Securities and Investment Fraud Law Blog

Prudential Fined For Fraud

Thu, 23 Aug 07 21:00:00 -0700

Pruco Securities, LLC (CRD #5685, Newark, New Jersey) and Prudential Investment Management Services LLC (CRD #18353, Newark, New Jersey) submitted a Letter of Acceptance, Waiver and Consent in which they were censured, fined $525,000, jointly and severally, and required to conduct an audit and prepare written findings regarding their compliance with NASD rules relating to the filing, approval and recordkeeping requirements for advertisements and sales literature...

NASAAs Testimony At Today's Arbitration Fairness Act Hearing

Wed, 26 Dec 07 22:00:00 -0700

Testimony of Tanya Solov Director, Illinois Securities Department Illinois Secretary of State On behalf of the North American Securities Administrators Association Before the United States Senate Committee on the Judiciary Constitution Subcommittee 1782, the Arbitration Fairness Act of 2007″ December 12, 2007 Chairman Feingold, Ranking Member Brownback, and Members of the Subcommittee, I am Tanya Solov, Director of the Illinois Securities Department and I am honored to convey the North American Securities Administrators Association (NASAA)1support for S...

Morgan Stanley Eastman Kodak Retiree Fraud

Sat, 19 Jan 08 22:00:00 -0700

A group of investors filed a class-action lawsuit on January 15, 2008 seeking nearly $500 million dollars in damages from Morgan Stanley, alleging their broker, Michael James Kazacos, gave them fraudulent investment advice and made false promises to Eastman Kodak retirees that never materialized...

Morgan Stanley Bond Fraud

Fri, 23 May 08 21:00:00 -0700

Last August, Wall Street firm Morgan Stanley and one of its senior traders agreed to pay $6.1 million in fines and restitution to settle allegations that the investment bank overcharged brokerage customers on 2,800 purchases of $59 million of bonds...

Busted Brokers Continue Bilking Clients At New Firms

Tue, 02 Sep 08 22:00:00 -0700

Despite intense pressure from regulators to tighten recruiting standards for brokers with marks on their records, these bad apples are still being hired by new firms, recent cases illustrate...

J.P. Turner Fined $250,000 For Failing To Supervise Commissions Charged On

Thu, 30 Oct 08 21:00:00 -0700

J.P. Turner Fined $250,000 for Failing to Supervise Commissions Charged on Stock Trades Washington, D...

Securities Fraud Investigation Against Wall Street Firms

Thu, 30 Oct 08 21:00:00 -0700

The Guiliano Law Firm Launches Securities Fraud Investigation Against Wall Street Firms Philadelphia, PA (MarketWire) November 6, 2008 –The Guiliano Law Firm, P...

You And The Law: Claims Against Your Financial Advisor? (Part 1)

Wed, 26 Nov 08 22:00:00 -0700

If your stockbroker sold you improper, excessively risky investments, or — failed to disclose the riskiness of what appeared as an otherwise conservative investment, and as a result you lost your shirt — then today’s story will be especially relevant...

You And The Law: Claims Against Your Financial Advisor? (Part 2)

Wed, 26 Nov 08 22:00:00 -0700

Last week I told you about what happened to Hal and his wife, both 67, retired, and long time readers...

Stock Broker Arbitration Claims Up 49% From 2007

Mon, 01 Dec 08 22:00:00 -0700

Stock Broker Arbitration Claims Up 49% From 2007 According to the latest figures from the Financial Industry Regulatory Authority (FINRA), through October 2008, investment arbitration claims are up 49% from 2007...

LPL Investment Holdings Broker Dealer Sued Over $150 Million Ponzi Scheme

Mon, 09 Jan 12 10:31:14 -0700

The receiver appointed to handle the fallout from one of the largest Ponzi schemes in Minnesota history has

Stockbroker Who Forged Signature Of Elderly Customer Barred From Securities Industry

Fri, 20 Jan 12 13:18:45 -0700

Former LPL Financial Corp. stockbroker Amrita Holden has been permanently barred by the

Citigroup Global Markets Fined $725,000 For Disclosure Violations

Tue, 31 Jan 12 14:15:51 -0700

Citigroup Global Markets Inc...

1st Discount Brokerage Inc. Fined By SEC For Failure To Supervise

Tue, 07 Feb 12 16:07:40 -0700

Florida-based brokerage firm 1st Discount Brokerage Inc. has been censured and fined $40,000 by the Securities and Exchange Commission (SEC) for its failure to supervise a broker who defrauded investors of nearly $9 million...

Investors At Risk For Alzheimers Or Dementia Require Special Attention

Thu, 09 Feb 12 09:41:45 -0700

Family members may want to stay informed about this aspect of their relatives’ lives, to make sure unscrupulous financial professionals do not take advantage of senior citizens who are cognitively impaired...

