tag:blogger.com,1999:blog-81452619303139657472012-01-31T07:02:39.689-08:00Keep up on the latest Securities Fraud news and litigation by following our blog.Meli Thttp://www.blogger.com/profile/13014055967476853680noreply@blogger.comBlogger1511100tag:blogger.com,1999:blog-8145261930313965747.post-25751794697868918122012-01-31T06:31:00.000-08:002012-01-31T07:02:39.697-08:00

Expert witness John Maine, who frequently appears and testifies on behalf of Respondent brokerage firms in Financial Industry Regulatory Authority (FINRA) arbitration, was attacked by the Madoff Trustee. Maine, who was testifying on behalf of Met owners Fred Wilpon and Saul Katz, described them as unsophisticated investors despite their massive real estate holdings and substantial wealth. Trustee

William B. Young Jr. Esq.http://www.blogger.com/profile/02963660481766957534noreply@blogger.comtag:blogger.com,1999:blog-8145261930313965747.post-88525353448529496822012-01-13T10:41:00.000-08:002012-01-13T10:59:19.447-08:00

After months of speculation and one failed deal, on January 11, 2011, Raymond James Financial, Inc., announced that the firm entered into a stock purchase agreement to acquire Morgan Keegan & Company, Inc. and related affiliates from banking giant Regions Financial Corp. (RF) The cost of the deal was approximated at $930 million, making it the largest acquisition in the history of the publicly

William B. Young Jr. Esq.http://www.blogger.com/profile/02963660481766957534noreply@blogger.comtag:blogger.com,1999:blog-8145261930313965747.post-47507372683796211732012-01-11T13:11:00.000-08:002012-01-11T13:26:24.931-08:00

Fannie Mae Chief Executive Michael Williams announced today he is stepping down from the government-controlled mortgage firm once a successor is appointed to take over. Fannie Mae is the US's largest provider of residential mortgages and was at the center of the mortgage crisis in 2008 when both Fannie Mae and Freddie Mac were seized by the government as losses on mortgage loans escalated.

William B. Young Jr. Esq.http://www.blogger.com/profile/02963660481766957534noreply@blogger.comtag:blogger.com,1999:blog-8145261930313965747.post-78154420040563651022012-01-03T09:30:00.001-08:002012-01-03T09:49:49.449-08:00

According to a recent Bloomberg.com article, Regions Financial Corp. (RF) has ended talks to sell its Morgan Keegan brokerage unit to Stifel Financial Corp. (SF) The two sides presumably could not agree on the sale terms. The company is said to still be in talks with St. Peters burg, Florida based brokerage Raymond James Financial about a possible sale of Morgan Keegan. Morgan Keegan has been

William B. Young Jr. Esq.http://www.blogger.com/profile/02963660481766957534noreply@blogger.comtag:blogger.com,1999:blog-8145261930313965747.post-17352667310733418992011-12-19T11:35:00.000-08:002011-12-19T12:17:34.381-08:00

According to a December 18, 2011 Memphis Commercial Appeal article, investor losses in the Morgan Keegan RMK family of bond funds could have been prevented had someone other than James Kelso Jr., the fund manager been watching the store. As it stands, investors, many of them retirees, lost close to a billion dollars when the funds crashed at the beginning of the credit and housing market

William B. Young Jr. Esq.http://www.blogger.com/profile/02963660481766957534noreply@blogger.comtag:blogger.com,1999:blog-8145261930313965747.post-73015129071291162512011-12-13T09:28:00.000-08:002011-12-13T09:58:53.778-08:00

Last week, Lehman Brothers Holdings Inc. received a federal judge’s approval to begin winding down the largest bankruptcy in U.S. history. As part of the plan, the Trustee for the bankruptcy estate said he would begin distributing approximately $23 billion in available cash to creditors. The plan also calls for an orderly liquidation of the defunct firm's remaining assets, bringing the expected

William B. Young Jr. Esq.http://www.blogger.com/profile/02963660481766957534noreply@blogger.comtag:blogger.com,1999:blog-8145261930313965747.post-59754005043856922542011-12-08T10:08:00.000-08:002011-12-08T10:22:47.249-08:00

A December 8, 2011 Yahoo finance blog explores what has changed since the failure of investment banking firms Bear Stearns and Lehman Brothers as well as government sponsored enterprises (GSE)Fannie Mae and Freddie Mac. According to the article, the problems that caused the failures and the corresponding financial market meltdown still exist and in some instances, may be worse. The full blog may

William B. Young Jr. Esq.http://www.blogger.com/profile/02963660481766957534noreply@blogger.comtag:blogger.com,1999:blog-8145261930313965747.post-53373650791555574542011-12-07T06:37:00.000-08:002011-12-07T06:55:39.196-08:00

Pacific West Securities, an independent broker-dealer with about 290 registered representatives and financial advisers is shutting down due to lower revenues and increasing costs. The Broker-Dealer informed its brokers yesterday afternoon of the closing. It is believed the majority of the brokers will be moving to Multi-Financial Securities Corp. As a result of the market and credit crisis in

William B. Young Jr. Esq.http://www.blogger.com/profile/02963660481766957534noreply@blogger.comtag:blogger.com,1999:blog-8145261930313965747.post-22289952182043645452011-12-06T09:05:00.001-08:002011-12-07T06:36:49.990-08:00

According to a Nov. 30, 2012 article in Financial Planning Magazine , The Financial Industry Regulatory Authority (FINRA) has sanctioned eight firms and 10 individuals for selling interests in private placement offerings “without having a reasonable basis for recommending the securities,” the regulatory agency said in a statement. The sanctions included ordering more than $3.2million in total

William B. Young Jr. Esq.http://www.blogger.com/profile/02963660481766957534noreply@blogger.comtag:blogger.com,1999:blog-8145261930313965747.post-35482493564022475412011-11-28T10:34:00.000-08:002011-11-28T10:58:56.042-08:00

A recent Forbes.com article reports a federal judge has tossed out what was believed to be the largest settlement with regulators regarding the marketing and sale of collateralized debt obligations (CDO).In mid-October, Citigroup agreed to pay out $285 million to settle charges of misleading investors when purchasing collateralized debt obligations tied to the housing market. As is typical with

William B. Young Jr. Esq.http://www.blogger.com/profile/02963660481766957534noreply@blogger.comtag:blogger.com,1999:blog-8145261930313965747.post-53976564093772917182011-11-28T10:24:00.000-08:002011-11-28T10:59:56.268-08:00

According to a November 23, 2011 article in Financial Advisor Magazine, LPL Financial has been fined $100,000 for failing to properly oversee one of its brokers who sold risky investments to clients, many of them elderly and without the mental capacity to make investment decisions.The Oregon Securities division found LPL Financial violated securities laws, including failing to diligently

William B. Young Jr. Esq.http://www.blogger.com/profile/02963660481766957534noreply@blogger.comtag:blogger.com,1999:blog-8145261930313965747.post-92152577411180942862011-10-31T08:10:00.000-07:002011-10-31T08:35:46.992-07:00

