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Jan 24, 2017

FINRA January 2017 Disciplinary Actions

By |January 24th, 2017|Alabama, Bonds, Broker Check, Churning, Conflict of Interest, Conspiracy, Failure To Supervise, Fiduciary Duties, FINRA, FINRA News, Fraud, Georgia, Hedge, Bond & Mutual Funds, Legal Matters, Master Limited Partnership, Misappropriated Funds, Misrepresentation and Fraud, Non Traded Real Estate Investment Trust, Ponzi Scheme, Press Releases & News, Private Placements, Pump-And-Dump, REIT, SEC, Securities Law Violations, Selling Away, Suitability, Variable Annuity|

FINRA takes disciplinary actions against firms and individuals for violations of FINRA rules; federal securities laws, rules, and regulations; and the rules of the Municipal Securities Rulemaking Board. Below are a number of penalties announced by the regulator in January 2017. If you have been a victim of any of the below behavior, you may [...]

Nov 18, 2016

Oppenheimer & Co. Fined By FINRA

By |November 18th, 2016|FINRA, FINRA News, Hedge, Bond & Mutual Funds, Press Releases & News, Securities Arbitration, Securities Law Violations|

FINRA fined Oppenheimer & Co. $3.4 Million for failures in reporting internal discipline, giving information in arbitration cases, and offering sales discounts to customers. Between 2008 and 2016, the firm was on average four years late making 365 filings with FINRA, pertaining to disciplinary actions it took against its own brokers and arbitration [...]

Oct 19, 2016

Paul Lebel Barred By SEC For Churning

By |October 19th, 2016|Churning, Hedge, Bond & Mutual Funds, Press Releases & News, SEC, Securities Law Violations|

Paul Lebel, a broker formerly with LPL Financial from 2008 to 2014, was barred by the SEC for churning and excessively trading mutual funds in customer accounts and generating excess fees. According to the SEC administrative proceeding, Lebel "defrauded four customers by churning several of their accounts. In particular, Lebel exercised de facto control [...]

Jun 16, 2016

FDA Official And Hedge Fund Managers Charged In Securities Scheme

By |June 16th, 2016|Conspiracy, Fraud, Hedge, Bond & Mutual Funds, Insider Trading, Press Releases & News, SEC, Securities Law Violations, Wire Fraud|

According to federal prosecutors, two hedge fund managers--Sanjay Valvani and Christopher Plaford-- conspired with a former U.S. Food and Drug Administration official--George Johnston, who had access to insider information on the fate of generic drug candidates--to profit by committing securities fraud. While employed as Visium Asset Management hedge fund managers, Valvani and Plaford executed stock [...]

Apr 5, 2016

Ex-Broker Charged With Improper Trading

By |April 5th, 2016|Broker Check, FINRA, FINRA News, Hedge, Bond & Mutual Funds, Press Releases & News, Securities Law Violations, Suitability|

FINRA charged David Randall Lockey, a former broker, with profiting as a result of improper trading of customer accounts over a span of nearly two years. According to FINRA's complaint, Lockey “engaged in unsuitable short-term trading and switching in” mutual funds and unit investment trusts in four accounts between May 2012 and March 2014 during his time [...]

Mar 25, 2016

FINRA Panel Orders UBS To Pay For Bond Losses

By |March 25th, 2016|Bonds, Failure To Supervise, FINRA, FINRA News, Fraud, Hedge, Bond & Mutual Funds, Misrepresentation and Fraud, Press Releases & News, UBS|

A FINRA arbitration panel ordered UBS Group AG's wealth management business for the Americas to pay over $470,000 to three investors who claimed damages because their accounts were over-concentrated in Puerto Rico bonds that plummeted. The investors--Obdulio Melendez Ramos, Ramon Velez Garcia and Carlos L. Merced--filed the arbitration in 2014 and sought up to $570,243 [...]

Mar 2, 2016

UMT Headquarters Raided By Law Enforcement

By |March 2nd, 2016|Fraud, Hedge, Bond & Mutual Funds, Misrepresentation and Fraud, Press Releases & News, REIT, Securities Law Violations|

Law enforcement authorities raided the headquarters of United Mortgage Trust ("UMT") in a suburb of Dallas, Texas this month, looking for documents pertaining to management of the company. A search warrant was issued by a federal magistrate of the United States District Court for the Northern District of Texas. Particular executive offices and employees were [...]

Feb 22, 2016

Texas REIT Subpoenaed Following FBI Raid

By |February 22nd, 2016|Fraud, Hedge, Bond & Mutual Funds, Misrepresentation and Fraud, NASDAQ, Ponzi Scheme, Press Releases & News, REIT, SEC, Securities Law Violations|

Management of real estate investment trust United Development Funding IV, a hedge fund accused of operating as a Ponzi scheme, has been subpoenaed to turn over company documents to a grand jury. Last week, the FBI raided the REIT's offices outside of Dallas. While performing their search, “law enforcement officers served executive officers of the trust [...]

Feb 19, 2016

Texas REIT Offices Raided By FBI

By |February 19th, 2016|Fraud, Hedge, Bond & Mutual Funds, Misrepresentation and Fraud, Non Traded Real Estate Investment Trust, Ponzi Scheme, Press Releases & News, REIT, SEC, Securities Law Violations|

The FBI raided the office of a Texas REIT, United Development Funding IV, this week. The firm saw its stock price drop 81% in the past two months after a hedge fund alleged it was operating for years like a Ponzi scheme. “The FBI is lawfully present and conducting law enforcement activity” at the UDF [...]

