Securities Lawyer Blog | Victim of Fraud?

Archive for May 2012

May/12

31

New Chief Legal Officer Named at FINRA

Comments off · Posted by Securities Lawyer in FINRA

The Financial Industry Regulatory Authority Inc. (FINRA) has recently hired Robert Colby, a former high-ranking SEC official, as the regulator’s top lawyer.

Mr. Colby is a partner in the Washington office of Davis Polk & Wardwell LLP, and will join FINRA on June 18th. as the new chief legal officer. Grant Callery, current Finra general counsel, is retiring October 1.  Mr. Colby will also be taking over responsibility for FINRA’s Regulatory Policy Group, which handles many rulemaking functions. Marc Menchel, general counsel for regulation, will be leaving June 1 to return to the private sector.

Mr. Colby is a 28-year veteran of the Securities and Exchange Commission, most recently as deputy director of the Division of Trading and Markets, which is responsible for brokerage firms and stock exchanges.

Securities Lawyer, Lars K. Soreide, of Soreide Law Group, PLLC, has represented clients nationwide. If you or a family member have sustained investment losses due to your stock broker or financial advisor’s recommendations, call for a free consultation on how to potentially recover your losses. To speak with an attorney call 888-760-6552, or visit our website at: http://www.securitieslawyer.com.

Soreide Law Group, PLLC., representing investors nationwide before FINRA the Financial Industry Regulatory Authority.

· · · · · · · · · · · ·

May/12

31

Investors Still Fearful About Municipal Bond Market Collapse

Comments off · Posted by Securities Lawyer in FINRA

The municipal bond market is nowhere near as bad as it was few years ago. That doesn’t mean the muni market is free of risks and challenges for financial advisers building bond portfolios for clients writes Jeff Benjamin in a May, 2012, article from InvestmentNews.com.

George Friedlander, managing director and chief municipal strategist with Citi Investment Research & Analysis said, ‘Investors know the market has changed and there’s a real challenge for advisers working with individual investors.”

Friedlander cautioned that the typical muni bond investors believes he or she has too much duration risk, but in fact could have too little.

Benjamin writes that Mr. Friedlander attributed the “sharp outflows” from muni bond funds over the last two years to many of the predictions that the muni market was on the brink of widespread collapse. And he acknowledged that “we do have more defaults to deal with. But not the kind of magnitude that scared people out of muni funds in 2010.”

The fear among individual investors is noted by the $347 billion worth of redemptions last year, against $295 billion in new muni bond issuance. In 2012, Friedlander is expecting issuance to reach $350 billion. However, is concerned about the level of fear among individual investors.

“Individual investor demand has been just okay, because they are resistant to the lower rates,” he said. “Whenever there’s a reduction in rates individuals go into rate shock, and that is purely an individual investor mindset because institutional investors will consider whether rates are going up — not whether or not rates used to be higher.”

Securities Lawyer, Lars K. Soreide, of Soreide Law Group, PLLC, has represented clients nationwide. If you or a family member have sustained investment losses due to your stock broker or financial advisor’s recommendations in municipal bonds, call for a free consultation on how to potentially recover your losses. To speak with an attorney call 888-760-6552, or visit our website at: http://www.securitieslawyer.com.

Soreide Law Group, PLLC., representing investors nationwide before FINRA the Financial Industry Regulatory Authority.

· · · · · · · · · · · · · · · · ·

May/12

30

Attention Vision Financial Markets Investors

Comments off · Posted by Securities Lawyer in FINRA

Soreide Law Group, PLLC,  has been contacted recently by several clients that have complained of a high level of trading activity by Vision Financial Markets.Vision Financial Markets, a futures commission merchant (FCM) and introducing broker (IB), is registered with the NFA. Vision Financial Markets  is a Futures Commission Merchant and Commodity Pool Operator with headquarters in New York City and branch offices in Chicago, Illinois and Stamford, Connecticut.  
 
