Author Archives: FLSecurities
Citigroup Will Pay $180 Million to Settle SEC Case
The Securities and Exchange Commission (“SEC”) announced that Citigroup Global Markets, Inc. (“CGMI”) and Citigroup Alternative Investments LLC (“CAI”) have agreed to settle charges concerning two now-defunct hedge funds – the ASTA/MAT fund and the Falcon fund. According to the Order Instituting Administrative and Cease-and-Desist Proceedings Pursuant to Section 8A of the Securities Act… Read More »
Aegis Fined for Selling Unregistered Penny Stocks
The Financial Industry Regulatory Authority (“FINRA”) announced that it has settled enforcement actions with Aegis Capital Corp. (“Aegis”), two of its chief compliance officers, and its CEO. Aegis, based in New York City, has been a member of FINRA, or its predecessor the National Association of Securities Dealers, since 1984. It is a full… Read More »
Edward Jones Fined for Overcharging Customers
The Securities and Exchange Commission (“SEC”) announced that it has reached a settlement with Edward D. Jones & Co. (“Edward Jones”) and the former head of its municipal syndicate desk. The allegations concern the pricing of municipal securities in the primary market. Edward Jones is a retail-oriented broker dealer headquartered in St. Louis, Missouri…. Read More »
Reverse Mortgages: What You Need to Know
The TV is full of upbeat ads pitching reverse mortgages as an easy, cost–free way to generate income. What many ads don’t say, is that reverse mortgages come with risk, including the risk of foreclosure. A reverse mortgage is a type of home equity loan that is only available to elderly borrowers, typically age… Read More »
FIFA Officials Indicted for Racketeering and Fraud
The Department of Justice announced that high-ranking officials of the governing body for soccer worldwide – referred to as “football” outside of the United States – the Fédération Internationale de Football Association (“FIFA”), and others have been charged with racketeering, wire fraud, money laundering, and bribery. According to the Justice Department, the soccer officials… Read More »
SEC Sues Retirement Planners who Sold Life Settlements
According to the Securities and Exchange Commission (“SEC”), it has filed suit against a Texas retirement planning firm and its principals in connection with their practices in the sales of life settlement investments. The SEC’s Complaint filed in the United States District Court for the Northern District of Texas names as Defendants NFS Group,… Read More »
LPL Financial Sanctioned for Supervisory Failures
According to the Financial Industry Regulatory Authority (“FINRA”), it has entered into a Letter of Acceptance, Waiver and Consent (“AWC”) with brokerage firm LPL Financial LLC for supervisory failures in a number of areas. The AWC reflects that LPL neither admitted nor denied FINRA’s charges, but consented to the entry of FINRA’s findings. According… Read More »
FINRA Fines RBC for Reverse Convertibles Sales
According to the Financial Industry Regulatory Authority (“FINRA”), RBC Capital Markets, LLC (“RBC”) has agreed to a Letter of Acceptance, Waiver and Consent (“AWC”) concerning its sales of complex reverse exchangeable securities commonly called “reverse convertibles.” RBC is a brokerage firm that is indirectly owned by the Royal Bank of Canada. A reverse convertible… Read More »
Securities Clawback Actions May be Subject to Arbitration Clauses
The United States Court of Appeals for the Eleventh Circuit recently held that “clawback actions brought by court-appointed receivers are not categorically exempt from the Federal Arbitration Act.” Wiand v. Schneiderman, 2015 WL 525694 (C.A. 11 (Fla.)). The appellate court affirmed the district court’s decision to decline to vacate an arbitration award in a… Read More »
Standard & Poor’s to Pay $1.375 Billion to Settle Lawsuits
According to the Department of Justice, rating agency Standard & Poor’s Financial Services, LLC (“S&P) and its parent company McGraw Hill Financial, Inc. have agreed to settle multiple lawsuits brought by the federal government, 19 states, and the District of Columbia concerning ratings S&P gave to certain mortgage securities just before the 2008 financial… Read More »