General Securities Fraud
Foresee Strategies Insurance Funds Losses
Posted by: Jeffrey B. Kaplan
August 20, 2010
Dimond Kaplan & Rothstein, P.A. has been retained by investors who have lost money in the Foresee Strategies Insurance Funds 3(c)(1) and 3(c)(7) (the "Foresee Funds").
SEC Stops $34 Million Jacksonville, Florida Ponzi Scheme
Posted by: Jeffrey B. Kaplan
June 25, 2010
On June 25, 2010, the U.S. Securities and Exchange Commission (SEC) announced that sued a Jacksonville, Florida-based government benefits consultant and obtained an asset freeze and other emergency relief against the retirement benefits consulting company that defrauded active and retired government employees and law enforcement agents nationwide.
SEC Charges Palm Beach County Investment Adviser With Running a Ponzi Scheme and Stealing Client Funds
Posted by: Jeffrey B. Kaplan
June 24, 2010
On June 22, 2010, the US. Securities and Exchange Commission (SEC) announced that it has charged a Palm Beach Gardens, Florida investment adviser and two of its principals with fraud for running a Ponzi scheme and stealing client funds. The SEC alleges that Trade-LLC, and its principals, Philip W. Milton and William Center, convinced three private investment clubs, with more than 800 members nationwide, to entrust Trade-LLC with their investment funds so that Trade-LLC could trade securities on behalf of the investment clubs using purported proprietary software trading program.
FINRA Fines Westpark Capital for Failing to Supervise Rogue Brokers
Posted by: Jefftrey B. Kaplan
June 15, 2010
In May 2010, the Financial Industry Regulatory Authority (FINRA) ordered Los Angeles-based Westpark Capital, Inc. to pay a total of $400,000 for supervisory system failures. FINRA also suspended two Westpark Capital officers for failing to supervise brokers in two Long Island, New York branch offices who churned customer accounts and made unauthorized and unsuitable trades in customer accounts. FINRA required a $100,000 fine and $300,000 in restitution to Westpark Capital's customers.
Wells Fargo Ordered To Pay $30 Million in a Lawsuit Alleging Breach of Fiduciary Duty and Consumer Fraud
Posted by: Jeffrey B. Kaplan
June 15, 2010
A Minnesota jury recently awarded more than $30 million to four plaintiffs in a securities fraud lawsuit against Wells Fargo. The lawsuit accused Wells Fargo of investing the plaintiffs' money in risky securities and failing to disclose the diminishing value of the investors' investments.
FINRA Fines Brokerage Firm Piper Jaffray $700,000 for Email Retention Violations
Posted by: Jeffrey B. Kaplan
June 11, 2010
In May 2010, the Financial Industry Regulatory Authority (FINRA) announced that it fined brokerage firm Piper Jaffray & Co. $700,000 failing to retain approximately 4.3 million emails from November 2002 through December 2008.
Merrill Lynch Stockbroker Sentenced to Prison in New York
Posted by: Jeffrey B. Kaplan
June 04, 2010
On June 3, 2010, former Bank of America Merrill Lynch stockbroker Steven Mandala was sentenced to two to six years in prison for stealing $780,000 from Merrill Lynch & Co., some of which he used to buy a $250,000 Ferrari for himself. Mandala had pleaded guilty to the charges of grand larceny and identity theft and was sentenced in New York Supreme Court to the prison term.
Merrill Lynch, Pierce, Fenner & Smith Fined $300,000
Posted by: Jeffrey B. Kaplan
June 03, 2010
FINRA has fined Merrill Lynch brokerage firm $300,000 for its misconduct associated with a New York Stock Exchange branch office examination and for other supervisory misconduct.
Wedbush Morgan Securities Fined by FINRA
Posted by: Jeffrey B. Kaplan
June 03, 2010
In May 2010, the Financial Industry Regulatory Authority (FINRA) fined Los Angeles, California-based brokerage firm Wedbush Morgan Securities Inc. $12,500 for selling municipal bonds to customers at a price that was not fair and reasonable. Wedbush Morgan also was required to make restitution to the customers in the amount of $5,986.26.
Former Merrill Lynch and Wachovia Stockbroker Suspended from Securities Industry
Posted by: Jeffrey B. Kaplan
June 03, 2010
The Financial Industry Regulatory Authority (FINRA) has suspended former Merrill Lynch and Wachovia stockbroker Henry Thomas Goode II for 60 days,beginning in April 5, 2010.
Kentucky Stockbroker Kicked Out of Securities Industry
Posted by: Jeffrey B. Kaplan
June 03, 2010
In April 2010, the Financial Industry Regulatory Authority (FINRA) barred BB&T Investment Services, Inc. stockbroker Laura Anne Potts from working for any FINRA-member brokerage firm in any capacity.
