ASSETS OF MISSING GEORGIA INVESTOR FROZEN BY SEC
The assets of Aubrey Lee Price, the missing Georgia investor charged with a $40 million dollar investment fraud scheme, have been frozen according to an SEC press release. Mr. Price was allegedly selling an unregistered investment fund PFG that he managed without telling investors that it was tied up in illiquid investments and South American real estate. The press release stated […]
AGENCIES ON BOTH SIDES OF THE ATLANTIC INVESTIGATE BANK SCANDALS
In the aftermath of the Barclays scandal, United States and British Lawmakers are cracking down on regulators that should have been more proactive and dedicated in preventing the years of illegal banking behaviors. The Dealbook.com article said that the Barclays $450 million settlement is but the first action from this broad and far-reaching investigation. The article lists some […]
FERC PROBES JPMORGAN AMIDST ALLEGATIONS OF MARKET MANIPULATION
Yet another agency is looking into the dealings of JPMorgan. The United States Federal Energy Regulatory Commission (FERC) is probing into the extremely high derivative losses of JPMorgan, according to this Bloomberg Businessweek article. The FERC formed a Division of Analytics last February, employing around 45 people, dedicated to watching, analyzing and policing the natural gas and […]
SEC SUES HEDGE FUND MANAGER
The Los Angeles Times reported that Philip Falcone and his firm, Harbinger Capital Partners, are facing charges of civil fraud and bond price manipulation. The article stated that Falcone and his firm allegedly manipulated the market for high yield and high risk bonds. Falcone used Maxx Holdings to buy up a great portion of Harbinger […]
BEAR STEARNS $275 MILLION SETTLEMENT REACHED
Bear Stearns has been ordered to pay $275 Million dollars to investors that lost money with Bear Stearns. According to a recent CNBC.com article, Bear Stearns misled their investors about the true and deteriorating state of the company before JP Morgan purchased Bear Stearns. Bear Stearns was one of the first prominent companies to fail after […]
BURKE HARVEY & FRANKOWSKI INVESTIGATE EATON
The Frankowski Firm LLC announces the commencement of an investigation into Eaton Corporation (“Eaton” or the “Company”) (NYSE: ETN) to determine whether it has violated securities laws by issuing false and misleading statements to its shareholders in light of the disclosures made about the Company’s wrongful course of conduct undertaken during a high stakes trade […]
SEC ADOPTS NEW FINRA COMMUNICATION RULE
The SEC has adopted the FINRA communication rule, which has some noticeable changes from the previous NASD rule, according to the article on Mondaq.com. One noticeable change was the consolidation of the six communication categories into three- institutional communication, retail communication and correspondence. The article further illuminated the difference between retail and institutional correspondence, per FINRA and The SEC. […]
MORGAN KEEGAN TO PAY OVER $630,000 AFTER DEPT. OF LABOR FINDS PENSION RULE VIOLATION
Morgan Keegan agreed to pay over $630,000 to 10 ERISA pension plans after an investigation by the US Department of Labor, according to the Department’s press release. The investigation found that Morgan Keegan violated federal law when it recommended certain hedge funds to the pension plans. The press release went on to state that Morgan […]
11TH CIRCUIT REINSTATES SEC’S AUCTION RATE ACTION AGAINST MORGAN KEEGAN
The Eleventh Circuit reinstated an SEC enforcement action against Morgan Keegan & Co., holding that the Northern District of Georgia erred in granting summary judgment. In SEC v. Morgan Keegan & Co., 2012 WL 1520895, the SEC alleged that the Morgan Keegan’s brokers had misrepresented auction rate securities as cash alternatives and did not disclose that […]
FINRA’S NEW RULES REQUIRE BROKER CHANGES AND NEW STRATEGIES
A recent Reuters.com article explains the complex details of the new two FINRA rules coming into effect on July 2, 2012. FINRA’s Know Your Customer Rule and Suitability Rule require firms to use due diligence when dealing with customers. According to the article, the new rules will also now require customers to provide detailed information about […]