Update for RAAM Global Energy Company 12.5% 10/1/2015 bond investors

Friday, June 26th, 2015

Have you suffered losses in RAAM Global Energy Company 12.5% 10/1/2015 bonds? If so, the securities attorneys of The White Law Group may be able to help you recover your losses with a FINRA arbitration claim against the brokerage firm that recommended the bonds to you.

RAAM Global Energy Company (RAAM) is a privately held oil and natural gas exploration and production company engaged in the exploration, development, production and acquisition of oil and gas properties. Its operations are located in the Gulf of Mexico, offshore Louisiana and onshore Louisiana, Texas, Oklahoma, California and New Mexico. It focuses on the development of both conventional oil and gas plays and unconventional resource plays.

RAAM Global Energy Company 12.5% Senior Secured Notes are due on October 1, 2015.

In its March 31, 2015 SEC Form 10-K, RAAM announced that it would not make its scheduled interest payment to the holders of the Senior Secured Notes due on April 1, 2015.  The company further stated that it “has substantial debt due during 2015, including $238 million of 12.5% senior secured notes due October 1, 2015 (the “Senior Secured Notes”) and $85 million under the Term Loan Facility due July 2, 2015, if the Senior Secured Notes have not been refinanced by this date. The $85 million under the Term Loan Facility is not due until September 12, 2016, if the Senior Secured Notes are refinanced prior to July 2, 2015…. The Company is actively working with investment banking advisors to evaluate alternative financing sources. No assurance can be given that such financing will be available on terms that are acceptable to the Company, or at all…. Absent payment of the interest by the end of the cure window on May 1, 2015, we will be in default under the indenture for the Senior Secured Notes, which will result in the acceleration of our obligation to repay all principal and interest due under the Senior Secured Notes.”

The filing went on to state that “[w]ithout making the required interest payment, undertaking a successful refinancing or accessing additional liquidity, the Company will not be able to fund its commitments, including the April 1, 2015 interest payment, to the holders of the Senior Secured Notes or the lenders under the Term Loan Facility and will be in default under the Senior Secured Notes and the Term Loan Facility. If these defaults occur, the Company will be unable to continue as a going concern.”

The White Law Group continues to investigate the liability that brokerage firms may have for recommending the RAAM Global Energy Company 12.5% 10/1/2015 bonds to their clients.

Brokerage-firms and investment adviser are required to make investment recommendations that are suitable for their clients in light of their clients particular investment situation – net worth, investment objectives, income, and investment experience.  Brokerage firms or advisors who sell junk bonds to unsuitable investors or fail to adequately disclose the risks of the investments can be held accountable for losses suffered through a FINRA arbitration claim.

If you have concerns regarding your investment in RAAM Global Energy Company 12.5% 10/1/2015 bonds and would like to speak with a securities attorney about your litigation options, 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 and investor protection law firm with offices in Chicago, Illinois and Vero Beach, Florida.

To learn more about The White Law Group visit www.whitesecuritieslaw.com.

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36 Firms Charged with Fraudulent Bond Offerings

Thursday, June 25th, 2015

The Securities and Exchange commision has issued enforcement actions against 36 municipal underwriting firms. The cases were brought against the firms under the Municipalities Continuing Disclosure Cooperation (MCDC) Initiative. The SEC alleged the firm sold bonds that had offering documents that contained material misrepresentation and omissions. Allegedly the underwriters failed to conduct adequate due diligence to identify material misstatements.

The MCDC is a voluntary programs that offers favorable settlement terms to underwriters who self-report securities law violations. The first charges were settled in July 2014. According to LeeAnn Ghazil Gaunt, Chief of the Enforcement Division’s Municipal Securities and Public Pension Unit, “The settlements announced today reflect these underwrites’ cooperation in self-reporting their own misconduct and agreeing to improve their procedures going forward.”

The underwriters will pay civil penalties based on the number and the size of fraudulent offerings reported. The maximum penalty is $500,000. The underwriters also agreed to retain an independent consultant to review its policies and procedures.

The following firms were in fined under the MCDC Initiative.

The Baker Group
B.C. Ziegler and Company
Benchmark Securities
Bernardi Securities
BMO Capital Markets GKST
BNY Mellon Capital Markets
BOSC
Central States Capital Markets
Citigroup Global Markets
City Securities Corporation
Davenport & Company
Dougherty & Co
First National Capital Markets
George K. Baum & Company
Goldman, Sachs & Co
Hutchinson Shockey Erley & Co
J.P. Morgan Securities
L.J. Hart and Company
Loop Capital Markets
Martin Nelson & Co
Merchant Capital
Merrill Lynch Pierce Fenner & Smith Corporation
Morgan Stanley & Co
The Northern Trust Company
Oppenheimer & Co
Raymond James & aSSOCIATES
RBC Capital Markets
Robert W Baird & Co
Raymond James & Associates
RBC Capital Markets
Robert W Baird & Co
Siebert Brandford Shank & Co
Smith Hayes Financial Services Corporation
Stephens Inc
Sterne Agee & Leach
Stifel Nicolaus & Company
Wells Nelson & Associates
William Blair & Co

If you are concerned about your bond investments would like to speak to a securities attorney about your potential to recover your investment losses, please call our Chicago office at 312-238-9650.

