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Trustee Names 50 Brokerage Firms In connection with Provident Royalties LLC private placements
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June 29, 2010 @ 1:47 pm |
In a highly unusual legal maneuver, the trustee overseeing the receivership of private placements that went bust last year is suing 49 broker-dealers seeking to claw back $285 million in claims, including commissions, from the firms.
On June 21, the liquidating trustee, Milo H. Segner Jr., filed the lawsuit in federal bankruptcy court in Dallas against the broker-dealers, alleging they "failed miserably in upholding their fiduciary obligations" when selling the series of Provident Royalties LLC private placements.
The Securities and Exchange Commission las...
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State Securities Regulators Provide Disclosure About Individual Investment Advisers
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June 29, 2010 @ 1:09 pm |
Many investment advisors are brokerage firm rejects.
They may have been disciplined or subject to numerous complaints while at a brokerage firm, but then reinvent themselves as investment advisors.
The only problem is that once they have been unregistered for two years, FINRA, subject to certain recent exceptions, does not provide any information regarding these individuals, and the SEC's Investment Advisor database provides no information regarding individuals registered with investment advisory firms.
However, as of yesterday, that has all changed....
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Banks Continue to Bilk Unsuspecting Investment Customers
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June 22, 2010 @ 9:16 am |
Banks do not want to be in the banking business. It is too risky. Banks, through their broker-dealer affiliates, would rather earn fees and commissions from the sale of investment products to consumers, where all the risk is passed along to the customer.
Customers owning Certificates of Deposit, money market accounts, or even interest bearing checking accounts with material balances, will get a call from an individual associated with their "bank," a financial consultant, who wants to show you how you can get higher returns on your money.
Customers se...
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First Medical Capital Arbitration Award Decided
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June 1, 2010 @ 1:48 pm |
In May, Marilyn Hazell won a $400,000 Finra arbitration claim against Peak Securities Corp., claiming breach of contract, breach of fiduciary duty, negligence and fraud stemming from the purchase of notes offered by Medical Provider Funding Corp. VI.
Those notes are at the center of a Securities and Exchange Commission fraud complaint issued last summer. The SEC charged Medical Capital Holdings Inc., the parent company of the issuer, with fraud in the sale of $77 million in notes. Dozens of independent broker-dealers sold the notes.
A scan of the Finra database of a...
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Financial Adviser to the Stars, Ken Starr charged with operating massive Ponzi Scheme
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June 1, 2010 @ 1:03 pm |
Kenneth Ira Starr, a New York investment adviser with a roster of celebrity clients, was charged by the U.S. government on Thursday of orchestrating a $30 million fraud.
According to the federal complaint, Mr. Starr allegedly used his clients’ money to buy luxury items for himself, including a new $7.5 million apartment in Manhattan. The five-bedroom apartment boasts a 32-foot granite lap pool and a 1,500-square-foot garden.
Starr's clients incl...
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