December 8, 2020
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 $170 million to settle charges for misrepresentations and omissions relating to moving its top traders from its premier client fund of BCI to a proprietary fund, BSMA Limited. The SEC also found that BlueCrest failed to properly disclose that it had replaced those traders with an under-performing algorithm.
December 1, 2020
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.
November 25, 2020
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 customers unsuitable volatility products. The firms include Securities America Advisors Inc., Summit Financial Group Inc., American Portfolios Financial Services/American Portfolios Advisors Inc., Benjamin F. Edwards & Company Inc., and Royal Alliance Associates Inc.
November 17, 2020
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 customer appoints a firm’s stockbroker as beneficiary, trustee, or executor. The rule requires the brokerage firm to affirmatively permit or prohibit the stockbroker from acting in such capacity or receiving a bequest from a customer’s estate.
The rule does not prohibit a stockbroker from being named a customer’s beneficiary or receiving
November 6, 2020
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 College of William and Mary finds that many start-up bond funds invest in bond securities (like mortgage-backed securities) in small “odd lots,” or increments of less than $1 million.
October 28, 2020
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 program.
October 23, 2020
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 fraud starting in 2015 that inflated SAE’s revenue by about $100 million.
October 15, 2020
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 agreement with the DOJ, JPMorgan admitted that, from 2008 to 2016, its traders placed purchase and sale orders for U.S.
October 12, 2020
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 stocks on their behalf. Dosal met a number of investors through car club events, the SEC says.
According to the complaint, Dosal falsely held himself out as a securities professional.
October 2, 2020
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.
September 24, 2020
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 fraud detection and prevention software.