Wells Fargo Broker Dealers Ordered by FINRA to Pay $3.4 Million in Restitution for Sale Practices Involving Volatility-Linked Exchange Traded Products (ETPs)

Wells Fargo Advisors Financial Network, LLC and Wells Fargo Clearing Services, LLC have been ordered by the Financial Industry Regulatory Authority (FINRA) to pay over $3.4 million as restitution to customers relating to “unsuitable recommendations of volatility-linked exchange traded products (ETPs) and related supervisory failures.” It was discovered by FINRA that Wells Fargo’s registered representatives,…

Morgan Stanley Fined by FINRA for Failure to Supervise Relating to Unit Investment Trusts (UITs)

Morgan Stanley Smith Barney, LLC was fined by the Financial Industry Regulatory Authority (FINRA) for “failing to supervise its representatives’ short-term trades of unit investment trusts (UITs).”  Approximately 3,000 of Morgan Stanley Smith Barney’s customers were affected. The firm was required by FINRA to pay approximately $3.5 million in fines and $9.78 million in restitution…

J.P. Morgan Securities, LLC Fined by FINRA for Failure to Conduct Adequate Background Checks

It was announced this week by the Financial Industry Regulatory Authority (FINRA) that J.P. Morgan Securities, LLC has been fined $1.25 million “for failing to conduct timely or adequate background checks on approximately 8,600, or 95 percent, of its non-registered associated persons from January 2009 through May 2017.” As outlined by Susan Schroeder, Executive Vice-President…

PIABA Foundation and Alliance for Investor Education Launch Investor Education Town Hall Meeting

The Securities Arbitration Commentator (SAC) recently took notice of a new investor education project that was spearheaded by our own Jason Doss.  Mr. Doss is a recent past president of the Public Investors Arbitration Bar Association, or PIABA, and the current president of the PIABA Foundation.  PIABA is an association of attorneys from around the…

Broker Dealers That Sold United Development Funding REITs

Following up on our previous blog post, broker dealers that sold UDF non-traded REITs to investors include, but are not limited to, IMS Securities Inc., Berthel Fisher & Co. Financial Services Inc., Centaurus Financial Inc., and VSR Financial Services, Inc. These firms have a history of regulatory violations and customer complaints: The Financial Industry Regulatory…

More on United Development Funding REITs

Following up on our previous blog post, United Development Funding IV was organized on May 28, 2008.  UDF IV shares began trading on the NASDAQ under the symbol “UDF” on June 4, 2014.  Prior to June 4, 2012, UDF IV was a public non-traded REIT. An investment in a public non-traded REIT is essentially an…

Investor Alert: Wells Fargo Advisors’ Use of F-Squared Investments’ AlphaSector Strategies

F-Squared Investments, Inc., a SEC registered investment adviser firm, filed a Chapter 11 bankruptcy petition in July 2015 after paying $35 million and admitting wrongdoing to settle SEC charges that it falsified its advertised track record of investment performance, giving investors the false impression that its performance results were significantly better than they really were.…