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FINRA Regulatory Case Regarding Unsuitable Variable Annuities Trades

June 19, 2017  |   Posted by :   |   News   |   Comments Off on FINRA Regulatory Case Regarding Unsuitable Variable Annuities Trades

Former Sterne Agee Baton Rouge, LA broker James K. Cox recently submitted a letter of Acceptance, Waiver and Consent (“AWC”) to settle a regulatory investigation with FINRA. In the fall of 2014, Cox, then employed at Sterne Agee, convinced a client to switch from one variable annuity (“VA”) to another. He also had the client […]

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FINRA Complaint Against Morgan Stanley Broker After $3.5 Million Arbitration Award

June 19, 2017  |   Posted by :   |   News   |   Comments Off on FINRA Complaint Against Morgan Stanley Broker After $3.5 Million Arbitration Award

In early June, FINRA filed a regulatory complaint against former Morgan Stanley broker Kim Dee Issacson. Issacson had worked in Morgan Stanley’s Salt Lake City branch from December 2008 until February 2014. The regulatory complaint is apparently related to a customer arbitration claim filed against Issacson by Keith Melton and seven related entities in 2014 […]

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FINRA’s Cockroach Squad To Rein In Rogue Brokers

June 16, 2017  |   Posted by :   |   News   |   Comments Off on FINRA’s Cockroach Squad To Rein In Rogue Brokers

The Financial Industry Regulatory Authority or FINRA, and its President and Chief Executive Officer, Robert Cook, recently announced that FINRA is implementing various measures to rein in high-risk brokers and brokerage firms (also referred to as “rogue” brokers and firms). In fact, in recent months, there have been an interesting trend in particularly the New […]

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Sale of Unregistered Securities Thrives In Pennsylvania

June 09, 2017  |   Posted by :   |   News   |   Comments Off on Sale of Unregistered Securities Thrives In Pennsylvania

Securities regulations, and their enforcement, impede capital formation. Must be time for a cocktail party for crowd funding in Harisburg. The Pennsylvania Department of Banking and Securities Bureau of Securities recently completed an investigation and obtained a consent order against of Premier Innovations Group, Inc. , Clique Vodka Ltd. and Noah Cohen. Premier has offices […]

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New Jersey Regulators Fine David Lerner Associates

June 09, 2017  |   Posted by :   |   News   |   Comments Off on New Jersey Regulators Fine David Lerner Associates

On May 24, 2017 David Lerner Associates (“DLA”) signed a consent order with the New Jersey Bureau of Securities involving the company’s sales of non-traded REITs. DLA is a broker-dealer with offices in New York, New Jersey and Boca Raton, Florida. Since 1992, DLA has been the underwriter and sole distributor of 10 Apple non-traded REITs. […]

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FINRA TO “TERRIBLY HARMED” INVESTORS – YOU’RE OUTTA LUCK!

May 18, 2017  |   Posted by :   |   News   |   Comments Off on FINRA TO “TERRIBLY HARMED” INVESTORS – YOU’RE OUTTA LUCK!

Unfortunately, for what is a substantial percentage of claimants who win arbitration awards against their brokers and/or their brokerage firm, FINRA has declined to address an all to common situation that investors face – that of unpaid arbitration awards. Last week, FINRA’s governing board failed to significantly address the problem of unpaid arbitration awards that […]

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Securities Fraudsters: You have a friend in Pennsylvania II

February 06, 2017  |   Posted by :   |   News   |   Comments Off on Securities Fraudsters: You have a friend in Pennsylvania II

In July 2014, we wrote about the dismantling of the Pennsylvania Securities Commissioner, which was seen as an impediement to “capital formation” in the Keystone State.  We called it: Securities Fraudsters:  You have a friend in Pennsylvania. So here we go again. By way of background, each year in Pennsylvania, investors conservatively lose $3 billion as […]

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FINRA CUSTOMER CASE AWARDS – THE STORY BEHIND THE STATISTICS

January 30, 2017  |   Posted by :   |   News   |   Comments Off on FINRA CUSTOMER CASE AWARDS – THE STORY BEHIND THE STATISTICS

By: Dana N. Pescosolido Once again, the author analyzes FINRA customer arbitration awards in his unique way, and draws comparisons between 2015 and 2016.  Bottom line, customers won “something” a little less often in 2016, but won a little more money when they did.  Read on for a detailed analysis. FINRA’s published statistics are accurate […]

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FINRA Enforcement Failures Embolden Violators

November 08, 2016  |   Posted by :   |   News   |   Comments Off on FINRA Enforcement Failures Embolden Violators

As a matter of firm policy, we have always recommended that our clients cooperate with securities regulators. Since 2009, the Central Review Group, Office of Fraud Detection and Market Intelligence of the Financial Industry Regulatory Authority or FINRA “performs preliminary investigations on certain matters and analyzes regulatory filings, investor complaints and other sources of regulatory […]

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Look No Further – Bad Cases Make Bad Law

