Author Archives: FLSecurities
FINRA Investor Alert: Exchange-Traded Notes
The Financial Industry Regulatory Authority (“FINRA”) recently issued an investor alert regarding exchange-traded notes (“ETNs”), which are often confused with similarly-named exchange-traded funds (“ETFs”), but can be fundamentally different. ETNs are promissory notes made by an issuer that promise a return linked to the performance of an underlying index. ETNs do not make periodic… Read More »
Alleged Fraudster Took the Money and Ran
Georgia resident, Aubrey Lee Price, formerly of Manatee County, Florida, is apparently on the run after being accused by the Securities and Exchange Commission (“SEC”) of orchestrating a $40 million investment fraud. According to the SEC, Price misappropriated or lost nearly $40 million from approximately 115 investors in Georgia and Florida. The SEC has… Read More »
FINRA Dispute Resolution Launches Large Case Pilot Program
The Financial Industry Regulatory Authority (“FINRA”) announced a new voluntary pilot program for the administration of arbitration cases geared towards cases involving large monetary damages of $10 million or more (“Pilot”). Currently, the parties in any FINRA arbitration case may stipulate to deviate from the administrative procedures in the Customer and Industry Codes of… Read More »
Two Individuals Sentenced for Roles in Miami-Area Medicare Fraud
The Department of Justice, the FBI and the Department of Health and Human Services announced that two Miami-area residents, James Edwards and Nelson Fernandez, were recently sentenced for their roles in a $200 million Medicare fraud scheme. Edwards and Fernandez worked as patient-recruiters for American Therapeutic Corporation (“ATC”), Medlink Professional Management Group, Inc., its… Read More »
Simplified Arbitration Rules Amended
The Financial Industry Regulatory Authority (“FINRA”) issued Regulatory Notice 12-30 announcing that the Securities and Exchange Commission (“SEC”) has approved identical amendments to Rules 12401 and 12800 of the FINRA Code of Arbitration Procedure for Customer Disputes, and Rules 13401 and 13800 of the FINRA Code of Arbitration Procedure for Industry Disputes (collectively “Simplified… Read More »
Merrill Lynch Fined For Overcharging Customers
The Financial Industry Regulatory Authority (“FINRA”) announced that it has fined Merrill Lynch, Pierce, Fenner & Smith, Inc. (“Merrill Lynch”) $2.8 million. The fine relates to allegations that Merrill Lynch overcharged its customers approximately $32 million in incorrect fees and failed to provide required trade notices. In connection with the allegations, Merrill Lynch has… Read More »
Discovery of Florida Ponzi Scheme Was in the Stars
The Securities and Exchange Commission (“SEC”) has charged former broker Gurudeo “Buddy” Persaud of Orlando, Florida with operating a Ponzi scheme. According to the SEC, between July 2007 and January 2010, Persaud persuaded at least 14 investors to invest more than $1 million in his firm White Elephant Trading Company LLC. The SEC’s Complaint… Read More »
GAO Report Finds Medicaid Audit Program Costs More Than it Recovers
An investigation by the U.S. Government Accountability Office (“GAO”), the nonpartisan investigative arm of Congress, revealed that the Medicaid audit program created in 2006 has cost taxpayers more than $100 million to operate since 2008, but only found $20 million in overpayments during that period. The Centers for Medicare and Medicaid Services (“CMS”) is… Read More »
R. Allen Stanford Receives 110-Year Sentence for $7 Billion Investment Fraud
Robert Allen Stanford (“Stanford”), founder of Stanford Financial Group and former Chairman of the Board of Antigua-based Stanford International Bank (“SIB”), was sentenced yesterday to a prison term of 110 years, plus forfeiture of $5.9 billion. More than 300 victims’ letters were received by the court prior to the sentencing. Stanford was convicted by… Read More »
Brookstone Securities Ordered to Pay $2.6 Million for Fraudulent Sales to Elderly Investors
A Financial Industry Regulatory Authority (“FINRA”) hearing panel has ordered Lakeland, Florida-based Brookstone Securities, Inc. (“Brookstone”) to pay a $1 million fine and $1.6 million in restitution to investors for the firm’s fraudulent sales of collateralized mortgage obligations (CMOs) to unsophisticated, elderly and retired investors. According to the panel, from July 2005 to July… Read More »