Colling, Gilbert, Wright & Carter Securites Fraud

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Friday, June 25, 2010

Prosecuters Seek Assets of Long-Time Madoff Aids

Federal prosecutors are seeking more the $5 million dollars in assets, including homes and cars that belong to two long-time Madoff "back-office" employees. They filed civil complaint on June 22, 2010 seeking the forfeiture alleging the two employees, Annette Bongiorno and JoAnn Crupi knew about Bernard Madoff's fraudulent ponzi scheme and helped perpetuate it. Neither has been charged with any crimes to date.

The Madoff fraud was just one of many fraudulant schemes that took place in the past few years, many of which were uncovered after the credit crisis in late 2007 and early 2008. Several prominent money managers and brokerage firms have been implicated in the frauds which have cost investors billions.

If you believe you have lost money due to the negligence or fraud of your investment advisor, please contact our office. Thank you.

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posted by William B. Young Jr. Esq. at 10:15 AM

Morgan Stanley Agrees to Pay $102 Million to End Probe

According to a June 25, 2010 Wall Street Journal article, brokerage giant Morgan Stanley agreed to pay $102 Million to end a probe by Massachusetts Attorney General into the firm's role in the Subprime mortgage meltdown. Morgan Stanley neither admits or denies any wrong doing as part of the deal.

The case centered around accusations by Attorney General Martha Coakley that Morgan Stanley provided billions of dollars to subprime lender New Century Financial Corp and then continued to do business with the lender even though some of its loans allegedly violated both Morgan Stanley lending guidelines and the State of Massachusetts lending laws.

Morgan Stanley is but one of many banks and brokerages that helped create the housing bubble and and subsequent crash that led to billions of dollars of investors losses through investment in subprime mortgage pools and tranches.

The attorneys at Colling Gilbert Wright & Carter are currently investigating and litigating subprime related negligence and fraud arbitration claims. Please contact our offices if you believe you have losses from a subprime related investment. Thank you.

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posted by William B. Young Jr. Esq. at 7:08 AM

Friday, June 18, 2010

Auditors for Lehman Brothers To Return $22 Billion to Creditors

In a rather unusual move, the June 16, 2010 Wall Street Journal published an article stating Lehman Brother's European auditors (Price-WaterhouseCoopers LLP) announced they would be expediting the return of approximately $22 billion dollars to unsecured creditors of the failed financial institution. Unfortunately, that money is earmarked for banks and insurance companies and will need final approval from the majority of them before the money can be distributed.

On September 15, 2008, Lehman Brothers Holding filed for bankruptcy protection, wiping out billions of dollars in investments held by institutions and individual investors. Many of the individual investors were holding bonds and structured notes guaranteed by the failed financial institution. Many of these individuals are retirees counting on the income from their investments to support their retirement.

The law firm of Colling Gilbert Wright & Carter is currently litigating Lehman Brother's bond and note arbitration claims. If you lost money in a Lehman Brothers bond or structured note, please contact our offices for a case evaluation. Thank you.

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posted by William B. Young Jr. Esq. at 7:40 AM

Tuesday, June 1, 2010

FINRA Looking at Broker Dealers Who Sold High Commission Private REITs

A May 28, 2010 article by Bruce Kelly in Investor News, discusses how the Financial Industry Regulatory Authority (FINRA)is focusing on these non-traded commercial real estate investment trusts and the manner in which they were sold to brokerage firm clients.

Like many somewhat esoteric products (see structured notes and credit default swaps) born out of an overpriced and over speculated real estate market, real estate investment trusts were sold like conventional products to rank and file brokerage clients. However, unlike a typical stock, bond or mutual fund, these investments were not readily traded and therefore illiquid. When the market went south in 2008, the value of the real estate holdings in the trusts went with it, dividends were cut and redemptions halted, leaving many an unsuspecting investor in financial ruin.

Independent broker-dealers appear to be the biggest purveyors of these investments. Subsequently, many have significant exposure to these illiquid investments and are now under siege by investors who want their money back. Arbitration claims related to REIT's has risen dramatically while collectablity is a major concern. Many independents (see Gun Allen and Private Asset Group) have withdrawn FINRA registration as a result of net capitalization requirements.

The regulatory problem is complicated by the fact much of these investments were sold by Registered Investment Advisers who are not registered with FINRA but with the Securities & Exchange Commission (SEC) and there respective states. FINRA would like to see oversight (and jurisdiction)brought under one roof and require advisers to register with FINRA like brokers and broker dealer must do. The say that will make it easier to prevent abuse in the sale of unconventional investments going forward.

If you lost money in a Real Estate Investment Trust (REIT) or Tenant In Common (TIC) investment(s), please contact our office for a free case evaluation. Thank you.

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posted by William B. Young Jr. Esq. at 12:13 PM

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