Author Archives: FLSecurities
Two Florida Residents Among Those Sued by SEC in Alleged Investment Scam
A complaint filed on November 17, 2011 in Manhattan federal court, by the Securities and Exchange Commission (SEC) alleges that Florida residents John A. Mattera (Mattera) and John R. Arnold (Arnold) and several others engaged in a scheme to defraud investors across the country out of at least $12 million during the past 15… Read More »
SEC Targeting Investment Advisers With Exaggerated Registration Forms
The Securities and Exchange Commission (SEC) has begun scrutinizing registration documents submitted by investment advisers to uncover misrepresentations they have made regarding their education, assets under management and other aspects of their firm. The intent behind the crackdown is to uncover and address misconduct before it balloons into a threat to investor protection. What… Read More »
FINRA Fines Chase $1.7 Million and Orders Restitution to Customers for Unsuitable Sales of UITs and Floating-Rate Loan Funds
The Financial Industry Regulatory Authority (FINRA) has fined Chase Investment Services Corporation (Chase) $1.7 million and ordered it to pay more than $1.9 million to customers as restitution for losses caused by its recommendation of unsuitable unit investment trusts (UITs) and floating-rate loan funds. A UIT is an investment which contains a diversified mix… Read More »
FINRA Reminds Firms of Their Obligations Regarding the Use of Senior Designations by Their Brokers
The Financial Industry Regulatory Authority (FINRA) issued Regulatory Notice 11-52 (Notice) reminding its member firms of their supervisory obligations regarding the use of designations by their brokers that imply expertise, additional training or a specialty in advising elderly investors (senior designations). In early 2011, FINRA surveyed 157 brokerage firms regarding the use of senior… Read More »
SEC Charges San Diego, CA, Investment Firm and its Owner with Securities Fraud
On November 10, 2011, the SEC brought charges against a San Diego-based investment advisory firm and its president for securities fraud based on its failure to disclose a conflict of interest to investors and falsely represented the liquidity of a hedge fund they managed. The SEC claims that Western Pacific Capital Management LLC and… Read More »
FINRA FINES MORGAN STANLEY $1 MILLION AND ORDERS RESTITUTION FOR EXCESSIVE MARKUPS AND MARKDOWNS CHARGED TO CUSTOMERS
The Financial Industry Regulatory Authority (FINRA) has fined Morgan Stanley Smith Barney (Morgan Stanley) $1 million and ordered restitution for excessive markups and markdowns charged to customers on bond transactions. FINRA’s investigation revealed that customers were charged markups and markdowns on corporate and municipal bond transactions ranging from below 5% to 13.8%. FINRA found… Read More »
Anti-Fraud Hotline Offers Financial Help to Seniors
It is estimated that one out of every five Americans over the age of 65 have been the victim of a financial scam. Now, help for potential financial swindle victims has arrived. A national toll-free hotline for seniors and adult children of the elderly will be launched on November 10 to provide seniors with… Read More »
PROPOSAL ON THE TABLE TO END TAX EXEMPT STATUS FOR MUNICIPAL BONDS
The Joint Select Committee on Deficit Reduction, tasked with finding $1.5 trillion in spending cuts or revenue increases to reduce the ballooning U.S. deficit, is considering a proposal to end the tax exemption for the $2.9 trillion municipal bond market. Municipal bonds are an opportunity for state and local governments to carry out their… Read More »
MORNINGTAR TO OFFER RATINGS ON NON-TRADED REITS
Financial research firm Morningstar, Inc. will begin offering ratings for non-traded real estate investment trust (REITs) as early as the end of the first quarter next year. It is unknown whether Morningstar will apply its well-known star ratings system to the non-listed REITs. Morningstar research is utilized by over 4,000 institutional and advisory clients,… Read More »
CONGRESS MULLS BILL TO IMPOSE FINANCIAL TRANSACTIONS TAX
Congress is considering a bill that would impose a 3% tax on financial transactions in stocks and bonds at their market value, as well as on derivative contracts, options, puts, forward contracts and swaps at their purchase price. Under the proposal, the broker dealer that places the order for a stock or mutual fund… Read More »