the TNP Strategic Retail Trust was cut last month and what the management of the REIT is going to be moving forward...

Wells Fargo and Medical Capital Holdings Case to Move Forward

Posted on April 04, 2013
Earlier this week, a federal judge rejected an attempt by Wells Fargo & Co. to throw out a class action lawsuit brought by investors who say the bank failed in its role as a trustee for debt issued by Medical Capital Holdings. The decision by Judge David Carter of the U...

FINRA Sides With Victim in Case of Spousal Theft From a Brokerage Account

Posted on March 26, 2013
For some ex-spouses, the marriage vow of ?for richer or poorer? weighs heavily on the side of poorer. More cases are coming forth involving ex-spouses stealing from each other through a brokerage account. Recently, Maddox Hargett & Caruso, P.C. represented a client whose ex-husband falsified various documents and transferred funds from several Wells Fargo accounts [...

TNP Strategic Retail Trust Halts Dividends

Posted on March 20, 2013
It seems the bad news just keeps getting worse for longtime real estate dealer Tony Thompson. Now, Thompson?s non-traded REIT – the TNP Strategic Retail Trust – is cutting its dividend. In a recent filing with the Securities and Exchange Commission (SEC), the REIT cited short-term liquidity issues, including an accelerated maturity date of loans, lender [...

FINRA Fines Increase by 15% in 2012

Posted on March 19, 2013
Suitability, misrepresentation and complex investment products like structured notes, non-traded REITs, and private placements played a key role for the increase in fines and disciplinary actions brought by the Financial Industry Regulatory Authority (FINRA) against firms and brokers in 2012...

Troubles Grow for Real Estate King Tony Thompson

Posted on March 13, 2013
Failed deals in non-traded real estate investment trusts (REITs) and private placements have plagued more investors in recent years, with problems ranging from suspension of share redemptions to inaccurate valuations to outright fraud. Such issues have garnered the attention of the Financial Industry Regulatory Authority (FINRA), which is now investigating real estate developer Tony Thompson and his broker/dealer, TNP Securities [...

FINRA Fines Ameriprise, Clearing Firm For Failing to Detect Fraud

Posted on March 05, 2013
The Financial Industry Regulatory Authority (FINRA) has fined Ameriprise Financial Services and its affiliated clearinghouse firm, American Enterprise Investment Services (AEIS), $750,000 for failing to properly supervise wire-transfer requests and the transmittal of customer funds to third-party accounts...

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