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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The annual report on enforcement actions to fight securities fraud released this month by the North American Securities Administrators Association, or NASAA, shows that actions pursued by state securities regulators increased by 51 percent in 2010 over the number of actions reported in the previous year.

The report also indicates that fraud and unregistered securities cases increased in 2010 over 2009. Compared to the 2009 survey, securities fraud violations were up 10 percent nation...

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Another small broker-dealer has been driven out of the business by litigation costs resulting from the sale of allegedly fraudulent private placements in the oil and gas sectors for Provident Royalties LLC, according to a report from Investment News.

Last month, Boogie Investment Group Inc. of Melbourne, Fla., filed a request with the Financial Industry Regulatory Authority, or FINRA, to withdraw as a broker-dealer.

Boogie Investment, whic...

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Retail investors lucky enough to have never had trouble with stockbrokers, or the broker-dealer firms who employ them, may not be aware that the standard of conduct for these investment professionals is below that of a fiduciary.

A fiduciary is obligated to act in the best interest of the person or entity to which the fiduciary duty is owed. This includes full disclosure of possible conflicts of interest.

Thanks to the Advisers Act of 1940, investment advisors have long had to adhere to the fiduciary duties of loyalty and care, but stockbrokers and broker-dealers ha...

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