New Jersey Group Accused Of Defrauding Investors Out Of $3M
Less than one week after a New Jersey father and son were arrested for an alleged short sale scheme, they became part of a group of six charged in a fraud that bilked investors out of over $3 million. George Bussanich, Sr. and his son, George Bussanich, Jr., are believed to have begun the alleged […]
Stock Promoter Indicted For Alleged Securities Fraud
Scott F. Gelbard, a former stock promoter, was charged in U.S. District Court in Boston with conspiring to commit securities fraud. Gelbard, who is originally from Colorado and now lives in Canada’s Pacific Northwest, was indicted on one count of securities fraud and one count of conspiracy to commit securities fraud, stated Amy Hosney, public […]
FINRA Warns Investors About Messaging Apps
FINRA issued an investor alert yesterday, titled Messaging Apps Are Latest Platform for Delivering Pump-and-Dump Schemes. In the alert, FINRA cautions investors against stock promotions sent through increasingly popular messaging apps, including WhatsApp. Lately, users of WhatsApp were inundated with test messages promoting the stock of Avra, Inc. These text messages seemed to be sent from […]
UBS Settles Hedge Fund Suit
UBS AG avoided going to trial today by mere hours by agreeing to settle a lawsuit in which it was alleged to have peddled “crap” and “vomit” securities during the financial crisis of 2007. Connecticut hedge fund Pursuit Partners claimed that UBS sold it asset-backed securities and failed to disclose that they were about to […]
Delaware Court Awards $148M In Damages, Finds Dole Food Company Directors Liable
The Delaware Court of Chancery found David Murdock and C. Michael Carter liable under the entire fairness standard. Murdock is Dole Food Company Inc.’s Chairman and CEO, and Carter is a director of the company and its President, Chief Operating Officer, and General Counsel. The two were found to have driven down Dole’s stock price […]
Former Brokers Bring $20M Whistleblower Suit Against Morgan Stanley
Jaime Feldman and her husband, James Boland, a couple of ex-Morgan Stanley brokers in the firm’s midtown Manhattan branch, have sued Morgan Stanley and the branch manager for $20 million in damages, claiming that they were retaliated against and wrongfully terminated after they blew the whistle on alleged fraudulent activity and securities law violations at […]
Texas Attorney General Pleads Not Guilty In Securities Fraud Case; His Attorney Withdraws
Ken Paxton, Texas’ attorney general, pleaded not guilty to securities fraud charges yesterday. During the hearing, he also asked the judge to bar cameras from ensuing hearings, and his attorney withdrew from the case. Opinions on Texas’ top law enforcement officer, who will not step down from office, are split. Tea party activists who back […]
Former Tibetan Monk Accused Of Fraud
The SEC accused Lobsang Dargey, a former Tibetan monk and now real estate developer, of siphoning almost $18 million from Chinese investors who sent him $125 million, seeking residency under a visa program. The SEC has since frozen Dargey’s assets and the assets of his “Path America” companies. The SEC’s civil complaint states that Dargey […]
SEC Warns Brokerages To Monitor Sales Of Risky Products
The SEC alerted brokerages that they need to monitor the sales of risky complex investments to retail clients better. The agency stated that after analyzing 26,600 transactions amounting to $1.25 billion of structured securities products showed a large number of occasions when investments were inappropriate for the buyers. Currently, brokers are held to a suitability standard, […]
FINRA Fines Charles Schwab $2M
FINRA has fined Charles Schwab & Co., Inc. $2 million for net capital deficiencies and for failing to supervise. The net capital deficiencies happened on three different dates in 2014 and spanned from $287 million to $775 million. FINRA’s findings indicated that in three instances between May 15, 2014 and July 1, 2014, Schwab was […]