Legal Insights, From Our Desk to Yours

When you hire a broker, you expect them to act in your best interest. Unfortunately, some brokers engage in unethical practices that put investors at risk. Understanding broker misconduct is essential for protecting your investments. Common Forms of Broker Misconduct Unauthorized trading happens when a broker makes transactions without client consent. Excessive trading (churning) generates commissions for the broker but hurts the investor. Failure to disclose risks can lead investors into unsuitable investments. Margin abuse occurs when brokers encourage high-risk margin trading without fully explaining the risks. Breach of fiduciary duty happens when brokers prioritize their own interests over clients’. If you suspect broker misconduct, acting quickly can help prevent further losses. How to File a Claim for Broker Misconduct Victims of broker misconduct can file complaints with FINRA or pursue legal claims with an experienced broker misconduct attorney to recover damages. Take Action Today If you’ve suffered losses due to broker negligence or fraud, we can help. Schedule a consultation today to explore your legal options.

Investment fraud is more common than many people realize, and it can lead to devastating financial losses. Whether you’re a seasoned investor or new to financial markets, understanding the red flags can help you avoid becoming a victim. Common Warning Signs of Investment Fraud Fraudulent investment opportunities often promise guaranteed, high returns with little or no risk. Scammers use high-pressure sales tactics to push investors into quick decisions. Fake investment firms may lack proper licensing or regulatory oversight. Ponzi schemes rely on new investor funds to pay earlier investors rather than legitimate profits. A lack of clear, verifiable financial statements is a red flag for fraudulent operations. These red flags can help you identify scams before they cost you money. If you believe you’ve been a victim of investment fraud, legal options are available to recover your losses. What to Do If You Suspect Investment Fraud If you suspect an investment is fraudulent, gather all documents, report it to the SEC or FINRA, and consult an investment fraud attorney to explore your legal options. Protect Your Investments If you’ve been targeted by an investment scam, you don’t have to navigate this alone. Contact us today for a free consultation and let us help you recover your losses.

SEC Press Release 2018-83 The Securities and Exchange Commission today announced that it has charged New York-based investment adviser Premium Point Investments LP with inflating the value of private funds it advised by hundreds of millions of dollars. The SEC also charged Premium Point’s CEO and chief investment officer Anilesh Ahuja as well as Amin […] The post SEC Charges Hedge Fund Adviser With Deceiving Investors by Inflating Fund Performance appeared first on Leslie Schwaebe Akins LC.

SEC Files Charges in International Manipulation Scheme FOR IMMEDIATE RELEASE 2018-85 The Securities and Exchange Commission today charged four individuals for their roles in a fraudulent scheme that generated nearly $34 million from unlawful stock sales and caused significant harm to retail investors. According to the SEC’s complaint, the defendants manipulated the market for and illegally sold […] The post SEC Files Charges in International Manipulation Scheme appeared first on Leslie Schwaebe Akins LC.

FINRA Sanctions Fifth Third Securities, Inc., $6 Million for Cost and Fee Disclosure Failures and Unsuitable Recommendations Related to Variable Annuity Exchanges WASHINGTON — The Financial Industry Regulatory Authority (FINRA) announced today it has fined Fifth Third Securities, Inc., $4 million and required the firm to pay approximately $2 million in restitution to customers for […] The post FINRA Sanctions Fifth Third Securities $6 Million appeared first on Leslie Schwaebe Akins LC.

The SEC’s Office of Investor Education and Advocacy is publishing this Investor Bulletin to educate investors about the use of margin accounts to buy securities, including the related risks. The Difference Between Cash and Margin Accounts A “cash account” is a type of brokerage account in which the investor must pay the full amount for […] The post Understanding Margin Accounts appeared first on Leslie Schwaebe Akins LC.

(Updated with additional comments from company executives on a conference call.)   First-quarter profit at Morgan Stanley’s wealth management division rose 19% to a record $1.2 billion in the first quarter as the company continued to reap the benefits of emphasizing fee-based assets and lending. Revenue at the wealth unit rose 8% to $4.4 billion […] The post Morgan Stanley Wealth Profit Jumps 19% on Fees and Loans (Advisorhub.com) appeared first on Leslie Schwaebe Akins LC.

With regulators zeroing in on reverse-churning, and lawsuits popping up around the practice, advisers should be paying attention.   The concern stems from conflicts of interest that advisers face when deciding whether to move clients from commission-based accounts to often more expensive fee-based accounts (depending on how much trading occurs, which additional services are provided […] The post Beware: Regulators Won’t Take Excuses For Reverse-Churning (investmentnews.com) appeared first on Leslie Schwaebe Akins LC.

Four Edward D. Jones & Co. customers have filed a class-action lawsuit against the company and its executives, asserting that its aggressive promotion of fee-based advisory accounts is an illegal “reverse churning scheme” benefiting the firm at the expense of investors.   The complaint, filed in federal court in the Eastern District of California on […] The post Edward Jones Sued for Shuttling Customers to Fee Accounts (Advisorhub.com) appeared first on Leslie Schwaebe Akins LC.

A $9-million trio of UBS brokers in Houston left last week to form an independent advisory firm, betting they can retain the bulk of their ultra-rich family clientele in spite of the firm’s recent exit from the Protocol for Broker Recruiting.   Brian Bova, David Leeds Eustis and Marc Oster, managing directors who had each […] The post UBS Mega-Brokers in Houston Walk to RIA Independence (Advisorhub.com) appeared first on Leslie Schwaebe Akins LC.

The Securities and Exchange Commission on Thursday said PNC Investments, Securities America Advisors, and Geneos Wealth Management agreed to settle fiduciary duty breach charges related to mutual fund sales by paying $15 million in penalties and restitution to customers.   The three firms each settled charges of putting customers who were paying fees in advisory […] The post Securities America, PNC, Geneos to Pay $15 Million for Mutual Fund Violations (Advisorhub.com) appeared first on Leslie Schwaebe Akins LC.