New FINRA Rule Aimed At Limiting Self-Trading
FINRA announced recently that the SEC has approved a rule change designed to limit self-trading. FINRA Rule 5210 will require firms to have policies and procedures implemented that are reasonably designed to review their trading activity for, and prevent, a pattern or practice of self-trades resulting from orders originating from a single, or related, algorithm […]
Wylys Used Offshore Trusts To Conceal Trades
This week a jury found that the Wyly brothers, Samuel and Charles, utilized a network of offshore trusts to illegally conceal their stock holdings and avoid trade limitations, meaning that Samuel and his brother’s estate may be liable for as much as $550 million. The SEC alleged that the Wylys, who founded Michaels Stores Inc., […]
Oppenheimer Conceals Evidence In Fraud Case
A couple from Long Island who lost over $5 million in a scheme perpetrated by Mark C. Hotton, at stock broker who worked for Oppenheimer and Company. Mr. Hotton became infamous after he defrauded producers of the Broadway play “Rebecca” by collecting commissions and fees for organizing financing with an investor that never existed. He […]
FINRA Leaves Two Dead Arbitrators On List
A couple in Wichita have been left wondering who the industry funded Financial Industry Regulatory Authority (FINRA) was really set up to protect after 2 of the arbitrators placed on list for their case were found to be deceased. The couple lost $187,000 in a Ponzi scheme carried out by a Morgan Stanley broker. Almost […]
Reef Oil & Gas Investment Products Being Investigated
Reef Oil & Gas Income and Development Fund III, L.P. is currently under investigation for selling speculative oil and gas investments along with a variety of other risky and unsuitable limited partnership investments. These investments are designed for investors whose investment goals are speculation and understand the high risks associated with them. They are not […]
ICON Leasing Funds Being Investigated
ICON Leasing Funds are currently being investigated as broker-dealers may have sold funds without performing adequate due diligence when recommending them to clients. The funds engaged in the acquisition, purchasing, and leasing of a variety of equipment to third parties in the United States, Europe, and Canada. It is based in New York City and […]
SEC Gets Freeze On AwesomePennyStocks Promoter’s Assets
The SEC won a freeze on John Babikian’s assets this week. Babikian is a Bugatti-driving 26 year-old from Montreal who operated a “pump-and-dump” scheme using penny-stock websites. He had put out an email list called AwesomePennyStocks to promote a coal company’s stock while simultaneously dumping his own shares. The email messages about this company and […]
New York To Welcome Regulated Bitcoin Exchanges
Bitcoin exchanges may soon be coming to the Empire State, but such exchanges will be subject to strict regulation. The New York State Department of Financial Services (NYSDFS) stated that it will weigh proposals for a regulated virtual currency exchange. Companies can now submit applications and proposals to manage virtual currency exchanges in the state, […]
SEC Charges San Diego Investment Adviser
Last week, the SEC filed charges against a San Diego investment advisory firm called Total Wealth Management, its Chief Executive Officer, Chief Compliance Officer, and an investment adviser representative for misleading investors and breaching their fiduciary duties to their clients. The SEC alleges that Total Wealth, its owner, and CEO made secret revenue sharing agreements […]
Agent Sentenced To Five Years In Southern California For Ponzi Scheme
National and State Resources Run a FINRA check on your broker or brokerage firm by clicking here. You can view FINRA Regional Office Locations or click on a state below to view the resources specific to that state. Investor’s Guide to Securities Industry Disputes – How to Prevent and Resolve Disputes with Your Broker. Better Business Bureau (BBB) — For […]