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FINRA Awards Damages for Firm’s Failure to Reasonably Inform Customers Regarding Bond Recommendation
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January 16, 2012 @ 9:35 am |
On Jan. 9, an arbitrator for the Financial Industry Regulatory Authority, or FINRA, awarded customers of a brokerage firm compensatory damages of roughly $55,000 for breach of fiduciary duty, negligence and breach of contract in the course of a bond sale.
In addition, the customers were awarded almost $15,000 in prejudgment interest.
The customers, the claimants in the arbitration, were Zane Gubman and Karen Gubman in their capacities as co-trustees of the Gubman Revocable Trust and co-trustees of the Sidney Cohn Life Insurance Tru...
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Supreme Court: Arbitration Clause in Contract Not Invalidated by Consumers’ Right to Sue
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January 12, 2012 @ 2:26 pm |
The U.S. Supreme Court issued an opinion on Jan. 10 ruling in favor of a credit card company that sought to enforce a mandatory arbitration provision in its agreement with a class of consumers that sued the company for making misleading statements and charging excessive fees.
The class of consumers who sued, called respondents in the Supreme Court opinion, are individuals who obtained Aspire Visa credit cards marketed by CompuCredit Corp. The cards were issued by Colu...
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The SEC and FINRA Advise Investors to Proceed With Caution Concerning Non-Traded REITs
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December 30, 2011 @ 2:42 pm |
Stock market volatility and low interest rates these days have caused more than a few investors to contemplate alternative investments, and one possibility is the Real Estate Investment Trust (REIT).
Concern over the clarity of these investments has led the Office of Investor Education and Advocacy of the Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA) to issue alerts recently explaining the ins-and-outs of REITS, especially those REITS that are not publicly tra...
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Wells Fargo Fined $2 Million for Selling Unsuitable Securities to Elderly Customers
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December 20, 2011 @ 2:47 pm |
Wells Fargo Investments LLC has been fined $2 million for failure to supervise the conduct of one of its brokers who sold unsuitable reverse convertible securities to elderly customers, the Financial Industry Regulatory Authority, or FINRA, announced on Dec. 15. The firm was also censured.
The fine also covered Wells Fargo’s also failure to provide sales charge discounts to eligible customers on unit investment trust transactions, or UITs, FINRA said.
A subsidiary of Wells Fargo Bank, Wells Fargo Investments LLC changed its n...
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Wachovia Successor to Pay $148 Million to Settle Charges of Fraud and Bid Rigging
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December 14, 2011 @ 3:45 pm |
Wells Fargo Bank, N.A., successor by merger to Wachovia Bank N.A., has agreed to pay $46 million to settle charges brought by the Securities and Exchange Commission that Wachovia fraudulently rigged bids in municipal bond reinvestment transactions in 25 states and Puerto Rico.
The payment consists of a $25 million penalty and disgorgement of almost $14 million, plus prejudgment interest of about $7.3 million.
Wachovia merged with Wells Fargo in March 2010. As successor to Wachovia, Wells Fargo also signed agreements with the Justice ...
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