According to forensic accountant and frequent expert witness Gordon Yale, the billions of dollars in allegedly fraudulent private placements sold to investors resulted partly from broker-dealers’ massive failure to meet their due-diligence responsibilities.

Yale is certified public account and principal of Yale & Co. who has worked on more than 50 lawsuits brought by investors against broker-dealers after failed deals. He has served as an expert witness for a dozen different plaintiff's lawyers in lawsuits pursuing more than $100 million in claims.

Las...

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Chase Investment Services Corp. has been ordered to reimburse customers $1.92 million for losses they incurred after Chase Investment brokers recommended the customers purchase unsuitable unit investment trusts and floating rate loan funds, the Financial Industry Regulatory Authority (FINRA) announced on Nov. 15.

FINRA also censured Chase Investment and fined the firm $1.7 million for recommending the unsuitable investments, and for failure to supervise, according to the Read Full Article

The Financial Industry Regulatory Authority (FINRA) issued a regulatory notice this month that contained the results of a survey of retail broker-dealer firms regarding the use and oversight of senior designations in an effort to better understand their approach to a vulnerable segment of the population.

One area of particular focus was the use of certifications and designations that imply expertise, certification, training or specialty in advising senior investors.

Vulnerable c...

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On Nov. 3, the 2nd U.S. Circuit Court of Appeals partially vacated a judgment of the court below with the result that a married couple from Illinois can pursue suitability and other claims against Ameriprise Financial Services Inc., the defendant below.

The married couple, John and Elaine Beland, appealed after the U.S. District Court for the Southern District of New York ruled in favor of Ameriprise and enjoined an arbitration the Belands had instigated before the Financial Industry Regulatory Authority, or FINRA, the 2nd Circuit Read Full Article

A New Jersey investment advisor was sentenced to 14 years in prison recently after pleading guilty to one count of securities fraud and use of manipulative and deceptive devices plus one count of transacting in criminal property.

According to court documents, Sandra Venetis, 60, the founding principal and president of Systematic Financial Associates Inc., a registered investment adviser located in Branchburg, N.J., defrauded investors – mainly retirees and unsophisticated investors -- of more than $11 million by soliciting funds for a Ponzi scheme she ran for 13 years.
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