Financial Advisors have a fiduciary duty to research investments and to make sure that every investment they recommend is suitable for the client. This obligation is typically called the “Know Your Customer” Rule. Generally, in order to determine whether an investment is suitable, a stockbroker must know the clients age, net worth, investment objectives, investment [...]
According to the New York Post, in May 2010, FINRA accused Long Island brokerage firm David Lerner Associates and its head trader, William Mason, of charging customers “excessive” markups on normally safe municipal bonds and high-grade mortgage-backed securities. According to the FINRA complaint, David Lerner & Associates between 2005 and 2007 charged brokerage customers, many [...]
A former Smith Barney financial adviser in New York has plead guilty to attempting to defraud a client of more than $3 million. According to Reuters, Federal prosecutors have said that Sanjeev Jayant Kumar Shah admitted to sending false documents in March 2009 that authorized Smith Barney to transfer $3.25 million from a client’s account [...]
The White Law Group often serves as local counsel throughout Florida for out-of-state attorneys in FINRA securities arbitration matters. Florida Bar Rules require that an attorney be licensed in the state of Florida to participate in a Florida arbitration or that the attorney partner with a local attorney. The White Law Group, LLC is a [...]
Financial Industry Regulatory Authority (FINRA) recently announced that it has expelled APS Financial Corporation, located in Austin, Texas, barred the firm’s former President, George Conwill, and barred Peter Aman, a former broker at the firm, in a scheme which overcharged an elderly investor by $1.2 million. FINRA found that Aman charged mark-ups ranging from 4.15 [...]
The White Law Group is currently investigating securities fraud claims against New York based broker‐dealer E-Trade Securities, LLC (“E-Trade”) involving auction rate securities. Auction rate securities are long‐term bonds that rely on the successful operation of a periodic auction for short‐term liquidity. The White Law Group is currently reviewing several cases throughout the country wherein [...]
The White Law Group is investigating the appropriateness of UBS’ PACE program for certain investors. UBS’ PACE (Personalized Asset Consulting and Evaluation) program is a fee-based, nondiscretionary mutual fund advisory program. Although the program can benefit certain investors, fee based accounts are often a poor fit for conservative long-term investors. In these cases, unscrupulous financial [...]
The White Law Group is investigating potential claims involving the alleged Ponzi scheme perpetrated by Kenneth McLeod. Specifically, the firm is investigating whether the broker-dealers to which Mr. McLeod was associated failed to properly supervise him and uncover his scheme. The SEC has alleged that McLeod, through his benefits consulting firm, Federal Employee Benefits Group, [...]
Investors frequently get invited to free seminars that promise to educate them about investing strategies or managing money in retirement—often with an expensive meal provided at no cost. But just because someone buys you breakfast, lunch or dinner doesn’t mean you have to buy what they are saying—or selling. FINRA recently issued an Investor Alert [...]
The White Law Group is investigating possible investment fraud scams involving gold. With gold prices reaching record highs, financial advisors are increasingly turning to gold-related investments to increase returns. The North American Securities Administrators Association (NASAA) recently reminded investors to be cautious about jumping onto the gold bandwagon. David Masset, NASAA President and North Carolina [...]