Posts tagged ‘The White Law Group’
Forex Capital Markets LLC Settles Charges of Failure to Supervise Customer Accounts
According to a public release from cftc.gov, “The U.S. Commodity Futures Trading Commission (CFTC)…issued an order filing and simultaneously settling charges that Forex Capital Markets LLC (FXCM) failed to supervise diligently its personnel’s handling of more than 57,000 customer accounts that traded on FXCM’s forex trading platforms.”
A combination of restitution to customers and an civil monetary penalty led to an order for Forex Capital to pay a total of $14.2 million. According to the CFTC, “FXCM failed to supervise diligently the handling of customer accounts traded on the FXCM platforms by its officers, employees, and agents with respect to changes in price between order placement and execution on both market orders and margin liquidation orders.” This allegedly resulted in customers failing to gain when the prices changed in their favor, but caused them to lose when the change in prices went against them.
The CFTC release noted that the problems with supervision and the system led Forex Capital Markets “…[to benefit] by, approximately $8,261,937” from their errors.
If you are concerned about investments you’ve made with Forex Capital Markets (FXCM) or are concerned about your forex investments with another firm and would like to speak to a securities attorney, 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 Boca Raton, Florida.
For more information on The White Law Group, please visit our website at http://www.whitesecuritieslaw.com.
FINRA Proposes More Changes to Protect Investors in Non-traded REITs
According to the investmentnews.com, FINRA has “…proposed changes to its Rule 2340, which governs customer account statements. Finra’s new proposal takes aim at brokers’ commissions and other upfront costs.” This change to Rule 2340 would seriously impact how the price of a nontraded REIT is listed on a customer account statement by making clear the commissions and costs involved in buying the product.
Investmentnews.com said that it “…means that the customer of a broker who buys a nontraded REIT for par, typically $10 a unit, would receive an initial account statement, minus the broker’s commissions and other expenses. In such instances, those nontraded REITs would be valued at $8.70 a unit.” Currently the price would be listed at a par value of $10 until valuation of the REIT is complete.
The White Law Group recently blogged that FINRA was also preparing to make changes to regulations surrounding the valuation of Non-traded REITs. These changes would reportedly significantly reduce the amount of time Non-traded REITs can continue to be listed at par value (purchasing price). As the regulations stand today, non traded REITs can remain listed at par value as opposed to market value for up to several years. This delay can leave investors in the dark as to the value and performance of their investment.
Both of these possible rule changes seem to be an attempt by FINRA to protect investors from non-traded REITs which the regulatory body has been monitoring closely over the last year.
The White Law Group is currently representing many investors in claims involving non-traded REITs and will continue to carefully monitor this situation as FINRA moves forward with these regulation proposals.
If you have invested in a non-traded REIT and are concerned about your investment please call the securities attorneys of The White Law Group at 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 Boca Raton, Florida.
For more information on The White Law Group, please visit our website at http://www.whitesecuritieslaw.com.
Raymond James Ordered to make $1.69 Million in Restitution to Customers
According to a public release from FINRA.org they, “ordered Raymond James & Associates, Inc. (RJA) and Raymond James Financial Services, Inc. (RJFS) to pay restitution of $1.69 million to more than 15,500 investors who were charged unfair and unreasonable commissions on securities transactions. FINRA also fined RJA $225,000 and RJFS $200,000.” Both companies have “neither admitted nor denied the charges, but consented to the entry of FINRA’s findings.”
The document reports that an automated system implemented at both Raymond James entities charged “excessive commissions on over 27,000 transactions involving, in most instances, low-priced securities.” The firm’s supervisory measures proved “inadequate” according to FINRA “because the firms established inflated schedules and rates without proper consideration of the factors necessary to determine the fairness of the commissions, including the type of security and the size of the transaction.”
FINRA is requiring Raymond James & Associates (RJA) and Raymond James Financial Services (RJFS) to modify their “automated commission schedules to the requirements of the Fair Prices and Commissions Rule.” Also, in addition to the $1.69 million in restitution “each firm is required to calculate and repay additional overcharges from Nov. 1, 2010, through the date that each firm revised its schedule.”
