Illinois Forms Securities Fraud Section

Tuesday, April 22nd, 2014

According to a recent report in Crain’s, the US Attorney for the Northern District of Illinois recently created a new section to prosecute securities and commodities fraud. The new fraud section was formed as part of the criminal division and consists of 12 prosecutors, many of which were former attorneys for the Securities and Exchange Commision (SEC). Assistant U.S. Attorney Jason Yonan will lead the new section.

According to Randall Samborn, a spokesman for the U.S. attorney’s office, “The idea in creating this section was in part to make it a little bit more specialized and to give a little more prominence to these types of cases.”

This is the first time a section like this has been formed in Chicago. David Glockner, director of the SEC’s Regional Office in Chicago said he “welcomed the move” and that it shows “the U.S. attorney’s commitment to building Chicago’s expertise in that area.” Glockner previously worked the U.S. Attorney’s Office as chief of the criminal division for 11 years.

The SEC is the primary regulator of the securities industry, however the agency can only bring civil actions against violators. According to Crain’s the history Glockner has to the US attorney’s office will increase ties between the SEC and US attorney’s, who can bring criminal charges related to securities fraud.

The foregoing information, which is publicly available, is being provided by The White Law Group.

If you believe that you’re a victim of securities fraud and would like to discuss your legal options with a securities attorney, please call The White Law Group at (312) 238-9650 for a free consultation.

The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm dedicated to the representation of investors in FINRA arbitration claims against brokerage firms throughout the United States. The firm’s offices are located in Chicago, Illinois and Boca Raton, Florida.

For more information on The White Law Group, please visit our website at www.WhiteSecuritiesLaw.com.

Tags: , , , , , , , ,

NJ Broker Pleads Guilty to Fraud

Tuesday, April 22nd, 2014

According to FA-mag.com a former New Jersey borker, Randy Schneider recently plead quilty to theft by unlawful taking. Schneider allegedly stole nearly one million dollars from two elderly clients.

According to the report, Schneider worked for Oppenheimer & Co from January 2003 through October 2011, until he was fired when the firm discovered he had misappropriated checks from the two elderly clients.

As part of the plea agreement, Mr. Schneider agreed to pay restitution to his victims. However, it is unclear when Mr. Schneider will repay his victims or if he has the money to do so. As such, The White Law Group is investigating other avenues for victims to recover their losses.

The brokerage firm that employed Mr. Schneider had a legal responsibility to adequately supervise his activities. When a broker, like Mr. Schneider, misleads clients and misappropriates funds the brokerage firm may be liable for negligent supervision and responsible for investment losses.

If you were a client of Randy Schneider and would like to discuss your litigation options, please call the securities attorneys of The White Law Group at 312-238-9650 for a free consultation.

The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm dedicated to the representation of investors in FINRA arbitration claims against brokerage firms throughout the United States. Our offices are located in Chicago, Illinois and Boca Raton, Florida.

For more information on The White Law Group, please visit the firm’s website at www.WhiteSecuritiesLaw.com.

Tags: , , , , , , , , , ,

DBSI Executives Found Guilty

Thursday, April 17th, 2014

According to reports, CEO and president of DBSI, Douglas L. Swenson, was convicted of thirty-four counts of wire fraud and forty-four counts of securities fraud. Three other top DBSI executives were also convicted on multiple fraud charges. The jury convicted Ellison, 65, of Boise, David Swenson, 36, of Boise, and Jeremy Swenson, 41, of Meridian, on forty-four counts of securities fraud.

The Idaho Statesman reports that prosecutors described the fraud as a Ponzi scheme, however the term was prohibited from use in court. Prosecutors claimed that DBSI used money from new investors to make payments to old investors. The company filed for bankruptcy in 2008 when they no longer could meet payment obligations.

In a written statement, the U.S Attorney Office for the District of Idaho said ” the United States presented evidence that the defendants publicly represented that DBSI was a profitable company and had a net worth in excess of $105 million when they knew that DBSI’s real estate and non-real estate business activities were universally unprofitable.”

