Breach of Contract

FAQ’s Warrants – Florida Securities and Investment Fraud, Misrepresentation and Breach of Fiduciary Duty FINRA Arbitration and Litigation Attorney

Published on: January 3, 2014 | By Russell L. Forkey, P.A.

FAQ’s Warrants – Miami, Hollywood, Fort Lauderdale, Deerfield Beach, Lighthouse Point and Boca Raton, Florida FINRA Arbitration and Litigation Attorney:

A warrant is a type of security, usually issued in conjunction with common or preferred stock, that entitles the holder to buy a proportionate amount of common stock at a specified price, usually higher than the market price at the time of issuance, for a period of years or to perpetuity.

Many times warrants are included as part of units issued in private placements. The warrants are included as part of the units as a “kicker” to the investor to take on the risk associated with investing in the private placement. Conversely, if the warrants are exercised, they provide the issuer with additional unsolicited funds.

FAQ’s About Asset Allocation – South Florida Improper and Unsuitable Asset Allocation FINRA Arbitration and Litigation Attorney

Published on: December 25, 2013 | By Russell L. Forkey, P.A.

South Florida Improper and/or Unsuitable Asset Allocation FINRA Arbitration, Federal and State Court Litigation Attorney:

Asset Allocation – Asset Allociation involves dividing an investment portfolio among different asset categories, such as stocks, bonds, and cash. The process of determining which mix of assets to hold in your portfolio is a very personal one. The asset allocation that works best for you at any given point in your life will depend largely on your time horizon and your ability to tolerate risk.

Time Horizon – Your time horizon is the expected number of months, years, or decades you will be investing to achieve a particular financial goal. An investor with a longer time horizon may feel more comfortable taking on a riskier, or more volatile, investment because he or she can wait out slow economic cycles and the inevitable ups and downs of our markets. By contrast, an investor saving up for a teenager’s college education would likely take on less risk because he or she has a shorter time horizon.

Insurance Policy (Contract) Misstatement or Omission – South Florida Insurance and Investment Fraud and Misrepresentation Litigation and Arbitration Attorney

Published on: December 21, 2013 | By Russell L. Forkey, P.A.

South Florida Insurance Dispute and Litigation Attorney:

The general rule in Florida is that a misstatement in, or omission from, an application for insurance need not be intentional before recovery may be denied pursuant to 627.409. Florida Statute 627.409 provides that :

(1) Any statement or description made by or on behalf of an insured or annuitant in an application for an insurance policy or annuity contract, or in negotiations for a policy or contract, is a representation and is not a warranty. A misrepresentation, omission, concealment of fact, or incorrect statement may prevent recovery under the contract or policy only if any of the following apply:

Accounting Negligence and Fraud – South Florida Accounting Fraud, Misrepresentation, Negligence and Breach of Fiduciary Duty Arbitration and Litigation Attorney

Published on: December 17, 2013 | By Russell L. Forkey, P.A.

South Florida Accounting, Fraud, Negligence, Breach of Contract and Misrepresentation Litigation and Arbitration Attorney:

Securities and Exchange Commission v. Michael H. Taber, CPA, Civil Action No. 13-mc-0282 (S.D.N.Y. filed Aug. 8, 2013)

SEC Awarded $400,000 in Disgorgement from Certified Public Accountant for His Violations of Commission Suspension Order

Arcturus Corporation and Aschere Energy LLC. – South Florida Oil and Gas Securities Fraud and Misrepresentation Litigation and Arbitration Attorney

Published on: December 16, 2013 | By Russell L. Forkey, P.A.

South Florida Unregistered Securities, Joint Venture and Securities Misrepresentation and Litigation Attorney:

Securities and Exchange Commission v. Arcturus Corporation, et al., Civil Action No. Civ. Action No. 3:13-cv-04861-K (N.D. Tex., Dallas Division, filed December 12, 2013)

SEC Charges Texas Oil and Gas Promoters for Securities Fraud

Florida Shareholder Notice and Consent Requirements and Dissenters’ Rights – Broward and Palm Beach County, Florida Corporate and Business Litigation and Arbitration Attorney

Published on: December 8, 2013 | By Russell L. Forkey, P.A.

Florida Shareholder Notice and Consent Requirements and Dissenters’ Rights – South Florida Corporate Litigation and Arbitration Attorney:

Shareholder notice and consent requirements and dissenters’ rights statutes are intended to insure that directors do not fundamentally change the nature of the shareholders’ investments without the check and balance of informed shareholder approval, and the opportunity for dissenters to withdraw from the corporation. A critical part of Florida’s statutory scheme giving dissenters the right to withdraw from the corporation is section 607.1301(2), which defines the term “fair value” for purposes of the dissenters’ rights statute. ‘Fair value,’ with respect to a dissenter’s shares, means the value of the shares as of the close of business on the day prior to the shareholders’ authorization date, excluding any appreciation or depreciation in anticipation of the corporate action unless exclusion would be inequitable.