Holders of Lehman Brothers backed bonds and structured notes recently received a Notice of Approval of Disclosure Statement; Establishment of Record Date; Hearing on Confirmation of the Plan and Procedures for Objecting to Confirmation of the Plan; and Procedures and Deadline for Voting on the Plan (Confirmation Hearing Notice). The amended plan indicates Lehman Brothers debt holders will

William B. Young Jr. Esq.http://www.blogger.com/profile/02963660481766957534noreply@blogger.comtag:blogger.com,1999:blog-8145261930313965747.post-91545023398328905462011-10-31T07:59:00.000-07:002011-10-31T08:10:46.894-07:00

Huffington Post contributing writer Robert Kuttner makes a compelling argument for the abolish en of Credit Default Swaps (CDFs). After all they did almost destroy and the global financial system and forced the U.S. Government to bail out several banks and insurance companies. The full article may be found here. These unregulated derivative securities were also responsible for losses in the

William B. Young Jr. Esq.http://www.blogger.com/profile/02963660481766957534noreply@blogger.comtag:blogger.com,1999:blog-8145261930313965747.post-77936033958388153082011-08-31T09:54:00.000-07:002011-08-31T10:14:21.504-07:00

According to an article in yesterday's (Aug. 30, 2011) In Audit magazine, the Securities and Exchange Commission (SEC)has charged two Florida men with fraud for bilking retirees, many of whom were teachers, out of their life savings. In all, approximately $22 million was taken from over 100 unsuspecting investors in what turned out to be a Ponzi Scheme ala Bernie Madoff on a smaller scale. The

William B. Young Jr. Esq.http://www.blogger.com/profile/02963660481766957534noreply@blogger.comtag:blogger.com,1999:blog-8145261930313965747.post-70013541179789329242011-08-18T12:57:00.001-07:002011-08-18T13:13:04.895-07:00

In February 2011, the Securities and Exchange Commission (SEC) fined TD Ameritrade $10 million for failing to properly supervise its reps while the Reserve Primary Fund was losing value and eventually "broke the buck." Even with that historical collapse, the brokerage firm would rather see advisors regulated by the commission and not the Financial Industry Regulatory Authority (FINRA) or some

William B. Young Jr. Esq.http://www.blogger.com/profile/02963660481766957534noreply@blogger.comtag:blogger.com,1999:blog-8145261930313965747.post-66470301057241413032011-08-12T09:16:00.000-07:002011-08-12T09:32:23.271-07:00

Colling Gilbert Wright & Carter is advising all Oppenheimer Champion Income Fund (”Champion Fund”) investors the deadline for opting out of the settlement is August 31, 2011. According to notices from the class action administrator, the proposed class action settlement will be approximately $52.5 million or approximately three ($.03) cents on the dollar. Investors who don't opt-out and choose to

William B. Young Jr. Esq.http://www.blogger.com/profile/02963660481766957534noreply@blogger.comtag:blogger.com,1999:blog-8145261930313965747.post-89848261505458667032011-07-29T07:27:00.000-07:002011-07-29T07:47:01.933-07:00

On July 27, 2011, the Securities and Exchange Commission staff issued a report identifying common weaknesses seen in sales of structured securities products and describing measures by broker-dealers to better protect retail investors from fraud and abusive sales practices. The summary report can be viewed here.If you have purchased a structured product through your brokerage firm or investment

William B. Young Jr. Esq.http://www.blogger.com/profile/02963660481766957534noreply@blogger.comtag:blogger.com,1999:blog-8145261930313965747.post-46740456940179105792011-06-29T06:45:00.000-07:002011-06-29T06:58:40.621-07:00

Today CNN reported Bank of America will pay $8.5 billion to investors who experienced losses from fraudulent mortgage securities. The securities, which represented an interest in pools of home mortgages, were sold to investors as highly rated investments. However, they collapsed along with the housing market. Investors later discovered that many of the supposedly highly rated mortgage pools,

William B. Young Jr. Esq.http://www.blogger.com/profile/02963660481766957534noreply@blogger.comtag:blogger.com,1999:blog-8145261930313965747.post-28739737428175501682011-06-27T08:12:00.000-07:002011-06-27T08:22:54.742-07:00

According to a June 27, 2011 article in the New York Law Journal, Investment firm International Capital & Management Co. must pay more than$300,000 in attorney's fees after withdrawing claims in an arbitration against failed investment banking firm Bear Stearns & Co. (now JP Morgan Securities).The judge in the case held hat, even though the contract did not provide for a fee award FINRA, both

William B. Young Jr. Esq.http://www.blogger.com/profile/02963660481766957534noreply@blogger.comtag:blogger.com,1999:blog-8145261930313965747.post-10473212780749784192011-06-22T11:33:00.000-07:002011-06-22T11:40:33.926-07:00

The Financial Industry Regulatory Authority (FINRA) announced today that Morgan Keegan & Co, Inc. has agreed to pay $200 million dollars to settle SEC, FINRA and Five State security commission claims arising from the marketing and sale of the Morgan Keegan RMK bond funds. A copy of the FINRA press release may be found here.

William B. Young Jr. Esq.http://www.blogger.com/profile/02963660481766957534noreply@blogger.comtag:blogger.com,1999:blog-8145261930313965747.post-33359300004746174232011-06-22T11:28:00.000-07:002011-06-22T11:33:00.433-07:00

Today, the Alabama Securities commission issued an adminstrative consent order involving Morgan Asset Managment, Morgan Keegan & Co and James E. Kelsoe. Kelso was the manager of the RMK Bond Funds. A copy of the Order may be found here.

William B. Young Jr. Esq.http://www.blogger.com/profile/02963660481766957534noreply@blogger.comtag:blogger.com,1999:blog-8145261930313965747.post-7529860236375280052011-06-22T11:24:00.000-07:002011-06-22T11:27:03.544-07:00

Order Making Findings and Imposing Remedial Sanctions and a Cease-and Desist Order

William B. Young Jr. Esq.http://www.blogger.com/profile/02963660481766957534noreply@blogger.comtag:blogger.com,1999:blog-8145261930313965747.post-16548233979292614542011-06-21T11:38:00.001-07:002011-06-21T11:51:35.245-07:00

According to recent Yahoo Finance article, JP Morgan Chase & Co. has agreed to pay $153.6 million to settle civil fraud charges brought by the Securities & Exchange Commission (SEC). Click here for the SEC release.The commission alleged the company mislead buyers as to the risk associated with complex mortgage investments just before the housing market collapsed. Notable in the settlement was the

William B. Young Jr. Esq.http://www.blogger.com/profile/02963660481766957534noreply@blogger.comtag:blogger.com,1999:blog-8145261930313965747.post-51177721203665640292011-06-15T08:31:00.000-07:002011-06-15T08:41:29.628-07:00

According to an article in today's the U.S. Securities and Exchange Commission (SEC) is expected to fine Morgan Keegan & Co. $200 million for the alleged fraudulent marketing and sale of the RMK family of bond funds. The SEC also charged Fund manager Jim Kelsoe with fruad.Apparently Morgan Keegan had already accepted the fine as the parent company Regions Financial Corp. took a $200 million