Former Wells Fargo Broker Fined For Altering IPO Forms Without Authorization

Mon, 13 Feb 12 14:45:56 -0700

A former stockbroker for Wells Fargo Advisors LLC has been fined $5,000 and suspended from the financial industry for six months for changing dates and account numbers on forms without customers' permission...

SEC Charges Investment Adviser With Misappropriating Funds To Pay For Previous SEC Settlement

Fri, 17 Feb 12 10:48:58 -0700

In a striking example of the ineffectiveness that can plague securities regulation, investment adviser Robert Pinkas allegedly misappropriated $800,000 from a client to pay for disgorgement and costs resulting from a previous case brought against him by the Securities and Exchange Commission (SEC)...

Securities Broker Barred By FINRA After Pocketing Customer's $10K

Wed, 22 Feb 12 07:52:15 -0700

Philip Eckstein, a former MetLife Securities Inc. broker, was permanently barred from association with any members of the Financial lndustry Regulatory Authority (FINRA) after he converted $10,000 of an elderly customer's money to his own use...

Stockbroker Faces Discipline For Unsuitable Trading And Switching In Vulnerable Customers' Accounts

Wed, 22 Feb 12 12:01:16 -0700

Clyde M. Thornburg, a former stockbroker with NEXT Financial Group Inc., was charged earlier this month with unsuitable short-term trading and switching in the accounts of elderly and unsophisticated investors...

Broker Dealer Stone & Youngberg Fined $350,000 For Excessive Markups On CMOs

Fri, 24 Feb 12 17:03:45 -0700

Broker-dealer Stone & Youngberg has been fined $350,000 and censured by the Financial Industry Regulatory Authority (FINRA) for charging excessive markups on trades of collateralized mortgage obligation securities (CMOs) for retail customers...

Stockbroker Fined $10,000 For Trading In Account Of Deceased Customer

Mon, 27 Feb 12 15:04:30 -0700

Evidently, it slipped the mind of one New York stockbroker that dead men can't trade...

On Fraud Spree, Broker Lies To Firms, Customers And Regulators

Wed, 29 Feb 12 12:49:51 -0700

Over five years, former broker James Scott McKee defrauded the customers of the brokerage firms where he worked out of nearly $1 million, using lies and omissions to induce them to invest in various real estate ventures in which he had a direct or indirect financial interest, according to a

Broker Sanctioned For Selling Securities Without Firm's Permission Or Proper License

Fri, 23 Mar 12 12:21:28 -0700

Jimmy Wayne Freeman, a broker with Texas-based PlanMember Securities Corp., was ordered by the Texas Securities Board to pay more than $500,000 in restitution to investors after he sold them securities issued by an outside firm without his firm's permission and without holding the appropriate securities license...

FINRA Issues Alert To Educate Investors On Brokerage Account Statements

Mon, 26 Mar 12 15:11:42 -0700

Last month, the Financial Industry Regulatory Authority (FINRA) issued an

Raymond James Fined $400,000 For Failure To Supervise

Fri, 13 Apr 12 07:09:43 -0700

Raymond James Financial Services Inc. has agreed to pay a $400,000 fine to settle allegations that it failed to supervise a customer who used accounts he had with the firm to operate a multi-million-dollar Ponzi scheme...

Broker Who Misappropriated Funds Barred From Financial Industry

Fri, 13 Apr 12 11:52:33 -0700

Former broker Timothy David Cochrane has been permanently barred from the financial industry as part of a settlement of an action against him for misappropriating $600,000 in customer funds...

AXA Advisors Fined $50K For Failure To Supervise Thieving Broker

Thu, 19 Apr 12 09:23:43 -0700

AXA Advisors LLC has been fined $50,000 by the Financial Industry Regulatory Authority (FINRA) and censured for its failure to supervise a broker who misappropriated $122,000 from the money market account of a customer, 70 percent of the account's value...

Former First Allied Broker Fined For Outside Business Activities

Fri, 20 Apr 12 17:41:23 -0700

Thomas R. Fortino, a former broker with First Allied Securities Inc., was fined and suspended by the

UBS Financial Services Fined For Shoddy Supervision Of ETF Sales

Fri, 04 May 12 11:00:25 -0700

UBS Financial Services Inc. has agreed to pay a $1.5 million fine after the Financial Industry Regulatory Authority (FINRA) charged the firm with failure to supervise the sale of complex financial products known as non-traditional exchange-traded funds, as well as for making unsuitable recommendations of these funds...

Former Edward Jones Broker Suspended For Unauthorized Trading

Wed, 09 May 12 12:43:58 -0700

Scott B. Hostutler, formerly a broker with Edward Jones, was suspended for 10 days by the Financial Industry Regulatory Authority (FINRA) for trading in a customer's account without authorization...

Merrimac Found Liable For Willful Violations Of Securities Laws

Fri, 11 May 12 16:55:27 -0700

After a hearing panel of the Financial Industry Regulatory Authority (