The Law of the Financial Markets from Top Securities Lawyers
Wednesday, May 1, 2024
Churning is excessive trading in a customer’s account by a broker taken in the context of the customer’s financial situation and investment objectives. While no one test is available to determine if an account has been churned, churning requires three elements, first, excessive trading, and second, control of the account […]
Even a looming scandal wouldn’t deter some of Congress’ most eager stock traders.” This article from Politico details the outrageous trading patterns of some members of Congress, who despite the STOCK Act, continue to trade in the securities of companies who are the influenced by their investigations and legislation. The […]
Compliance with securities regulations is only the beginning By Mark J. Astarita, Esq. Introduction Cold calling is a method of marketing a service or product by calling prospective clients “cold” – that is, without an introduction, to determine if the potential client has a need for, or interest in, the […]
By Mark J. Astarita, Esq. The SEC announced that it had accepted an offer of settlement from a 15 year old defendant who the Commission accused of manipulating the price of 9 different securities, generating profits of $272,000 for himself, using his custodial brokerage account. According to the SEC, the […]
Internet Promoters Enjoined by SEC The SEC has been pursuing those who illegally tout stocks on the Internet for over 20 years, but the conduct continues. The typical case ends in a series of fines, and the entry of a permanent injunction against the promoter who failed to follow the […]
By Mark J. Astarita, Esq. SEC FILES LAWSUIT AGAINST HOUSTON INTERNET STOCK PROMOTION FIRM On August 18, 2000, the SEC announced that it filed a civil complaint against an Internet company and its owners, alleging that the company distributed press releases and other communications via the Internet touting numerous OTC […]
When the Securities and Exchange Commission enacted a new procedure for financing by small corporations, known as the Small Corporate Offering Registration (SCOR), it was designed to help small corporations raise capital. In essence, it is a procedure designed by the SEC to enable smaller companies to raise capital, by […]
Sample Deferred Prosecution Agreement from the SEC Deferred Prosecution Agreements – where a wrongdoer agrees to cooperate with the government, and the government agrees not to prosecute the wrongdoer – are the stuff that television police shows are made of. We don’t see them too often in our securities defense […]
What you need to know to start an investment advisory firm. By Mark J. Astarita, Esq. Entities and individuals who provide investment advice to others are subject to regulation by federal and state regulators. Before providing any type of financial advise to anyone, prospective advisers must determine what the regulatory […]
Firms must check the site themselves – Notice to Members 00-35 By Mark J. Astarita, Esq. NASD Notice to Members 00-35 NASD Regulation Reminds Firms Of CRD Continuing Education Notification Method And Informs Firms To Review Written Supervisory Procedures NASD firms are reminded that the Web CRD no longer […]
