SEC News
- SEC Charges Chicago-Area Father and Son Conducted Cherry-Picking Scheme at Investment Firm May 16, 2013FOR IMMEDIATE RELEASE2013-90 Washington, D.C., May 16, 2013 — The Securities and Exchange Commission today charged a father and son and their Chicago-area investment advisory firm with defrauding clients through a cherry-picking scheme that garnered them nearly $2 million in illicit profits, which they spent on luxury homes, vehicles, and vacations. Addition […]
- SEC Names Keith F. Higgins as Director of Division of Corporation Finance May 15, 2013FOR IMMEDIATE RELEASE2013-89 Washington, D.C., May 15, 2013 — The Securities and Exchange Commission today named Keith F. Higgins as the new director of the agency’s Division of Corporation Finance. Mr. Higgins comes to the SEC from the law firm of Ropes & Gray LLP where he is a partner in its Boston office with 30 years of experience advising public com […]
- SEC Names Lona Nallengara as Chief of Staff May 15, 2013FOR IMMEDIATE RELEASE2013-88 Washington, D.C., May 15, 2013 — The Securities and Exchange Commission today announced that Lona Nallengara has been named the agency’s chief of staff. Mr. Nallengara came to the SEC in March 2011 and served as deputy director for legal and regulatory policy in the Division of Corporation Finance until he was appointed in Decemb […]
- SEC Charges China-Based Executives in Scheme to Overstate Revenues and Divert Money for Personal Use May 15, 2013FOR IMMEDIATE RELEASE2013-87 Washington, D.C., May 15, 2013 — The Securities and Exchange Commission today charged husband-and-wife executives at a China-based company with engaging in a scheme to overstate the company’s revenues and divert proceeds from a securities offering for their personal use. Additional Materials SEC Complaint The SEC alleges that RIN […]
- SEC, FINRA Issue Investor Alert On Pension or Settlement Income Streams May 9, 2013FOR IMMEDIATE RELEASE2013-86 Washington, D.C., May 9, 2013 — The Securities and Exchange Commission and the Financial Industry Regulatory Authority (FINRA) today issued an investor alert entitled Pension or Settlement Income Streams – What You Need to Know Before Buying or Selling Them. The investor alert informs investors about the risks involved when selli […]
TAG | Stone & Youngberg
24
Stone & Youngberg, San Francisco, Fined and Censured by FINRA
Comments off · Posted by Securities Lawyer in FINRA
Stone & Youngberg LLC (CRD #795, San Francisco, California)
submitted a Letter of Acceptance, Waiver and Consent in which the firm was censured, fined $350,000 and ordered to pay $206,054.72, without interest, in restitution to customers. Without admitting or denying the findings, the firm consented to the described sanctions and to the entry of findings that it charged excessive markups on collateralized mortgage obligations securities (CMOs) transactions effected for retail customers. The findings stated that the firm failed to establish and maintain a supervisory system and procedures regarding the sale of CMOs to customers to ensure that its markups for retail trades were fair and reasonable. The group supervisor never instructed the trading supervisor, who also served as the firm’s CMO trader, how to assess the reasonableness of CMO markups. The findings also stated that as a result of these procedures, the firm performed CMO transactions with retail customers where the markup the firm assessed exceeded 4 percent of the current market price of the security. The amount of the CMO markups to these customers exceeding 4 percent was $206,054.72. These markups were excessive, in that they were not fair and reasonable when taking into account the circumstances of each trade. The findings also included that the firm failed to provide appropriate guidance regarding how to assess customer suitability for inverse floaters and failed to inform its sales force of Notice to Members (NTM) 93-73 regarding inverse floaters. Because of the firm’s lack of guidance, the firm permitted registered representatives to recommend the purchase of inverse floaters to retail customers who did not understand the risks involved, or whose investment objectives were moderate. FINRA found that the firm did not develop any of its own educational materials regarding CMOs, but purchased educational brochures on CMOs an association authored. At least one of these brochures met the informational requirements of Interpretative Material-2210-8 with respect to CMOs. Although the firm provided registered representatives with access to these brochures, each registered representative had the discretion to decide if and when to offer these brochures to their retail customers.
(FINRA Case #2009017769701)
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: www.securitieslawyer.com.
Soreide Law Group, PLLC., representing investors nationwide before FINRA the Financial Industry Regulatory Authority.
brokerage charging excessive fees · brokerage supervisory deficiencies · brokers recommending risky investments · CMO markups · collarteralized mortgage obligation securities · Collateralized Mortgage Obligations · excessive markups by brokers · excessive markups on CMOs · failure to supervise brokers · failure to supervise sale of CMOs · Financial Industry Regulatory Authority · FINRA · FINRA arbitration · finra lawyer · finra securities arbitration lawyer · fort lauderdale securities fraud lawyer · high risk investments · inadequate supervisory procedures by broker/dealers · Inverse Floaters · Lars K. Soreide · Lars K. Soreide Soreide Law Group · risky CMO investments · securities lawyer · Soreide Law Group PLLC · Stock fraud lawyer · stockbroker misconduct · Stone & Youngberg · Stone & Youngberg San Francisco Fined by FINRA · supervisory failures
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Did You Invest in FutureSelect Prime Advisor II?
Comments off · Posted by Securities Lawyer in FINRA
Recently, a FINRA arbitration panel made a monetary award in the case of Stone & Youngberg v. Kay Family Revocable Trust, No. 3:11-cv-00198 (N.D. Cal., 6/22/11), which was appealed by the defense and lost.
This case involved the challenge by a broker-dealer to a $750,000 award to a former customer, who was advised by Stone & Youngberg to invest funds in a hedge fund known as FutureSelect Prime Advisor II. According to the Court, “each of the Trust’s claims was based on the theory that Stone &Youngberg did not perform requisite due diligence before advising the Trust to invest in the Fund, which, according to the Trust, invested substantially all of its capital with Bernard Madoff….”
Attorney Lars Soreide would like you to know that if you or a family member have invested in the FutureSelect Prime Advisor II Fund with Stone & Youngberg, or another broker/dealer, call Soreide Law Group, PLLC and speak to 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 www.securitieslawyer.com.
Soreide Law Group, PLLC., representing investors nationwide before FINRA the Financial Industry Regulatory Authority.
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