In May, 2011, the National Futures Association (NFA) levied a fine of $500,000 against Vision. The decision, issued by NFA’s Business Conduct Committee, is based on a Complaint filed in May, 2011 against Vision and its president and senior vice president, Howard M. Rothman and Michael P. Doherty, respectively and a settlement offer submitted by them.Last year the committee found that Vision, Rothman and Doherty failed to diligently supervise five of Vision’s Guaranteed Introducing Brokers (GIBs): 20/20 Trading Company, Statewide FX, Inc., Vista Trading Advisors, Inc., Investors Trading Institute, and Direct Futures LLC.
 
In 2010, NFA Complaints against these GIBs included allegations of recommending trades that maximized commissions without regard for the best interest of their customers, making deceptive sales solicitations and using deceptive promotional materials.
 
Securities Lawyer, Lars K. Soreide, of Soreide Law Group, PLLC, has represented clients nationwide.
For a free consultation with an attorney, please call 888-760-6552, or visit our website at: http://www.securitieslawyer.com.

· · · · · · · · · · · · · · · · · · · · · · ·

May/12

30

The SEC Charges Miami Hedge Fund Adviser For Deceiving Investors

Comments off · Posted by Securities Lawyer in FINRA

On May 29th., 2012, the Securities and Exchange Commission (SEC) charged a Miami-based hedge fund adviser for deceiving investors about whether its executives had personally invested in a Latin America-focused hedge fund.

According to the SEC’s investigation, they found that Quantek Asset Management LLC made misrepresentations about fund managers having “skin in the game” along with investors in the $1 billion Quantek Opportunity Fund. When in fact, Quantek’s executives never invested their own money.

The SEC’s investigation also revealed that Quantek misled investors about the investment process of the funds it managed as well as certain  transactions involving its lead executive Javier Guerra and its former parent company Bulltick Capital Markets Holdings LP.

In an SEC website article, Bruce Karpati, Co-Chief of the SEC Enforcement Division’s Asset Management Unit said,“When making an investment decision, private fund investors are entitled to the unvarnished truth about material information such as management’s skin in the game or the adviser’s handling of related-party transactions. Quantek’s investors deserved better than the misleading information they received in marketing materials, side letters, and other fund documents.”

The SEC stated that Bulltick, Guerra, and former Quantek operations director Ralph Patino are charged along with Quantek in the SEC’s enforcement action. They have agreed to pay more than $3.1 million in total disgorgement and penalties to settle the charges, and Guerra and Patino agreed to securities industry bars. It was stated on the SEC’s website that Quantek, Guerra, Bulltick, and Patino all settled the charges without admitting or denying the findings. Quantek and Guerra have agreed jointly to pay more than $2.2 million in disgorgement and pre-judgment interest, and to pay financial penalties of $375,000 and $150,000 respectively. Bulltick agreed to pay a penalty of $300,000, and Patino agreed to a penalty of $50,000. Guerra consented to a five-year securities industry bar, and Patino consented to a securities industry bar of one year. Quantek and Bulltick agreed to the censures. They all consented to orders that they cease and desist from committing or causing violations of certain antifraud, compliance, and recordkeeping provisions of the Investment Advisers Act of 1940 and the Securities Act of 1933.

Securities Lawyer, Lars K. Soreide, of Soreide Law Group, PLLC, has represented clients nationwide. If you or a family member have sustained investment losses due to your stock broker or financial advisor’s recommendations, call for a free consultation on how to potentially recover your losses. To speak with an attorney call 888-760-6552, or visit our website at: http://www.securitieslawyer.com.

Soreide Law Group, PLLC., representing investors nationwide before FINRA the Financial Industry Regulatory Authority.

· · · · · · · · · · · · · · · · · · · · · · ·

May/12

30

BEFORE IT COMES TO THIS–TRY A FINRA ARBIRTRATION!

