The SEC alleges that, starting in approximately 2010, Michael Scronic began to raise money from at least 42 friends and acquaintances, many of whom were from his suburban community, in order to invest in a risky options trading strategy. He allegedly lured investors by informing them that he had a long […]
Investors
SEC Files Fraud Charges Against Brokers Targeting Federal Retirees
Elder fraud is becoming a significant concern of regulators, and firms. As the older population grows, so do the issues related to them and their money. We have covered this topic before, and the SEC recently charged four former Atlanta-area brokers with fraudulently inducing federal employees to roll over holdings […]
Record SEC Award Expected for JPMorgan Whistleblowers
The SEC is expected to present the largest whistleblower award in its history – possibly $70.6 million or more to be shared by two whistleblowers in a case involving a former adviser at JPMorgan Chase – according to a SEC letter released by one of the whistleblowers. The award results […]
Not All Trial Lawyers Can Handle All Kinds Of Trials
I am a trial lawyer, a litigator, and have been at it for over 30 years. While I have represented clients at trial, in state and federal courts, most of my trial experience is in securities arbitrations, and virtually all of my work is in the securities area. The point […]
Markups, Markdowns
In recent years, markups have become a growing concern for regulators, and brokerage firm markup policies and procedures have come under increasing scrutiny from the SEC and the NASD. Essentially, a markup, or markdown, is the amount of money above (or below) the “inside” market that a broker dealer may […]
Markets React to Trump Jr. E-Mails
Major stock indexes swung lower Tuesday after President Donald Trump‘s son released an e-mail exchange that showed him setting up a meeting with a Russian lawyer to obtain damaging information about Hillary Clinton. Source: See Markets React to Donald Trump Jr. E-Mails in 6 Charts – MoneyBeat – WSJ Get […]
Bored Traders on Tinder
A Symptom of Wall Street Revenue Dip One bond trader says he’s been slipping out early to watch his kids play sports. A fund manager says his office just staged a golf retreat. A trading supervisor at another bank confides he’s swiping through a lot of profiles on Tinder, the […]
Was the Account Churned?
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 […]
Time for a Portfolio Audit?
Investment Audits – Detecting Inappropriate Investments Before They Turn To Losses Having an independent financial adviser review your investments periodically may save you thousands of dollars in the future. Sure, we know and understand that YOUR adviser is honest and hard working. Madoff’s investors undoubtedly felt the same way about […]
FINRA, States enact new rules to fight elder abuse
FINRA is following many states in pressing forward with a rule that aims to give advisers more tools to combat elder abuse, a large and growing problem that many financial professionals are struggling to address. FINRA has developed a rule that aims to better protect elderly clients and also give […]