Florida Investors: Investment Fraud On The Rise

According to Richard Burnett of the Orlando Sentinel, investment fraud is on the rise in Florida. Regulators in Florida say that the number of complaints in Florida about suspicious investment activity has more than doubled. Last year alone regulators at the state Office of Financial Regulation has received 425 complaints.  So, far this year regulators have…

Investment Seminars: Free Food With A Catch?

The Financial Industry Regulatory Authority (FINRA) has issued an “investor alert” warning individuals to be wary of free seminars boasting a free meal. Investors are frequently being invited to fancy restaurants with the promise of an expensive meal at no cost where they are given a free seminar that “educates” them about investing or managing…

Target-Date Funds Become Target Of SEC

An article in today’s Wall Street Journal entitled SEC Takes On Target-Date Funds, discusses the SEC’s efforts to improve disclosures made in these popular investments. What are Target-Date Funds? Like most mutual funds, Target-Date Funds invest in a mix stocks and fixed income investments.  What makes these mutual funds different is that the percentage of asset classes change…

Recovering Losses In Oppenheimer Champion Income Bond Fund

Multiple class action and individual lawsuits filed by investors recently have been filed because of the precipitous collapse of Oppenheimer’s Champion Income Fund (OCHCX). This bond fund was down approximately 82% in value at the end of 2008.  Other similar bond funds were down only approximately 30%.  This enormous difference can be attributed to the Oppenheimer Champion Income Fund…

State Street’s Enhanced Index Bond Funds Subject Of Probe By Massachusetts Securities Regulators

According to the Wall Street Journal today, Massachusetts securities regulators have begun an investigation into whether State Street Corp. misled pension funds investors by falsely repesenting that some its bonds funds were low risk vehicles even though they were actually invested in volatile mortgage-backed securities. State Street is one of the largest managers of index funds. It is currently…

Credit-Rating Firms Assert First Amendment Protection For Ratings of Mortgage-Backed Securities

Credit-rating firms, such as Moody’s Corp., McGraw-Hill Cos.’ Standard and Poor’s and Fimalac SA’s Fitch Ratings, are facing a multitude of lawsuits regarding their ratings of mortgage-backed securities, according to the Wall Street Journal. These lawsuits stem from investors’ losses in the securities due to homeowner defaults. In response to the litigation, these credit-rating firms hope to…