Less than 24 hours ago we wrote a story about securities fraud and the need for brokerage firms to protect clients against advisers who rip off clients by “selling away.” Today the SEC announced it charged a former LPL Financial stockbroker, Blake Richards, with securities fraud after accusing him of stealing $2 million in client […]
FINRA Attacks New Type Of Securities Fraud
Securities fraud costs investors billions of dollars annually. Sometimes the promoter is the fraudster (think Bernie Madoff) and other times it is the stockbroker trying to make a quick buck. This week the Financial Industry Regulatory Authority – FINRA – levied a whopping $7.5 million fine against LPL securities for email violations. Email violations? Thats […]
Hooters Girls and Investment Fraud
The story written by Bruce Kelly of Investment News had all the makings of a tabloid scandal. Stockbrokers, forged documents, sexual harassment, an SEC investigation, Hooters girls and the misappropriation of customer funds from a prominent brokerage firm. The problem is that Kelly is a real journalist and the story he penned today about Commonwealth […]
FINRA Issues Warning On Nontraded REITs – Stockbroker Fraud Post
We have written several times about the dangers of nontraded or thinly traded REITs. They are a popular way of investing in real estate but they can be difficult to sell or liquidate if an investor suddenly needs cash. There are other potential pitfalls as well. This week the Financial Industry Regulatory Authority – FINRA […]
Rescission – A Great Method To Get Out Of A Bad Investment
by Brian Mahany For most consumer purchases, getting a refund for a defective product or service that doesn’t meet our expectation is a relatively easy process. Purchase a hedge fun or private placement and its impossible. You may be able to sell the investment but thats much different than obtaining a refund. In most instances, […]
Success Trades Securities In Trouble? FINRA Says Yes (stockbroker fraud post)
by Brian Mahany Success Trades Securities has a great name. They also have the financial backing of many NFL and NBA players. Regulators say that some of these players invested in the company in exchange for a promised rate of return between 12 and 26%. Banking news source bank rate.com says the average interest rate […]
Massachusetts To Check Criminal Records Of Stockbrokers
by Brian Mahany Now that’s a novel idea… check the criminal record of people seeking jobs as stockbrokers. The Massachusetts Securities Division is proposing to require applicants seeking to be licensed as stockbrokers and investment advisers to consent to a criminal background check. While the idea isn’t foolproof, its a good plan. Federal and state […]
Stockbrokers Dont Want To Air Dirty Laundry – Stockbroker Fraud Post
by Brian Mahany We are firm believers in full and complete disclosure. Americans are smart enough to understand that not every complaint against a stockbroker is legitimate. Many complaints are unfounded or frivolous. But as customers and clients, we should have the right to know if other complaints are pending against a broker. Under a […]
Seeking Information – Ellwood L Jones and NFP Securities
by Brian Mahany Most of our blog posts seek to share general information of broad interest to our readers. From time to time, however, we write posts seeking information on a specific person, company or possible fraud. This is one such post. We are currently investigating Ellwood Jones, a stockbroker previously employed by NFP Advisor […]
Zombie Stockbrokers – Land of the Living Dead – Stockbroker Fraud Post
by Brian Mahany Zombie horror is quite the rage these days in the entertainment industry. Movies, TV shows… even my local Barnes & Noble retailer has an entire section of books devoted to the living dead. While the zombies in the entertainment industry are imaginary, debarred stockbrokers and investment advisers really do come back from […]