The investment community has often heard those now-familiar words: “If it seems too good to be true, it probably is” when warning against stock broker fraud. Not only is this phrase only partially true, it’s dangerous. Investors who only watch out for the investments that are “too good to be true” are still vulnerable to…
Continue reading ›Bank of America’s Merrill Lynch brokerage unit agreed to pay $1 million for supervisory failures that allowed a former broker to use a Merrill Lynch account to run a Ponzi scheme, FINRA said on Tuesday. The Financial Industry Regulatory Authority (“FINRA”), which oversees the U.S. brokerage industry, found that the brokerage failed to have an…
Continue reading ›Affinity fraud is nothing new in the investment word. It involves targeting faith-based organizations, professional associations and community service groups. The victims of affinity fraud are tied together through common interests, professions, faith, hobbies and lifestyles. Scammers then use this common ground to establish a relationship with their victims, making stealing much, much easier. Now…
Continue reading ›Over the years, computers have somewhat reduced the necessity of brokers. But until recently, dealers maintained their status as the rulers of the market world. However, with quant trading, broker status is being threatened, as well — and its effect on the market has earned a closer look. Mathematicians, who have long been key players…
Continue reading ›InvestorLawyers.net’s founder Christopher J. Gray is presently handling cases against UBS on behalf of investors who sustained losses various purportedly “Principal Protected Note” debt securities sold by brokerage firm UBS to its customers. Brokerage houses, including UBS (UBS), Merrill Lynch (MER), Barclays (BCS) and Wachovia (WB) reportedly engaged in sales practices violations in which they…
Continue reading ›News commentators and regulators alike have called into question the sales practices of David Lerner Associates, which solicited many of its customers to invest in illiquid real estate investment trusts (“REITs”) called Apple REITs. The Financial Industry Regulatory Authority (“FINRA”) announced in March 2011 that it filed a complaint against David Lerner Associates, charging the…
Continue reading ›InvestorLawyers.net’s founder Christopher J. Gray is presently handling cases against UBS on behalf of investors who sustained losses various purportedly “Principal Protected” debt securities sold by brokerage firm UBS to its customers. These notes, which have various names, are also referred to as guaranteed linked notes, these securities were “structured products” that combined fixed income…
Continue reading ›Kenneth Marsh was sentenced September 20 to 8 years in prison for his role in a “boiler-room” fraud. Marsh was the last of eighteen defendants to receive sentencing for a phony stock-tip scheme that resulted in the theft of $20 million from more than 5,000 investors. Between 2005 and 2010, Marsh, 44, acted as owner…
Continue reading ›The FBI is reportedly investigating two former Edward Jones brokers based in South Dakota for their role in a “selling-away” case that involved raising money from clients who invested in an alleged Ponzi scheme. A clientof Edward Jones, one of the largest brokerage firms in the country with more than 12,000 brokers, reportedly brought the…
Continue reading ›The words “market volatility” seem to be used now more than ever. One recent report from The New York Times said, “Market Swings Are Becoming New Standard,” a scary sentiment for investors. One possible explanation for the increased volatility is the use of computerized high frequency automated trading, which accounts for 60 percent of the…
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