If you are concerned that you may have been charged unreasonable commission fees by Raymond James & Associates, Raymond James Financial Services, or another brokerage house, the attorneys of The White Law Group may be able to help. To speak to a securities attorney 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 Boca Raton, Florida.
For more information on The White Law Group, please visit our website at http://www.whitesecuritieslaw.com.
Two Former Edwards Jones Brokers Accused of “Selling Away” into a Ponzi Scheme
According to the investmentnews.com the FBI is handling a criminal investigation into Gibraltar Partners, which allegedly, along with other companies, ran a Ponzi scheme for which investors are seeking to recoup more than $100 million. During the course of the FBI investigation and the unraveling of the Ponzi scheme, it was brought to the attention of Edward Jones that 2 of their brokers may have been involved in the scheme and had been “selling away” from the company and investing people in this Ponzi scheme.
The names of those brokers have not been made public, but Edward Jones moved quickly to remove them from the company. Edward Jones is reportedly “cooperating” with securities regulators and the FBI to assist the investigation into the Ponzi scheme. According to the investmentnews.com, Edward Jones is also making moves to make restitution to clients of the firm affected by this situation. John Boul, a company spokesman, is quoted as saying, “A small number of Edward Jones clients have invested money in this scheme, away from the firm…The firm is currently negotiating settlements with these clients.”
Based on the foregoing information, it appears that Edward Jones may be culpable for negligent supervision of the brokers who sold Gibraltar Partners to its clients.
If you invested in the Gibraltar Ponzi Scheme through brokers at Edward Jones or another brokerage house, you may be entitled to recovery of your investment losses. To speak to a securities attorney about your situation 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 Boca Raton, Florida.
For more information on The White Law Group, please visit our website at http://www.whitesecuritieslaw.
Fidelity Brokerage Services LLC Agrees to Repurchase Illiquid Auction Rate Securities and FINRA Sets Up a Special Arbitration Panel (SAP) for Damaged Clients
According to documents available from FINRA.org, “without admitting or denying the findings [of FINRA],” “Fidelity Brokerage Services LLC submitted a Letter of Acceptance, Waiver and Consent in which the firm was censured, fined $375,000, and agreed to make an offer to repurchase illiquid auction rate securities (ARS) from certain customers who purchased ARS via the firm’s website between February 13, 2008, and March 4, 2008.”
In addition, “The firm agrees to arbitrate claims for consequential damages filed by the relevant class (individual investors who purchased eligible ARS from the firm at any time between May 31, 2006, and February 28, 2008, into accounts maintained at the firm) relating to eligible ARS through a special arbitration program (SAP) in accordance with rules set forth by FINRA. No later than 90 days after the date of FINRA’s acceptance of this AWC, the firm shall notify investors in the relevant class that they are eligible to participate in the SAP. This process is voluntary on the part of qualifying investors and does not preclude investors who elect not to participate in the SAP from pursuing other remedies.”
The FINRA documents the details of this SAP process as follows:
“Arbitration under the SAP shall be conducted by a single public arbitrator, unless the claim for consequential damages is $1,000,000 or greater, in which case a panel of three public arbitrators may be appointed if both parties agree. Any investors who choose to pursue such claims through the SAP shall bear the burden of proving that they suffered consequential damages and that such damages were caused by investors’ inability to access funds consisting of investors’ ARS purchases through the firm. The firm shall be able to defend itself against such claims provided, however, solely for the purposes of the SAP, the firm shall not contest liability related to the sale of ARS and shall not be able to use as part of its defense an investor’s decision not to sell ARS holdings prior to receiving a buyback offer from the firm nor the investor’s decision not to borrow money from the firm if such loan facility was made available to ARS holders. In determining the appropriate sanctions, FINRA took into account that the firm took significant steps to minimize the impact to customers of the illiquidity of the ARS market.”
For the full text of the release from FINRA.org you may visit http://www.finra.org/web/groups/industry/@ip/@enf/@da/documents/disciplinaryactions/p124305.pdf
If you are concerned about investments you have made in auction rate securities with Fidelity and would like to speak to a securities attorney about the SAP process as well as your other options, please contact 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 Boca Raton, Florida.
For more information on The White Law Group, please visit http://www.whitesecuritieslaw.com.