Comments off · Posted by Securities Lawyer in FINRA

A group of retirees ambushed financial advisor James Amburn, 56, outside his home in Speyer, Germany. The group attacked him and put him into the trunk of a car. “It took them quite a while because they ran out of breath,” said Amburn, who was then driven to one of their homes where he was held prisoner. They were angry because Amburn had lost approximately $3.6 million of their investments–mostly Florida real estate investments.

Amburn, a financial advisor from Digital Global Net alleges, he was chained up “like an animal,” burned with cigarettes, beaten and had two of his ribs broken with a chair leg. “I was struck. Again and again they threatened to kill me. The fear of death was indescribable. I never thought I would make it out alive,” recounted Amburn.

Amburn was held captive for four days. Amburn said he told his attackers that he could get their money back if he sold certain securities in Switzerland, but would have to send a fax to a bank. They allowed him to send a fax. Amburn wrote a message on the bottom of the paper for the bank to notify the police.

The Swiss bank telephoned German police and rescued Amburn. The retirees, ranging in age from 61 to 80, now face charges of kidnapping, torture, and grievous bodily harm. These charges carry a maximum penalty of 15 years in prision. When the arrest took place, a physician had to be on hand to help his captors into police vans because of their various physical conditions.

Securities Lawyer, Lars K. Soreide, of Soreide Law Group, PLLC, has represented clients nationwide. If you or a family member have sustained investment losses due to your stock broker or financial advisor’s recommendations, call for a free consultation on how to potentially recover your losses. To speak with an attorney call 888-760-6552, or visit our website at: http://www.securitieslawyer.com.

Soreide Law Group, PLLC., representing investors nationwide before FINRA the Financial Industry Regulatory Authority.

 

· · · · · · · · · · · · · · · ·

May/12

29

Did You Invest With James J. Albright, Jr, of Sagepoint Financial (p/k/a AIG Financial) of Manitowoc, Wisconsin?

Comments off · Posted by Securities Lawyer in FINRA

Soreide Law Group, PLLC, and Securities Attorney Lars K. Soreide, are investigating James J. Albright, Jr., and Sagepoint Financial, Inc., previously known as AIG Financial Advisers, of Manitowoc, Wisconsin.

The alleged claims are based on Albright’s recommendations to his clients to purchase unsuitable, risky and illiquid non-traded real estate investment trusts (“REITs”). Due to the result of Albright’s alleged sales practices, his clients suffered substantial losses and cannot access their funds, which are now locked into illiquid investments.

Some of the REITs involved are: KBS, Behringer Harvard, G, NNN Healthcare Office, and Inland Western.

For years, Soreide Law Group has been cautioning our clients and readers of our blog, about the dangers of these risky REIT investments, including, but not limited to, the illiquidity, and high commissions paid to the brokers. Non-traded REITs are now being scrutinized by the securities regulators. They are watching in particular the suitability for the individual investor, asking whether the investment is suitable and how these products sold or ‘pitched’ to the customer. Non-traded REITs have declined dramatically in value over the past several years.

If you were a client of James J. Albright, Jr., of Sagepoint Financial, previously known as AIG Financial, of Manitowoc, Wisconsin, call for a free consultation on how to potentially recover your losses. To speak with an attorney call 888-760-6552, or visit our website at: http://www.securitieslawyer.com.
Soreide Law Group, PLLC., representing investors nationwide before FINRA the Financial Industry Regulatory Authority.

· · · · · · · · · · · · · · · · · · ·

May/12

29

Citigroup Global Markets Fined $3.5 Million by FINRA

Comments off · Posted by Securities Lawyer in FINRA

The Financial Industry Regulatory Authority (FINRA) published a news release on their website, May 22, 2012, announcing that it has fined Citigroup Global Markets, Inc. $3.5 million.  This fine was for ’providing inaccurate mortgage performance information, supervisory failures and other violations in connection with subprime residential mortgage-backed securitizations (RMBS).’

FINRA notes in their article that the issuers of RMBS are required to disclose historical performance information for past securitizations that contain mortgage loans similar to those in the RMBS being offered to investors. Historical data on mortgage performance is necessary to investors in assessing the value of RMBS and in determining whether future returns could be disrupted by mortgage holders’ failures to make loan payments.

