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broker-dealer

British Firm Charged for Acting as Unregistered Broker-Dealer in U.S.

The Securities and Exchange Commission recently charged a British financial services firm, Global Investment Strategy UK Ltd. (GIS), with registration violations, alleging that GIS illegally cleared and settled billions of dollars of U.S. securities transactions without registering as a broker-dealer in the U.S. The SEC also charged GIS’s founder and principal, John William Gunn, with aiding and abetting the violations…

clock  January, 04, 2021
fake accounts

Wells Fargo Misled Investors With Fake Accounts

By Attorney Jared Levy

The Securities and Exchange Commission recently charged John Stumpf (former Wells Fargo & Co. CEO and chairman) and Carrie Tolstedt (former head of Wells Fargo’s Community Bank) for allegedly misleading investors about Wells Fargo’s core banking business by including fake accounts in assessing the bank’s success.

The SEC alleged that from 2014 to 2016, Tolstedt publicly endorsed Wells…

clock  December, 15, 2020
investor

Microcap Pump and Dump Scheme Targeted Elderly Investors

By Attorney Jared Levy

The Securities and Exchange Commission recently obtained a final consent judgment against Garrett O'Rourke, a Florida resident, for running a multi-million dollar pump-and-dump scheme targeting elderly investors. O’Rourke will be required to disgorge over $5.7 million, plus prejudgment interest.

The SEC alleged that O'Rourke partnered with Maryland resident Michael Black to…

clock  December, 08, 2020
traders

Recovery of Investment Losses in Blue Crest Capital International

By Attorney Jared Levy

Morgan & Morgan’s Business Trial Group and its securities attorneys are investigating investment losses in Blue Crest Capital International (BCI).

The Securities and Exchange Commission (SEC) has proclaimed that UK-based investment adviser BlueCrest Capital Management Limited will pay…

clock  December, 08, 2020
unit investment trusts

Investigation Into Improper Sales And Switches of Unit Investment Trusts

Morgan & Morgan’s Business Trial Group and its securities attorneys are investigating improper early sales and switches of Unit Investment Trusts (UITs).

Earlier this year, Stifel Nicolaus – a FINRA-member brokerage firm – agreed to pay more than $3.6 million for improper sales and premature rollovers of UITs. Of the $3.6 million, $1.9 million repaid over-charges to over 1,700 customers, and a $1.75 million fine was imposed for allegedly providing…

clock  December, 01, 2020
volatility investments

Recovery of Losses in Volatility-linked Investments

By Attorney Jared Levy

Morgan & Morgan’s Business Trial Group and its securities attorneys are investigating financial losses in volatility-linked investments.

The SEC recently settled enforcement proceedings against five investment advisory and/or brokerage firms for selling…

clock  November, 25, 2020
stockbroker

FINRA To Limit Brokers From Being Named as Customers’ Beneficiaries

By Attorney Jared Levy

A new rule adopted by FINRA aims to limit stockbrokers from being named as a customer's beneficiary, trustee, or executor. 

FINRA Rule 3241, which takes effect on February 15, 2021, requires all FINRA-member brokerage firms to address any situation where a…

clock  November, 17, 2020
inflated returns

Recovery of Losses in Bond Funds Inflating Returns

Our securities attorneys are investigating bond funds that allegedly inflated returns to attract investments and win high ratings from Morningstar.

A recent study published by professors at the University of Stuttgart and the …

clock  November, 06, 2020
whistleblower award

SEC Announces Record $114 Million Whistleblower Award

By Attorney Jared Levy

The Securities and Exhange Commission announced a $114 million whistleblower award to someone who provided information that resulted in a successful enforcement action. This is a record for the whistleblower…

clock  October, 28, 2020
Alleged Accounting Fraud

SAExploration Holdings Charged With Perpetrating Alleged Accounting Fraud

The Securities and Exchange Commission recently charged Houston-based seismic data company, SAExploration Holdings Inc. (SAE), and several former executives with perpetrating an alleged accounting fraud. Morgan & Morgan’s Business Trial Group and its securities attorneys are investigating this alleged accounting fraud involving SAE.

