Securities and Investment Lawyers Petition Congress For More Disclosures From FINRA’s BrokerCheck
A group of securities and investment attorneys has asked Congress to provide more information to consumers about the brokers that handle their money. FINRA does not go as far as some U.S. state securities regulators do in providing disclosures to investors, the group said. The report raises questions about whether the Financial Industry Regulatory Authority’s […]
Morgan Stanley Says $111M MBS Suit Distorts Contract Terms After Failure Of Own Underwriting
A Morgan Stanley subsidiary on Tuesday argued that a New York judge should dismiss a breach of contract suit brought by a trust over $110.8 million in losses suffered by investors in mortgage-backed securities. Morgan Stanley argued that a grant of the remedies sought by the investors would rewrite the underlying contracts . An attorney […]
U.S. Supreme Court Limits SLUSA; Allows State-Law Securities Class Actions to Proceed
On February 26, 2014, the Supreme Court decided Chadbourne & Parke LLP v. Troice, 571 U.S. ___ (2014), ruling by a 7-2 vote that the Securities Litigation Uniform Standards Act of 1998 (“SLUSA”) does not bar state-law securities class actions in which the plaintiffs allege that they purchased uncovered securities that the defendants misrepresented were […]
Countrywide Alleges Fraud and Misrepresentations Claims Against It Are Time Barred
Countrywide Financial group is urging a California court to dismiss racketeering claims brought against it by Prudential Life Insurance Company. Prudential’s suit alleges that Countrywide used omissions and misrepresentations to sell low-quality mortgage backed securities to unknowing consumers. Countrywide is alleging that the claim is time barred based on an inquiry notice standard that would […]
Scottrade Admits to Wrongful Record Keeping
Last week, Scottrade Inc. became the latest entity to admit wrongdoing in connection with settling SEC charges. In a January 29, 2014 administrative order, the brokerage firm not only agreed to a $2.5 million penalty, but also admitted that it violated federal securities laws when it failed to provide the SEC with complete and accurate […]
CFTC Investigates Managed Futures Fees
In October 2013, Bloomberg.com published an article titled “How Investors Lose 89 Percent of Gains from Futures Funds”. The article examined the disconcerting disparity between fees charged and the return for investors, stating, “According to data filed with the U.S. Securities and Exchange Commission and compiled by Bloomberg, 89 percent of the $11.51 billion of […]
Insider Trading at Microsoft
Civil and criminal charges have been filed against a Microsoft Senior Manager and his friend and business partner for insider trading. Brian D. Jorgenson allegedly learned of Microsoft’s intentions to invest in Barnes & Noble’s e-reader business ahead of Microsoft’s official announcement. Mr. Jorgenson passed the information on to his friend and business partner, Sean […]
SEC’s 1st Deferred Prosecution of an Individual
The SEC has used deferred prosecutions before as a way to entice companies charged with SEC violations to more fully disclose their acts or be more forthcoming and helpful during an investigation. In exchange, the SEC will delay the prosecution of those who comply. For the first time, the SEC has offered a deferred prosecution […]
More Former Employees Testify Against Madoff
According to a Bloomberg.com article, a former banker of Bernie Madoff testified that Madoff was to receive a $200 million dollar loan from JPMorgan Chase & Co. less than a month before his arrest. Mark Doctoroff testified that Daniel Bonventre asked in November 2008 for the loan, which was double Madoff’s credit line. Doctoroff said […]
Collateral Manager Of CDO Charged With Fraud
Investment advisory firm, Harding Advisory, LLC, and its owner were charged recently by the SEC for misleading investors and breaching their fiduciary duties. According to a recent press release, the SEC alleged Harding “compromised their independent judgment as collateral manager to a CDO named Octans I CDO Ltd.” The firm and owner allegedly did so […]