We have written many posts about REITs – Real Estate Investment Trusts. They can be great investments but many have liquidity problems. Stockbrokers often recommend them to the wrong customers as well. In May, Massachusetts Secretary of State William Gavin announced that five brokerage firms had agreed to pay restitution of $6.1 million to settle […]
TICs and REITS – "Accidents Waiting To Happen"
William Galvin, Massachusetts Secretary of State and chief securities regulator, is investigating 15 brokerage firms for possible misconduct in the sales of “alternative investments.” These investments include Real Estate Investment Trusts (REITs), Tenancy-in-Common interests (TICs), private placements and oil and gas partnerships. Massachusetts shares our growing concern that these investments are frequently peddled to senior […]
Securities America Fined For Improper Supervision – Stockbroker Fraud Post
Securities America is a large broker dealer headquartered in La Vista Nebraska. Licensed in all 50 states and in business for over 3 decades, the firm is well established in the industry. Lately, however, it has attracted some negative attention for its business practices. Some say the company has allowed or ignored fraud by some […]
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 […]
First Republic Securities Tagged For Almost $1mm in Suitability Case
by Brian Mahany We have been seeing a number of large arbitration awards these days by the Financial Industry Regulatory Authority (FINRA). Claims against stockbrokers and investment advisors are usually sent to arbitration. Some believe that process is biased against the customer and in favor of the industry. Don’t try to tell that to First […]
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 […]
Angry Investors!
by Brian Mahany Jason Zweig is one of my favorite columnists at the Wall Street Journal. Minutes ago I read his column in today’s WSJ, “Too Flustered to Trade: A Portrait of the Angry Investor.” Zweig’s premise is that as flustered and angry as individual investors are today, many are simply sitting on the sidelines […]