The FINRA press release added that Brad Bennett, FINRA Executive Vice President and Chief of Enforcement, said, “Citigroup posted data for its RMBS deals that it should have known was inaccurate; and even after they learned that the data was inaccurate, Citigroup did not correct the problem until years later. Investors use this data to inform their decisions and in this case, for over six years, investors potentially used faulty data to assess the value of the RMBS.”

It was noted that Citigroup failed to supervise mortgage-backed securities pricing because it lacked procedures to verify the pricing of these securities and did not sufficiently document the steps taken to assess the reasonableness of traders’ prices.  Citigroup also failed to maintain required books and records. In certain instances, when it re-priced mortgage-backed securities following a margin call, Citigroup failed to maintain a record of the original margin call, document the supervisory approval or demonstrate that the revised price was applied to the same position throughout the firm. 

FINRA wrote that ‘from January 2006 to October 2007, Citigroup posted inaccurate mortgage performance data on its website, where it remained until early May 2012, even though the firm lacked a reasonable basis to believe that this data was accurate.’ Also on multiple occasions, Citigroup was informed that the information posted was inaccurate yet failed to correct this data until May 2012. For three subprime or Alt-A securitizations, the firm provided inaccurate mortgage performance data that may have affected investors’ assessment of subsequent RMBS. 

In settling this matter, FINRA writes, Citigroup neither admitted nor denied the charges, but consented to the entry of FINRA’s findings.

Securities Lawyer, Lars K. Soreide, of Soreide Law Group, PLLC, has represented clients nationwide. If you or a family member have sustained investment losses due to your stock broker or financial advisor’s recommendations, call for a free consultation on how to potentially recover your losses. To speak with an attorney call 888-760-6552, or visit our website at: http://www.securitieslawyer.com.

Soreide Law Group, PLLC., representing investors nationwide before FINRA the Financial Industry Regulatory Authority.

· · · · · · · · · · · · · · · · · · ·

May/12

25

Ponzi Scheme May Have Targeted Ft. Lauderdale’s Gay Community, Wilton Manors

Comments off · Posted by Securities Lawyer in FINRA

In a May 24th, 2012, article from Ft. Lauderdale’s Sun-Sentinel, Jon Burstein writes that an investment adviser from Ft. Lauderdale, and others, exploited trust and friendships within the Ft. Lauderdale gay community of Wilton Manors to help fuel a multimillion-dollar investment fraud, according a lawsuit brought this week by a group of investors.

There were fourteen residents of Broward County who alleged fell prey to accused Ponzi schemer George Elia. A well-known figure in Wilton Manors, Jim Ellis, and his daughter, Janet Ellis, vouched for Elia’s success as a day trader. These investors lost about $2.5 million to Elia, who is now in federal lockup facing a wire fraud charge.

According to the Sun-Sentinel article, the investors filed suit in Broward Circuit Court against Elia, Elia’s wife, the Ellises and Elia’s business, International Consultants & Investment Group Limited Corp. They are the second group of investors to sue Elia. A California family filed a $4 million lawsuit against Elia in October that led to a judge freezing his businesses’ bank accounts.

Burstein writes that Elia fled to the Mediterranean island of Cyprus, where he was born, in January and appeared to be out of the reach of U.S. authorities. But in March, he flew back to Las Vegas to find U.S. marshals waiting for him at the airport.  The SEC has also filed a civil lawsuit against him accusing him of raising more than $11 million using lies and bogus financial statements.

The Sun-Sentinel article adds that this latest lawsuit alleges the Ellises provided Elia with access to the Wilton Manors community: Jim Ellis was active in the nightlife scene and Janet Ellis worked as the property manager of Wilton Station condo development.
“Each of the plaintiffs was courted by Jim and Janet and regaled with false stories/demonstrations of a lavish lifestyle made possible by Jim and Janet’s supposed investments with Elia,” according to the lawsuit filed Tuesday.

