Colling, Gilbert, Wright & Carter Securites Fraud

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Friday, May 28, 2010

Federal Prosecutors Charge Financial Advisor Kenneth Star with Running $30 Million Fraud Scheme

According to a May 28, 2010 Wall Street Journal article, financial advisor Kenneth Star was charged by federal prosecutors with running a fraud scheme alleging he used clients' money to finance his own and friends' lavish lifestyles. A all too familiar story over the past two years, Starr, an investment advisor with many celebrity and other wealthy individuals clients, allegedly used the money that was to be invested for his own personal gain. There is no word on how much or if any of the clients' funds may be recovered.

The Securities & Exchange Commission, in a separate complaint, filed a civil fraud complaint against Starr alleging he provided services to more than 30 high-net-worth individuals and had over $700 million under management at one time.

If you believe you have lost money as a result of mismanagement on the part of your investment advisor of stock broker, please contact our office for a free case evaluation. Thank you.

Labels: broker misconduct

posted by William B. Young Jr. Esq. at 11:27 AM

Wednesday, May 19, 2010

UBS Struggles in Arbitrations Involving Principal Protected Notes

A recent Forbes article documents the success investors have had in FINRA arbitration against UBS over losses associated with proprietary structured products...most notably the Principal Protected Notes (PPN).

In the FINRA complaints, investors allege UBS marketed the notes as relatively safe investments with principal protection. What investors allege they did not disclose was the fact that many of the notes were essentially unsecured debt of now defunct Lehman Brothers Holdings. These claims allege misrepresentation in the marketing and sale of the structured products and so far the arbitration panels are agreeing, awarding damages in four of the first five PPPN cases that have gone to hearing.

Our securities attorneys currently are currently litigating numerous UBS structured product arbitration cases. If you have lost money as a result in an investment in a UBS PPN, PPPN, Rate optimization or Absolute Return Barrier Notes backed by Lehman Brothers credit, please contact our offices for a case evaluation. Thank you.-

posted by William B. Young Jr. Esq. at 5:26 AM

Monday, May 17, 2010

Studies Show Scam Artists Target Retirees Trying to Recoup Their Nest Eggs

Investors nearing retirement or already retired who have lost money in the most recent market decline are desperate to repair their savings. They are panicking that they won't have enough money to live during retirement and become easy target for folks selling anything from alternative energy investments to precious metals.

The instances of fraud against people in their 50's and 60's has dramatically increased as the markets have gone down. These people are afraid of more losses from stocks but can't afford to live on money market rates or CD's. Enter the fast talking salesman with all the answers. He convinces people to take out equity in their home to invest in direct private placements and real estate partnerships or to sell their insurance policies to investors at a discount (Life Settlement Securities). Many of these investments turn out to be scams and ponzi schemes. Even if the investments turn out to be legitimate, the risk associated with them is more then most investors in that age group can tolerate. They don't have time to make back the substantial losses.

The best way to protect yourself from these fraudulent schemes is to thoroughly check out your broker or salesman. The Financial Industry Regulatory Authority (FINRA) has a "broker check" service on its website which allows anyone to access the complaint record and license history of every registered broker dealer and representative. You can also contact your state's securities and insurance commission websites for licensee information.

If you have lost money to a broker selling an investment you suspect may be fraudulent, please contact us for a free case evaluation.

Labels: broker misconduct

posted by William B. Young Jr. Esq. at 6:48 PM

Goldman Sachs Shorted Stocks While Clients Went Long

According to a weekend Wall Street Journal Article "Goldman Bet Contrasted With Clients", the investment banking giant purchased puts on stocks for financial services companies such as Bear Sterns (now JP Morgan) and Washington Mutual (now Chase) during the summer of 2007. This preceded the dramatic market declines that began in the fall of 2007 and proceeded through 2008 and into the first quarter of 2009. This same decline in credit markets took down both Bear Stearns and Washington Mutual.

This information was revealed as part of the U.S. Senate inquiry into Goldman's relationship with a hedge fund that took large bets on the mortgage market and profited handsomely. Goldman's marketing and sale of complex derivatives tied to the same subprime mortgage market to their clients led the Securities and Exchange Commission (SEC) to bring fraud charges against Goldman. Goldman vigorously denies the charges and will be a interesting storyline to follow over the coming months.

The Goldman scandal is but the latest in a long line of Wall Street behaving badly stories that have cost investors billions of dollars. If you lost money related to investments in the subprime mortgage sector, please contact our office for a free case evaluation.

posted by William B. Young Jr. Esq. at 6:27 PM

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