[Post updated March 2021] When this post was first written in 2011, Ameriprise had just released its annual report, which showed its securities broker dealer subsidiary, Securities America, was hemorrhaging cash. Securities America’s capital had dropped by a whopping 86% in just one year as the company defended itself against investor lawsuits. The company’s actual […]
Sensational Insider Trading Charges Against Hedge Fund Manager
[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 […]
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 […]
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 […]
LPL Financial Accused of Elder Fraud, Ordered to Pay Over $1mm
Earlier this week we warned about the risks of purchasing complex and exotic derivative securities. We also warned about illiquid real estate investments and how they can be difficult to sell when you need to raise cash. They may be perfect for some folks but are often a bad idea for seniors. Last Friday an […]
Lose Money in an “Leveraged Exchange Traded Fund”? (Leveraged ETFs)
In recent years many investors have flocked to Exchange Traded Funds’ or ETF. Along came Leveraged ETFs and dramatically increased the risks for investors.Leveraged ETFs are bundles of derivatives. These derivatives are not stand-alone assets such as an ounce of gold. Derivatives includes options, swaps, foreign exchange instruments, and some really exotic instruments. The more […]
30 Rock Accountant Arrested for Fraud
Celebrities and media moguls attract much attention from American society; often that attention is unwanted. Fraudsters and con artists know there is a great deal of money in the media world and that makes celebrities and Hollywood production companies big targets for fraud. Matthew Rudolf, a former accountant for the NBC TV series “30 Rock” […]
Busted! Utah Ponzi Promoters Gets Caught (Luc Nguyen, Raymond Morris)
[Post updated] The United States Securities and Exchange Commission has charged Raymond Morris with an offering fraud. Morris, a Draper, Utah, resident is charged with defrauding investors out of at least $60 million. His attorney, Luc Nguyen, was also charged. According to the federal complaint filed, Morris sold unregistered and non-exempt promissory notes to dozens […]
Charles Schwab Pays $119 Million to Settle Consumer Charges
When a prospective customer logs on to the Charles Schwab website, they are greeted with a friendly message that says, “We see investing from your perspective and make recommendations based on actually listening to you and understanding your needs.”Apparently that isn’t so. Schwab settled SEC charges accusing the company of misleading investors about the safety […]
SEC Shuts Down Broker Who Defrauded Elderly Nuns
Not one week into the new year and the SEC has shut down another fraud scheme, this one targeting the Sisters of Charity, a congregation of mostly elderly nuns in the Bronx section of New York City. The SEC charged Paul Chironis with churning two accounts owned by the nuns. The accounts were to be […]