According to the SEC, SAE and its execs perpetrated a multi-year accounting…

clock  October, 23, 2020
Futures Markets

JPMorgan Chase to Pay $920M for Fraudulent Trades in Futures Markets

By Attorney Jared Levy

JPMorgan Chase & Co. recently agreed to pay over $920 million in criminal penalties, restitution, and disgorgement for fraudulent spoofing trades in futures markets for U.S. Treasuries and precious metals. JPMorgan agreed to the payment under a three-year deferred prosecution agreement with the U.S. Department of Justice. JPMorgan’s subsidiaries, J.P. Morgan Securities LLC and JPMorgan Chase Bank NA, also are parties to the agreement.

Under the…

clock  October, 15, 2020
SEC Halts Ponzi Scheme Targeting U.S. Military Service Members

SEC Halts Ponzi Scheme Targeting U.S. Military Service Members

The Securities and Exchange Commission settled charges recently against a Colorado man for defrauding investors, including U.S. military service members and others.

The SEC’s complaint alleges that Milton J. Dosal, Jr. raised nearly $100,000 over a two-year period from approximately 41 investors — about a quarter of which were cadets at the U.S. Air Force Academy — under the guise that he would day-trade…

clock  October, 12, 2020
Investment Losses

Recovery of Investment Losses in Fidelity's Geode Fund

By Attorney Jared Levy

Morgan & Morgan’s Business Trial Group and its securities attorneys are investigating investment losses in the Geode Diversified Fund (Geode Fund), which was allegedly sold by Fidelity Institutional Asset Management (FIAM) and affiliated Fidelity and FIAM entities (collectively, Fidelity).

Earlier this year, the Geode Fund suffered heavy losses due to its extremely high-risk investment strategy of shorting volatility. Fidelity purportedly…

clock  October, 02, 2020
SEC Charges Tech CEO in $123M Fraudulent Scheme

SEC Charges Tech CEO in $123M Fraudulent Scheme

The Securities and Exchange Commission recently filed an emergency action regarding an alleged fraudulent scheme that enabled a technology company called NS8, Inc. to raise about $123 million from investors. Morgan & Morgan’s securities attorneys are investigating claims regarding this and similar schemes.

According to the SEC, NS8 is a Las Vegas company that provides e-commerce merchants with…

clock  September, 24, 2020
Power of attorney froud

Investment Advisor Misappropriated $450,000 From Elderly Client

Senior citizens are becoming increasing targets of financial exploitation, which can result in significant losses.

Recently, a Colorado federal court entered a consent judgment against an investment advisor relating to his alleged misappropriation of more than $450,000 from an elderly client. The final judgment orders Rodemer to pay a civil penalty totaling $385,536.

The Securities and…

clock  September, 17, 2020
Recovery of AllianzGI Structured Alpha Losses

Recovery of AllianzGI Structured Alpha Losses

Many of AllianzGI’s “Structured Alpha” funds have suffered catastrophic losses this year, according to reports. Morgan & Morgan’s experienced securities attorneys are investigating claims involving losses in these Structured Alpha funds.

In early 2020, AllianzGI allegedly told investors that its Structured Alpha US Equity 500 hedge fund was positioned well if…

clock  September, 10, 2020
Forex Trading

SEC Charges Smart Partners for Operating a $27M Ponzi Scheme

By Attorney Jared Levy

Morgan & Morgan’s securities attorneys are investigating an alleged $27 million fraudulent scheme that The Smart Partners LLC and 1st Million LLC perpetrated against over 1,000 investors – most of whom are African immigrants.

