Author Archives: FLSecurities
Five Florida Residents Charged With Fraud Involving Penny Stocks
The U.S. Attorney’s Office for the Southern District of Florida announced that one Palm Beach and four Broward County residents have been charged with securities fraud in four separate cases involving micro-cap stocks. Ft. Lauderdale resident, Jack Freedman, is charged with securities fraud in connection with Green Planet Group, Inc. (symbol: GNPG). Specifically, Freedman,… Read More »
SEC and Justice Department Double-Team Bank of America with Parallel Lawsuits
The Securities and Exchange Commission (“SEC”) and the Department of Justice (“DOJ”) announced parallel lawsuits against Bank of America Corporation and its affiliates: Merrill Lynch, Pierce, Fenner & Smith Corporation; Bank of America, N.A.; and Banc of America Mortgage Securities, Inc. (collectively “Bank of America”). The lawsuits allege that Bank of America made material… Read More »
FINRA Announces Settlement with Oppenheimer Over Unregistered Penny Stocks
The Financial Industry Regulatory Authority (“FINRA”) has fined Oppenheimer & Co. Inc. $1,425,000 for failing to have an adequate anti-money laundering (“AML”) compliance program and for selling more than a billion shares of unregistered penny stocks. Oppenheimer agreed to the sanctions in settlement of allegations first made by FINRA in its May 2013 complaint…. Read More »
Proposed FINRA Rule Changes
FINRA currently has two proposed rule changes pending approval by the Securities and Exchange Commission (“SEC”). The SEC has until September 18, 2013 to act on the proposed rule changes. SR-FINRA-2013-023 – Panel Selection FINRA has proposed changes to Rule 12403 that governs the selection of arbitrators in customer cases requiring three arbitrators. A… Read More »
FINRA Award Vacated Because of Arbitrator Misconduct
In a Memorandum and Order dated August 1, 2013 (“M&O”), the United States District Court for the Eastern District of Pennsylvania vacated a FINRA Arbitration Award after finding that the investor, Athena Venture Partners, L.P. (“Athena”), was “prejudiced by [an arbitrator’s] misbehavior.” According to the Court, the “misbehavior” involved conduct by former FINRA public… Read More »
Not All CDs Are Created Equal
Many people do not know that there are two distinct types of certificates of deposit (“CDs”): traditional CDs that are purchased from a bank and brokered CDs. Brokered CDs are offered by stockbrokers or other investment professionals who act as a deposit broker for the issuing bank. Brokered CDs may be considered securities and… Read More »
FINRA Expels Thornes & Associates, Inc. and its President for Stealing From Two Clients
The FINRA Department of Enforcement has expelled brokerage firm Thornes & Associates, Inc. Investment Securities (“Firm”) and barred its President and Chief Compliance Officer, John Thomas Thornes (“Thornes”), from association with any FINRA member. According to the Order Accepting Offer of Settlement (“Order”), the Firm, based in Redlands, California, has approximately 1,100 accounts with… Read More »
Former Major League Player Sues UBS Financial
Mike Sweeney, a five-time Major League Baseball all-star, has sued UBS Financial Services and his broker Ralph A. Jackson, III for investment losses. The lawsuit filed in Los Angeles Superior Court alleges that UBS and Jackson engaged in fraud, breach of fiduciary duty, negligent representation, and unfair business practices resulting in a loss of… Read More »
Fired SEC Inspector Settles with the Commission over Whistleblower Retaliation Lawsuit
David Weber, a former internal investigator to the Securities and Exchange Commission (“SEC”), has settled his lawsuit with the Commission for $580,000. Weber’s lawsuit, filed in November of 2012, alleged that the SEC had fired him a month before in retaliation for blowing the whistle on conflicts of interest involving former Inspector General David… Read More »
FINRA Increases Arbitrator Scrutiny After One Indicted
The Financial Industry Regulatory Authority (“FINRA”) will increase its review of arbitrators’ backgrounds after one of its arbitrators continued to serve after he was indicted for practicing law without a license. Previously, FINRA only checked the backgrounds of potential applicants when they applied for inclusion on FINRA’s arbitrator roster. FINRA relied on arbitrators to… Read More »