Author Archives: FLSecurities
Citigroup Agrees to Settle Bond Class Action for $730 Million
Citigroup, Inc. has agreed to resolve a class action lawsuit filed in 2008 by investors who purchased Citigroup bonds and preferred stock between May 2006 and November 2008. Last year, Citigroup settled a similar class action lawsuit brought by stock investors. The class plaintiffs alleged that Citigroup made material misstatements and omissions concerning the… Read More »
State Regulators Seek to Ban Mandatory Arbitration of Adviser Disputes
The North American Securities Administration Association, Inc. (“NASAA”), comprised of securities administrators from all 50 states, the District of Columbia, Puerto Rico, the U.S. Virgin Islands, Canada, and Mexico, issued its legislative agenda for the upcoming year. NASAA’s President and President-elect jointly announced that the NASAA will focus its efforts on obtaining legislation in… Read More »
Florida Broker Barred From Securities Industry
The Financial Industry Regulatory Authority (“FINRA”) announced that stockbroker Jeffrey Rubin of Lighthouse Point has been barred from the securities industry for making unsuitable recommendations and engaging in unapproved transactions involving 31 NFL football players. According to FINRA, Rubin operated Pro Sports Financial, a concierge financial service that took care of nearly every need… Read More »
Bank of NY Mellon Settles Medical Capital Claims
The Bank of NY Mellon (“BNY Mellon”), the world’s largest custodial bank, has agreed to settle allegations in a class action that it breached its fiduciary duties in connection with its role as trustee of failed Medical Capital Holdings, Inc. private placements. The settlement, which is subject to court approval, involves payment of $114… Read More »
The Securities Class-Action May Soon Be a Thing of the Past
A Financial Industry Regulatory Authority (“FINRA”) panel has dismissed two out of three counts of an enforcement action FINRA brought against Charles Schwab & Co. in February 2012. FINRA’s Complaint was brought after Schwab revised its customer agreement in October 2011 to include provisions that 1) required customers to waive their right to participate… Read More »
ING Agrees to Settle FINRA Action for $1.2 Million
Numerous affiliates of Netherlands-based ING Groep N.V have agreed to settle allegations by the Financial Industry Regulatory Authority (“FINRA”) that they failed to retain and review millions of emails to and from their brokers. The affiliates, ING Financial Advisors LLC, ING Financial Partners Inc., ING Investment Advisors LLC, Directed Services LLC and ING America… Read More »
Blackstone Group and other Investment Firms Buying Florida Foreclosures
According to the Palm Beach Post, several hedge funds and other investment firms purchased more than 5,000 Florida homes out of foreclosure last year. RealtyTrac, an online marketplace of foreclosure properties, issued a report indicating that several big firms including New York-based Blackstone Group and Lake Success Rentals, based in Ft. Lauderdale, purchased hundreds… Read More »
Investor Education: Bond Duration
The Financial Industry Regulatory Authority (“FINRA”) has issued an Investor Alert to educate investors about the impact an increase in interest rates would have on bond investments. Interest rates influence the value of bond funds, as well as, the price of individual bonds. Investors with bond investments should know the duration of the bonds… Read More »
Houston Panel Awards Customer $1.07 Million Against Oppenheimer
A three-member Financial Industry Regulatory Authority (“FINRA”) panel has found in favor of a Houston, Texas investor after 8 days of arbitration. The Statement of Claim filed by Lloyd Gillespie in 2009 sought $4,000,000 in collective damages against Oppenheimer & Co., Inc., Aegis Capital Corp. and Joseph Gunnar & Co., LLC. The customer alleged… Read More »
UPDATE: Massachusetts Enters Consent Order Regarding LPL’s Sales of Non-Traded REITs
A Consent Order was entered on February 6, 2013 by the Massachusetts Securities Division resolving the administrative complaint initiated in December against LPL Financial LLC relating to its sales practices of non-traded real estate investment trusts (“REITs”.) According to the Consent Order, LPL will offer to pay restitution to LPL customers who were Massachusetts… Read More »