The Frankowski Firm

The Securities and Exchange Commission (SEC) recently concluded its investigation and reached a settlement with RSE Markets Inc. regarding allegations of operating as an unregistered securities exchange. RSE Markets was engaged in running a marketplace that facilitated the buying and selling of securities, specifically equity interests in collectible assets like valuable cars and watches. The SEC's order states that RSE operated the Rally Platform, comprising the RallyRd.com website, the Rally App, and associated trading functionality, between July 1, 2018, and November 20, 2021. The platform catered to retail investors in the United States, enabling them to purchase and sell securities. The secondary market trading for these securities was exclusively conducted on the Rally Platform during specific trading windows arranged by RSE. To match orders, RSE utilized an algorithm based on price and time priority, arriving at a final clearing price for executing matched orders. Both buyers and sellers had to confirm their willingness to transact at the final clearing price. [...]

The Securities and Exchange Commission (SEC) has filed charges against Joseph Michael "Mike" Todd and his companies, Todd Financial Services, LLC (TFS), and TFS Insurance Services LLC (TFS Insurance), for engaging in fraudulent activities that victimized at least 20 brokerage customers, resulting in the misappropriation of a minimum of $3 million. According to the complaint, Todd, who worked as a registered representative and investment adviser representative at a dual-registered broker-dealer and investment adviser, employed deceptive tactics to obtain funds from investors. He advised his brokerage customers to write checks payable to TFS, TFS Insurance, or himself, falsely promising to invest the funds in various securities. Instead, Todd diverted the money for personal use, spending it on real estate, boating, hunting, casinos, and adult entertainment. To cover up his scheme, Todd presented forged account statements or portfolio holdings statements to his defrauded customers, showing fake entries indicating their investments in the promised products. Shockingly, many of Todd's victims were seniors and [...]

Retirees and other retail investors should exercise caution when considering investments in volatility-linked products. The Cboe Volatility Index (VIX), often referred to as the "fear index," attempts to track future volatility in the stock market based on S&P 500 Index put and call options over a 30-day period. Recently, the Financial Industry Regulatory Authority (FINRA) issued a regulatory notice warning member firms about VIX-Index linked products, emphasizing that they are highly likely to lose value over time. Specifically, these products may not be suitable for retail investors, especially those planning to use them as traditional buy-and-hold investments. Several exchange-traded investment products are linked to the VIX Index, including: 1.   iPath S&P 500 VIX Short-Term Futures ETN (VXX) 2.   Proshares Short VIX Short-Term Futures ETF (SVXY) 3.   Proshares Ultra VIX Short-Term Futures ETF (UVXY) 4.   VelocityShares Daily 2x VIX Short-Term ETN (TVIX) 5.   ProShares VIX Short-Term Futures ETF (VIXY) 6.   iPath S&P 500 VIX Mid-Term [...]

David Wayne Krumrey, a former stockbroker registered with Oppenheimer Co. Inc. and based in The Woodlands, Texas, is facing multiple customer-initiated investment-related arbitration claims, with investors seeking significant damages. One such claim, filed on April 1, 2020, alleges that Krumrey breached fiduciary duty in equity transactions conducted in the customer's account between January 1, 2016, and December 31, 2017, resulting in losses on oil and gas securities, including Barclays iPath SRS B S&P Short Term ETN (VXX). According to FINRA Public Disclosure, Krumrey has been involved in five more customer-initiated disputes during his tenure at Oppenheimer, all alleging various forms of misconduct. In one instance, a claim settled on September 18, 2018, resulted in $30,000.00 in damages, with the customer accusing Krumrey of breaching contracts and acting negligently in oil and gas securities transactions, while also pointing out inadequate supervision by the securities broker dealer. Another arbitration claim, settled on January 8, 2019, awarded the customer $240,944.42 in compensatory damages [...]