The Securities and Exchange Commission recently charged Smart Partners, 1st Million, and their principals (Dennis Jali, John Frimpong, and…

clock  September, 04, 2020
Recovery of Investment Losses in Volatility ETPs Sold by JP Morgan

Recovery of Investment Losses in Volatility ETPs Sold by JP Morgan

Morgan & Morgan’s Business Trial Group is investigating investment losses in volatility-related exchanged traded products (ETPs) sold by JP Morgan Securities LLC and other brokerage firms.

JP Morgan recently entered into a settlement with FINRA that requires the firm to pay more than $650,000 in fines and…

clock  September, 03, 2020
FINRA Fines Electronic Broker-Dealer for AML Failures

FINRA Fines Electronic Broker-Dealer for AML Failures

Electronic broker-dealer Interactive Brokers LLC was recently fined $15 million by FINRA for widespread failures in its anti-money laundering (AML) program.

From 2013 to 2018, Interactive Brokers grew substantially to become one of the largest electronic broker-…

clock  August, 26, 2020
SEC Halts Par Funding's Fraudulent Scheme Against Small Businesses

SEC Halts Par Funding's Fraudulent Scheme Against Small Businesses

The Securities and Exchange Commission recently halted an alleged fraudulent scheme perpetrated by Complete Business Solutions Group Inc. (d/b/a Par Funding). The scheme raised about $500 million from more than 1,000 investors.

Morgan & Morgan’s securities attorneys are investigating potential claims involving Par Funding’s scheme.

The SEC’s…

clock  August, 24, 2020
VALIC Financial Advisors Failed to Disclose Conflicts of Interests

VALIC Financial Advisors Failed to Disclose Conflicts of Interests

VALIC Financial Advisors Inc. was charged with failing to disclose conflicts of interest regarding more expensive mutual fund investments.

According to the Securities and Exchange Commission, VALIC earned millions of dollars in revenues from placing clients in these more expensive mutual funds, which it never disclosed to clients.

The SEC’s Order…

clock  August, 18, 2020
SEC Charges Former Georgia Legislator in Ponzi Scheme

SEC Charges Former Georgia Legislator in Ponzi Scheme

The Securities and Exchange Commission charged former Georgia state legislator Clarence Dean Alford in an alleged $23 million Ponzi scheme, and our experienced securities attorneys are investigating these claims.

According to the SEC, Alford defrauded about 100 investors, mostly Indian-American professionals, in Allied Energy Services LLC, his energy development company that now is bankrupt.…

clock  August, 13, 2020
Integrity Aviation & Leasing Charged With Defrauding First Responders

Integrity Aviation & Leasing Charged With Defrauding First Responders

By Attorney Jared Levy

Integrity Aviation & Leasing (IAL) has been charged in a $14 million fraudulent scheme that allegedly victimized many San Antonio police officers and other first responders. Morgan & Morgan’s securities attorneys are investigating the alleged fraudulent scheme.

The Securities and Exchange Commission announced charges against IAL and its owner, Victor Lee Farias, for…

clock  August, 05, 2020
Morgan Stanley Advisor Charged with Fraud for Stealing Millions from Investors

Morgan Stanley Advisor Charged with Fraud for Stealing Millions from Investors

By Attorney Jared Levy

The securities attorneys at Morgan & Morgan are investigating the alleged theft of client funds by a former registered representative and investment advisor of Morgan Stanley.

The Securities and Exchange Commission charged Michael B. Carter with fraud based on allegations that he stole millions of dollars from brokerage and advisory customers. When the thefts…

clock  August, 05, 2020
Recovery of Losses Relating to International Investment Group's Fraud

Recovery of Losses Relating to International Investment Group's Fraud

Morgan & Morgan’s securities attorneys are investigating an alleged $60 million Ponzi scheme involving International Investment Group LLC (IIG).

The former registered investment advisor had been previously charged in late 2019 with fraud by the Securities and Exchange Commission. At this time, the SEC revoked IIG’s registration.

