Recent Blog Posts
NASAA Cautions Investors Against Blindly Chasing Higher Returns
Following the recent announcement by the Federal Reserve that interest rates are expected to remain low until at least 2014, the North American Securities Administrators Association (“NASAA”) issued a warning to investors to be cautious about investments offering higher returns. The NASAA cautioned that investors should not abandon their slower growing, safe investments in… Read More »
Illinois Resident Charged With $4 Million Investment Fraud
The Securities and Exchange Commission (“SEC”) charged Illinois resident Kenneth A. Dachman (“Dachman”) with misappropriating more than $1.8 million in investor funds and making material misrepresentations to potential investors in connection with offerings for three companies for which he was the Chairman – Central Sleep Diagnostics, LLC, Central Sleep Diagnostics of Florida, LLC, and… Read More »
Florida Resident Convicted in $7 Million Stock Manipulation Scheme
Jonathan Curshen of Sarasota, Florida and San Jose, Costa Rica and Nathan Montgomery of Las Vegas, Nevada were found guilty of conspiracy to commit securities fraud and wire fraud for their roles in a $7 million stock manipulation scheme that defrauded investors. Curshen was the principal of Red Sea Management (“Red Sea”) and Sentry… Read More »
Charles Schwab & Co. Charged With FINRA Violations
The Financial Industry Regulatory Authority has filed a complaint alleging that Charles Schwab & Company (“Schwab”) violated FINRA rules by including a provision in its customer agreement requiring customers to waive their rights to participate in class actions against the firm. According to FINRA’s complaint, Schwab changed its customer account agreement in October 2011… Read More »
FINRA Adds Allegations to Pending Complaint Against David Lerner & Associates
The Financial Industry Regulatory Authority (“FINRA”) has amended its pending complaint against David Lerner & Associates (“DLA”) to add claims against David Lerner (“Lerner”), personally, and to add allegations that DLA continues to make false and misleading claims to potential investors with regard to Apple REITs, non-traded real estate investment trusts. FINRA’s initial complaint… Read More »
SEC Charges Florida-Based Company and Its Founder With Running Boiler Room Stock Scheme
The Securities and Exchange Commission (“SEC”) has charged Fort Lauderdale-based First Resource Group LLC (“First Resource”) and its principal, David Stern (“Stern”) of Tamarac, Florida, with running a boiler room stock scheme. The SEC’s complaint alleges that First Resource employed telemarketers who fraudulently solicited investors to purchase securities in two microcap companies, TrinityCare Senior… Read More »
FINRA Issues Investor Alert Regarding Compromised Email Accounts
The Financial Industry Regulatory Authority (“FINRA”) issued an alert to investors warning them that a compromised email account can not only lead to identify theft, but also to the theft of their money. FINRA’s investor alert was issued in response to a growing number of reports of investor monies being stolen by individuals, who… Read More »
Cayuga Medical Center Settles Qui Tam Lawsuit for $3.5 Million
The Department of Justice announced that Cayuga Medical Center of Ithaca, New York (“Cayuga”) settled a lawsuit filed under the qui tam provision of the False Claims Act regarding false claims submitted to the Medicare and Medicaid programs. The qui tam lawsuit was filed on behalf of whistleblower Daniel S. Joregenson, M.D. According to… Read More »
FINRA Arbitrators Award $1.2 Million to Former Boston Red Sox Catcher
A Financial Industry Regulatory Authority (“FINRA”) arbitration panel has awarded former Boston Red Sox catcher and two-time World Series winner, Doug Mirabelli and his wife, $1.2 million in their claims against Merrill Lynch, Pierce, Fenner and Smith, Inc. (“Merrill Lynch”). The Award represents $800,219 in compensatory damages, plus $391,474 in attorney’s fees and $47,339… Read More »
Merrill Lynch Fined $1 Million for Failing to Arbitrate Employee Disputes
The Financial Industry Regulatory Authority (“FINRA”) has fined Merrill Lynch, Pierce, Fenner and Smith, Inc. (“Merrill Lynch”) $1 million for failing to arbitrate disputes regarding employee retention bonuses. FINRA Rule 13200 requires that firms and associated persons arbitrate any disputes that arise out of the business activities of the member, including those related to… Read More »