Labor & Employment Law

SEC launches Proxy Matters - a web page for Investor Investor Education

Posted on February 22, 2010
As an investor, do you fully understand the power and meaning of your proxy in corporate elections? The Securities and Exchange Commission is taking steps to educate investors on proxy voting and support greater investor participation in corporate elections...

Boca Raton resident sentenced in Securities Fraud and Mortgage Fraud Scheme

Posted on February 15, 2010
Boca Raton resident, Donald Platten, was sentenced to 262 months in prison, to be followed by 3 years? of supervised release for securities fraud, mortgage fraud, and tax fraud, according to the Justice Department and Internal Revenue Service (IRS). Restitution for the victims have not yet been determined by the Court...

State Street Bank agrees to settle investor fraud charges for additional $300 million

Posted on February 06, 2010
The Boston-based State Street Bank and Trust Company was charged by the Securities and Exchange Commission with misleading its investors about their exposure to subprime investments while selectively disclosing more complete information to specific investors...

Securities Fraud complaint filed against Securities America

Posted on February 01, 2010
Last week, the Massachusetts Securities Division?s Enforcement Section filed a complaint against Securities America, Inc. (Securities America) claiming that the company omitted information and mislead investors. In the complaint, Massachusetts claims that Securities America violated a state securities act in connection with the sale of millions of dollars worth of Medical Notes to investors...

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SEC adopts new rule set for money market funds; increases investor protection

Posted on January 29, 2010
The U.S. Securities and Exchange Commission (SEC) is taking proactive measures to increase investor protection through strengthening regulatory requirements. This rule new change is expected to significantly increase the governing structure of money market funds, thus adding substantial protection to investors...

Disbarred lawyer Scott Rothstein Pleads guilty to 1.2 Billion Ponzi Scheme in South Florida

Posted on January 28, 2010
Disbarred lawyer, Scott Rothstein admitted to masterminding a Ponzi scheme that defrauded investors of $1.2 billion. In a Ft. Lauderdale courtroom, Rothstein pleaded guilty to five federal charges, including wire fraud, money laundering, and racketeering...

Ex-CEO of military contracting firm accused of defrauding company nearly $200 million

Posted on January 28, 2010
David Brooks, a founder and ex-chief executive officer of DHB Industries (DHB), a contracting company for the U.S. military and other agencies, is accused of looting the company of $185 million. According to a federal prosecutor, Mr. Brooks allegedly used the looted money to fund ?lavish? personal expenditures...

Seven Wall Street Professionals and Attorneys are indicted for Insider Trading

Posted on January 23, 2010
The Department of Justice and the US Attorney for the Southern District of New York announced that seven Wall Street professionals and attorneys were indicted on Friday for insider trading at hedge funds and stock trading firms. The defendants included Zvi Goffer, Arthur Cutillo, Jason Goldfarb, Craig Drimal, Emanuel Goffer, Michael Kimelman and David Plate...

Happy New Year - 2010

Posted on January 01, 2010
Happy New Year! Today marks the first day of 2010. It marks the beginning of a fresh new start. Please enjoy a few important highlights from the Securities and Exchange Commission: The SEC has approved stronger safeguards to Protect Clients? Assets Controlled by Investment Advisers The new rules provide safeguards where there is a heightened potential for fraud or theft of client assets...

Former Chairman found guilty on securities fraud charges for $8.6 billion fraud

Posted on November 20, 2009
Former McKesson executive, Charles McCall can now join the Bernie Madoff Club. Yesterday he was found guilty of investment fraud that cost investors $8.6 billion. McCall is a former Chairman of the McKesson Corp. A San Francisco jury found him guilty of securities fraud and violating accounting rules...

ormer Chairman found guilty in $8.6 billion fraud

Posted on November 20, 2009
Former McKesson executive, Charles McCall can now join the Bernie Madoff Club for Investment fraud. Yesterday he was found guilty of fraud that cost investors $8.6 billion. McCall is a former Chairman of the McKesson Corp. A San Francisco jury found him guilty of securities fraud and violating accounting rules...

Financial Services Divsion - Investment Fraud Seminar a Success

Posted on November 20, 2009
I am pleased to announce that yesterday our Investment Fraud Seminar in West Palm Beach was a huge success. It was held in the beautiful Phillips Point Club. The beautiful intracoastal was a great backdrop for this well attended Seminar. The 4 hour seminar, Investing in a Post Madoff Environment: Financial Fraud: How it's accomplished, how to detect it, and how to recover from it was attended by over 100 people from South Florida...

Investing in a Post Madoff Environment: Financial Fraud Seminar for Industry Professionals

Posted on November 18, 2009
In an effort to educate industry professionals on how to fight financial fraud, The Financial Services Division of LaBovick & LaBovick, P.A. is holding a Financial Fraud Seminar in conjunction with the Daily Business Review on the very relevant subject: Investing in a Post Madoff Environment: Financial Fraud: How it's accomplished, how to detect it, and how to recover from it...

Florida Investor Protection Act takes center stage against Securities Fraud

Posted on November 18, 2009
Not a minute too soon, Florida Governor Charlie Crist, signed the Florida Investor Protection Plan, Florida House Bill 483, into law, effective July 1, 2009. As we mentioned in a previous post on The Law Planet Blog, this was a new day for Florida investors...

If your gold is rusting, you?ve got a problem

Posted on November 03, 2009
As readers of this blog know, my sister is a bankruptcy lawyer. She was recently appointed the trustee of a bankrupt jeweler who appears to have been selling gold bars to customers. Or at least they thought they were buying gold bars. She had a conversation with a customer of the jeweler who told her how glad he was that he was not ripped off...