William B. Young Jr. Esq.http://www.blogger.com/profile/02963660481766957534noreply@blogger.comtag:blogger.com,1999:blog-8145261930313965747.post-17999133650889987372011-06-13T07:58:00.000-07:002011-06-13T08:12:32.772-07:00

The board of directors of Regions Financial Corp is looking into allegations executives failed to timely disclose loans that were going into delinquency during the recent financial crisis.Regions is the country's fourth largest Banks and the only one of its size that has not re-payed the Troubled Assets Relief Program (TARP) money provided by the federal government when the banking system was

William B. Young Jr. Esq.http://www.blogger.com/profile/02963660481766957534noreply@blogger.comtag:blogger.com,1999:blog-8145261930313965747.post-37073536765674713822011-06-08T09:45:00.001-07:002011-06-08T10:32:32.481-07:00

According to a June 7, Wall Street Journal article, Pacific Investment Management Co., (PIMCO) and fund manager Bill Gross took a big bet on Lehman Brothers and lost. According to the WSJ article, losses on Lehman bonds could exceed $3.4 billion, depending on the ultimate value the debt fetches in the pending bankruptcy proceeding. PIMCO is one of the largest money managers for in the United

William B. Young Jr. Esq.http://www.blogger.com/profile/02963660481766957534noreply@blogger.comtag:blogger.com,1999:blog-8145261930313965747.post-67816779470602001972011-06-07T11:11:00.000-07:002011-06-07T11:35:49.895-07:00

WFP Securities of San Diego notified the Financial Industry Regulatory Authority (FINRA) this week it would be shutting down operations. According to documents filed in court proceedings, the firm had sold over $30 million dollars of private placements in Medical Capital Holdings, Inc. and Provident Royalties LLC. Both companies have been charged with fraud. Estimates place claims against WFP at

William B. Young Jr. Esq.http://www.blogger.com/profile/02963660481766957534noreply@blogger.comtag:blogger.com,1999:blog-8145261930313965747.post-87647595606195870142011-05-17T10:30:00.000-07:002011-05-17T10:44:28.973-07:00

An article, in the May 17, 2011 NY Times,reports he New York attorney general has requested information and documents in from at least three major Wall Street banks and their mortgage securities operations during the credit boom. These inquiries show renewed interest, by the AG's office, in the practices of these units and what role they may have played in creating billions of dollars in mortgage

William B. Young Jr. Esq.http://www.blogger.com/profile/02963660481766957534noreply@blogger.comtag:blogger.com,1999:blog-8145261930313965747.post-88293979838020022712011-04-27T05:26:00.000-07:002011-04-27T05:42:04.246-07:00

In the wake of a $150 million dollar settlement with investors who alledged they were fraudulently sold private placements in Medical Capital and Provident Royalties by Securities of America (SAI), parent company Ameriprise Financial had put the troubled broker dealer up for sale. Some observers find the timing curious but the firms maintain the sale will have no effect on the proposed settlement

William B. Young Jr. Esq.http://www.blogger.com/profile/02963660481766957534noreply@blogger.comtag:blogger.com,1999:blog-8145261930313965747.post-52813621335101082842011-04-13T07:09:00.000-07:002011-04-13T07:19:31.993-07:00

The Financial Industry Regulatory Authority (FINRA)found UBS misled investors by way of omitting certain information in the sale of Lehman Brothers backed 100% principal protected notes. As a result of the finding, UBS has issued a Letter of Acceptance, Waiver and Consent (AWC) for the purpose of proposing settlement of the FINRA allegations. A condition on the condition no further action will be

William B. Young Jr. Esq.http://www.blogger.com/profile/02963660481766957534noreply@blogger.comtag:blogger.com,1999:blog-8145261930313965747.post-59502701199287236622011-04-13T06:52:00.000-07:002011-04-13T07:09:18.603-07:00

In a Monday Arpil 11, 2011, Press Release, the Financial Industry Regulatory Authority (FINRA) announced they have fined UBS Financial Services (UBS) $2.5 million and Ordered the firm to pay $8.25 million in restitution for Omission in the marketing and sale of Lehman Brothers issued 100% principal-protected notes. In the press release, FINRA said the omissions in the sale of the notes "

William B. Young Jr. Esq.http://www.blogger.com/profile/02963660481766957534noreply@blogger.comtag:blogger.com,1999:blog-8145261930313965747.post-57519469114587058442011-03-04T11:19:00.001-08:002011-03-04T14:26:57.221-08:00

A March 3, 2011 Reuters article reports Ameriprise Financial Inc. has agreed to agreed to settle two class action lawsuits for $27 million dollars. The suits involve the sale of private placements in Medical Capital and Provident Royalties by the firm's subsidiary Securities of America, Inc(SAI). The companies both failed in 2009 and were subsequently found to be Ponzi schemes. It is estimated

William B. Young Jr. Esq.http://www.blogger.com/profile/02963660481766957534noreply@blogger.comtag:blogger.com,1999:blog-8145261930313965747.post-31785357196515312972011-01-24T07:32:00.001-08:002011-01-24T07:58:56.179-08:00

According to a New York Times article by Gretchen Morgenson, since Fannie Mae and Freddie Mac failed in the summer of 2008, during the height of the credit crisis, taxpayers have spent approximately $160 million defending suits against the two entities and their former executives.The bulk of the cost has been spent defending Fannie Mae and its officials in securities suits and government

William B. Young Jr. Esq.http://www.blogger.com/profile/02963660481766957534noreply@blogger.comtag:blogger.com,1999:blog-8145261930313965747.post-69996526579606765492011-01-11T06:43:00.000-08:002011-01-11T06:51:29.756-08:00

The SEC recently passed a new rule that takes the place of prior NYSE and FINRA rules regarding a broker's obligation to know his customer and only recommend investments which are suitable for him/her. The obligation stems from a customers new account form which set forth stated goals and objectives for the money as well as risk tolerances. Should the broker recommend securities that are

William B. Young Jr. Esq.http://www.blogger.com/profile/02963660481766957534noreply@blogger.comtag:blogger.com,1999:blog-8145261930313965747.post-15697459048156186762011-01-05T11:11:00.000-08:002011-01-05T11:28:01.224-08:00

On December 16, 2010, a three member FINRA arbitration panel awarded Thomas and Christine Motamed $2.2 million plus interest from date of purchase (Case #09-02087). According to the award, this amount represented rescissionary damages for the purchase of the structured products. The request for attorney's fees, costs and punitive damages was denied. UBS has been hit with hundreds of FINRA

William B. Young Jr. Esq.http://www.blogger.com/profile/02963660481766957534noreply@blogger.comtag:blogger.com,1999:blog-8145261930313965747.post-88933267436186119582011-01-05T10:42:00.000-08:002011-01-05T11:08:07.857-08:00

On December 10, 2010, Thomas Seaman, the Court Appointed Receiver published his 17th and most recent report as to the status of asset gathering. The outlook is less then encouraging for Medical Capital note holders. To date the receiver has recovered approximately $120 million in assets (through November 30,2010) most of which were obtained shortly after a restraining order was issued and the

