Reverse convertibles, are often called “trigger notes,” “phoenixes,” or “auto-callables.” These structured products promised high yields of 6% to 12% or more, but trigger a conversion to Apple common stock if the price falls, usually on average 15% to 20%. With Apple down more than 25% from its high of last fall in 2012, many of these instruments may already converted and have handed their investors severe losses.

The price of Apple has dropped from over $700 to below $500 per share. Brokers sold a lot of structured notes based on the price when Apple was north of $700.

Many brokers represented to their clients that the structured notes were “safe and guaranteed,” and presented it as a way to benefit from the Apple’s rise without the risk. Unfortunately, the price of Apple plummeted, the notes converted and many conservative investors looking for a safe yield ended up with a lot of falling shares of Apple’s common stock.

$241 million of structured notes tied to Apple Inc. face losses after a 27 percent drop in the stock of the world’s most valuable company eroded built-in cushions that protect investors. Banks issued 76 US notes linked to Apple stock during the seven weeks starting August 20th. when the company was valued at $650 a share or more. In total, banks issued $1.66 billion of such notes, making Apple the most popular underlying company in such high commission structured products.

If you were a conservative investor who was seeking yield and ended up with a bunch of falling Apple common stock after buying Apple-linked reverse convertibles in 2012, Soreide Law Group would like to speak with you about your potential claim. Call 888-760-6552 or visit http://www.securitieslawyer.com.

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The Securities and Exchange Commission (SEC) today, January 29th., 2013, on it’s website announced that it has charged a former managing director of Jefferies & Co., Inc. (Jefferies), a New York-based broker-dealer, with making misrepresentations and engaging in misleading conduct while he sold mortgage-backed securities (MBS) in the wake of the financial crisis.

The SEC alleges that Jesse Litvak, a senior trader on Jefferies’ MBS Desk who worked at Jefferies’ office in Stamford, Connecticut, where he bought and sold MBS from and to his customers. From 2009 to 2011, Litvak allegedly lied to, or otherwise misled, those customers about the prices that Jefferies had purchased the MBS before selling it to another customer and the amount of his firm’s compensation for arranging the trades. Litvak also misled his customer into believing that he was arranging a MBS trade between customers, when Litvak really was selling the MBS out of Jefferies’ inventory. Litvak also misled customers about how much money they were paying in compensation to Jefferies. These customers included investment funds established by the United States government in the wake of the financial crisis to help support the market for MBS as well as other investment funds, including hedge funds.

It was also noted in the article on the SEC website that according to the SEC’s complaint filed in U.S. District Court for the District of Connecticut, Litvak engaged in misconduct on over 25 trades. When Litvak offered his customers MBS, he lied to them about how much Jefferies had paid (or was paying) for the securities. On some occasions, Litvak also pretended to be actively negotiating with an outside party to buy a security that he would then re-sell to his customer. But none of these negotiations were taking place; instead, Litvak fabricated the existence of the seller and every detail about active negotiations with it. In fact, as Litvak knew, Jefferies had purchased these bonds days before and already held them in its inventory.

The SEC’s complaint charges Litvak with violating the antifraud provisions of the federal securities laws. The complaint seeks a final judgment permanently enjoining Litvak from future violations of the federal securities laws, ordering him to disgorge his ill-gotten gains plus prejudgment interest, and order him to pay civil penalties.

Securities Lawyer, Lars K. Soreide, of Soreide Law Group, represents clients nationwide before FINRA. If you or a loved one 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.

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The following information is from FINRA’s website under “Disciplinary and Other FINRA Actions, January, 2013.”

Alison Marie Janke (CRD #4409155, Registered Representative, Port Richey, Florida)

was fined $11,600, which includes the disgorgement of financial benefit received of $6,600, and suspended from association with any FINRA member in any capacity for three months.

Without admitting or denying the findings, Alison Janke consented to the described sanctions and to the entry of findings that she had participated in a private securities transaction without providing prior written notice to her member firm.

Ms.Janke referred a customer who was seeking alternative investments to a registered representative at a different firm, where the customer invested $200,000 in a real estate investment trust (REIT) through the other registered representative. Alison Janke not only referred the customer to another representative, but also attended the meeting with the customer and the other representative, and assisted with the completion of the purchase transaction.

The findings stated that a limited liability company Janke owned received a $6,600 payment in connection with the sale of the REIT.

The suspension is in effect from December 3, 2012, through March 2, 2013.
(FINRA Case #2011030660801)
This ends the information from FINRA’s website.

