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SEC Charges 16 Firms with $81 Million Penalty for Recordkeeping Failures

On Feb. 9, 2024, in a significant enforcement action, the Securities and Exchange Commission (SEC) announced charges against five broker-dealers, seven dually registered broker-dealers and investment advisers, and four affiliated investment advisers for widespread and longstanding failures to maintain and preserve electronic communications. These firms have collectively agreed to pay more than $81 million in civil penalties. The Violations and Penalties The SEC's investigation revealed that employees at these firms were using unapproved communication methods, known as off-channel communications, to discuss business matters. These methods included personal text messages, which the firms failed to maintain or preserve as required by federal securities laws. This lack of compliance deprived the SEC of critical information necessary for monitoring and enforcement. The penalties are substantial, as outlined below: Northwestern Mutual (NMIS, NMIM, and Mason Street): $16.5 million Guggenheim Securities (Guggenheim Securities and GPIM): $15 million Oppenheimer & Co. Inc.: $12 million Cambridge Investment Research (CIR and CIRA): $10 million Key Investment Services (KIS [...]

By |July 8th, 2024|Blog|
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Affinity Fraud: A Hidden Threat to Investors Highlighted by the Wilkinson Family Speaker Series

Affinity fraud, a pernicious form of investment fraud targeting specific groups with shared identities, took center stage at the University of Oklahoma College of Law’s Wilkinson Family Speaker Series. This series, generously funded by Bruce Wilkinson, a 1969 OU College of Law alumnus, aims to educate students, alumni, and the broader Oklahoma community about critical issues in securities fraud and investor protection. Bruce Wilkinson's vision for the series is rooted in his deep appreciation for his legal education, even though he never practiced law. He recognized the importance of giving back to the institution that played a significant role in his life. The series is designed to provide practical, real-world insights that benefit not only law students but also anyone with an interest in investing. The second annual series, held in March of 2023, began with an opening dinner where OU Law Dean Katheleen Guzman presented alarming statistics from the Financial Industry Regulatory Authority (FINRA). Over 25,000 complaints involving securities [...]

By |July 8th, 2024|Blog|
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The DOL Elevated Conduct Standards for Retirement Advisors

The U.S. Department of Labor (DOL) has recently finalized a rule designed to elevate conduct standards for financial advisors who provide retirement advice. This new regulation, which redefines the role of an investment advice fiduciary under the Employee Retirement Income Security Act (ERISA), aims to ensure that advisors adhere to high standards of care and prioritize their client's interests above all else. This significant regulatory development highlights the ongoing efforts to enhance investor protection in the financial industry. By setting a more stringent standard for fiduciary duty, the DOL aims to mitigate conflicts of interest and promote transparency in retirement investment advice. This new rule mandates that advisors act in the best interests of their clients, placing investor's needs and goals at the forefront of any recommendations made. Securities fraud attorneys and investment fraud lawyers view this rule as a crucial step in safeguarding investor's retirement assets. The enhanced fiduciary standard requires advisors to exercise a higher degree of diligence [...]

By |July 8th, 2024|Blog|
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Enhancing Investor Protection: The SEC’s New Public Service Campaign

The recent announcement by the Securities and Exchange Commission (SEC) regarding its new public service campaign emphasizes a pivotal initiative in bolstering investor protection across the financial landscape. This campaign, aimed at educating and empowering investors, reflects a proactive approach by regulatory authorities to mitigate risks associated with securities investments. As securities fraud attorneys and investment fraud lawyers, we recognize the significance of initiatives like this campaign. Investor protection lies at the heart of our profession, and efforts to enhance public awareness about financial scams and fraudulent schemes are commendable. The SEC's campaign is designed to educate investors about common tactics used by fraudsters, emphasizing the importance of due diligence and skepticism when approached with investment opportunities. The role of an investment fraud attorney or law firm extends beyond legal representation; it encompasses advocacy for fair and transparent financial markets. By highlighting the campaign's focus on investor education, the SEC aims to equip individuals with the knowledge and tools necessary [...]

By |July 8th, 2024|Blog|
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Disclaimer: Mr. Frankowski is licensed in Alabama,Florida and Texas. He is not licensed in any other state including Nevada and California. Mr. Frankowski has represented investors from all over the country in securities cases including: Alabama, California, Colorado, Florida, Georgia, Illinois, Kentucky, Louisiana, Mississippi, Nevada, New Mexico New York, North Carolina, Tennessee, Texas.