Articles Posted in Investment Fraud

Earlier this week, we reported that NASAA, an organization consisting of state securities regulators, listed leveraged and inverse ETFs as the top investment trap for retail investors. According to Investment News, the concerns are specific to leveraged and inverse ETFs, not ETFs that track mainstream stock indexes. Leveraged ETFs are designed to return a multiple of…

Last Sunday, as I drove home from my church in Marietta, Georgia, I thought about Bishop Eddie Long, a person who prior to last week I had never heard of much less ever thought about. My wife had told me that he was speaking to his congregation Sunday morning, the media would be in attendance,…

This month FINRA announced that it took disciplinary action against Texas-based financial firm Cambridge Legacy Securities, LLC as well as the firm’s principals Oran Ben Carroll and Russell Kent Childs. Cambridge Legacy Securities, LLC was censured, fined $50,000 and ordered to pay $21,864.74 in restitution and interest to some of its retail customers. Carroll was fined $25,000…

Last month, the National Association Securities Administrators Association (NASAA), an organization comprised of current and former state securities regulators, released its annual list of investment pitfalls. Topping the list was Exchange Traded Funds (ETFs). ETFs are complex investments that resemble mutual funds. However, many ETFs include hidden traps that may make these investments unsuitable for many…

The Financial Industry Regulatory Authority (FINRA) has issued a warning to investors regarding high-yield investment programs (HYIPs), which are Internet-based Ponzi schemes. These HYIPs claim to offer extraordinary returns of 20% to 100% or even more per day. FINRA warns that these HYIPs are unregistered investments that are being sold by unlicensed individuals. FINRA advises that these…

FINRA has joined with the SEC issuing an alert warning investors of scams that are exploiting the oil spill in the gulf. Scammers are “promising financial gains from investments in companies that claim to be involved in cleanup operations.” Along with the warning, FINRA provides several tips to avoid these type of scams. First, FINRA suggests…

On February 16, 2010, Financial Industry Regulatory Authority (FINRA) fined H&R Block Financial Advisors, Inc., (n/k/a Ameriprise Financial) $200,000 for failing to establish adequate supervisory systems and procedures for supervising sales of a unique and relatively new investment called reverse convertible notes to retail customers. FINRA also fined and suspended H&R Block broker Andrew MacGill,…

According to The Star-Ledger, Stephen Severio, a former Merrill Lynch financial adviser has plead guilty to two counts of theft by deception and to commercial bribery relating to a scheme that netted nearly $700,000. Severio admitted to the court that he had convinced 31 long-term clients of Merrill Lynch to withdraw their money from their Merrill…

The Doss Firm, LLC is currently investigating whether Ameriprise Financial f/k/a H&R Block Financial Advisors violated industry rules on a wide-spread basis in connection with the unsuitable sale of reverse convertible notes to senior citizens. FINRA fined the firm as well as Andrew MacGill, a broker with the firm, this week for making unsuitable sales…

FINRA, Financial Industry Regulatory Authority announced that it was fining H&R Block Financial Advisors, Inc. (n/k/a Ameriprise Advisor Services, Inc.) $200,000 for failing to establish adequate supervisory procedures in connection with the sale of reverse convertible notes. FINRA also fined Andrew MacGill, an advisor of the firm for making unsuitable recommendations to a retired couple.…