Recent Blog Posts
SEC Obtains Judgment Against Ex-Radio Host Who Ran Real Estate Ponzi Scheme
On July 17, the U.S. Securities and Exchange Commission obtained a civil judgment against two individuals who cheated investors and lenders out of nearly $7 million through a fraudulent real estate investment scheme. The SEC said the pair, together with a third person, “misappropriated millions of dollars raised from investors through the fraudulent sale… Read More »
Court Says Bankrupt Ex-Broker Must Still Pay Back Cheated Clients
When stockbrokers commit fraud, their affected clients and the U.S. Securities and Exchange Commission can recover damages through the courts. But what happens when the broker files for bankruptcy in an effort to get around such civil judgments? A recent decision by a Philadelphia appeals court offers one answer. SEC v. Bocchino Steven Bocchino… Read More »
Is Your Investment Advisor Really “Conflict-Free”?
Investment advisors have a legal obligation to disclose any conflicts of interest which may affect their clients’ accounts. All registered investment advisors must file a disclosure statement, known as Form ADV, with the SEC and state regulators describing any brochures or other solicitations used to attract clients. Form ADV must include any statements regarding… Read More »
SEC, California Prosecutors Expose $2.6 Million Ponzi Scheme
Investors should always be cautious when dealing with unregistered investment advisors. Registration with the U.S. Securities and Exchange Commission and state officials are important tools that provide investors with access to critical information. It is far too easy for scammers to lure unsuspecting investors with fake credentials and non-existent investment products. SEC v. Moore… Read More »
How “Affinity Fraud” Costs Investors Millions
Many securities scams can be classified as “affinity fraud.” As described by the U.S. Securities and Exchange Commission, this refers to cases where the scammers “prey upon members of identifiable groups, such as religious or ethnic communities, the elderly, or professional groups.” The scammers exploit this group affinity to lure members into financing largely… Read More »
SEC Charges Man With Promissory Note Fraud in Connection With Florida Property
On June 25, the U.S. Securities and Exchange Commission filed a civil lawsuit in Utah against Dwight Shane Baldwin, accusing him of securities fraud in connection with the sale of promissory notes backed by two defaulted real estate loans, including one in Seminole County, Florida. According to the SEC’s complaint, Baldwin acquired the defaulted… Read More »
SEC Bars Three Brokers for “Churning” Client Accounts
Many securities brokers work on commission. This generally means the broker receives a payment for each trade he or she executes on a customer’s behalf. While this is perfectly ethical, some brokers cross the line and engage in an illegal practice known as “churning.” As explained in a 1986 federal appeals court decision, there… Read More »
Sarasota Ponzi Scheme’s Victims May Recover Interest
When a Ponzi scheme collapses, the repercussions can last for years as investors seek to recover the money they lost. One of the largest Ponzi schemes in Florida history involved the late Arthur Nadel, dubbed a “Mini-Madoff” in the press after his $168 million Ponzi scheme collapsed in 2009. Nadel ran a Sarasota-based hedge… Read More »
Feds Say Ex-Stockbroker Used Fictitious CD Sales to Buy Florida Condo
On July 1, the U.S. Securities and Exchange Commission and the U.S. Attorney’s Office in Philadelphia filed civil and criminal charges, respectively, against Malcolm Segal, a former stockbroker accused of running a Ponzi scheme. These actions come after a November 2014 order by the Financial Industry Regulatory Authority which permanently barred Segal from working… Read More »
Boca Raton Pension Fund Class Action Against Manufacturer Proceeds
Publicly traded companies may not make false or misleading statements in order to manipulate their stock price. Federal securities law prohibits “any manipulative or deceptive device or contrivance.” U.S. Securities and Exchange Commission regulations more specifically ban “any untrue statement of a material fact” or any omission of material facts which render a company’s… Read More »