William B. Young Jr. Esq.http://www.blogger.com/profile/02963660481766957534noreply@blogger.comtag:blogger.com,1999:blog-8145261930313965747.post-10054046014258203652010-12-20T08:36:00.001-08:002010-12-20T08:52:00.931-08:00

Several major Wall Street banks are in preliminary discussions with securities regulators to put an end to a probe involving the sale of pools of mortgages and other loans called "collateralized debt obligations." (CDOs) and "collateralized mortgage obligations (CMOs). These investment vehicles set the recent financial crisis in motion and almost collapsed the U.S. financial system.The mortgages

William B. Young Jr. Esq.http://www.blogger.com/profile/02963660481766957534noreply@blogger.comtag:blogger.com,1999:blog-8145261930313965747.post-31931230375769315352010-12-20T08:16:00.000-08:002010-12-20T08:24:09.807-08:00

The Financial Industry Regulatory Authority (FINRA) recently announced they will be stepping up surveillance of high-frequency trading firms to insure those firms do not gain a market advantage by side-stepping supervisory guidelines and other industry regulations. Many observers have long believed so called "fast-trading" firms have been able to gain a competitive advantage over more traditional

William B. Young Jr. Esq.http://www.blogger.com/profile/02963660481766957534noreply@blogger.comtag:blogger.com,1999:blog-8145261930313965747.post-80956512787349427592010-12-20T08:00:00.000-08:002010-12-20T08:16:04.146-08:00

According to a December 20, 2010 Wall Street Journal article, New York prosecutors are about to file a civil lawsuit alleging accounting giant Ernst & Young stood by and allowed Lehman Brothers to mislead investors (and regulators) about the investment bank's declining financial condition. Lehman Brothers was one of the big four accounting firms top clients, generating over $100 million in

William B. Young Jr. Esq.http://www.blogger.com/profile/02963660481766957534noreply@blogger.comtag:blogger.com,1999:blog-8145261930313965747.post-63988191455912824342010-12-01T06:32:00.000-08:002010-12-01T06:48:15.884-08:00

A recent Wall Street Journal article reports the legal and consulting fees paid by the Lehman Brothers bankruptcy trustee recently topped the one billion dollar mark. The top fee garners are restructuring firm Alvarez & Marsal, LLC ($369.3 million) and lead bankruptcy counsel ($245.8) million. Given creditors and investors stand to loses billions when all is said and done, it is somewhat

William B. Young Jr. Esq.http://www.blogger.com/profile/02963660481766957534noreply@blogger.comtag:blogger.com,1999:blog-8145261930313965747.post-78384876347445893552010-11-30T08:04:00.000-08:002010-11-30T08:30:16.588-08:00

According to a November 29, 2010 Wall Street Journal article, on the day after Thanksgiving, the trustee filed multiple suits against former Madoff employees customers and relatives in an attempt to recover some of the billions of dollars in investor losses. The timing of the suit was brought about by the two year limitation on filing suits to "claw back" funds from former investors. So far the

William B. Young Jr. Esq.http://www.blogger.com/profile/02963660481766957534noreply@blogger.comtag:blogger.com,1999:blog-8145261930313965747.post-17229773551073839372010-11-30T07:18:00.000-08:002010-11-30T08:04:17.981-08:00

The actor Larry Hagman seems to be reprising his role as J.R. Ewing. Mr. Hagman is fighting with Citigroup over an $11.6million arbitration award he won last month. Larry Hagman who played the villainous oil tycoon J.R. Ewing in the 1980s hit TV series "Dallas recently won $11.6 million in a securities arbitration case against Citigroup. The arbitration panel award $1.6 million in compensatory

William B. Young Jr. Esq.http://www.blogger.com/profile/02963660481766957534noreply@blogger.comtag:blogger.com,1999:blog-8145261930313965747.post-19520054263376250922010-11-02T06:49:00.000-07:002010-11-02T07:10:36.332-07:00

The Securities and Exchange Commission (SEC) has been weighing competing interests for the regulation of registered investment advisers (RIAs). As it stands now, RIAs are regulated by the SEC but some feel there needs to be better regulation and more accountability to ensure the RIA's are not given free reign to reek havoc in the client's portfolios. One suggestion is to transfer the regulation

William B. Young Jr. Esq.http://www.blogger.com/profile/02963660481766957534noreply@blogger.comtag:blogger.com,1999:blog-8145261930313965747.post-51961363953309762612010-10-27T07:51:00.000-07:002010-10-27T08:31:26.410-07:00

According to a recent Investment News article, several large arbitration awards have been handed down by FINRA arbitration panels in the past 30 days. Three rulings over an eleven day period totaled approximately $25 million dollars and observers say more large cases are expected to be filed and decided. The FINRA arbitration decisions included a $11.5 million award to former "I Dream of Genie"

William B. Young Jr. Esq.http://www.blogger.com/profile/02963660481766957534noreply@blogger.comtag:blogger.com,1999:blog-8145261930313965747.post-87034579078729147892010-09-30T12:57:00.001-07:002010-09-30T13:08:09.543-07:00

The Wall Street Journal reported on Wednesday that the Alabama Securities Regulator mistakenly released confidential information about Morgan Keegan clients in response to a request for publicly available exhibits to a regulatory complaint filed by the Alabama Securities Commission. The commission had been investigation Morgan Keegan over customer losses experienced in the company's RMK Bond

William B. Young Jr. Esq.http://www.blogger.com/profile/02963660481766957534noreply@blogger.comtag:blogger.com,1999:blog-8145261930313965747.post-19356814529598473352010-09-30T12:38:00.000-07:002010-09-30T12:57:01.429-07:00

According to a recent article in Investment News, the Financial Industry Regulatory Authority (FINRA) plans to ask the Securities and Exchange Commission (SEC) for approval to appoint all public arbitrator panels for non-broker claims. This is a move that has been long sought by plaintiff securities lawyers and one that most observers believe will help level the playing field in securities

William B. Young Jr. Esq.http://www.blogger.com/profile/02963660481766957534noreply@blogger.comtag:blogger.com,1999:blog-8145261930313965747.post-18672711935952482772010-09-28T11:38:00.000-07:002010-09-28T11:50:00.959-07:00

A Sotheby's auction of the Lehman Brothers art collection, held last week, set new sales records for 17 artists and raised just over $12 million dollars. The proceeds of the auction will go toward repaying the more than $600 billion owed to the creditors of Lehman Brothers, which declared bankruptcy on September 15, 2008 and helped set off a global meltdown of the financial system.Although the

William B. Young Jr. Esq.http://www.blogger.com/profile/02963660481766957534noreply@blogger.comtag:blogger.com,1999:blog-8145261930313965747.post-86852215213024209872010-09-23T06:16:00.000-07:002010-09-23T06:28:11.093-07:00

The Securities and Exchange Commission (SEC) has come under suspicion due to the timing of the fraud lawsuit which some observers say was done to move attention away from criticism the SEC's enforcement unit failed to detect a $7 billion Ponzi scheme allegedly perpetrated by money manager R. Allen Stanford. The enforcement unit also took considerable heat for not detecting the Bernard Madoff

