Author Archives: FLSecurities
Qwest Communications Fraud Victims to Receive $44 Million
The U.S. Department of Justice announced that it is returning approximately $44 million to 112,210 victims of the Qwest Communications International, Inc. (“Qwest”) securities fraud. The funds were forfeited to the United States after Joseph Nacchio, Qwest’s chief executive officer, was convicted of securities fraud in 2007. Nacchio was found guilty of issuing false… Read More »
107 Individuals Charged in $452 Million Medicare Fraud
The Department of Justice (“DOJ”) and Health and Human Services (“HHS”) announced that 107 individuals in 7 cities have been charged with various health care fraud-related crimes, including conspiracy, health care fraud, violations of the anti-kickback statutes and money laundering. At least 91 individuals, including doctors, nurses and other licensed medical professionals, were taken… Read More »
FINRA Fines Citigroup, Morgan Stanley, UBS and Wells Fargo $9.1 Million
The Financial Industry Regulatory Authority (“FINRA”) has fined Citigroup Global Markets, Inc. (“Citigroup”), Morgan Stanley, UBS Financial Services, Inc. (“UBS”) and Wells Fargo Advisors, LLC (“Wells Fargo”) a total of $9.1 million for selling more than $27 billion of complex, non-traditional exchange traded funds (“ETFs”) to investors for whom the exotic ETFs were unsuitable…. Read More »
Costa Rican Citizen Convicted in a Half-Billion Dollar Fraud Scheme
Minor Vargas Calvo (“Calvo”), a citizen of Costa Rica and president and majority owner of Provident Capital Indemnity, Ltd. (“PCI”), was convicted for carrying out a half-billion dollar fraud scheme, with more than 2,000 victims in the United States and abroad, during the period from 2004 to 2010. Calvo was convicted by a federal… Read More »
FINRA Censures and Fines CapWest Securities
The Financial Industry Regulatory Authority (“FINRA”) has censured and fined CapWest Securities, Inc. (“CapWest”) $175,000 in connection with the firm’s communications to the public regarding tenants-in-common interests (“TICs”). According to FINRA, it found that CapWest failed to disclose the risks involved with investments in TICs, such as the lack of liquidity and the potential… Read More »
SEC Approves FINRA Rule Amendment Invalidating Predispute Arbitration Agreements for Whistleblower Disputes
The Securities and Exchange Commission (“SEC”) has approved amendments to Rule 13201 of the Financial Industry Regulatory Authority (“FINRA”) Code of Arbitration Procedure for Industry Disputes (“Industry Code”). Amended Rule 13201 states that parties are no longer required to arbitrate whistleblower claims arising under the Sarbanes-Oxley Act of 2002 (“SOX”) or any other statute… Read More »
FINRA Panel Awards $4.1 Million to Family Trusts for Losses in CMOs and CDOs
A Newark, New Jersey Financial Industry Regulatory Authority (“FINRA”) Panel has awarded the Graham Jones Family Trust and the Graham Jones Charitable Remainder Trust a total of $4.1 million for losses sustained by the two trusts in bonds consisting largely of collateralized mortgage obligations (“CMOs”) and collateralized debt obligations (“CDOs”). As typical of FINRA… Read More »
FINRA Charges Florida Broker With Violations of Securities Rules
The Financial Industry Regulatory Authority, Department of Enforcement (“FINRA”) has filed a Complaint against Clyde Thornburg (“Thornburg”), a broker employed by NEXT Financial Group, Inc. in Sarasota, Florida. FINRA’s Complaint charges Thornburg with engaging in a pattern of unsuitable transactions for elderly and unsophisticated investors, including a mentally incapacitated 91-year old widow and an… Read More »
Florida Panel Awards Former U.S. Congressman $852,000 For Losses In Alleged Ponzi Scheme
After 42 days of hearings spanning the period from January 2011 to March 2012, a Financial Industry Regulatory Authority (“FINRA”) arbitration panel has awarded former U.S. Congressman Alan Grayson (“Grayson”) $852,000 for losses sustained in an alleged Ponzi scheme. The Award against Wachovia Securities, Inc., now known as Wells Fargo Advisors (“Wachovia”), was for… Read More »
Precedent Setting Bankruptcy By Public Pension Plan
In what appears to be an unprecedented move for a public defined-benefit plan, a government employee pension plan has filed for bankruptcy protection. The Northern Mariana Island Retirement Fund (“Fund”) filed for Chapter 11 Bankruptcy protection in the U.S Bankruptcy Court for the Northern Mariana Islands on Tuesday. The Fund was established in 1980… Read More »