Securities Fraud: What Is Insider Trading, Exactly?

Since 2014, the news has been telling the story of Thomas C. Davis, the former chairman of Dean Foods, a professional gambler named Billy Walters and golf legend Phil Mickelson. According to the Justice Department and the SEC, these three men have been involved in an insider trading scam that netted Walters approximately $40 million in profits. Though Mickelson avoided being charged with a crime – he agreed to pay $1 million plus interest – Davis pled guilty to multiple counts of fraud and obstruction of justice. Now, Walters is on trial for insider trading; if he is found guilty, he faces decades of prison time and millions of dollars in fines. Insider trading is synonymous with securities fraud to most people, but not all transactions that fall under the guise of insider trading are actually illegal. If the people who own, operate and work for a company buy and sell their own stock to others within the company, this [...]

CFTC’s Advisory of Precious Metal Investment Fraud

Precious metals, like gold and silver, are classified as commodities. The United States Commodity Futures Trading Commission (CFTC) is the federal agency that regulates commodity markets. The agency has issued an advisory regarding the fraudulent activities surrounding precious metal investments. The advisory warns of “tricky promises of easy profits,” and provides potential investors with warning signs that likely indicate fraud. As security fraud lawyers, the attorneys of The Frankowski Firm advocate for parties injured by investment schemes. We pass on this information in hopes that it will prevent our clients from becoming victims of these financially devastating frauds. How the scam works A precious metal scam generally begins with an aggressive sales pitch. The individual may present themselves as a merchant of precious metals and attempt to entice you with promises of quick wealth. They may employ tricks, like name dropping or offering to cut their commission, in order to gain your trust. A fraudulent merchant uses high-pressure tactics to [...]

By |April 26th, 2017|Fraud|

If I Lose Money, Can I Sue My Stockbroker or Financial Advisor?

When you invest your hard-earned money, you probably do so because you want to protect yourself in the future. Whether you are planning for your retirement, for a major purchase (like a home), for your children’s educational opportunities or are simply investing for fun, the goal is to make money, not lose it. But what happens if you lose everything? Can you sue your financial advisor or your broker to recoup those losses? The short answer is “yes,” but only if those losses are the result of wrongful acts by your advisor, broker or investment firm. If the person you trusted with your money acts unethically, commits an act of securities fraud, or behaves in a negligent manner, you may be entitled to pursue damages through a lawsuit or through FINRA arbitration. Broker negligence, securities fraud and the loss of your investments Losing money in the stock market is not always a case of negligence or securities fraud; fluctuations in [...]

Robert Tricarico Sentenced To 3.5 Years In Prison For Client Theft

Robert Tricarico, a former LPL broker, pleaded guilty to stealing $1.2 million from a client by a federal court in Hartford, Connecticut and was sentenced to forty-one (41) months in jail. The Court also ordered him to pay restitution. Tricarico started his career as a broker in 1992 and spent ten years with Merrill Lynch. He was most recently registered with LPL. He worked for LPL for three years prior to being barred from the industry by FINRA in April 2015. According to document filed with the Court and in-person testimony, between January 2010 and June 2013, Robert Tricarico was a financial advisor for an elderly and infirmed victim who had substantial assets. He allegedly took over $1.1 million from the client by writing a number of checks to himself or for his benefit without the client's permission, according to the SEC, who has also barred him from the industry. Additionally, Tricarico liquidated the client's coin collection and took checks [...]