DOL Fiduciary Debate Heats Up
The fight over a Department of Labor proposal to increase investment advice standards for retirement accounts have begun to intensify. Over the last week, the writer of a bill that would prohibit the rule lashed out at Democrats for backing away from her measure, a well-known senator forced a critic of the bill out of […]
FINRA Fines UBS Puerto Rico $18.5M
FINRA censured and fined UBS Financial Services Incorporated of Puerto Rico $7.5 million for supervisory failures pertaining to the suitability of transactions in Puerto Rican closed-end funds (“CEF”) shares. Further, the regulatory agency ordered UBS to pay about $11 million in restitution to 165 customers who were forced to realize losses on their CEF positions. FINRA […]
Former New Jersey Fire Chief To Pay $6.7M For Securities Fraud
Vincent P. Falci, a former New Jersey fire chief, his wife, his son, and the companies he started have been ordered to repay $6.7 million they bilked from investors. Fallacy and his companies made false and misleadings statements to 182 investors, according to a release from Acting Attorney General John J. Hoffman. Falci created and provided […]
North Carolina Man Arrested For Securities Fraud
U.S. marshals arrested John Natale Michelotti of Clemmons, North Carolina for a fraud that bilked victims of over $200,000. Michelotti is charged with obtaining property by false pretense and two counts of securities fraud, according to the U.S. Marshals Service in a press release. The North Carolina Secretary of State’s office took out warrants against […]
Whole Foods Hit With Shareholder Suit For Misleading Pricing Scandal
Whole Foods’ misleading product labeling drew the ire of the New York City Department of Consumer Affairs and illuminated a scandal that “irreparably damaged” the company’s image, according to a shareholder’s claim in court. Bryan O’Malley, a Whole Foods shareholder, sued the company’s top executives for breach of fiduciary duty and unjust enrichment pertaining to […]
SEC Orders Atlanta Investment Firm To Pay $585,000
The SEC has ordered Atlanta, Georgia investment firm Timbervest to pay $585,000 in a long-running dispute regarding the sale of two tracts of timberland. The firm’s CEO, Joel Shapiro, stated that it will continue to fight the SEC in federal court. The SEC started investigating Timbervest in 2010, and in September 2013 the SEC initiated […]
Investors Lose $11.7 Million In Risky Hedge Fund Through Lincoln Financial
According to a FINRA Letter of Acceptance, Waiver and Consent (“AWC”), between about October 2008 and April 2009, registered representatives in two of Lincoln Financial Advisors Corporation (“LFA”) branch offices allegedly recommended that customers invest in a hedge fund offered as a sub-account to a private placement variable annuity (the ”PPVA”). The Hedge Fund engaged […]
Two Charged In Alabama Securities Fraud Case
Bruce Alexander Gwyn of Metairie, Lousiana and James Anthony Ghio of Fairhope, Alabama were arrested on charges of fraud and illegal sales, the Alabama Securities Commission announced. The indictment alleges that they offered or sold securities described as limited partnership interests in Level III Trading Partners LP to an Alabama resident. The indictment further accuses […]
FINRA Sanctions Ten Former Global Arena Representatives
During a 2014 onsite exam, FINRA found numerous securities violations at Global Arena Capital Corp., including misleading sales pitches, customer account churning, as well as other business misconduct. The regulatory authority has banned seven former registered representatives from the industry, suspended an eighth, and barred two former branch managers from serving in a principal capacity. […]
Texas Bitcoin Ponzi Scheme Operator Pleads Guilty To Securities Fraud
In a landmark case that marked the intersection of cryptocurrency and traditional securities law, Trendon Shavers of McKinney, Texas, pleaded guilty to securities fraud for operating a multimillion-dollar Ponzi scheme using Bitcoin. Known as the founder of Bitcoin Savings & Trust (BS&T), Shavers promised investors consistent, high-yield returns, misleading many into believing they were part […]