Then, in March 2020, the SEC obtained a final consent judgment requiring IIG to pay…

clock  July, 21, 2020
Cunningham Commodities' Failure to Supervise Put Seniors’ Retirement Savings at Risk

Cunningham Commodities' Failure to Supervise Put Seniors’ Retirement Savings at Risk

The Commodity Futures Trading Commission settled charges against registered futures commission merchant Cunningham Commodities, LLC.

According to the CFTC, Cunningham Commodities failed to properly supervise accounts brought to the firm by an introducing broker, whose activities it guaranteed from March to December 2019.

According to the CFTC’s Order, Cunningham Commodities agreed to guarantee the introducing…

clock  July, 09, 2020
Recovery of Losses if You Bought Wirecard Bonds

Recovery of Losses if You Bought Wirecard Bonds

By Attorney Jared Levy

Shares of German payment processor company Wirecard recently crashed when it became known that nearly $2 billion in cash on its balance sheet allegedly does not exist. Then, Wirecard’s CEO was arrested.

Recently, it has come to light that Credit Suisse allegedly sold about $1 billion in convertible bonds from Wirecard after entering into a strategic…

clock  July, 02, 2020
Losses in Wirecard Stock

Losses in Wirecard Stock

German payment processor Wirecard’s shares recently plummeted by more than 60 percent after its auditor alleged that it can’t find evidence for a quarter of the company’s cash on its balance sheet.

According to reports, Wirecard’s auditor Ernst & Young didn’t have sufficient evidence for $1.9 billion euros that Wirecard’s…

clock  June, 23, 2020
Whistleblower Receives Record $50 Million Award From SEC

Whistleblower Receives Record $50 Million Award From SEC

The Securities and Exchange Commission recently awarded almost $50 million to a whistleblower who provided a detailed account of a company’s misconduct. This reported misconduct led the SEC to bring an enforcement action, and the The SEC ultimately was able to return substantial amounts to harmed investors

According to Jane Norberg, chief of the SEC’s Office of the Whistleblower, this award marks several milestones for the…

clock  June, 10, 2020
SEC Stops Fraudulent Hedge Fund Offering By Florida Investment Advisor

SEC Stops Fraudulent Hedge Fund Offering By Florida Investment Advisor

The Securities and Exchange Commission recently charged Kinetic Investment Group LLC and its managing member, Michael Scott Williams, in connection with an alleged fraudulent, unregistered securities offering. According to the SEC, the fraudulent offering raised approximately $39 million from at least 30 investors located mostly in Florida and Puerto Rico.

If you’ve been the victim of a fraudulent or…

clock  May, 28, 2020
Recovery of Investment Losses in UBS’s Yield Enhancement Strategy

Recovery of Investment Losses in UBS’s Yield Enhancement Strategy

The securities attorneys at Morgan & Morgan’s Business Trial Group are investigating investment losses in UBS Wealth Management’s Yield Enhancement Strategy (YES).

The financial firm marketed YES as a conservative, market-neutral strategy and bond-portfolio enhancer. This strategy, according to UBS, would generate consistent income while limiting risks to the premiums paid, even if markets turned bearish. UBS represented to investors that YES would limit exposure to substantial…

clock  May, 28, 2020
Investigations into Investment Losses at WestPark Capital Continue

Investigations into Investment Losses at WestPark Capital Continue

Morgan & Morgan’s securities attorneys are investigating investment losses in pre-IPO shares and products sold by WestPark Capital, Inc. These pre-IPO products include the Horizon Select Technology Fund LLC and Horizon Select Technology Fund II LLC (collectively, “Horizon Funds”). Pre-IPO shares include Uber, Lyft, Palantir Technologies, Spotify, Pinterest, Dropbox, SpaceX, MagicLeap, Cloudera, AliphCom (d/b/a Jawbone), and…

clock  May, 14, 2020
Recovery of Investment Losses in Exchange Traded Products

Recovery of Investment Losses in Exchange Traded Products

The securities attorneys at Morgan & Morgan’s Business Trial Group are investigating investment losses in Exchange Traded Products (ETP) that recently closed after suffering massive losses this year.

