Category Archives: Securities & FINRA Update

The Ramifications That Can Result From an Enforcement Action

Last month, The New York Times reported the ongoing issues faced by LPL Financial with respect to customer complaint arbitrations and regulatory enforcement actions.  According to the report, recent customer complaints and other matters have caused LPL to be on … Continue reading

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BrokerCheck’s Impact on Customer Complaints

In January 2013, the Federal Register reported that FINRA has proposed a new rule that  would require broker / dealer firms to include on their website, a description of and link to BrokerCheck in order for customers and potential customers … Continue reading

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FINRA Disputes: Analyzing the Benefits of All-Public Arbitration Panels

2012 was a year of significant change for the FINRA arbitration process.  Specifically, 2012 was the first full year in which investors initiating customer-complaint arbitrations in FINRA had the option of having their claims decided by an all-public panel.  According … Continue reading

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Tranferring Reps- B/D’s Need to Examine Potential Liabilities

Investment News recently published an article on discussing the ongoing practice of registered reps moving between brokerage firms throughout the financial services industry.  Oftentimes, reps will move to a new firm because of a more favorable compensation structure, other times because of … Continue reading

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FINRA Investigating Sales of Non-traded REITS

In the last decade,  Finra targeted broker / dealers who recommended private placements such as medical capital, provident and other alternative investment products to their clients. To date the securities industry is still feeling the impact ranging from the shut … Continue reading

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“Control Person” Claims on Rise as FINRA Membership Declines

In 2005, there were more than 5,100 broker / dealers registered with FINRA.  By the end of 2010, there were less than 4,700 broker / dealers registered with FINRA.  Since 2010, that number has declined even more with some well-known … Continue reading

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Potential class action against Behringer Harvard REIT I may lead to influx of FINRA arbitrations

A Texas investor recently filed a potential class action lawsuit against Behringer Harvard REIT I (“Behringer Harvard”), which is one of the largest Real Estate Investment Trusts in the United States and currently has more than $4.0 Billion in assets. … Continue reading

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Civil Enforcement Actions: Lessons for Investment Advisors

The Securities and Exchange Commission (“SEC”) recently commenced an action against radio personality Ray Lucia, accusing the radio personality of misleading investors to think that his investment strategies helped retirees “generate inflation-adjusted income for life.”  Lucia promotes his investment programs … Continue reading

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Is JP Morgan Chase & Co. too big and too lax?

JP Morgan Chase & Co. recently announced that its loss on bad credit derivative bets has grown from the ‘small’ sum of $2 billion to the much larger sum of at least $5.8 billion.  The banking conglomerate’s stunning loss has … Continue reading

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SEC Investigates Inland American REIT

The SEC just recently announced that it has commenced an investigation into Inland America Real Estate Trust Inc. (“Inland American”). Inland American is one of five (5) real estate investment trusts (“REITS”) affiliated with The Inland American Real Estate Grouo … Continue reading

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Thorwater & SkyCapital- A Cautionary Tale for Investors and Advisors Alike

The securities industry has heard numerous stories about troubled private placements that were offered to investors in the early years of the 21st century, including Medical Capital, Provident and DBSI.  In recent years, numerous REITs have also been the subject … Continue reading

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REIT’s for Dummies: An Investors Guide to Real Estate Investment Trusts

In the late 1990’s and early 2000’s, broker/dealers and registered representatives throughout the United States were recommending that every investor with a few extra dollars to spare invest the money in private placements. In recent years, many of those investments … Continue reading

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The Two Ways that the Duty to Recommend Suitable Investments May Be Breached

When recommending the purchase of a security, NASD Rule 2310 requires that a broker dealer (and its representative) must have reasonable grounds for believing that the recommendation is suitable for the customer on the basis of that investor’s financial situation … Continue reading

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Behringer Harvard Opportunity REIT I’s Slow March to the Grave

Investors in the Behringer Harvard Opportunity REIT I received some unpleasant news to start off the new year.  In early January 2012 investors were informed that the value of the REIT’s shares had declined to $4.12 per share, a 46% … Continue reading

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Petters Scheme Claw Back Claims May Gouge Professionals

Petters Scheme Blog – $36 Billion According to a report recently released by PricewaterhouseCoopers (the “PWC Report”), a total amount of $36 Billion flowed through the various entities that were the result of the Ponzi scheme run by former Minnesota … Continue reading

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