William B. Young Jr. Esq.http://www.blogger.com/profile/02963660481766957534noreply@blogger.comtag:blogger.com,1999:blog-8145261930313965747.post-61928815216517790472010-09-22T11:33:00.000-07:002010-09-22T12:03:56.767-07:00

The old adage (and I'm paraphrasing) those who don't learn from their mistakes are destined to repeat them could be playing out in the bond markets. After the credit crisis and global market meltdown brought about by huge bets on subprime mortgage paper and structured finance nearly took down the global financial markets, investors are once again testing the high yield or junk bond markets

William B. Young Jr. Esq.http://www.blogger.com/profile/02963660481766957534noreply@blogger.comtag:blogger.com,1999:blog-8145261930313965747.post-18585303675995021022010-09-17T08:19:00.000-07:002010-09-17T08:44:47.053-07:00

According to a Wall Street Journal article (Sept 16, 2010), some money-market funds are once again venturing into riskier investments, a strategy that led to massive investor withdrawals and the collapse of one fund during the recent credit crisis. The Reserve Primary Fund "broke the buck" due to a large exposure to Lehman Brothers debt which became worthless when the company filed for bankruptcy

William B. Young Jr. Esq.http://www.blogger.com/profile/02963660481766957534noreply@blogger.comtag:blogger.com,1999:blog-8145261930313965747.post-75100219765784969522010-09-17T07:43:00.000-07:002010-09-17T08:00:23.734-07:00

The Financial Industry Regulatory Authority (FINRA) enjoys what is know as the Securities & Exchange Commissions (SEC) "black box" status. That means the SEC has provided FINRA a means by which the self-regulatory organization's (SRO) records are kept private. This is because SRO's like FINRA are considered to be "financial institutions" under the federal Freedom of Information Act (FOIA). As a

William B. Young Jr. Esq.http://www.blogger.com/profile/02963660481766957534noreply@blogger.comtag:blogger.com,1999:blog-8145261930313965747.post-21846374255027813532010-09-03T11:41:00.001-07:002010-09-03T12:05:16.507-07:00

Yesterday, Federal Reserve Chairman Ben Bernanke told the Financial Crisis Inquiry Commission there was nothing his department could do to keep the investment banking giant from failing. He told the commission charged with investigating the U.S. financial crisis he did everything possible. However he also said he regretted giving the impression the Fed might be able to save the firm and should

William B. Young Jr. Esq.http://www.blogger.com/profile/02963660481766957534noreply@blogger.comtag:blogger.com,1999:blog-8145261930313965747.post-70500294928109232662010-08-16T06:29:00.000-07:002010-08-16T06:56:20.633-07:00

Forbes magazine columnist Mel Lindauer has been writing a series of columns about annuity investments. His most recent column, appearing August 13, 2010, takes equity-indexed annuities to task. Mr. Lindauer describes the products as very complex annuity contracts sold with promises of increased value when the corresponding index goes up but with no chance of loss when the index goes down. He says

William B. Young Jr. Esq.http://www.blogger.com/profile/02963660481766957534noreply@blogger.comtag:blogger.com,1999:blog-8145261930313965747.post-11382803153891671112010-08-05T09:19:00.000-07:002010-08-05T09:31:27.677-07:00

According to an award issued by a Financial Industry Regulatory Authority (FINRA) arbitration panel, brokerage giant UBS must pay cell phone maker Kajeet Inc. nearly $81 million in damages over student-loan auction rate securities it sold to the company. The award comes on the heals of hundred of arbitration claims filed on behalf of investors alleging misrepresentation in the sale of UBS

William B. Young Jr. Esq.http://www.blogger.com/profile/02963660481766957534noreply@blogger.comtag:blogger.com,1999:blog-8145261930313965747.post-79985763033530474532010-08-05T08:57:00.000-07:002010-08-05T09:19:50.819-07:00

Yesterday, the Pennsylvania Securities Commission Filed a civil complaint against TD Ameritrade alleging fraud in the marketing and sale of the firm's Reserve Yield Plus Fund.The complaint alleges the firm and fund managers marketed the firm to customers upon the representation it was a money-market fund when in reality, it was "cash enhanced" fund that is riskier and contained assets not

William B. Young Jr. Esq.http://www.blogger.com/profile/02963660481766957534noreply@blogger.comtag:blogger.com,1999:blog-8145261930313965747.post-38739452129040509432010-07-23T06:34:00.000-07:002010-07-23T06:47:47.980-07:00

The Financial Industry Regulatory Authority (FINRA) has agreed to extend a pilot program that gives claimants the option of an arbitration panel without an industry-affiliated arbitrator.In FINRA administered securities arbitration, the number of arbitrators chosen is based on the amount of damages claimed. Most arbitration cases are heard by a three-arbitrator panel. Of those three members, one

William B. Young Jr. Esq.http://www.blogger.com/profile/02963660481766957534noreply@blogger.comtag:blogger.com,1999:blog-8145261930313965747.post-43653791345423691742010-07-21T07:46:00.000-07:002010-07-21T08:01:25.947-07:00

Yesterday Goldman Sachs reported a 82% decline in profits due in part to a sharp decline in revenue and a bad bet on volatility of the securities markets as well as the $550 million dollar settlement reached last week with the Securities and Exchange Commission over allegations of securities fraud. The earnings report came as a bit of a surprise to Wall Street observers who saw the Wall Sreet

William B. Young Jr. Esq.http://www.blogger.com/profile/02963660481766957534noreply@blogger.comtag:blogger.com,1999:blog-8145261930313965747.post-59796708916441943512010-07-19T12:54:00.000-07:002010-07-19T13:26:51.526-07:00

Last thursday, Wall Street giant Goldman Sachs agreed with the Securities and Exchange Commission to pay $550 million to settle a fraud case. The regulators alleged that the firm misled investors into buying financial products that the firm knew were risky and unsuitable. The settlement is the largest the SEC has ever negotiated. Despite the size of the settlement, some observers believe this is

William B. Young Jr. Esq.http://www.blogger.com/profile/02963660481766957534noreply@blogger.comtag:blogger.com,1999:blog-8145261930313965747.post-9862922284167496382010-07-02T06:13:00.000-07:002010-07-02T06:27:19.454-07:00

A federal court judge in the Central District of California upheld a $1.45 million Financial Industry Regulatory Authority (FINRA) arbitration award issued to former NBA star Horace Grant against Memphis, Tennessee based Morgan Keegan. The Judge rejected all of Morgan Keegan’s arguments for vacating the award and referred to some of their arguments as “disingenuous” in his Order upholding the

William B. Young Jr. Esq.http://www.blogger.com/profile/02963660481766957534noreply@blogger.comtag:blogger.com,1999:blog-8145261930313965747.post-91181241883123047862010-06-25T10:15:00.000-07:002010-06-25T10:28:43.172-07:00

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

William B. Young Jr. Esq.http://www.blogger.com/profile/02963660481766957534noreply@blogger.comtag:blogger.com,1999:blog-8145261930313965747.post-84535480748125179862010-06-25T07:08:00.000-07:002010-06-25T07:25:39.367-07:00

