Author Archives: FLSecurities
Former Delray Beach Commissioner Convicted of Running Ponzi Scheme
A jury took only ten minutes to convict former Delray Beach Commissioner, Charlotte Durante, of orchestrating a $1.8 million Ponzi scheme that targeted more than 80 investors, most of whom were Haitian. Durante was convicted of two felony counts – one count of money laundering and one count of organized scheme to defraud greater… Read More »
Consumer Awareness Week
In honor of Consumer Awareness Week, the Florida Department of Financial Services has added new financial education resources on its website. The OnDemand Library includes short educational videos on a variety of financial and insurance topics. The videos include explanatory materials on such topics as identity theft, annuities, trust mills, and reverse mortgages. In… Read More »
SEC and CFTC Adopt Rules Regarding Identity Theft
The Securities and Exchange Commission (“SEC”) and the Commodity Futures Trading Commission (“CFTC”) jointly adopted rules that would require entities regulated by the two agencies to adopt and implement programs aimed at detecting red flags in order to prevent identity theft. The Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 gave the… Read More »
FINRA Named in Whistleblower Suit
A former examiner for the Financial Industry Regulatory Authority (“FINRA”) in its New York region claims he was fired after reporting that a loophole in FINRA’s system allowed larger broker dealers to be over-leveraged. Joseph Sciddurlo filed a whistleblower suit naming FINRA and its Chairman Richard Ketchum. Sciddurlo claims that he got high performance… Read More »
FINRA Panel Finds Firms Liable For Allowing Unauthorized Transfer of Funds
A three-member Financial Industry Regulatory Authority (“FINRA”) panel has found in favor of an investor who claimed two brokerage firms allowed her ex-husband to transfer $138,700 out of her and her daughter’s accounts, without her knowledge or consent. According to the FINRA Award, Lori Strayn claimed that her ex-husband Robert Kevin Strayn transferred funds… Read More »
SEC Gives Companies Green Light to Use Social Media
The Securities and Exchange Commission (“SEC”) has issued a report clarifying that public companies may use social media sites, such as Facebook and Twitter, to release key company information in compliance with Regulation Fair Disclosure (“Regulation FD”) in certain circumstances. The company, however, has to forewarn its investors that it may use the company’s… Read More »
FINRA Panel Awards Investor $1.1 Million
A Los Angeles Financial Industry Regulatory Authority (“FINRA”) arbitration panel has entered an award against MML Investors Services, LLC (“MML”) in favor of its customer, Karen Lamoreaux. According to Barrons, an MML broker, Steven Corzan, convinced Ms. Lamoreaux and her late husband to invest $1.2 million, obtained from their home equity and a profit… Read More »
SEC Seeking Comments on FINRA’s Proposal to Permit Disclosure of FINRA Disciplinary Complaints
The Financial Industry Regulatory Authority (“FINRA”) has filed a proposed amendment to FINRA Rule 8313 (Release of Disciplinary Complaints, Decisions and Other Information) with the Securities and Exchange Commission (“SEC”). The SEC, in turn, has published the proposed rule change for comment. FINRA Rule 8313 governs the public disclosure of disciplinary actions by FINRA…. Read More »
SEC Settles Gold Mine Offering Fraud Case
The Securities and Exchange Commission (“SEC”) announced that it has settled with two of the defendants in an offering fraud case involving a purported $11 billion gold mine. In July 2012, the SEC charged a father, son and daughter with perpetrating a $2.7 million securities fraud on approximately 140 investors in 23 states. Harry… Read More »
SEC Charges Florida Resident With Fraud Relating to Social Media IPOs
The Securities and Exchange Commission (“SEC”) has charged Odessa, Florida-resident, and former Oregon gubernatorial candidate, Craig Berkman with allegedly perpetrating securities fraud on 120 investors. According to the SEC, from October 2010 to September 2012, Berkman raised approximately $13.2 million through three separate offerings of membership interests in limited liability companies he controlled. The… Read More »