Tag Archives: Boca Raton Securities Fraud Attorney
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 »
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 »
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 »
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 »