Amid the markets’ extreme volatility in 2020, an unusually high number of Exchange Traded Funds (ETF) and Exchange Traded Notes (ETN) have closed. Many of the ETFs and ETNs that have closed were leveraged or inverse products.

Leveraged and inverse ETPs are extremely high-risk…

clock  May, 12, 2020
Recovery of Investor Losses in Oil & Energy Funds

Recovery of Investor Losses in Oil & Energy Funds

Morgan & Morgan’s securities attorneys within our Business Trial Group are investigating losses in oil and energy investments, including losses in the United States Oil Fund LP.

Oil prices have crashed to multi-decade lows amidst drastically reduced demand during the COVID-19 pandemic. The most heavily traded crude contracts recently fell to their lowest level in over 20 years. And one contract for U.S crude oil fell into negative territory for the first time ever – meaning that…

clock  May, 12, 2020
Recovery of Leveraged ETF Losses During 2020 Market Crash

Recovery of Leveraged ETF Losses During 2020 Market Crash

The securities attorneys at Morgan & Morgan’s Business Trial Group are investigating losses that leveraged investment products have experienced recently during the 2020 market crash.

Leveraged products – more specifically leveraged exchange-traded funds or exchange-traded notes – allow investors to gain greater exposure to the market without increasing their capital investment. By doing so, these products amplify the potential…

clock  April, 10, 2020
How to Recover High-Yield Bond ETF Losses

How to Recover High-Yield Bond ETF Losses

By Attorney Jared Levy

During this most recent period of market volatility and decline, it’s become difficult to trade certain options. That has been the case recently with options on iShares iBoxx USD High Yield Corporate Bond Exchange-Traded Fund, a high-yield bond ETF whose price has declined drastically.

If you have suffered large or disproportionate losses in this ETF,…

clock  March, 18, 2020
CFPB, South Carolina, and Arkansas File Suit Against Brokers of High-Interest Credit Offers to Veterans

CFPB, South Carolina, and Arkansas File Suit Against Brokers of High-Interest Credit Offers to Veterans

By Emily Zulz

The Consumer Financial Protection Bureau — along with the South Carolina Department of Consumer Affairs and Arkansas Attorney General — recently filed a lawsuit against a South Carolina law firm that worked with several companies that brokered contracts offering high-interest credit to consumers, primarily disabled…

clock  March, 17, 2020
Coronavirus

Beware Coronavirus Investment Scams

By Emily Zulz

The Securities and Exchange Commission is warning investors about potential coronavirus investment scams. The SEC’s Office of Investor Education and Advocacy issued an Investor Alert that warns investors about fraudulent claims that a company’s products or services will be used to help stop the coronavirus outbreak.

“We have become aware of a number of Internet promotions,…

clock  March, 13, 2020
SEC Charges Wells Fargo In Connection With Investment Recommendation Practices

SEC Charges Wells Fargo In Connection With Investment Recommendation Practices

The Securities and Exchange Commission recently settled charges against Wells Fargo Clearing Services and Wells Fargo Advisors Financial Network for failing to adequately supervise advisers and registered representatives who recommended single-inverse ETF investments to retail investors. According to the SEC, Wells Fargo also lacked proper compliance policies and procedures for ensuring the suitability of these recommendations. The recommendations occurred from April 2012 through September…

clock  March, 03, 2020
SEC Charges Florida-based Real Estate Company With Defrauding Retail Investors

SEC Charges Florida-based Real Estate Company With Defrauding Retail Investors

The Securities and Exchange Commission recently announced an emergency enforcement action to stop an alleged fraud by EquiAlt LLC, a Florida real estate firm .