Feb 11, 2016

FINRA Bars Two Advisers Following Broker Fraud

By |February 11th, 2016|FINRA, FINRA News, Fraud, Hedge, Bond & Mutual Funds, Misrepresentation and Fraud, Press Releases & News|

FINRA has barred two Buffalo, New York advisers, Timothy S. Dembskyi and Walter F. Grenda, from the securities industry for broker fraud in relation to the sale of a hedge fund, the Prestige Wealth Management Fund, LP. Dembski and Grenda's misconduct occurred while they were employed with Mid Atlantic Capital Corporation. FINRA discovered that Dembski [...]

Dec 29, 2015

FINRA Fines Barclays Capital $13.75M

By |December 29th, 2015|Failure To Supervise, FINRA, FINRA News, Hedge, Bond & Mutual Funds, Press Releases & News, Securities Law Violations, Suitability|

FINRA ordered Barclays Capital, Inc. to pay over $10 million in restitution, including interest, to affected customers for mutual fund-related suitability violations. These suitability violations relate to an array of mutual fund transactions including mutual fund switches. Further, the firm failed to provide applicable breakpoint discounts to particular customers and was censured and fined $3.75 [...]

Dec 18, 2015

Canarsie Capital Founder Pleads Guilty To Fraud, Lost $57M In Two Weeks

By |December 18th, 2015|Fraud, Hedge, Bond & Mutual Funds, Insider Trading, Misrepresentation and Fraud, Press Releases & News, SEC, Securities Law Violations|

Owen Li, founder of Canarsie Capital, managed to lose $57 million in only two weeks, leaving his investors with only $200,000 and a letter of apology. Li is now also a convicted felon after admitting that he lied to investors and regulators about his hedge fund's performance. He managed to do all of this before [...]

Dec 7, 2015

Hedge Fund Manager Who Faked Death Guilty Of Fraud

By |December 7th, 2015|Fraud, Hedge, Bond & Mutual Funds, Misrepresentation and Fraud, Press Releases & News, Securities Law Violations|

Mark Malik, a New York hedge fund manager who once feigned his own death to avoid repaying an investor, was found guilty of fraud after a two-week trial in New York state court. Malik was convicted by a jury of all 28 counts, including grand larceny and securities fraud. He will serve up to twenty [...]

Oct 28, 2015

Five More Firms To Pay $18M For Overcharges

By |October 28th, 2015|FINRA, FINRA News, Hedge, Bond & Mutual Funds, Press Releases & News|

FINRA has ordered five broker-dealers to reimburse clients a sum of $18.4 million for charging them improper fees on mutual funds. Edward Jones will pay $13.5 million, Stifel Nicolaus & Co., $2.9 million, Janney Montgomery Scott, $1.2 million, Axa Advisors, $600,000, and Stephens Inc., $150,000. FINRA found that as far back as July 2009 the mutual [...]

Sep 24, 2015

Investors Lose $11.7 Million In Risky Hedge Fund Through Lincoln Financial

By |September 24th, 2015|Failure To Supervise, FINRA, FINRA News, Hedge, Bond & Mutual Funds, Press Releases & News, Private Placements, Securities Law Violations, Suitability|

According to a FINRA Letter of Acceptance, Waiver and Consent ("AWC"), between about October 2008 and April 2009, registered representatives in two of Lincoln Financial Advisors Corporation (“LFA”) branch offices allegedly recommended that customers invest in a hedge fund offered as a sub-account to a private placement variable annuity (the ”PPVA”). The Hedge Fund engaged [...]

Sep 17, 2015

FINRA August 2015 Disciplinary Actions: Part III

By |September 17th, 2015|Failure To Disclose, Failure To Supervise, FINRA, FINRA News, Hedge, Bond & Mutual Funds, Press Releases & News, Securities Law Violations, Suitability|

Edward D. Jones & Co., L.P. of St. Louis, Missouri submitted a letter of acceptance, waiver, and consent that censured the firm and fined it $10,000. FINRA found that it failed to report the right trade execution time for transactions in TRACE-eligible securitized products to TRACE and failed to show the right execution time on [...]

Sep 2, 2015

UBS Settles Hedge Fund Suit

By |September 2nd, 2015|Asset Backed Securities, Hedge, Bond & Mutual Funds, Press Releases & News, Securities Law Violations, UBS|

UBS AG avoided going to trial today by mere hours by agreeing to settle a lawsuit in which it was alleged to have peddled "crap" and "vomit" securities during the financial crisis of 2007. Connecticut hedge fund Pursuit Partners claimed that UBS sold it asset-backed securities and failed to disclose that they were about to [...]

Aug 20, 2015

Hedge Fund Manager Acquitted Of Inside Trading

By |August 20th, 2015|Atlanta, Georgia, Hedge, Bond & Mutual Funds, Insider Trading, Press Releases & News, Securities Law Violations|

A federal jury in Atlanta acquitted Steven E. Slawson, a New Jersey hedge fund manager, who had allegedly made illicit profits from sneak previews of financial results of Carter's Inc., an Atlanta-based clothier, before they were released. He was acquitted of thirty-four counts of insider trading. “This case was another example of the government overreaching [...]

Aug 18, 2015

RIA Fined $2.8M And Owner Barred From Securities Industry

By |August 18th, 2015|Conflict of Interest, Fraud, Hedge, Bond & Mutual Funds, Misrepresentation and Fraud, Ponzi Scheme, Press Releases & News, SEC, Securities Law Violations|

The SEC has fined a former registered investment adviser $2.8 million and barred its owner, Jacob Cooper, from the securities industry. Cooper, who is known as a "Main Street Madoff" by his ex-clients, is alleged to have defrauded investors by using a kickback scheme that caused about $44 million in losses. The owner of San Diego's [...]

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