Securities Lawyer, Lars K. Soreide, of Soreide Law Group, PLLC, has represented clients nationwide. If you find yourself in this situation, or a similar situation with your broker or financial advisor, call for a free consultation with an attorney, 888-760-6552, or visit our website at: http://www.securitieslawyer.com.

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The following information is from FINRA’s website under “Disciplinary and Other FINRA Actions, January, 2013.”

Charles Tuttle Mason aka Chip Mason (CRD #2206257, Registered Principal, St. Pete Beach, Florida)

and Darren Duane Gibson (CRD #2311950, Registered Representative,Oceanside, California)

were each fined $5,000 and suspended from association with any FINRA member in any capacity for three months. Without admitting or denying the allegations, Mason and Gibson consented to the
described sanctions and to the entry of findings that while employed as wholesalers at their member firm, they were responsible for promoting a non-registered entity’s offerings
to retail broker-dealers, through sales presentations and providing marketing materials to registered representatives.

FINRA’s findings stated that Gibson, secured selling agreements from retail broker-dealers, who in turn raised more than $300 million from investors and earned $2,930,000 secured selling agreements from broker-dealers, who in turn raised more than $132 million from investors and earned approximately $1,500,000.

FINRA’s findings also included that Mason and Gibson assisted the retail broker-dealers with product training.

Several of the third-party due diligence reports raised concerns about the accounting of inter-offering transactions and the ability of the offerings to generate sufficient revenue from oil and gas investments. Mason and Gibson, continued to market the offerings without having adequately investigated the subject concerns and determining for themselves whether the offerings were appropriate to be recommended to investors.

Mason’s suspension is in effect from November 19, 2012, through February 18, 2013.

Gibson’s suspension is in effect from November 19, 2012, through February 18, 2013.
(FINRA Case #2011026598101) This ends the information from FINRA’s website.

Securities Lawyer, Lars K. Soreide, of Soreide Law Group, represents clients nationwide before FINRA. If you or a loved one 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.

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Soreide Law Group is currently investigation the UBS Willow Fund. This distressed debt hedge fund was formed in 2000. In October, 2012, its investors were informed that the fund would be liquidated after having sustained substantial losses. Willow Fund’s net asset value declined over $300 million.

In December, 2012, a class action lawsuit was filed against the UBS Willow Fund. The class action lawsuit may result in a recovery of some losses for UBS Willow Fund investors, however, we are investigating the liability that the brokerage firms and financial advisors potentially have for selling the UBS Willow Fund.

Securities Lawyer, Lars K. Soreide, of Soreide Law Group, who represents clients nationwide before FINRA. If you invested in the UBS Willow Fund, call for a free consultation with an attorney on how to potentially recover your losses, at 888-760-6552, or visit our website at: http://www.securitieslawyer.com.

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The Securities and Exchange Commission, also known as the ‘SEC,’ has filed 734 enforcement actions the fiscal year that ended Sept. 30, 2012. That is one less than last year’s record of 735.

The SEC’s report should remind investors that investment fraud is still a threat to investors. The SEC filed 147 enforcement actions in 2012 against investment advisors and investment companies, one more than 2011’s record number. The SEC filed 134 enforcement actions related to broker-dealers, a 19% increase over 2011.

On the positive side for investors, the SEC was able to secure more payments for the victims of the fraud. The SEC was able to secure over $3 billion in penalties and disgorgement in 2012 for wronged investors. This is an increase of 11 % over the 2011.

In 2011 and 2012, the SEC obtained orders for $5.9 billion in penalties and disgorgement for the investors who became victims of fraud.

Securities Lawyer, Lars K. Soreide, of Soreide Law Group, represents clients nationwide before FINRA. If you or a loved one 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.

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Massachusetts securities regulators sued LPL Financial, LLC, in December over sales practices of brokers regarding the REITs. Secretary of the Commonwealth, William Galvin, charged LPL Financial with a failure to supervise registered reps who sold the nontraded REITs in violation of both state limitations and the company’s rules. The Securities Division also charged LPL Financial with dishonest and unethical business practices writes Bruce Kelly in an article in InvestmentNews.com.

These charges stem from the sales of $28 million of nontraded REITs to almost 600 clients from 2006 to 2009. The Securities Division found that 569 had regulatory violations. These included sales made in violation of Massachusetts 10% concentration limits; sales made in violation of prospectus requirement; and sales made in violation of LPL compliance practices. LPL received gross commission of $1.8 million for those sales, according to the complaint.

