investigations

Morgan Stanley Exchange Traded Fund Fraud?

May 2, 2012

The Financial Industry Regulatory Authority recently fined Morgan Stanley because: FINRA found that from January 2008 through June 2009, the firms did not have adequate supervisory systems in place to monitor the sale of leveraged and inverse ETFs, and failed to conduct adequate due diligence regarding the risks and features of the ETFs. As a […]

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Citigroup Global Markets – Exchange Traded Funds Misconduct

May 2, 2012

The Financial Industry Regulatory Authority recently fined Citigroup Global Markets because: FINRA found that from January 2008 through June 2009, the firms did not have adequate supervisory systems in place to monitor the sale of leveraged and inverse ETFs, and failed to conduct adequate due diligence regarding the risks and features of the ETFs. As […]

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LPL Financial Smacked For Tenant-in-Common Investments

February 15, 2012

According to a recent article in The Investment News, LPL Financial was just hit with a$1.4 million award for selling Tenant-in-Common investments, commonly known as TICs, to an elderly couple.  According to the elderly couple’s attorney: There was a fraudulent picture painted of investors receiving monthly income checks from the properties . . . That […]

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Did You Lose Money Through Peregrine Financial Group?

February 15, 2012

Salas Wang LLC is investigating claims against Peregrine Financial and its introducing  brokers, Clash Financial LLC , Oxford Trading Group, California Capital Trading Group LLC, and Patriot Financial Markets LLC.  The National Futures Association fined Peregrine because, according to the NFA’s complaint, its introducing brokers: routinely recommended trades and trading strategies that maximized commissions without regard for the best interests […]

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Wells Fargo Broker Accused of Stealing From Elderly Client

January 24, 2012

Another sad story about a stockbroker taking advantage of an elderly client.  According to Forbes, Ralph Edward Thomas Jr. of Baltimore misused his elderly client’s funds in a number of ways, including: Between June 2006 and May 2009, without permission, and through forgery, Thomas initiated three mortgages in the name of KL on her personal […]

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Citigroup Documents Show Broker Manipulation

January 16, 2012

The NY Times had a great article this weekend about how Citi sold its ASTA/MAT municipal arbitrage securities.  The article explained how risky these securities were, and how Citi hid that risk from investors.  Specifically, the article quoted a Citi broker that said: I’m sure a great deal of time and energy went into the […]

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SunTrust Fined for Auction Rate Securities Practices

July 31, 2011

According to the Securities Law Prof Blog, FINRA fined SunTrust in connection with its sales of auction rate securities.  The blog reports that: SunTrust RH and SunTrust IS used advertising and marketing materials that were not fair and balanced, and did not provide a sound basis for evaluating all the facts about purchasing ARS. Specifically, the […]

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