J. P. Morgan Chase Avoids Criminal Prosecution for Hosting Madoff Fraud

Banking giant J. P. Morgan Chase has reached a deal with federal prosecutors to avoid criminal prosecution for its role in the Bernard Madoff Ponzi scheme. According to the prosecutors, J. P. Morgan, which had custody of Madoff accounts, witnessed suspicious money transfers, too-good-to-be-true investment returns, unverifiable trading activity, and the use of a one-man…

Professional Athlete Wealth Management Group Allegedly Involved in Discount Firm’s Fraudulent Sales Case

On April 12, 2013, we posted a blog entitled FINRA Charges Discount Firm with Fraudulent Sales, which detailed FINRA’s complaint against Success Trade Securities Inc, an online discount firm, and its CEO, Fuad Ahmed alleging fraudulent sales of promissory notes. New details are emerging in this case. Yahoo! Sports reports that many of Success Trade…

North Carolina town, and many nationwide, still feeling effects of ZeekRewards $600 million Ponzi Scheme

Paul Burks, the mastermind behind ZeekRewards $600 million ponzi scheme is still negatively affecting many investors nationwide. Paul Burks attracted approximately 1 million investors into his ponzi scheme, which was headquartered in Lexington, North Carolina. The SEC closed ZeekRewards operations on August 17, 2012. They alleged that Burks was selling securities without a license and…

Oppenheimer Advisors Face Charges of Misleading Investors in Oppenheimer Global Resource Private Equity Fund

Recently, the SEC charged two investment managers at Oppenheimer & Co. with misleading investors about the valuation policies and performance of a private equity fund, Oppenheimer Global Resource Private Equity Fund I L.P. (OGR). Additionally, on March 11, 2013, the Massachusetts Attorney General’s office announced a related action and additional financial penalties against Oppenheimer. According…

FINRA Bars Florida Broker for Unsuitable Recommendations to 31 NFL Players

On March 7, 2013, FINRA barred Lighthouse Point, Florida broker dealer Jeffrey Brett Rubin from the securities industry for making unsuitable recommendations to his client. Rubin recommended to his customer, an NFL Player, to invest in illiquid, high-risk securities issued in connection with a now-bankrupt casino in Alabama. As a result, the customer lost approximately…

Alabama Securities Commission Warns to Watch Out for “Profitable Sunrise” Investment Scheme

On March 6, 2013, Alabama Securities Commission Director Joseph Borg warned that investors need to be on the lookout for an investment scheme that is designed to defraud investors by tricking them into wiring money to Eastern Europe. This warning was issued because a Birmingham, England-based company operating under the name Profitable Sunrise is promising…

Yield Producing Investments Continue to Harm Retirees

On February 10, 2013, the New York Times published an article entitled Complex Investments Prove Risky as Savers Chase Bigger Payoff which detailed how regulators across the country are still seeing an increase in losses and fraud cases revolving around complex yield producing products. Since traditional income-producing like, CDs, currently offer low interest rates crisis,…