Author Archives: FLSecurities
Century City Ponzi Scheme Halted by SEC
The Securities and Exchange Commission (“SEC”) has obtained a temporary restraining order and order freezing the assets of Shervin Neman (“Neman”) and the entities he controls, including Neman Financial L.P. The complaint filed by the SEC in the United States District Court for the Central District of California accuses Neman, of Century City, California,… Read More »
FINRA Panel Awards Punitive Damages
Earlier this month, a Financial Industry Regulatory Authority (“FINRA”) arbitration panel awarded a customer $1.5 million, including $900,000 in punitive damages, against Dallas-based Cambridge Legacy Securities, LLC (“Cambridge”). The FINRA claim alleged that Cambridge recommended unsuitable limited partnerships to the customer who was in his 70s. The customer alleged that his Cambridge broker invested… Read More »
FINRA Panel Hits Merrill With $10 Million Award
A Boca Raton, Florida Financial Industry Regulatory Authority (“FINRA”) Arbitration Panel has rendered a large award in favor of two former Merrill Lynch, Pierce, Fenner & Smith (“Merrill”) brokers. The FINRA claim filed by the former brokers, Tamara Smolchek and Meri Ramazio, alleged breach of contract, defamation and unfair competition, among other things, and… Read More »
David Lerner & Associates Fined $2.3 Million
A Financial Industry Regulatory Authority (“FINRA”) Hearing Panel has fined David Lerner & Associates (“DLA”) $2.3 million for charging excessive markups on municipal bond and collateralized mortgage obligations (“CMOs”) during the period January 2005 to January 2007. In addition to the fine, DLA has been ordered to pay $1.4 million in restitution to its… Read More »
Former Deutsche Bank AG Executive Awarded Damages By FINRA Panel
A Financial Industry Regulatory Authority arbitration panel has ruled in favor of James Zeigon, a former executive for Deutsche Bank AG, in an investment loss case. First Republic Securities Company, LLC (“First Republic”) was ordered to pay Zeigon $870,000 for losses in collateralized bond obligations and the TW Tax Advantaged Fund LP. The arbitration… Read More »
State of Florida Fines Schwab $1.1 Million
In a Final Order dated March 26, 2012, the Florida Office of Financial Regulation (“OFR”) fined Charles Schwab & Co., Inc. (“Schwab”) $1.1 million for distributing inaccurate information to Florida investors. In May 2010, OFR commenced an administrative examination of Schwab based upon a complaint received from a Florida investor. According to OFR, it… Read More »
UPDATED 3.30.12: Broward Man Accused of Running a Ponzi Scheme Arrested
A Ft. Lauderdale man, George Elia, currently under investigation by the Florida Office of Financial Regulation, is also facing a $4 million lawsuit alleging that he has been running a Ponzi scheme. In October 2011, Michael Imbesi of San Diego, along with his father, step-mother and sister, filed the Broward Circuit Court lawsuit against… Read More »
FINRA FINES CITI INTERNATIONAL FINANCIAL AND ORDERS RESTITUTION FOR EXCESSIVE MARKUPS AND MARKDOWNS CHARGED TO CUSTOMERS
The Financial Industry Regulatory Authority (FINRA) has fined Citi International Financial Services, LLC (“Citi”), a subsidiary of Citigroup, Inc., $600,000 and ordered it to pay $648,000 in restitution for excessive markups and markdowns charged to customers on bond transactions. FINRA’s investigation revealed that, from July 2007 through September 2010, Citi charged its customers markups… Read More »
SEC Issues Investor Bulletin Regarding Municipal Bonds
The Securities and Exchange Commission’s (“SEC”) Office of Investor Education has issued an Investor Bulletin to help inform investors about municipal bonds (“muni bonds”). Muni bonds are debt securities issued by states, cities, counties and other governmental entities to provide financing for capital projects such as building roads and schools. An investor who purchases… Read More »
Three Florida Companies Sue The Original Brooklyn Water Bagel Co. For Fraud
Three Florida companies, Florida Bagels LLC, Arsenal Holdings LLC and Egg Ventures LLC (collectively “Plaintiffs”), are suing Brooklyn Water Enterprises, Inc. formerly known as The Original Brooklyn Water Bagel Co. (“Company”) and two of its founders, Steven Fassberg and Ira Marcus, a Ft. Lauderdale attorney and former Senior Vice President and General Counsel for… Read More »