Author Archives: FLSecurities
Florida Resident Accused of Recruiting Ponzi Scheme Victims
A 69 year old Florida man, James F. Ellis of Wilton Manors, has been charged by the Securities and Exchange Commission (“SEC”) with securities fraud for making fraudulent statements to investors to induce them to invest with alleged Ponzi schemer George Elia. According to the SEC’s Complaint, Ellis made knowingly false statements to at… Read More »
Think Carefully Before Accepting an Annuity Buyout Offer From Your Insurance Company
In recent months, several insurers, including Hartford, Transamerica Life and AXA Equitable, have announced offers to buy out to certain of their variable annuity contract holders. The insurers are offering some of their annuity holders lump sum payouts greater than their current account values in return for surrendering their benefit riders. According to InvestmentNews,… Read More »
WR Rice Financial and its Owner Charged With Securities Fraud
The Financial Industry Regulatory Authority (“FINRA”) has initiated a disciplinary proceeding against FINRA member firm WR Rice Financial Services, Inc. (“WR Rice”) and its owner, Joel I. Wilson (“Wilson”). According to FINRA, between April 2011 and September 2012, Wilson and other WR Rice brokers, made fraudulent misrepresentations to around 100 investors in connection with… Read More »
FINRA Opens Arbitration and Mediation Forums to Customers of Non-Member Investment Advisers
The Financial Industry Regulatory Authority (“FINRA”) has announced that its arbitration and mediation services are now available to customers of non-FINRA member investment advisers (“IAs”). Previously, only disputes with FINRA members were permitted to be arbitrated or mediated before FINRA. Because FINRA is not a self-regulatory organization for IAs, it cannot compel IAs to… Read More »
David Lerner & Associates Hit With More Than $14 Million in Sanctions
The Financial Industry Regulatory Authority (“FINRA”) has ordered New York-based David Lerner & Associates (“DLA”) to pay $12 million in restitution to customers who invested in Apple REIT 10, a non-traded real estate investment trust that invests in extended stay hotels. According to InvestmentNews, it is the largest single restitution order involving REITs. DLA… Read More »
Merrill Lynch Ordered to Pay Investors $1.3 Million
A three-member Financial Industry Regulatory Authority arbitration panel has awarded damages to a Florida couple in connection with losses incurred in Fannie Mae preferred stock. In their May 2011 Statement of Claim, Michelle and Robert Billings alleged that Merrill Lynch, Pierce, Fenner & Smith, Inc. breached its fiduciary duties and acted negligently in connection… Read More »
Florida Arbitrators Award Treble Damages for Exploitation of the Elderly
A three-member panel of Financial Industry Regulatory Authority (“FINRA”) arbitrators has awarded treble damages against Raymond James Financial Services, Inc. based in St. Petersburg, Florida and two of its brokers. According to the Award, Myrna Wechsler, individually and as the Personal Representative of Natalie Varonok, alleged that Raymond James and its brokers Jodi Isdith… Read More »
Texas Arbitrators Award Customers $3.9 Million
A Houston Financial Industry Regulatory Authority (“FINRA”) arbitration panel awarded Brian O’Grady, M.D. and his family partnership nearly $4 million against River Oaks Capital Management, Inc., David Charles Miller and Brett Stephen Schulick (collectively “Respondents.”) According to the Award, Dr. Grady alleged that the Respondents violated the Texas Securities Act, made material misrepresentations and… Read More »
Pembroke Pines Resident Receives 9 Year Sentence for Medicare Fraud
Vanja Abreu, Ph.D. of Pembroke Pines, Florida, was sentenced to 9 years in prison, followed by 3 years of probation and ordered to pay nearly $73 million in restitution, jointly and severally with her co-defendants, for her role in a $205 million Medicare fraud scheme. In June 2012, a federal jury found Abreu guilty… Read More »
91 Individuals in 6 States Charged with Medicare Fraud
The Medicare Fraud Strike Force has arrested 91 individuals in Florida, California, Texas, Illinois, New York and Louisiana for their alleged participation in the submission of approximately $429.2 million in false bills to Medicare. The Medicare Fraud Strike Force is a multi-agency task force of federal and state law enforcement officers that focuses on… Read More »