Category Archives: unsuitable investments
SEC Charges Texas Pair for Misleading Elderly & Retired Investors in Life Settlements
On May 11, the U.S. Securities and Exchange Commission filed a civil lawsuit in Texas against two insurance salesman accused of illegally selling “life settlements” to more than two dozen investors, many of them elderly and retired. Life settlements are fractional interests investors purchase in the death benefits payable under a life insurance policy…. Read More »
SEC, Prosecutors Charge JPMorgan Adviser With Embezzling $20 Million In Client Funds
On April 16, the U.S. Securities and Exchange Commission and federal prosecutors in New York City charged a former JPMorgan Chase investment advisor with defrauding clients out of more than $20 million. The New York Times reported JPMorgan officials “alerted federal authorities to the apparent theft and misuse of client money.” The accused, Michael… Read More »
SEC Charges LA Company With $100 Million “Life Settlements” Fraud
Many of us take out life insurance policies to provide for family members in the event of our death. But life insurance can also be bought and sold like a security. “Life settlements” are a common device used to sell life insurance policies to third parties. For example, let’s say you have a life… Read More »
Michigan Businessman Sentenced to Up to 20 Years for Defrauding Investors
U.S. SECURITIES AND EXCHANGE COMMISSION Litigation Release No. 23250 / April 30, 2015 The Securities and Exchange Commission announced today that on April 24, 2015, the Honorable Joseph K. Sheeran of the Bay County Circuit Court in Bay City, Michigan sentenced Joel Wilson to concurrent prison terms of 105 months to 20 years and… Read More »
Brokerage Firms Reminded – Senior Investors Must Be Treated Fairly
SEC Staff and FINRA Issue Report on National Senior Investor Initiative 04/15/2015 01:00 PM EDT With the Social Security Administration estimating that each day for the next 15 years, an average of 10,000 Americans will turn 65, the staff of the Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA) today… Read More »
SEC Says Buffalo Man Running Ponzi Scheme
On Feb. 27, the U.S. Securities and Exchange Commission obtained an emergency order from a federal judge in Buffalo, freezing the assets of a venture capital fund manager accused of running a “Ponzi-like scheme.” Regulators believe the fund manager made false promises to investors about his ability to obtain pre-IPO shares of popular stocks… Read More »
SEC Warns Investors Not to Fall for “Prime Bank” Scams
Securities fraud frequently involves misleading potential investors by using complicated-sounding language. After all, the more complex the investment sounds, the more likely it is to earn enormous profits, right? At least that is what the perpetrators of the fraud want you to believe. The U.S. Securities and Exchange Commission has identified a number of… Read More »
Judge Allows SEC Case Against Accused Oil & Gas Scam to Proceed
On December 31, 2014, a federal judge in Dallas denied a motion to dismiss a Securities and Exchange Commission complaint against a Texas man accused of defrauding investors out of nearly $10 million. SEC v. Couch The defendant, Charles Couch, owns Couch Oil & Gas, Inc. (COG) According to the SEC’s complaint, Couch and… Read More »
Precious Metals Just as Risky as Other Investments
Gold, silver and other precious metals are often considered “safe” investments relative to stocks and securities. But there is no such thing as a no-risk investment. Precious metals are subject to price fluctuations like any other investment. More importantly, not all precious metal investments are the same. Often, people purchase gold and silver through… Read More »
The Basics of “Secured Notes”
Investors should always be skeptical about complicated-sounding investments that promise to minimize or eliminate risk. One such type of investment is known as a “structured note.” This describes any hybrid security that includes multiple financial products. Structured Notes Structured notes are linked to some other index or security. Here is a simple example of… Read More »
