Articles Posted in News Releases

On January 21, 2013, the President nominated former U.S. Attorney Mary Jo White as head of the Securities and Exchange Commission (SEC). Her nomination signals that the SEC will be tougher on Wall Street. White has a strong track record as a prosecutor from taking on the terrorists behind the bombing of the World Trade Center in…

STMicroelectronics NV (STMicro), Europe’s largest computer chip maker, has sued Credit Suisse for “allegedly placing $450 million of its cash into auction-rate securities (ARS) without authorization.” STMicro believes that more than $2 billion of its money was invested in these ARS, without authorization. The complaint alleges that STMicro thought its cash was being invested in…

On January 28, 2013, the SEC charged Jesse Litvak, a former executive of Jefferies & Co. a New York based broker-dealer, with defrauding investors in a mortgage-backed securities (MBS) investment scheme. According to the SEC’s complaint, Litvak allegedly purchased MBS investments from some customers of Jefferies & Co. and subsequently sold the investments to other Jefferies &…

On January 15, 2013, The Harvard Law School Forum on Corporate Governance and Financial Regulation released their study on the 2012 Trends in Securities Class Actions. A few interesting facts were revealed. One fact found was that federal securities class actions continue to stay around the average, even with the credit crisis “all but ended.” The 2007-2011 average…

Atlanta’s Leo Wells, head of Wells Real Estate Funds, will not be “register[ing] any new investment products” for the time being. Leo Wells is one of the most well-known, outspoken, issuers of non-traded REITs. Thus, his timely “pause” from the industry is noteworthy. Leo Wells cites the lack of regulatory clarity, marketplace clarity, and uniform guidelines…

On January 11, 2013, FINRA released its regulations and priorities examination letter. This annual letter serves as a notice to the industry on what FINRA will be focusing on in the coming year and what it sees as heighten risk areas. According to FINRA’s letter, “FINRA is particularly concerned about sales practice abuses, yield-chasing behaviors, and…

On July 16, 2009, our blog published an article entitled The Gresham Company Charged in $15 Million Ponzi Scheme. As we previously described, Gresham promised monthly returns of 5 to 10 percent with very little risk. He would then pay off certain individuals with money invested by new individuals. It is said by the SEC that…

On December 26, 2012, FINRA ordered Pruco Securities, LLC to pay $10.7 million in restitution, plus interest, and a $550,000 fine for inaccurately pricing mutual funds. The firm was charged with having an inadequate supervisory system and procedures in place to detect the problem. According to the SEC website, Pruco’s retail brokerage business, COMMAND, mishandled mutual fund…

On December 27, 2012, FINRA fined Citigroup, Goldman Sachs, JP Morgan, Merrill Lynch, and Morgan Stanley more than $4.48 million for “unfairly obtaining the reimbursement of fees they paid to the California Public Securities Association from proceeds of municipal and state bond offerings.” This was a violation of fair dealing and supervisory rules of the…

On October 18, 2012, FINRA censured and fined Memphis, Tennessee Morgan Keegan & Co. (CRD# 4161) $365,000 for its failure to “establish and maintain a supervisory system” to achieve compliance with NASD/FINRA rules in connection with the sale of non-rraditional ETFs. According to FINRA’s website, Morgan Keegan provided retail brokerage services and concurrently “failed to…