Author Archives: FLSecurities
Company and Florida Couple Charged With Securities Fraud
The Securities and Exchange Commission has charged We The People, Inc. of the United States (“We The People”), a Massachusetts corporation headquartered in Tallahassee, Florida and two of its employees, with securities fraud. The SEC alleges that We The People, purportedly a charitable organization, and its employees Richard and Susan Olive of Vero Beach,… Read More »
Cay Clubs Executives Charged With Running Ponzi Scheme
The Securities and Exchange Commission (“SEC”) has charged 5 former executives of Florida-based Cay Clubs Resorts and Marinas (“Cay Clubs”) with perpetrating a $300 million Ponzi scheme. The Complaint filed by the SEC names as defendants Fred Clark, Jr. (president and CEO); David W. Schwarz (Chief Accounting Officer); Cristal Coleman (manager and sales agent);… Read More »
Former Stockbroker Charged With Defrauding Investors
The Securities and Exchange Commission has charged Jesse Litvak, formerly with Jefferies & Co., with fraud for allegedly selling mortgage-backed securities (“MBS”) at inflated prices in order to generated additional revenue for his firm. According to Litvak’s CRD BrokerCheck report, a customer complained to the firm in November 2011 regarding pricing on certain non-agency… Read More »
Florida Financial Advisor Charged with Tipping Off Penny Stock Promoter
The Securities and Exchange Commission (“SEC”) has filed civil charges against stockbroker Kevin Dowd, a Boca Raton resident, for allegedly disclosing confidential insider information to a penny stock promoter. The U.S. Attorney’s Office for the District of New Jersey announced criminal charges against Dowd in a parallel action. According to the SEC’s Complaint, in… Read More »
California Arbitrators Award Investors $1.3 Million
A Financial Industry Regulatory Authority (“FINRA”) panel has awarded $1,333,333 in damages to a Laguna Hills couple. The investors, Hooman Moshar and his wife May Moshar, filed the FINRA claim in 2011 against Wells Fargo Advisors, LLC (“Wells Fargo”) for losses sustained in unspecified exchange-traded funds (ETFs). The Moshars alleged that Wells Fargo breached… Read More »
2012 FINRA Arbitration by the Numbers
FINRA Dispute Resolution has released its arbitration statistics for 2012, the first full year of the optional all-public arbitrator panel1. In cases in which the customer selected a panel comprised of all public arbitrators, 49% of the customers were awarded damages. In cases decided by a majority-public panel, only 33% of customers were awarded… Read More »
FINRA’s 2013 Examination Priorities
The Financial Industry Regulatory Authority (“FINRA”) has published its list of investor protection priorities for the coming year. FINRA expressed particular concern with sales practice abuses and yield-chasing behaviors given the current slow growth and low-interest rate environment. Brokers are required to have a reasonable basis to believe a recommendation is suitable for his… Read More »
FINRA Files Proposed Rule to Amend the Definition of a Public Arbitrator
The Financial Industry Regulatory Authority (“FINRA”) has filed a proposed rule with the Securities and Exchange Commission (“SEC”) to revise the definition of a “public” arbitrator. FINRA states the proposed amendments are intended to improve the perception of neutrality of the arbitrators on its public roster. FINRA’s Codes of Arbitration Procedure for Customer and… Read More »
Morgan Stanley Settles Charges Related to Facebook IPO
Morgan Stanley & Co. LLC (“Morgan Stanley”) entered into a December 17, 2012 Consent Order (“2012 Consent Order”) with the Massachusetts Securities Division in connection with its role as lead underwriter in the Facebook, Inc. initial public offering (“IPO”). According to the 2012 Consent Order, Massachusetts alleged that Morgan Stanley violated Massachusetts securities laws… Read More »
Investor Education: Suitability Rule
Every brokerage firm, investment advisor, and broker is required by securities rules to “know their customer,” so they can make appropriate recommendations given the investor’s age, net worth, risk tolerance and goals. FINRA Rule 2111 also known as the “Suitability Rule” requires that firms and their brokers have a reasonable basis to believe that… Read More »