Author Archives: FLSecurities
Pacific West Securities Hit With $2.1 Million FINRA Award
A Financial Industry Regulatory Authority (“FINRA”) arbitration panel issued a significant Award against Pacific West Securities (“Pacific West”), a FINRA broker-dealer that previously announced it will shut down. The Award, issued March 6, awarded compensatory damages in the amount of $1.9 Million plus $200,000 in attorneys’ fees to claimants Joseph and Marilyn Lightfoot for… Read More »
Former LPL Broker Sentenced to More Than 3 Years in Prison for Fraud
Elliot Kravitz (“Kravitz”), a former broker for LPL Financial (“LPL”) in Ohio, was sentenced to 41 months in prison and ordered to pay $1.8 million in restitution to clients. Kravitz pleaded guilty to wire fraud last year. According to prosecutors, Kravitz wired funds from the accounts of at least 9 of his clients into… Read More »
Stanford Convicted in $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 convicted by a Houston federal jury for orchestrating a $7 billion investment fraud involving bogus certificates of deposit issued by SIB. The jury found him guilty of 13 out of 14 counts… Read More »
Founder of Defunct Firm Brookstreet Securities Hit With $10 Million Fine
Stanley Brooks (“Brooks”), founder of defunct brokerage firm Brookstreet Securities (“Brookstreet”), was assessed a penalty of $10 million for securities violations in connection with the sale of collateralized mortgage obligations (“CMOs”) from 2004 to 2007. The penalty is believed to be one of the largest assessed against an individual for activities related to the… Read More »
Former President of Real Estate Trade Group Pleads Guilty to Investment Fraud
Renee Marie Brown, former president of the Real Estate Investment Securities Association (“REISA”), pleaded guilty to defrauding investors out of $1.1 million. Ms. Brown, a former investment adviser, was also a founder of FactRight, LLC, a consulting firm that conducts due diligence on private placements and real estate deals. In April 2010, the Securities… Read More »
SEC Issues Risk Alert to Firms About Unauthorized Trading
The Securities and Exchange Commission (“SEC”) has issued an alert to broker-dealers and investment advisers to be more vigilant regarding the detection and prevention of unauthorized trading in customer accounts. Unauthorized trading is not limited to unapproved trades executed in customer accounts, it can also include trades that exceed firm limits on position exposures,… Read More »
Stockbroker Charged With Fraud For Selling Med Cap Notes
Authorities in Colorado have criminally charged a former stockbroker, John Brady Guyette, with 9 counts of securities fraud in connection with his sale of Medical Capital notes. Medical Capital Holdings, Inc. (“Med Cap”), an alleged Ponzi scheme, raised approximately $2.2 billion from investors between 2003 and 2008. It is believed to be the first… Read More »
Warning: Fraudsters Posing As SEC Employees
The Securities and Exchange Commission (“SEC”) recently issued an Investor Alert warning investors about fraudsters impersonating SEC employees. The SEC says it has been flooded with complaints about individuals, claiming to be SEC employees, calling or emailing unsuspecting investors with offers of large sums of money (such as $450,000), if the investor deposits a… Read More »
FINRA Issues Investor Alert Reminding Investors to Carefully Review Account Statements and Trade Confirmations For Red Flags
The Financial Industry Regulatory Authority (“FINRA”) issued an Investor Alert reminding investors to carefully review their account statements and trade confirmations for potential red flags. Securities regulators take the accuracy of account documents very seriously. A careful review of these documents can alert investors to errors, or possible misconduct, by financial professionals, such as… Read More »
4th U.S. Circuit Court of Appeals Affirms $1.1 Million FINRA Arbitration Award Against Wachovia
The 4th U.S. Circuit Court of Appeals issued a unanimous decision affirming an August 2010 judgment by South Carolina Judge Terry L. Wooten. Judge Wooten’s judgment confirmed an arbitration award issued by a Financial Industry Regulatory Authority (“FINRA”) arbitration panel ordering Wachovia Securities (“Wachovia”) to pay $1.1 million in attorneys’ fees to four former… Read More »