The InvestmentNews.com article goes on to say that the largest amount of sales was for Inland American Real Estate Trust Inc., the largest nontraded REIT in the industry, with $11.2 billion in real estate assets. Massachusetts investors put at least $20.1 million in Inland American, which is currently the focus of a fact-finding investigation by the Securities and Exchange Commission. Massachusetts is seeking full restitution to clients in the state who were sold REITs allegedly in violation of state and prospectus requirements. It is also seeking an unspecified administrative fine against the firm.

LPL Financial is the largest independent broker-dealer, with more than 13,000 registered reps and advisers. Along with Ameriprise Financial Inc., it is one of the largest sellers of nontraded REITs, which are sold only through independent broker-dealers. The investments are marketed as a way to diversify an investor’s portfolio and generate income.

Nontraded REITs, which had over $10 billion in sales in 2012, have drawn attention from regulators and the market recently. Many notable REITs took hits in 2008 and 2009 during the broad downturn of the commercial real estate market. Some of the industry’s largest REITs have suffered a drop in valuations of 25% to 50%, and some REITs have also cut dividends to investors.

Securities Attorney, Lars Soreide, of Soreide Law Group, PLLC, has represented clients nationwide. If you or a family member have experienced losses through LPL Financial, LLC, call a Securities Arbitration Lawyer for a free consultation on how to potentially recover your losses. To speak with an attorney, call 888-760-6552, or visit http://www.securitieslawyer.com.
Soreide Law Group, PLLC., representing investors nationwide before FINRA the Financial Industry Regulatory Authority.

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Securities Lawyer, Lars Soreide, of Soreide Law Group, is currently investigating Gramercy Securities, Inc. This brokerage has been alleged to have placed unsophisticated investors’ money into unsuitable investments. There have been claims, for example, of a recent widow losing her entire net worth by investing in risky private placements. Some of these risky private placements were in the Inland American Real Estate Investment Trust, LaeRoc Edge Funds, and Arciterra Whitefish Opportunity Fund.

LaeRoc funds are real estate private placements. LaeRoc Partners is a real estate investment firm managing over $650 million in assets. The LaeRoc private placement was promoted by brokers as a safe or conservative investment. These representations allegedly were misleading.

Soreide Law Group, PLLC, represents clients nationwide. Call for a free consultation on how to potentially recover your private placement financial losses. To speak with an attorney call 888-760-6552, or visit our website at: http://www.securitieslawyer.com.

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Securities Attorney, Lars Soreide, of Soreide Law Group was recently quoted in an article from the Reno Gazette-Journal, written by Jaclyn O’Malley regarding former broker Gary Harrison Lane. The quote reads as follows:

“Florida securities attorney Lars Soreide said Tuesday he has represented a few clients who have recently settled with broker firms connected to Lane, that he accused of negligently superivising Lane’s activities and “selling away” investments. He said he could not give specifics because the civil cases were resolved under confidential agreements. Soreide said had the brokers properly supervised Lane, they would have uncovered the fraud.”

Soreide Law Group first brought attention to Gary Lane in the website blog entitled, “ATTENTION CLIENTS OF GARY LANE,” dated October 7, 2011. Since then, Lane was indited on federal charges. The above article from the website blog listing the award for Mr. Soreide’s clients, was dated September 5, 2011.

Gary Harrison Lane had worked for Banc of America Investment Services in Reno, Nevada, from July 1999 through October 2009 and for Merrill Lynch in Reno, Nevada, from October 2009 through March 2011, where he was terminated for the alleged improprieties. Lane allegedly targeted inexperienced investors, and the elderly. He is accused of a Ponzi scheme which had bilked his clients over $2 million.

Securities Attorney, Lars Soreide, successfully settled the claims in favor of his clients though a FINRA arbitration.

If you or a loved one experienced financial losses because of Gary Harrison Lane, call Soreide Law Group, and speak to an attorney regarding potential recovery of YOUR losses. Please call 888-760-6552 or visit us on the web at http://www.securitieslawyer.com.

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Securities Attorney, Lars Soreide, of Soreide Law Group is investigating claims on behalf of clients of Michele Kief and Wells Fargo, formerly Wachovia, who may have purchased shares of Fannie Mae and Freddie Mac preferred stock. Michele Kief is employed at Wells Fargo, Naples, Florida. According to FINRA, she has had eight customer complaints, several involving the sale of Fannie Mae or Freddie Mac preferred stock.

Securities Lawyer, Lars K. Soreide, of Soreide Law Group, represents clients nationwide before FINRA. If you or a loved one have sustained investment losses due to Michele Kief and the sale of Fannie Mae or Freddie Mac preferred stock, 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.

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