Massachusetts Stockbroker Barred from Securities Industry
Posted by: Jeffrey B. Kaplan
June 03, 2010
As one of its disciplinary actions in April 2010, the Financial Industry Regulatory Authority (FINRA) barred Marblehead, Massachusetts stockbroker Ryan Matthew Nestor from working for any FINRA-member brokerage firm in any capacity.
FINRA Bars Minnesota Stockbroker from Securities Industry
Posted by: Jeffrey B. Kaplan
June 03, 2010
In April 2010, the Financial Industry Regulatory Authority (FINRA) barred Wayzata, Minnesota stockbroker Gregory Gerard Meyer from working for any FINRA-member brokerage firm in any capacity.
FINRA Bars New Jersey Stockbroker from Securities Industry
Posted by: Jeffrey B. Kaplan
June 03, 2010
In April 2010, the Financial Industry Regulatory Authority (FINRA) barred Fair Haven, New Jersey stockbroker Maxwell Baldwin Smith from working for any FINRA-member brokerage firm in any capacity.
SEC Charges Miami Beach, Florida Businessman in $900 Million Ponzi Scheme
Posted by: Jeffrey B. Kaplan
April 21, 2010
On April 21, 2010, The Securities and Exchange Commission charged a Miami Beach, Florida-based businessman with fraud for orchestrating a $900 million offering fraud and Ponzi scheme. The SEC alleges that Nevin K. Shapiro, the founder and president of Capitol Investments USA, Inc., sold investors securities that he claimed would fund Capitol's grocery diverting business. Shapiro told investors that the securities were risk-free with rates of return as high as 26 percent annually. Instead, Shapiro was actually conducting a Ponzi scheme and illegally using investor money to pay for unrelated business ventures and fund his own lavish lifestyle.
FINRA Reminds Brokerage Firms of Their Obligations When Selling Regulation D Offerings/Private Placements
Posted by: Jeffrey B. Kaplan
April 21, 2010
On April 20, 2010, the Financial Industry Regulatory Authority ("FINRA") issued a notice to its member brokers firms reminding them, and providing guidance on, what their obligations are when they sell Regulation D offerings to investors. In its notice, FINRA reiterates that brokerage firms are obligated to conduct a reasonable investigation of the issuer and the securities before they recommend and sell securities under the Securities and Exchange Commission's Regulation D under the Securities Act of 1933.
Securities and Exchange Commission Charges Goldman Sachs with Fraud
Posted by: Jeffrey B. Kaplan
April 16, 2010
On Friday April 16, 2010, the United States Securities and Exchange Commission ("SEC") filed fraud charges against Goldman Sachs & Co. for misstating, and omitting key facts related to a synthetic collateralized debt obligation, named ABACUS, that it structured, marketed, and sold to investors. The CDO was based on subprime mortgage-backed securities.
FINRA Considers Removing Securities Industry Arbitrator
Posted by: Jeffrey B. Kaplan
April 13, 2010
The Financial Industry Regulatory Authority (FINRA) is considering eliminating the industry arbitrator from the arbitration panels that rule on disputes between customers and brokerage firms.
Seattle ING Broker Rhonda Breard Barred for Defrauding Clients and Stealing Clients? Money
Posted by: Jeffrey B. Kaplan
April 13, 2010
The Financial Industry Regulatory Authority (FINRA) permanently barred Kirkland, Washington broker Rhonda Lee Breard from the securities industry for defrauding at least 38 clients out of at least $8 million.
Securities Regulators Sue Morgan Keegan & Company and Seek to Revoke Securities Licenses
Posted by: Jeffrey B. Kaplan
April 08, 2010
Securities regulators from the states of Alabama, Mississippi, South Carolina, and Kentucky have sued Morgan Keegan & Company, Morgan Asset Management, MK Holdings, Inc., Regions Financial Corporation, and several employees from those companies for their roles in managing, marketing, and selling certain Regions Morgan Keegan bond mutual funds in violation of the states' securities laws.
Topics
Bernard L. Madoff Ponzi Scheme
DBSI Securities Fraud
FINRA Fines NEXT Financial Group
General Securities Fraud
Medical Capital Investment Fraud
North Carolina Fraud
Provident and Shale Royalties
Regions Bank - U.S. Pension Trust and U.S. College Trust
SEC Bars Investment Advisor Charles Ganz
UBS Sales of Lehman Brothers Principal Protected Notes
Recent Updates
August 20, 2010
Foresee Strategies Insurance Funds Losses
July 15, 2010
Investors Unlikely to Recover Significant Money from Medical Capital Receivership
June 25, 2010
SEC Stops $34 Million Jacksonville, Florida Ponzi Scheme
June 24, 2010
SEC Charges Palm Beach County Investment Adviser With Running a Ponzi Scheme and Stealing Client Funds
June 15, 2010
Assets Recovered by SEC Receiver for Medical Capital Fall Far Short of Investor Losses
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