Unauthorized trading, a form of broker misconduct that occurs when a broker makes a trade without the investor’s consent, can be a valid claim for securities arbitration. However, there is more than one way for unauthorized trading to be committed. In one way, the broker may believe that the transaction is suitable for their client…
Continue reading ›On November 22, the Financial Industry Regulatory Authority (FINRA) announced its securities arbitration decision to fine Wells Investment Securities Inc. for using misleading marketing materials. The materials were used in the sale of Wells Timberland REIT Inc., for which Wells was the wholesaler and dealer-manager, and the fine imposed by FINRA was $300,000. Wells Timberland…
Continue reading ›Mutual funds are popular with investors because they consist of multiple stocks, meaning if one stock does poorly in the market, it doesn’t necessarily lower the entire mutual fund portfolio. Even so, mutual fund portfolios can be designed to be either very conservative or very risky. Mutual funds can include a variety of stock types…
Continue reading ›A class action lawsuit has been filed against Merrill Lynch and came from the sale of around $16.5 billion in certificates that were derived from pools of securitized home mortgages. Investment attorneys and investors nationwide will be watching Case No. 08-CV-10841, filed against Merrill Lynch. This case obtained class certification in June of this year.…
Continue reading ›Investors who purchased MF Global Notes should consider securities arbitration against the underwriter broker-dealer from whom they purchased the Notes as a way of possibly recovering their losses. Though it is unsure when and how much MF Global noteholders will receive from the firm’s bankruptcy, Fitch Ratings stated in early November that the amount received…
Continue reading ›On November 15, the Financial Industry Regulatory Authority (FINRA) announced its decision to order Chase Investment Services Corporation to pay more than $1.9 million to customers who incurred losses because of Chase’s recommendation of unsuitable sales of UITs, or unit investment trusts, as well as floating-rate loan funds. In addition, Chase was fined $1.7 million…
Continue reading ›Dblaine Capital LLC and David B. Welliver, Dblaine Capital’s owner, have been charged by the Securities and Exchange Commission (SEC) with securities fraud. Welliver and his firm allegedly received loans that amounted to $4 million in a “quid pro quo” deal that was said to be undisclosed, in violation of their responsibilities and improper. Allegedly,…
Continue reading ›LaeRoc Funds, a real estate investment firm that, according to its website, has managed assets totaling more than $650 million over the last 23 years, is currently attempting to raise another $12 million to $15 million to pay off debt for its LaeRoc 2005-2006 Income Fund. The fund’s debt totals at least $49 million. This…
Continue reading ›The North American Securities Administrators Association (NASAA) released its annual report last month on enforcement actions to fight securities fraud. The report compares the data on securities fraud enforcement actions from 2010 to that of 2009. According to the report, the number of actions pursued in 2010 rose 51 percent, a major jump from 2009.…
Continue reading ›According to a recent press release from the Financial Industry Regulatory Authority (FINRA), Morgan Stanley & Co. Inc. and Morgan Stanley Smith Barney LLC, together were fined $1 million in securities arbitration. Furthermore, Morgan Stanley was ordered to pay $371,000 in restitution and interest. The restitution and interest will go to Morgan Stanley customers because…
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