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

William B. Young Jr. Esq.http://www.blogger.com/profile/02963660481766957534noreply@blogger.comtag:blogger.com,1999:blog-8145261930313965747.post-77258014515206675162010-06-18T07:40:00.001-07:002010-06-18T08:22:35.366-07:00

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

William B. Young Jr. Esq.http://www.blogger.com/profile/02963660481766957534noreply@blogger.comtag:blogger.com,1999:blog-8145261930313965747.post-15661671826923300502010-06-01T12:13:00.000-07:002010-06-01T12:35:57.021-07:00

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

William B. Young Jr. Esq.http://www.blogger.com/profile/02963660481766957534noreply@blogger.comtag:blogger.com,1999:blog-8145261930313965747.post-86624328737596615532010-05-28T11:27:00.000-07:002010-05-28T11:46:04.565-07:00

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

William B. Young Jr. Esq.http://www.blogger.com/profile/02963660481766957534noreply@blogger.comtag:blogger.com,1999:blog-8145261930313965747.post-51338799766100700842010-05-19T05:26:00.001-07:002010-05-19T05:39:57.158-07:00

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

William B. Young Jr. Esq.http://www.blogger.com/profile/02963660481766957534noreply@blogger.comtag:blogger.com,1999:blog-8145261930313965747.post-63583822078210673952010-05-17T18:48:00.000-07:002010-05-17T19:04:51.365-07:00

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

William B. Young Jr. Esq.http://www.blogger.com/profile/02963660481766957534noreply@blogger.comtag:blogger.com,1999:blog-8145261930313965747.post-81792268328857028692010-05-17T18:27:00.000-07:002010-05-17T18:48:20.217-07:00

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

William B. Young Jr. Esq.http://www.blogger.com/profile/02963660481766957534noreply@blogger.comtag:blogger.com,1999:blog-8145261930313965747.post-11249461925310129962010-04-22T14:38:00.001-07:002010-04-22T14:40:26.302-07:00

This blog is now located at http://stockmarketfraud.blogspot.com/. You will be automatically redirected in 30 seconds, or you may click here. For feed subscribers, please update your feed subscriptions to http://stockmarketfraud.blogspot.com/feeds/posts/default.

Blog Adminhttp://www.blogger.com/profile/04084843964257421973noreply@blogger.comtag:blogger.com,1999:blog-8145261930313965747.post-24817604152957432852010-04-16T09:02:00.000-07:002010-04-16T09:16:54.242-07:00

The Securities & Exchange Commission (SEC) charged investment banking giant Goldman Sachs with civil fraud related to the sale of subprime mortgage instruments to investors. The SEC also alleges a Goldman client (hedge fund giant Paulson & Co.,Inc.)bet against and influenced the prices of the same structured products Goldman created and touted to their clients. The complaint alleges the investors

William B. Young Jr. Esq.http://www.blogger.com/profile/02963660481766957534noreply@blogger.comtag:blogger.com,1999:blog-8145261930313965747.post-5387898179433856142010-04-13T06:34:00.000-07:002010-04-13T06:47:13.762-07:00

On the heals of filing by the Financial Industry Regulatory Authority (FINRA), the Securities and Exchange Commission (SEC) and a joint filing by Alabama, Kentucky, Mississippi and South Carolina, the Securities Division of the Department of Commerce for the State of Tennessee has sent notice to Morgan Keegan of a pending administrative action for the marketing and sale of the RMK Morgan Keegan

William B. Young Jr. Esq.http://www.blogger.com/profile/02963660481766957534noreply@blogger.comtag:blogger.com,1999:blog-8145261930313965747.post-28670618097433345272010-04-09T04:58:00.001-07:002010-04-09T06:03:15.386-07:00

On Wednesday April 7, 2010, the Financial Industry Regulatory Authority (FINRA)issued a news release stating the SRO's Department of Enforcement has filed an administrative complaint against Morgan Keegan & Company, Inc., alleging the firm marketed and sold seven affiliated bond funds (RMK Funds) to retail investors using false and misleading sales materials. The complaint also states the RMK

William B. Young Jr. Esq.http://www.blogger.com/profile/02963660481766957534noreply@blogger.comtag:blogger.com,1999:blog-8145261930313965747.post-36272741228945208162010-04-06T11:34:00.000-07:002010-04-06T12:01:14.272-07:00

Today, the Financial Industry Regulatory Authority (FINRA) published guidance for Morgan parties involved in arbitration claims regarding the RMK Morgan Keegan bond funds. The FINRA action comes on the heals of a Tennessee Chancery Court order vacating a arbitration award and stating as one reason that two of the arbitrators had served on other Morgan Keegan cases involving the same products in

William B. Young Jr. Esq.http://www.blogger.com/profile/02963660481766957534noreply@blogger.comtag:blogger.com,1999:blog-8145261930313965747.post-69974032474272962812010-04-06T11:10:00.000-07:002010-04-09T05:29:24.927-07:00

In a recent Reuters article the author notes how structured notes are making a comeback and the major brokers are again pushing "principal protected" notes on the investing public. Until recently, investors had lost their appetite for the complex products after Lehman Brothers, the underlying credit on many of the issues, files for bankruptcy protection on September 15, 2008, wiping out billions

William B. Young Jr. Esq.http://www.blogger.com/profile/02963660481766957534noreply@blogger.comtag:blogger.com,1999:blog-8145261930313965747.post-3005116269238814862010-03-15T07:26:00.000-07:002010-03-15T07:42:51.065-07:00

A recent NY Times article chronicles the findings of the court appointed bankruptcy examiner. The report indicates accounting firms, law firms as well as Lehman itself may have been complicit in hiding the firm's true financial condition from investors and regulators. The bankruptcy of Lehman Brothers in September, 2008, wiped out the investments of thousands of individual and institutional

William B. Young Jr. Esq.http://www.blogger.com/profile/02963660481766957534noreply@blogger.comtag:blogger.com,1999:blog-8145261930313965747.post-7286602926281188772010-03-02T12:29:00.000-08:002010-03-02T12:32:51.084-08:00

Morgan Keegan & Co. Inc.'s legal fees and related expenses costs have increased dramatically over the past several years, due in large part to ongoing litigation over losses sustained by investors who purchased RMK Morgan Keegan bond funds. The Funds imploded in late 2007, some losing nearly 95% of their value allegedly due to high concentrations of subprime mortgage related derivatives and

William B. Young Jr. Esq.http://www.blogger.com/profile/02963660481766957534noreply@blogger.comtag:blogger.com,1999:blog-8145261930313965747.post-72738884413682438402010-03-02T11:49:00.000-08:002010-03-02T12:13:47.977-08:00

A Memphis, Tennessee judge recently granted brokerage firm Morgan Keegan's request a Financial Industry Regulatory Authority (FINRA) arbitration award be vacated due to Panel bias. The court's decision sent shock waves through the arbitration community and call into question FINRA's ability to administer a large number of arbitration case involving the same product or investment. Excerpts from

William B. Young Jr. Esq.http://www.blogger.com/profile/02963660481766957534noreply@blogger.comtag:blogger.com,1999:blog-8145261930313965747.post-14286816502897834112010-02-28T12:07:00.000-08:002010-02-28T12:23:57.793-08:00