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 Vero Beach, Florida.

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

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Keith Michael Rogers arrested for alleged violations of the Alabama Securities Act.

Wednesday, June 24th, 2015

Joseph Borg, Director of the Alabama Securities Commission (ASC) and the District Attorney for Madison County, AL, Robert Broussard, recently announced that Keith Michael Rogers was arrested for 10 counts of alleged violations of the Alabama Securities Act.

Rogers’ charges include 10 counts of Securities Fraud in connection with his acts of taking investor funds entrusted to him. The indictment described his fraudulent actions as omitting to state material facts, making untrue statements of material facts and engaging in acts, practice or course of business which operated as a fraud or deceit upon his clients. Each of these charges are reportedly Class B Felonies which are punishable by a maximum of 20 years imprisonment and a $30,000 fine if convicted.

The indictment alleges that Rogers, who is an investment advisor, misled investors by misrepresenting that their investment funds would be lawfully used by Rogers. Approximately $2.5 million dollars of the investors’ funds were allegedly used by Rogers to pay for his personal expenses and as “Ponzi” payments to earlier investors. Rogers also allegedly forged documents to facilitate a series of fraudulent acts on the victims.

Brokerage firms are required to properly supervise their agents and to ensure that they are complying with industry rules and standards.  When they fail to do so, the firms can be responsible for the resulting losses.

The White Law Group is investigating the liability that Rogers employer may have for failure to properly supervise him.

If you invested with Keith Rogers and would like a free consultation with a securities attorney, please call The White Law Group at 312-238-9650.

The White Law Group is a national securities arbitration, securities fraud, and investor protection law firm with offices in Chicago, Illinois and Vero Beach, Florida.

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

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Finra settlement with firms Morgan Stanley Wealth Management and Scottrade Inc.

Tuesday, June 23rd, 2015

Finra has reached a settlement with the firms Morgan Stanley Wealth Management and Scottrade Inc.

Morgan Stanley Wealth Management and Scottrade Inc. allegedly agreed to a settlement with FINRA over allegations that gaps in their compliance systems allowed brokers to improperly move funds into their own personal accounts without detection.

Morgan Stanley and Scottrade both agreed to the sanctions without admitting or denying the charges.

Brokers that circumvent firm polices are a cause for concern and constant viligance.

According to Finra’s complaint, the violations at Morgan Stanley occurred from June 2009 to November 2014. Finra states that Morgan Stanley failed to have “reasonable supervisory systems and written procedures” when it comes to transferring customer money to a third party account.

An example of negligence that Finra gave was that Morgan Stanley allegedly did not have adequate identification requirements for customer signatures authorizing third-party transfers.

The firm also allegedly failed to adequately review when there were multiple transfers of funds to the same third party account. It also allegedly had issues with a third-party service provider who mislabeled transfers, according to the complaint.

As a result, the complaint alleges that three brokers in two offices in Paramus, N.J., and Fort Lauderdale, Fla., were able to convert nearly $500,000 through fraudulent wire transfers and forged signatures.

Finra said all three brokers were terminated from Morgan Stanley when the violations were uncovered, and they have since been barred from the industry.

From 2011 to 2013, Scottrade had similar issues in failing to obtain customer confirmations for third-party wire transfers of less than $200,000, according to Finra.

Brokerage firms are required to properly supervise their agents and to ensure that they are complying with industry rules and standards.  When they fail to do so, the firms can be responsible for the resulting losses.

The foregoing information has been provided by The White Law Group.  The White Law Group is a national securities arbitration, securities fraud, and investor protection law firm with offices in Chicago, Illinois and Vero Beach, Florida.

For more information on The White Law Group, visit www.whitesecuritieslaw.com. For a free consultation with a securities attorney, please call the firm’s Chicago office at 312/238-9650.

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Cabot Investment Properties Principals Arrested

Wednesday, June 17th, 2015

The White Law Group continues to investigate the liability that brokerage firms may have for recommending risky Cabot TIC investments.

According to reports, the principals in Cabot, Carlton P. Cabot and Timothy J. Kroll, have been arrested for allegedly misappropriating more that $17 million of investors money. Cabot and Kroll are accused of defrauding TIC investors from 2008 through 2012. Allegedly, the two men misappropriated funds form the TIC’s and concealed their misappropriations by providing false financial reports and other information to investors.

Housingwire.com reports that Cabot and Kroll transferred money out of bank accounts belonging to the TIC investments into Cabot Investment Properties’ (CIP) operating account. Unfortunately for investors, they used the money in the CIP account for unauthorized purposes, including expensive cars, rental apartments and school tuition. In addition, they perpetuated the fraud by using money from one TIC to support another TIC investment.

Brokerage firms that sell TICs, like Cabot Investment Properties, are required to adequately disclose all the risks associated with any given investment, and to perform adequate due diligence to determine if the investment has a reasonable likelihood of success. Furthermore, firms have a fiduciary duty to recommend investments that are in line with the client’s investment objectives, risk tolerance, age, net worth, investment experience, and liquidity needs.

If you own a Cabot TIC 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. The firm’s offices are located in Chicago, Illinois and Vero Beach, Florida.

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

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