Sentencing date has not been set. The four defendants face up to 5 years in prison for each count of securities fraud. Douglas Swenson could face up to 20 additional years for each count of wire fraud.

The U.S Attorney’s Office statement said that the company will have a “firm restitution obligation” to DBSI investors.

Unfortunately, it is unknown if the company has the funds to repay investors for the financial losses they have suffered. As such, The White Law Group is investigating other avenues for investors to recover their losses, including the liability of broker-dealers that sold DBSI investments.

Broker-dealers have responsibility to perform adequate due diligence to determine the legitimacy of any investment and the likelihood of success. In addition, broker-dealers must have a reasonable bases for all investment recommendations based on the client’s age, net worth, investment experience, risk tolerance, and investment objectives. If a broker-dealer fails to perform adequate due diligence or makes unsuitable investment recommendations they can be held liable for investment losses.

To determine whether you may be able to recover investment losses incurred as a result of your purchase of a DBSI investment, please contact the securities attorneys of The White Law Group at 312-238-9650 for a free consultation.

The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm with offices in Chicago, Illinois and Boca Raton, Florida.

For more information on The White Law Group, visit www.WhiteSecuritiesLaw.com.

Tags: , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,

Update for Icon Leasing Fund 12 Investors

Thursday, April 17th, 2014

According to recent letter to shareholders, Icon Leasing Fund Twelve announced that the Fund will officially close and enter a liquidation period effective April 30, 2014.  The letter also states that “the amount and timing of future payments will fluctuate” as the companys assets are sold. 

Icon Leasing Funds Eight and Ten are also currently in a liquidation period. Upon information and belief, Icon Fund Nine has completed its liquidation period and investors are unlikely to receive further payments.

According to Bloomberg, Icon Leasing Fund Twelve acquired and leased equipment in the fields of marine vessels and equipment, manufacturing equipment, mining equipment, telecommunications equipment, and gas compressors to name a few.

Given the current state of the aforementioned Funds, it appears that investors may have suffered losses.  It also appears, based on information gleaned from investors in these funds, that some broker-dealers failed to perform adequate due diligence on these investments. Broker-dealers have a responsibility to perform due diligence on any offering and to have a reasonable basis for any investment recommendation.

Brokers-dealers that make unsuitable investment recommendations or fail to perform adequate due diligence may be in violation of securities law enforced by the Financial Industry Regulatory Authority (FINRA). If you purchased an ICON Fund that you believe was not in line with your risk tolerance, investment experience and/or investment objectives, your broker-dealer may be liable for investment losses through FINRA arbitration.

To determine if your broker-dealer may be liable for your investment losses in DBSI TIC, please call the securities attorneys of The White Law Group at (312)238-9650 for a free consultation.

The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm with offices in Chicago, Illinois and Boca Raton, Florida.

To learn more about The White Law Group, visithttp://www.whitesecuritieslaw.com.

Tags: , , , , , , , , , , , ,

PNC Investments LLC fined by FINRA

Tuesday, April 15th, 2014

PNC Investments LLC (CRD# 129052, Pittsburgh, Pennsylvania) recently submitted a Letter of Acceptance, Waiver and Consent in which the firm was censured and fined $90,000. The firm has paid restitution to all affected customers.

Without admitting or denying the findings, the firm consented to the described sanctions and to the entry of findings that it failed to apply an appropriate rollover or breakpoint discounts to eligible unit investment trust (UIT) purchases for customers. As a result, the firm overcharged customers a total of$52,040.12. The findings stated that the firm failed to adequately enforce its existing WSPs concerning rollover and breakpoint sales charge discounts so as to ensure discounts were properly applied to all eligible UIT purchases by customers.

This information which is publicly available on FINRA’s website has been provided by The White Law Group, LLC.

The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm with offices in Chicago, Illinois and Boca Raton, Florida.  For a free consultation with a securities attorney, please call the firm’s Chicago office at 312/238-9650.

For more information on The White Law Group, please visit our website at http://www.whitesecuritieslaw.com.

Tags: , , , , , , , , ,