Morgan Keegan & Co. Inc.'s legal fees and related expenses costs have increased dramatically over the past several years, due in large part to ongoing litigation over losses sustained by investors who purchased RMK Morgan Keegan bond funds. The Funds imploded in late 2007, some losing nearly 95% of their value allegedly due to high concentrations of subprime mortgage related derivatives and

William B. Young Jr. Esq.http://www.blogger.com/profile/02963660481766957534noreply@blogger.comtag:blogger.com,1999:blog-8145261930313965747.post-7748552990201399142010-02-18T10:26:00.000-08:002010-02-18T10:36:10.569-08:00

The Financial Industry Regulatory Authority (FINRA) issued a press release indicating they are proposing positive changes to the BrokerCheck system whereby all broker complaints will stay on the registered representative's record for 10 years. Under the old guidelines, complaint information dropped of the Central Record Depository (CRD) two years after the broker left the industry. This is widely

William B. Young Jr. Esq.http://www.blogger.com/profile/02963660481766957534noreply@blogger.comtag:blogger.com,1999:blog-8145261930313965747.post-38359107956487058172010-02-10T07:22:00.000-08:002010-02-10T07:51:19.838-08:00

Union Bank of Switzerland's (UBS) Wealth Management division is still reeling from the multiple scandals that have plagued the firm for the past two years. Fresh on the heals of the accusations from the IRS that UBS was helping wealthy clients avoid income taxes came the structured note products that allegedly lost over a billion dollars for U.S. retail investors. Many of the structured notes

William B. Young Jr. Esq.http://www.blogger.com/profile/02963660481766957534noreply@blogger.comtag:blogger.com,1999:blog-8145261930313965747.post-62269087041058357632010-01-22T08:23:00.000-08:002010-01-22T08:56:27.673-08:00

According to Advisen Ltd. Report Securities class action filings were flat, but regulator suits rose sharply.The press release appears below:Economic turmoil drove a surge in securities lawsuit filings in 2009, according to a new report from Advisen Ltd. The year saw securities lawsuit filings grow at a robust 13 percent rate to 910 suits, eclipsing an already-elevated 2008 at 804 suits. The

William B. Young Jr. Esq.http://www.blogger.com/profile/02963660481766957534noreply@blogger.comtag:blogger.com,1999:blog-8145261930313965747.post-71191380411572046252010-01-05T13:37:00.000-08:002010-01-05T13:49:30.677-08:00

A FINRA arbitration panel found Suntrust Securities (now known as SunTrust Robinson Humphry), the securities brokerage arm of SunTrust Banks, Inc., guilty of defaming one of its former brokers. The award included $1.2 million dollars in compensatory damages, $2.5 million in punitive damages plus attorney's fees and cost. Punitive damages are typically used to punish the wrong doer and dissuade

William B. Young Jr. Esq.http://www.blogger.com/profile/02963660481766957534noreply@blogger.comtag:blogger.com,1999:blog-8145261930313965747.post-47365617069644343592010-01-05T12:07:00.000-08:002010-01-05T13:34:28.150-08:00

In what is believed to be one of the first rulings of its kind, a 95-year old California man received $1.6 million dollar award from a Financial Industry Regulatory Authority arbitration Panel against an on-line brokerage firm finding, among the offenses, elder abuse. The California elder abuse statue, like many similar state statutes (including Florida), allows for treble damages in instances

William B. Young Jr. Esq.http://www.blogger.com/profile/02963660481766957534noreply@blogger.comtag:blogger.com,1999:blog-8145261930313965747.post-25143256065608107932009-12-09T11:34:00.000-08:002009-12-09T11:59:33.253-08:00

In late 2007 and early 2008, UBS packaged and underwrote nearly 2 billion dollars in Lehman Brother backe Principal Protected Notes (PPNs), Partially Principal Protected Notes (PPPNs) and Return Optimization Notes (RONs). Although the products were allegedly presented to UBS retail clients as conservative, income producing investments suitable for almost any client, in reality, the clients were

William B. Young Jr. Esq.http://www.blogger.com/profile/02963660481766957534noreply@blogger.comtag:blogger.com,1999:blog-8145261930313965747.post-49560785487299757232009-11-18T10:22:00.000-08:002009-11-18T10:30:12.368-08:00

Thousand of investors were sold auction rate securities (ARS) with the promise the investments were like cash and liquid in a day or two notice. When the auctions failed last year, investors learned these creations of Wall Street were anything but leading to consequential damages as a result of investors not having access to needed funds.Many state have already entered into settlements with the

William B. Young Jr. Esq.http://www.blogger.com/profile/02963660481766957534noreply@blogger.comtag:blogger.com,1999:blog-8145261930313965747.post-57277097956851460212009-11-11T05:54:00.000-08:002009-11-11T06:08:02.083-08:00

According to recent Associated Press article, the two Bear Stearns executives who ran hedge funds that crashed in 2007 during the subprime mortgage meltdown and almost toppled the financial markets were acquitted on Tuesday of lying to investors about the looming crisis on Wall Street. The full text of the article appears below:Jurors found Ralph Cioffi and Matthew Tannin not guilty of

William B. Young Jr. Esq.http://www.blogger.com/profile/02963660481766957534noreply@blogger.comtag:blogger.com,1999:blog-8145261930313965747.post-38941038069491387392009-11-09T06:31:00.000-08:002009-11-09T06:36:28.565-08:00

Additional information was released last week regarding the SEC's probe of the Morgan Keegan RMK bond funds. Apparently, state regulators are now getting into the game. The investigation results will determine if and how many securities related charges will ultimately be filed against Morgan Keegan for its sale and management of the funds. The article appears below:Regions Financial Corp., the

William B. Young Jr. Esq.http://www.blogger.com/profile/02963660481766957534noreply@blogger.comtag:blogger.com,1999:blog-8145261930313965747.post-28385588234638734932009-10-18T17:23:00.000-07:002009-10-18T17:37:55.600-07:00

According to an Associated Press article released on October 16, 2009, a former Goldman Sachs employee has been appointed to the recently created post of Chief Operating Officer of the Securities & Exchange Commission's enforcement division. The position was created in part due to the fallout from the Bernie Madoff fraud scandal that observers say should have been detected by the SEC long before

William B. Young Jr. Esq.http://www.blogger.com/profile/02963660481766957534noreply@blogger.comtag:blogger.com,1999:blog-8145261930313965747.post-83239570256874625302009-10-15T07:53:00.000-07:002009-10-15T08:06:58.361-07:00

The Financial Industry Regulatory Authority (FINRA) recently issued the following press release:Washington, DC — The Financial Industry Regulatory Authority (FINRA) today announced that it has fined Citigroup Global Markets Inc. $600,000 and censured the firm for failing to supervise complex trading strategies designed in part to minimize potential tax liabilities. The firm also failed to report

William B. Young Jr. Esq.http://www.blogger.com/profile/02963660481766957534noreply@blogger.comtag:blogger.com,1999:blog-8145261930313965747.post-62020884439236727692009-10-08T18:04:00.000-07:002009-10-08T18:19:20.195-07:00

