Recent Blog Posts
“Free Lunch” Investment Seminars Not Always Only About Education
According to “Save and Invest”—a website and newsletter run by FINRA’s Investor Education Foundation—over 6 million Americans 55 and above have attended a “free lunch investment seminar.” But as FINRA also notes that these seminars are often less about education than they are about sales. “[A]ttendees are often pressured into making unsuitable—or even fraudulent—investments,”… Read More »
FINRA Urges Focus on “Concentration Risk”
No two investors are the same. They have different income goals, different risk tolerances, and different time horizons—among other differentiating factors. Indeed, one of the most common ways in which investors and brokers get into disputes with each other is through complaints of “unsuitability.” This is an argument by the investor that his or… Read More »
Eleventh Circuit Reaffirms “Flexible” Approach to Securities Class Actions
One of the most powerful tools in investors’ arsenals against securities fraud is the securities class action. In these types of cases, many plaintiffs join together on behalf of themselves and others allegedly harmed. A class action allows plaintiffs to pool litigation resources, and be represented by one or more attorneys, instead of each… Read More »
Precious Metals Futures Fraud
The Commodity Futures Trading Commission (“CFTC”) established the Precious Metals Fraud Advisory to alert customers to precious metals fraud and lists of recognized frauds and scams. The advisory also posts blogs and tips on simple ways to spot precious metals scams. The CFTC implemented several customer protections advisories to provide various warnings on popular… Read More »
FINRA Criticized for Being Lenient on Financial Brokers
On May 29, 2014, one of five Commissioners of the Securities and Exchange Commission gave a speech to FINRA’s Division of Market Regulation. While the SEC is the final government regulator of the country’s securities industry, FINRA—or the Financial Industry Regulatory Authority—is a key player in U.S. markets. FINRA is not itself a government… Read More »
Federal Agencies Focus on South Florida Securities Fraud
In December 2010, several federal government agencies began cooperating with each other to combat securities fraud. Known as the “Southern District of Florida Securities and Investment Fraud Initiative,” or just “the Initiative,” this effort has had tremendous success in the last three-and-a-half years. Recently, the Initiative reported that eighty-five defendants have been charged since… Read More »
Marijuana-Related Investment Fraud
The debate surrounding marijuana legalization in the United States continues to rage. While the federal government has not enacted any legislation to change the government’s prohibitionary stance on the drug, some states—most notably Colorado—have gone so far as to legalize the substance for recreational use. Some other states have at least decriminalized marijuana, or… Read More »
FINRA Alerts Investors to Ebola Stock Scammers
Media outlets throughout the world continue to report on the tragic Ebola outbreak still ravaging West Africa. As recently reported, over 1,200 people have been killed since the virus began rapidly spreading in December 2013—and almost twice that number have been sickened. The virus itself does not appear to be directly affecting the United… Read More »
Black Diamond Ponzi Scheme
Three more members of the infamous Black Diamond Ponzi Scheme were sentenced to prison and ordered to pay millions in restitution to victims. Within the Ponzi scheme, the members claimed that they were a legitimate hedge fund operating in North Carolina, and it came crashing down in 2012 after the operation lost over $40… Read More »
Retirees Particularly Vulnerable in 401(k) Rollovers
America’s population of retirees is larger than ever. According to U.S. News and World Reports, in the decade between 2000 and 2010, the 65-and-over demographic jumped by over 15 percent—significantly greater than the 9.7 percent increase of the total population. Not surprisingly, Florida leads the nation in retirees, with 17.3 percent of its population… Read More »