The SEC alleges that EquiAlt, its CEO, and its managing director, orchestrated a Ponzi scheme involving $170 million in investor funds raised through fraudulent unregistered securities offerings. Many of the investors were elderly…

clock  February, 28, 2020
Blockchain Startup Agrees to Return Funds and Register Tokens As Securities

Blockchain Startup Agrees to Return Funds and Register Tokens As Securities

By Emily Zulz

The Securities and Exchange Commission recently settled charges against a blockchain technology startup for conducting an unregistered initial coin offering (ICO).

Enigma MPC, a blockchain technology startup, has agreed to return funds to harmed investors. It also has agreed to register its tokens as securities, file periodic reports with the SEC, and pay a $500,000…

clock  February, 24, 2020
SEC Charges Businessman Who Orchestrated $33M Digital Asset Scheme

SEC Charges Businessman Who Orchestrated $33M Digital Asset Scheme

By Attorney Jared Levy

The Securities and Exchange Commission recently filed charges against Michael Ackerman, alleging that the Ohio businessman defrauded about 150 investors (including many physicians) in a $33 million digital asset scheme.

The SEC claims that Ackerman told investors that he had created an algorithm that enabled extraordinary profits from …

clock  February, 17, 2020
SeaWorld Settles Securities Class Action for $65M

SeaWorld Settles Securities Class Action for $65M

By Attorney Jared Levy

SeaWorld Entertainment Inc. recently settled a securities class action for $65 million, where investors alleged SeaWorld misled them about park attendance declines following the release of the 2013 documentary ,“Blackfish.” The documentary depicted the brutality involved in capturing killer whales and the hazards that SeaWorld’s trainers faced.

The securities class action – filed in 2014 – alleged that SeaWorld blamed poor attendance on factors other…

clock  February, 13, 2020
Be Cautious If Considering an IEO or ICO Investment

Be Cautious If Considering an IEO or ICO Investment

By Emily Zulz

The Securities and Exchange Commission recently issued an investor alert urging caution when considering investments in initial exchange offerings (IEOs) and initial coin offerings (ICOs).

“The past few years have seen opportunistic fraudsters take advantage of the quickly evolving investment space around digital assets,…

clock  February, 12, 2020
SEC Charges Firm and Portfolio Manager for Misrepresenting Risk

SEC Charges Firm and Portfolio Manager for Misrepresenting Risk

By Attorney Jared Levy

We are currently investigating claims against Catalyst Capital Advisors LLC for alleged misrepresentations regarding risk management in a mutual fund.

The Securities and Exchange Commission recently announced charges against Catalyst (an investment advisory firm) and its Chief Executive Officer, Jerry Szilagyi. Catalyst and Szilagyi agreed to pay a total of $…

clock  January, 31, 2020
Business Trial Group Investigates Bitfinex Offerings

Business Trial Group Investigates Bitfinex Offerings

By Attorney Jared Levy

Many companies today use initial coin offerings or initial exchange offerings to raise capital or provide investment opportunities. These offerings may, in fact, involve the sale of securities – which means they need to be registered under federal securities laws. And, as with any offering, issuers may not misrepresent or omit important facts to investors.

…
clock  January, 27, 2020
ICO min

Blockchain Company Block.one Settles Charges for Unregistered ICO

By Attorney Jared Levy

The Securities and Exchange Commission recently settled charges against Block.one for allegedly making an unregistered initial coin offering (ICO) of digital tokens that raised several billion dollars. The blockchain technology company paid a $24 million penalty to resolve the charges.

The SEC’s Order finds that Block.one…

clock  January, 14, 2020
Whistleblower

CFTC Awards Whistleblower $1 Million

By Attorney Jared Levy

The Commodity Futures Trading Commission (CFTC) recently announced a $1 million whistleblower award to a tipster who helped uncover Commodity Exchange Act (CEA) violations. Notably, the tipster first provided the information to another regulator before it reached to the CFTC.

CFTC Director of Enforcement James McDonald stated, “Today’s award shows how referrals from other regulators can…

clock  January, 07, 2020

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