Wamu Investment fraud case moves forward

Posted on October 30, 2009
Earlier this week, Seattle Federal District Court Judge Marsha Pechman, ruled that the case against several former Washington Mutual executives and Deloitte & Touche could move forward. She dismissed some of the claims, however, denied defense requests to dismiss any defendants...

SEC Enforcement Division needs to make massive changes according to Office of Inspector General Report

Posted on October 02, 2009
According to a recent report issued by the Office of the Inspector General (OIG), the Securities and Exchange Commission?s (SEC) enforcement division needs to improve its processes and procedures for investigating and managing the fight against securities fraud...

Lowes Home Improvement settles overtime class action suit for nearly $30 million

Posted on September 29, 2009
The world's second largest home improvement retailer, Lowes Home Improvement, will see ?off the clock? in an entirely new light, after the recent, class action lawsuit settlement of $29.5 million. It is important to note that Lowes Home Improvement does not does not admit to any wrongdoing and believes it is in compliance with all laws and regulations...

Judge rejects SEC and BofA Settlement of $33 million for Merrill takeover

Posted on September 15, 2009
Unfortunately, yesterday was not a great day for the SEC and the Bank of America legal team. Their $33 million agreed upon settlement regarding the BofA taking over Merrill Lynch was rejected by Southern District of New York Judge Jed S. Rakoff Judge Rakoff entered strong words towards the SEC and Bank of America settelement in his 12-page order, in Securities and Exchange Commission v...

FINRA Arbitration against Ameriprise Financial Services

Posted on August 26, 2009
LaBovick & LaBovick, PA filed a FINRA arbitration against Ameriprise Financial Services, (NYSE: AMP), formerly known as American Express Financial Advisors (AEFA) for stockbroker misconduct and negligence. The claim alleges that Deborah Amilowski, Financial Advisor for Ameriprise Financial Services, failed to properly advise a Senior investor on risks associated with unsuitable products for a person of that age, at the time of the initial investment and negligence in properly identifying the beneficiary resulting in additional loss to the trust...

I love Dilbert

Posted on August 26, 2009
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Barry Kaye ? King of Life Settlements ? is under fire.

Posted on August 06, 2009
Barry Kaye, who allegedly made his fortune in the life settlement market is facing more bad news. First, he was forced to reduce his contribution to Florida Atlantic University to $5,000,000 from his planned $16,000,000. Now Investment News is reporting, that the Ohio Department of Insurance is investigating his life settlement sales in that state...

Broker using stolen identity pleads guilty

Posted on August 06, 2009
6 years ago, I handled a case against Securities America (Now Ameriprise) where the broker used a stolen identity. In fact, he used two stolen identities. The second one was a law school classmate of his, who then spent years straightening out the mess...

Allen Stanford complains about poor conditions in Jail while awaiting trial

Posted on August 04, 2009
After all of the grief that Stanford caused to investors he swindled $7 billion from, can you believe he is complaining about intolerable conditions in jail. His $500,000 bail was revoked because he was considered a flight risk by the Judge. The WSJ shared his Stanford's complaint to the Judge asking for a transfer in the article "Allen Stanford on His Life in Jail: ?Conditions Are Intolerable"...

Morgan Stanley Executive sentenced in securities fraud and kickback scandal

Posted on July 30, 2009
The FBI has announced that former key executive for Morgan Stanley, Darin Demizio, will serve 38 months imprisonment and three years of supervised release for conspiring to commit securities fraud and wire fraud and lying to the FBI. The trial took place in March before United States District Judge John Gleeson...

Former Credit Suisse Group AG broker stands trial in New York for ARS fraud

Posted on July 24, 2009
The trial for USA v Tzolov and Butler 08-370 started this week in New York's U.S. District Court for the Eastern District. The case involves two former Wall Street brokers that worked for Credit Suisse Group AG, Eric Butler and Julian Tzolov. They were charged with fraudulently dealing in subprime mortgage-backed auction rate securities (ARS) for corporate clients who specifically requested much safer investments...

DC Court of Appeals agrees and disagrees with SEC on Equity Index Annuities

Posted on July 22, 2009
As prior readers of The Law Planet Blog know, I have a strong dislike for Equity Index Annuities. I think they are lousy products and, to the extent they are sold, should be sold by someone who has proven at least a modicum of securities knowledge. Insurance salesman, without a Series 6 or 7 license, have not proven this knowledge...

PIABA proposed rule change regarding the arbitration panel makeup is too extreme

Posted on July 07, 2009
The Public Investors Arbitration Bar Association has proposed a rule directly to the SEC that would effectively eliminate the ?industry? arbitrator from the arbitration panel. The paranoia exhibited by this organization, without any true empirical basis, knows no bounds...

SEC Charges Beazer Homes Accounting Officer with fraud

Posted on July 02, 2009
The top Accounting Officer at Beazer Homes USA, Michael Rand, has been charged with fraud and misleading company auditors by the Securities and Exchange Commission. An SEC complaint filed in federal court, alleges that Michael T. Rand, Accounting Officer for Beazer Homes, deceived investors by fraudulently recorded improper accounting reserves during 2000 and 2005...

FINRA proposes changes to suitability and "know your customer" rules

Posted on July 02, 2009
As part of FINRA?s ongoing effort to consolidate and reconcile the former NASD and NYSE manuals, changes are in the works. FINRA recently filed a proposed rule change that is going to make changes to FINRA suitability rules, as we have known them, noticeably different...

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