The Securities and Exchange Commission (SEC) charged Donna Jessee Tucker with stealing $730,000 from her elderly clients in order to finance her luxurious lifestyle. The SEC alleges that Tucker purposefully arranged for her clients’ statements to be delivered electronically although some might not be able to access the internet due to their advanced age. Furthermore,…
Continue reading ›VSR Financial Services, Inc. was recently part of a $3.74 million settlement in Texas state court because a former VSR advisor, Charles Chapman, allegedly recommended high risk, illiquid alternative investments during the credit crisis. Chapman allegedly recommended that his client, Mr. Gordon McLendon, Jr. invest in Diversified Business Services & Investments Inc. (DBSI). However, DBSI…
Continue reading ›The Financial Industry Regulatory Authority (FINRA) sanctioned broker Michael Zukowski for recommending unsuitable investments in inverse and inverse-leveraged Exchange Traded Funds to his clients. On December 23, 2010 RBC Capital Markets, LLC filed a Termination Notice (U5) stating that Zukowski had failed to meet firm expectations. Later, on August l8, 2011, RBC filed a an…
Continue reading ›The Financial Industry Regulatory Authority (FINRA) alleged that Feltl & Company, a firm based in Minneapolis, did not properly oversee its penny stock business between January 2008 and February 2012. While Feltl did not admit to any wrongdoing, the firm will pay $1 million to settle its claims. FINRA explained that Feltl did not meet…
Continue reading ›Newport Coast Securities, based in New York, as well as two former supervisors at the firm, Marc Arena and Roman Luckey, were also named in the FINRA complaint. According to FINRA, from 2008 through 2013, brokers Douglas Leone, Andre LaBarbera, David Levy, Antonio Costanzo and Donald Bartelt churned the accounts of 24 customers, utilizing margin…
Continue reading ›The Financial Industry Regulatory Authority (known as “FINRA”) has reportedly received dozens of filings for arbitration from investors on the island who say they were harmed by negligence and unsuitable advice from UBS Financial Services of Puerto Rico. The increase in claims coincides with the commonwealth preparing for a new issue of general obligation bonds…
Continue reading ›[if gte mso 9]> Normal 0 false false false MicrosoftInternetExplorer4 <![endif] [if gte mso 9]> /* Style Definitions */ table.MsoNormalTable {mso-style-name:”Table Normal”; mso-tstyle-rowband-size:0; mso-tstyle-colband-size:0; mso-style-noshow:yes; mso-style-parent:””; mso-padding-alt:0pt 5.4pt 0pt 5.4pt; mso-para-margin:0pt; mso-para-margin-bottom:.0001pt; mso-pagination:widow-orphan; font-size:10.0pt; font-family:”Times New Roman”; mso-ansi-language:#0400; mso-fareast-language:#0400; mso-bidi-language:#0400;} <![endif] Non-traded REITs are illiquid investments, not listed on public exchanges and with a very…
Continue reading ›Stifel Nicolaus & Co., a brokerage firm, and its subsidiary, Century Securities Inc., must pay fines and restitution of over one million dollars to settle Financial Industry Regulatory Authority (“FINRA”) charges concerning alleged unsuitable sales of leveraged exchange-traded funds (“ETFs”) to customers. FINRA alleged that Stifel and a subsidiary sold leveraged and inverse ETFs to…
Continue reading ›The Problem: Investors have reported that financial advisors in Puerto Rico, especially those at UBS Puerto Rico, sold them closed-end funds based on the representation that the funds paid a steady yield of income, but were safe and that investors’ money was not at risk because of the secure municipal bonds backed by the Puerto…
Continue reading ›According to recently-filed court papers, to settled Securities and Exchange Commission (“SEC”) charges, hedge fund manager Philip Falcone of Harbinger Capital and certain Harbinger entities admitted to factual allegations by the SEC, agreed to pay disgorgement of over $6 million and fines of over $10 million, and agreed to a ban on Mr. Falcone’s association…
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