Recent Blog Posts
SEC, U.S. Attorney Charge Utah Man With Running Fake Investment Club
Investment clubs are a way for individuals to meet and pool their resources to purchase stock, bonds, mutual funds or other securities. Many investment clubs operate as partnerships or limited liability companies, where individuals purchase memberships and participate in joint decision-making. Unlike larger investment groups, an investment club with fewer than 100 members generally… Read More »
FINRA Bans Broker for “Churning” Customer Accounts
A stockbroker has an ethical and legal duty to make “suitable” investments with your money. The Financial Industry Regulatory Authority (FINRA), the self-regulatory organization for brokerage firms in the United States, explains this duty in its Rule 2111. Specifically, the rule says a broker must “have a reasonable basis to believe that a recommended… Read More »
Florida Man Settles SEC Charges Arising from “Boiler Room” Scam
On August 21, a West Palm Beach resident agreed to settle charges brought by the U.S. Securities and Exchange Commission over his alleged operation of a “boiler room” fraud which reportedly scammed investors out of more than $1.5 million. According to a complaint filed by the SEC with a federal court in Philadelphia, Moshe… Read More »
What Investors Should Know About Recent Stock Market Volatility
August was a tough month for many investors, as several major stock indexes posted their steepest declines in more than three years. Prompted by a sell-off in the Chinese stock markets which began in mid-June, American investors are now experiencing a resurgence in “volatility” with respect to their own portfolios. Such volatility also raises… Read More »
Citigroup Affiliates to Repay Investors $180M After SEC Investigation
On August 17, two affiliates of Citigroup agreed to pay nearly $180 million in restitution and fines to the U.S. Securities and Exchange Commission as part of a settlement arising from two now-defunct hedge funds. According to an SEC administrative order, the two funds misled thousands of investors as to their actual risks. When… Read More »
SEC Sanctions Broker Who Defrauded Investors in Real Estate Company
Many people rely on family and friends for investment advice. While there is nothing wrong with this, it is important to always do your own homework before trusting someone else—even someone you think you know—with your money. Securities fraud schemes often rely on misplaced trust by inexperienced investors. For example, the U.S. Securities and… Read More »
Ex-California Broker Stole Millions from Trust Clients
Many people establish a living trust to manage their assets. A trust is an estate planning device where a person transfers their assets to a trustee. The trustee can be the same person who established the trust or it can be someone else. Whoever the trustee is, he or she must manage the trust… Read More »
SEC Stops Ponzi Scammer Selling Notes in Florida Software Company
Although all Ponzi schemes inevitably collapse, it can be years before investors (or regulators) catch up with the scammer. For example, the U.S. Securities and Exchange Commission recently charged a Texas man with running a Ponzi scheme for more than a decade. The alleged scheme centered on efforts to raise money for a Florida-based… Read More »
Sales Agents Face Criminal Charges for Role in Football Laser Scam
When people watch an NFL game, they probably are not thinking about securities fraud. Yet a piece of technology designed to improve the fan experience of watching football is at the center of a massive securities fraud scheme that has prompted multiple civil and criminal prosecutions. In the latest development, a federal grand jury… Read More »
Alleged New York Insurance Scammers Face Civil, Criminal Charges
Insurance is often a vehicle for securities fraud. Scam artists lure investors with the promise of easy profits earned through the sale of various insurance products. But those promises often do not translate into reality, leaving investors to pick up the pieces. SEC v. Griffin The SEC recently charged two men with running just… Read More »