Ellis said in a February interview that he was a victim of Elia like all the other investors.

According to the court records, Elia funneled at least $2.3 million from International Consultants bank accounts into companies controlled by him and his wife, Darlene, and withdrew at least $242,000 in cash in 2010 and 2011.

Securities Lawyer, Lars K. Soreide, of Soreide Law Group, PLLC, has represented clients nationwide. If you or a family member have sustained investment losses due to your stock broker or financial advisor’s recommendations, call for a free consultation on how to potentially recover your losses. To speak with an attorney call 888-760-6552, or visit our website at: http://www.securitieslawyer.com.

Soreide Law Group, PLLC., representing investors nationwide before FINRA the Financial Industry Regulatory Authority.

 

· · · · · · · · · · · · · · · · · · · · · · · · ·

May/12

24

What is FINRA’s BrokerCheck?

Comments off · Posted by Securities Lawyer in FINRA

Many of our clients ask about FINRA’s BrokerCheck.  Located on FINRA’s website, finra.org, BrokerCheck is defined by FINRA as “a free tool to help investors research the professional backgrounds of current and former FINRA-registered brokerage firms and brokers, as well as investment adviser firms and representatives. It should be the first resource investors turn to when choosing whether to do business or continue to do business with a particular firm or individual.” 

When using BokerCheck you can: research information about the broker and brokerages,  research information regarding investment adviser firms and the representatives, if they are available you can also get background reports online, and from BrokerCheck, you can link to other resources such as educational tools for the investor.

FINRA says that the information about brokers and brokerage firms made available through BrokerCheck is from the Central Registration Depository (CRD®), the securities industry online registration and licensing database. The information about investment adviser firms and representatives made available through BrokerCheck is from the Securities and Exchange Commission’s Investment Adviser Public Disclosure (IAPD) database.  

We encourage all investors to use this very valuable tool provided to them by the Financial Industry Regulatory Authority (FINRA). As FINRA says, it should be the first tool you use when choosing a broker, brokerage, financial advisor or an advisor firm.

(Find BrokerCheck by going to finra.org, click on the ‘industry’ link, then click on ‘BrokerCheck.’)

 Securities Lawyer, Lars K. Soreide, of Soreide Law Group, PLLC, has represented clients nationwide. If you or a family member have sustained investment losses due to your stock broker or financial advisor’s recommendations, call for a free consultation on how to potentially recover your losses. To speak with an attorney call 888-760-6552, or visit our website at: http://www.securitieslawyer.com.

Soreide Law Group, PLLC., representing investors nationwide before FINRA the Financial Industry Regulatory Authority.

· · · · · · · · · · · · · · · · · · · · · · · · ·

May/12

23

FINRA Arbitration Filed Against Douglas A. Leone and Newport Coast Securities

Comments off · Posted by Securities Lawyer in FINRA

Soreide Law Group, PLLC, is currently investigating claims against Douglas A. Leone of Newport Coast Securities, Irvine, California.  Leone was previously, according to FINRA’s Brokercheck,  located in New York. Currently, according to FINRA’s Brokercheck, Leone has 3 pending customer disputes against him and has other cases that have been settled in arbitration.  The alleged charges against him that were settled in arbitration included: misrepresentations, fraud, deceit, breach of contract, unauthorized trades, and excessive commissions, to name a few.
 
Soreide Law Group recently filed a FINRA arbitration against Newport Coast Securities and their registered representative Douglas Leone. The allegations relate to excessive trading or account churning.
 
If you were a client of Doug Leone and you feel that your account was excessively traded call for a free consultation on how to potentially recover your losses. To speak with an attorney call 888-760-6552, or visit our website at: http://www.securitieslawyer.com.
Soreide Law Group, PLLC., representing investors nationwide before FINRA the Financial Industry Regulatory Authority.

· · · · · · · · · · · · · · · · · · · · ·

Older posts >>

Find it!

Theme Design by devolux.nh2.me
To top