Yearly Archives: 2012
FINRA to Brokerage Firms: Heightened Supervision Required for Complex Products
Last week, the Financial Industry Regulatory Authorized (“FINRA”) issued Notice to Members 12-03 (“Notice”) informing its members of the traits which may make an investment “complex,” requiring heightened supervision and compliance procedures. FINRA stated that any investment with multiple features that impact its returns under different scenarios is potentially complex. This is especially true… Read More »
Defunct Brokerage Firm CapWest Ordered to Pay $9M Award
A Financial Industry Regulatory Authority (FINRA) arbitration panel issued an Award on January 13, 2012 ordering CapWest Securities, Inc. (“CapWest”) to pay $7,925,763 in compensatory damages, plus $1,188,863 in attorney’s fees to a group of 40 investor claimants. The Award is related to losses in Provident Royalties LLC, Medical Capital Holdings, Inc. and DBSI,… Read More »
Florida Man Sentenced to 51 Months in Prison For Investment Fraud
The Florida Office of Financial Regulation announced that Boynton Beach resident, Anthony Cutaia, was sentenced yesterday to 51 months in prison for his role in a $6 million Ponzi scheme perpetrated on 35 Florida investors. Cutaia pleaded guilty to mail and wire fraud for misleading investors and misappropriating funds. Cutaia began soliciting potential investors… Read More »
$67 Million Verdict Against TD Bank in Scott Rothstein Related Case
In the first trial related to Scott Rothstein’s $1.2 billion Ponzi scheme, a Miami federal jury took less than a day to return a $67 million verdict against TD Bank, including $32 million in compensatory damages and $35 million in punitive damages. The jury determined that TD Bank helped Rothstein defraud a group of… Read More »
Qui Tam Lawsuit Against New York City Settled for $70 Million
A qui tam action filed against New York City has settled for $70 million. A qui tam action is a whistleblower lawsuit brought by an individual as a “relator” on behalf of the federal government. The whistleblower lawsuit alleged that the New York City Human Resources Administration improperly overcharged the Federal Medicaid program for… Read More »
SEC Changes Policy For Some Settlements
The Securities and Exchange Commission (SEC) announced it will change its policy of allowing companies and individuals to “neither admit nor deny” wrongdoing in a civil case brought by the SEC when the same entities and individuals have admitted wrongdoing in related criminal cases brought by authorities such as the Department of Justice. The… Read More »
SEC Issues Investor Alert Regarding Social Media and Investing
The Securities and Exchange Commission’s Office of Investor Education and Advocacy issued an investor alert aimed at helping investors protect themselves against online investment fraud. The alert was prompted, in part, by the SEC’s recent charges against an Illinois man who used various social media sites, such as LinkedIn, to promote more than $500… Read More »