[Original post Feb 2011, Updated and Reposted Feb. 2021] The U.S. Attorney’s Office in Manhattan has charged a hedge fund manager with insider trading. Donald Longueuil was charged with conspiracy to commit securities and wire fraud and obstruction of justice. The obstruction charge stems from Longueuil’s middle of the night efforts to destroy computer hard […]
JPMorgan Securities Fined for Unsuitable Investments, Misconduct
JP Morgan Securities – Big Doesn’t Mean Better JPMorgan Chase is the largest bank in the United States and the 7th largest in the world. With assets of $2.86 trillion, it certainly is big. It also claims to be one of the oldest financial institutions in the country. But that doesn’t mean its brokerage arm […]
“A Tale Told By An Idiot, Full Of Sound And Fury, Signifying Nothing” – The SEC’s Handling of Chinese Investment Fraud
by Brian Mahany The title of this post, “A Tale Told By An Idiot, Full Of Sound And Fury, Signifying Nothing” is a quote by William Shakespeare. When it comes to SEC “enforcement” actions, the title is often appropriate. Without criminal sanctions and an admission of wrongdoing, most SEC actions simply look important while being […]
Cal Appeals Court Helps Bad Brokers Hide Their Record From Investors
by Brian Mahany We have long been a fan of BrokerCheck, the free web based database that allows the public to see what type of complaint and disciplinary history their broker has. To be sure, the system has some flaws but it is still a great way to perform your own due diligence on stockbrokers. […]
New Rules Good For Defrauded Brokerage Clients
by Brian Mahany On Monday, new rules are in effect for stockbrokers, rules that benefit customers. The Financial Industry Regulatory Authority, or FINRA, issued new rules in late May to enhance due diligence requirements for stockbrokers. Those rules take effect July 9th. Investment advisers have long owed a fiduciary duty to their clients. Customers of […]
REITs Hit The Skids
[Post Updated 2019] It’s no coincidence that the three top headlines in InvestmentNews Daily today all addressed the problems facing REITs. As lawyers that assist investors who were defrauded or misled by stockbrokers and investment advisors, we have heard many sad stories recently… elderly investors who were told to invest in thinly traded REITs, people […]
Unauthorized Trading – A Serious Problem
by Brian Mahany No matter how many rules and regulations, securities fraud remains a big problem. Most cases involve unsuitable investment recommendations but unauthorized trades are a close second. An unauthorized trade occurs when a stockbroker or investment adviser purchases or sells a security in your account without your permission. Because investment advisers do not […]
Zealous Legal Advocacy or Criminal Conspiracy?
[Post updated] A recent Reuters article sheds light on how Sir Allen Stanford was able to avoid detection and arrest for well over a decade. When finally arrested in 2009, Stanford was believed to have presided over one of the largest Ponzi schemes ever – $7 billion in misappropriated funds. Unlike the Madoff case where much […]
FINRA Notifies Brokers of "Heightened Supervision of Complex Products"
by Brian Mahany The Financial Industry Regulatory Authority issued a formal notice to stockbrokers earlier this week. The notice (12-03) advises of “heightened supervision” of complex financial products and echoes what we have said for years; don’t buy something if your broker can’t explain or you don’t understand it! FINRA defines a complex product as […]
What Does It Take To Become A Stockbroker? Apparently Nothing!
by Brian Mahany Most of our stockbroker fraud stories involve investment advisers failing to perform due diligence, stockbrokers making unsuitable recommendations, churning of accounts or failures to disclose conflicts of interest. Not this story. This week the SEC says Anthony Fields, along with his two “companies” Anthony Fields & Associates and Platinum Securities Brokers, simply […]