October 13, 2016  |   Posted by :   |   News   |   Comments Off on Look No Further – Bad Cases Make Bad Law

The legal adage  “bad cases make bad laws” is generally attributed to Judge Oliver Wendell Holmes, Jr., the same distinguished jurist that brought us “three generations of imbeciles are enough.”  Buck v. Bell, 274 U.S. 200 (1927). However, in fact, although the adage traces back to 1837, Holmes, in Northern Securities Co. v. United States […]

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Securities Regulators Caution Suckers to Avoid Fake Lawyers

September 28, 2016  |   Posted by :   |   News   |   Comments Off on Securities Regulators Caution Suckers to Avoid Fake Lawyers

Almost invariably, investors that fall prey to cold-calling boiler-room operations, find themselves on what best can be described as a “Suckers List.” The pitches are generally all the same: we are a Wall Street firm that specializes in certain investment research, we are formerly an “institutional” firm, but we are now offering our services to […]

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Caveat Emptor — The Problem with Class Actions

April 19, 2016  |   Posted by :   |   News   |   Comments Off on Caveat Emptor — The Problem with Class Actions

As securities lawyers generally representing investors before the Financial Industry Regulatory Authority in cases against stockbrokers and financial institutions for fraud in connection with the sale of defective securities, or defective financial advice, we always inform our clients that they need to pay special attention to any notice regarding the pendency or settlement of any […]

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FINRA Hot on the Trail of Unpaid Arbitration Awards

April 19, 2016  |   Posted by :   |   News   |   Comments Off on FINRA Hot on the Trail of Unpaid Arbitration Awards

This morning I received an e-mail from Chrystal Loyer of the FINRA Office of Dispute Resolution stating that she was from FINRA’s Case Administration Department and was checking on the status of the motion to vacate an Arbitration Award rendered by the Financial Industry Regulatory Authority in Reeve v. Sky Capital LLC and Ross Mandell […]

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Investors beware: the trillion dollar cost of investment fraud

March 03, 2016  |   Posted by :   |   News   |   Comments Off on Investors beware: the trillion dollar cost of investment fraud

The financial sector has always taken a cost benefit approach to stockbroker misconduct. Modest income producing stockbrokers may be fired or terminated after one complaint or disclosable incident. However, the pay-out to customers of the larger producers is simply the cost of doing business, and it is not uncommon to see registered representatives, with extensive […]

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Agree to Disagree: FINRA Dispute Resolution Task Force Releases Recommendations

December 16, 2015  |   Posted by :   |   News   |   Comments Off on Agree to Disagree: FINRA Dispute Resolution Task Force Releases Recommendations

In July 2014, the Financial Industry Regulatory Authority formed a Task Force composed of three claimants lawyers, five defense lawyers from the securities industry, a state securities regulator, an arbitrator, a mediator, an academic, and a representative of the Consumer Foundation of America. It appears that the Task Force was organized to enhance the efficiency, […]

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Federal Court Rules Ignorance no Excuse for Brokerage Firm

June 20, 2015  |   Posted by :   |   News   |   Comments Off on Federal Court Rules Ignorance no Excuse for Brokerage Firm

An arbitration claim by Lucy and John Mattinen against White Pacific Securites Inc. (WPS), the firm that employed a broker who misappropriated their money, has gone to arbitration after a federal court in San Francisco declined to enjoin the claim in an order issued March 19. The claim includes counts for breach of fiduciary duty, […]

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Red Sox Catcher Scores $1.2M Arbitration Award From Merrill Lynch

June 20, 2015  |   Posted by :   |   News   |   Comments Off on Red Sox Catcher Scores $1.2M Arbitration Award From Merrill Lynch

Doug Mirabelli, a former catcher for the Boston Red Sox, was awarded more than $1.2 million in arbitration against brokerage firm Merrill Lynch after claiming that the firm sank his money in inappropriate investments and made unsuitable recommendations, according to a Jan. 23 report by Reuters. On Jan. 13, an arbitration panel of the Financial […]

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FINRA Proposes a Rule on Private Placements and Submits Rule to SEC

June 20, 2015  |   Posted by :   |   News   |   Comments Off on FINRA Proposes a Rule on Private Placements and Submits Rule to SEC

Perhaps in response to large scale fraud of the kind surrounding the private placements of companies like Provident Royalties LLC, on Oct. 5, the Financial Industry Regulatory Authority, or FINRA, filed a new rule proposal with the Securities and Exchange Commission, or SEC. Proposed FINRA Rule 5123 would impose new notice and disclosure requirements on […]

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SEC Plans Fiduciary Standard for Broker-Dealers in Wake of Dodd Frank

June 20, 2015  |   Posted by :   |   News   |   Comments Off on SEC Plans Fiduciary Standard for Broker-Dealers in Wake of Dodd Frank

Retail investors lucky enough to have never had trouble with stockbrokers, or the broker-dealer firms who employ them, may not be aware that the standard of conduct for these investment professionals is below that of a fiduciary. A fiduciary is obligated to act in the best interest of the person or entity to which the […]

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