Washington, DC -- The Financial Industry Regulatory Authority (FINRA) announced today the expansion of its two-year pilot program that gives investors who are filing eligible claims the opportunity to select an arbitration panel composed of three public arbitrators instead of two public and one non-public.In its second year, the pilot will expand from 11 to 14 broker-dealers, and the number of

William B. Young Jr. Esq.http://www.blogger.com/profile/02963660481766957534noreply@blogger.comtag:blogger.com,1999:blog-8145261930313965747.post-76342347155371689552009-10-08T17:51:00.000-07:002009-10-08T18:00:05.926-07:00

INVESTMENT COMPANY ACT RELEASEMorgan Stanley Investment Management Inc., et al.A notice has been issued giving interested persons until Oct. 28, 2009, to request a hearing on an application filed by Morgan Stanley Investment Management Inc., et al., for an order pursuant to Sections 6(c) and 17(b) of the Investment Company Act for an exemption from Sections 17(a) of the Act; and pursuant to

William B. Young Jr. Esq.http://www.blogger.com/profile/02963660481766957534noreply@blogger.comtag:blogger.com,1999:blog-8145261930313965747.post-14762840248950969002009-09-14T12:21:00.001-07:002009-09-14T12:32:33.092-07:00

Last Friday (9/11/09), ex-NBA Star Horace Grant recently received an arbitration award totalling $1.46 million for losses he experienced investing in several of the Regions Morgan Keegan Bond Funds (RMK Funds). In his arbitration claim filed with the Financial Industry Regulatory Authority (FINRA) Mr. Grant alleged the true risk of the funds were note disclosed and the funds were speculative. The

William B. Young Jr. Esq.http://www.blogger.com/profile/02963660481766957534noreply@blogger.comtag:blogger.com,1999:blog-8145261930313965747.post-18702653230483117102009-09-14T05:51:00.000-07:002009-09-14T06:00:36.137-07:00

In a recent Wall Street Journal article, an email produced in a civil court case against UBS, an employee referred to Collateralized Debt Obligations (CDOs) as "vomit." The evidence indicates UBS employees were aware of the problems in the CDO market and were actively trying to unload the debt on unsuspecting fund managers and retail investors. The full WSJ article appears below:In the summer and

William B. Young Jr. Esq.http://www.blogger.com/profile/02963660481766957534noreply@blogger.comtag:blogger.com,1999:blog-8145261930313965747.post-30698621781842835232009-09-09T08:58:00.000-07:002009-09-09T09:22:25.931-07:00

As many an investor knows, the Lehman Brother Bankruptcy filing has left an indelible scar on both institutions and investors. Also, many wonder why the investment bank was not saved by the Fed.The individual investor was particularly hurt by investing in Lehman unsecured debt that was packaged up by firms such as UBS as Principal Protected Notes (PPN's), Partially Principal Protected Notes (

William B. Young Jr. Esq.http://www.blogger.com/profile/02963660481766957534noreply@blogger.comtag:blogger.com,1999:blog-8145261930313965747.post-15543722715676425492009-08-25T08:30:00.001-07:002009-08-25T08:56:48.636-07:00

The law office of Colling Gilbert Wright & Carter is currently investigating and pursuing claims against brokerage firms that solicited and sold securities of Medical Capital Holdings. The Med Cap notes, including those titled MPFC V and MPFC VI, were sold as private placements under Rule 506 of Regulation D to accredited investors. On July 16, 2009, the Securities and Exchange Commission ("SEC")

William B. Young Jr. Esq.http://www.blogger.com/profile/02963660481766957534noreply@blogger.comtag:blogger.com,1999:blog-8145261930313965747.post-8450868949819577252009-08-13T06:46:00.000-07:002009-08-13T06:58:40.253-07:00

In early July, regional brokerage firm Morgan Keegan received a Securities and Exchange Commission (SEC) Wells Notice notifying the firm they are investigating the possible violation of securities laws believed to be related to the RMK Bond and Income Funds.The notice does not mean the SEC will ultimately take action but in about half of the cases, once a Wells notice is issued, enforcement

William B. Young Jr. Esq.http://www.blogger.com/profile/02963660481766957534noreply@blogger.comtag:blogger.com,1999:blog-8145261930313965747.post-57909077144612058412009-08-12T10:18:00.000-07:002009-08-12T10:31:30.740-07:00

A recent Wall Street Journal article details the the Financial Industry Regulatory Authority (FINRA) resistance to the elimination of the industry arbitrator from panels hearing customer complaints. The Plaintiffs bar has long advocated the elimination of the industry arbitrator on the perceived bias the industry arbitrator may bring to the proceeding. FINRA put a pilot program in place last year

William B. Young Jr. Esq.http://www.blogger.com/profile/02963660481766957534noreply@blogger.comtag:blogger.com,1999:blog-8145261930313965747.post-2215435520846694982009-08-07T14:41:00.000-07:002009-08-07T14:53:37.693-07:00

According to an August 4, 2009 Wall Street Journal article, Regions Morgan Keegan has taken an unprecedented and unusual step when the firm filed motions to vacate arbitration awards in favor of three Morgan Keegan bond fund investors. Arbitration awards are only appealable in very limited circumstances and are considered binding. This move appears to be a stall tactic to put off the payment of

William B. Young Jr. Esq.http://www.blogger.com/profile/02963660481766957534noreply@blogger.comtag:blogger.com,1999:blog-8145261930313965747.post-25074455554181416922009-07-09T08:04:00.001-07:002009-07-09T08:28:09.386-07:00

A recent Wall Street Journal article chronicles some recent events involving mandatory securities arbitration giving some hope the system may be improving for investors defrauded or otherwise injured by their stock broker or money manager. Excerpts from the article appear below:Many investors who suffered massive losses in their portfolios are filing complaints against the brokers and brokerage

William B. Young Jr. Esq.http://www.blogger.com/profile/02963660481766957534noreply@blogger.comtag:blogger.com,1999:blog-8145261930313965747.post-13326637623249804082009-07-01T07:03:00.000-07:002009-07-01T07:21:56.740-07:00

According to a June 30, 2009 article in the Memphis Commercial Appeal Regions Financial is disputing a report by in trade publication American Banker (AB)that the bank plans to sell it brokerage unit Morgan Keegan.According to the article, Regions Morgan Keegan remains an integral part of Regions Financial Corp., which has no plan to sell its Memphis-based investment firm.The AB article, which

William B. Young Jr. Esq.http://www.blogger.com/profile/02963660481766957534noreply@blogger.comtag:blogger.com,1999:blog-8145261930313965747.post-48429874222054525912009-06-29T09:51:00.000-07:002009-06-29T09:58:06.327-07:00

Governor Charles Crist signed a bill giving attorney general Bill McCollum additional ammunition in the battle against securities fraud. This is very important as Florida is home to one of the largest retiree populations in the country and retirees are often the most targeted and most vulnerable to this type of financial fraud. Investor confidence, seen as a key component of a economic turnaround

William B. Young Jr. Esq.http://www.blogger.com/profile/02963660481766957534noreply@blogger.com