Please keep in mind that this information is being provided for educational purposes only. It is not designed to be complete in all material respects. Thus, it should not be relied upon as legal or investment advice. If the reader has any questions concerning the contents of this post, you should consult a qualified professional.

Prohibited Activities of Corporate Officers and Directors – Florida Corporate Misconduct Litigation and Arbitration Attorney

Published on: December 8, 2013 | By Russell L. Forkey, P.A.

Prohibited Activities of Corporate Officers and Directors – Broward and Palm Beach County, Florida Corporate Misconduct Litigation and Arbitration Attorney:

It is a cardinal principle, in Florida, that an officer or director of a corporation will not be permitted to make profit out of his official position and because of their fiduciary character, officers and directors will not be permitted to acquire for their own advantage interests adverse or antagonistic to the corporation. While it is true that corporate officers or directors are not precluded, because of the fiduciary nature of their position, from entering into and engaging in another similar enterprise separate from the corporation, they must refrain from interfering with the business of the corporation and they must act in good faith.

Examples of such activity include:

Accountant’s Liability to Third Parties – Broward and Palm Beach Florida Accounting Negligence Litigation and Arbitration Attorney

Published on: December 7, 2013 | By Russell L. Forkey, P.A.

Accountant’s Liability to Third Parties – Florida Accounting Negligence Litigation and Arbitration Attorney – Russell L. Forkey, Esq.

WHEN AN ACCOUNTANT FAILS TO EXERCISE REASONABLE AND ORDINARY CARE IN PREPARING THE FINANCIAL STATEMENTS OF HIS CLIENT AND WHERE THAT ACCOUNTANT PERSONALLY DELIVERS AND PRESENTS THE STATEMENTS TO A THIRD PARTY TO INDUCE THAT THIRD PARTY TO LOAN TO OR INVEST IN THE CLIENT, KNOWING THAT THE STATEMENTS WILL BE RELIED UPON BY THE THIRD PARTY IN LOANING TO OR INVESTING IN THE CLIENT, IS THE ACCOUNTANT LIABLE TO THE THIRD PARTY IN NEGLIGENCE FOR THE DAMAGES THE THIRD PARTY SUFFERS AS A RESULT OF THE ACCOUNTANT’S FAILURE TO USE REASONABLE AND ORDINARY CARE IN PREPARING THE FINANCIAL STATEMENTS, DESPITE A LACK OF PRIVITY BETWEEN THE ACCOUNTANT AND THE THIRD PARTY?

The Florida Supreme Court answered this question in the affirmative in the case of First Florida Bank, N.A. v. Max Mitchell & Co., 558 So. 2d 9 (Fla. 1990). In this matter, the court provided two examples to illustrate this circumstance.

Financial Elder Abuse – Financial Elder Exploitation – Florida Litigation and FINRA Arbitration Attorney

Published on: November 25, 2013 | By Russell L. Forkey, P.A.

Financial Elder Abuse and Elder Exploitation – Boca Raton, Delray Beach, West Palm Beach and Fort Lauderdale, Florida Litigation and Arbitration Attorney:

Florida Statute Section 415.1111 grants to vulnerable (elder) adults a cause of action as a result of financial and other types of abuse. It provides that a vulnerable adult who has been abused, neglected, or exploited as specified in the law has a cause of action against any perpetrator and may recover actual and punitive damages for such abuse, neglect, or exploitation. The action may be brought by the vulnerable adult, or that person’s guardian, by a person or organization acting on behalf of the vulnerable adult with the consent of that person or that person’s guardian, or by the personal representative of the estate of a deceased victim without regard to whether the cause of death resulted from the abuse, neglect, or exploitation. The action may be brought in any court of competent jurisdiction to enforce such action and to recover actual and punitive damages for any deprivation of or infringement on the rights of a vulnerable adult. A party who prevails in any such action may be entitled to recover reasonable attorney’s fees, costs of the action, and damages. The remedies provided in this section are in addition to and cumulative with other legal and administrative remedies available to a vulnerable adult.

As the elder population in Florida has increased, incidents of financial elder abuse has accelerated at an alarming rate. An area of financial elder abuse that has recently exploded is the twisting (unnecessary sale and purchase of annuities) of variable and fixed annuities.

South Florida Investment Adviser Fraud and Misrepresentation FINRA Arbitration and Litigation Attorney

Published on: November 21, 2013 | By Russell L. Forkey, P.A.

Tampa, Fort Meyers and Naples, Florida Investment Adviser Fraud, Breach of Fiduciary Duty and Misrepresentation FINRA Arbitration and State and Federal Court Litigation Attorney:

The Securities and Exchange Commission recently announced charges against two Tampa-area investment advisers accused of committing fraud by failing to truthfully inform clients about compensation received from offshore funds they were recommending as safe investments despite substantial risks and red flags.

The advisers also are charged with contributing to violations of the “custody rule” that requires investment advisory firms to establish specific procedures to safeguard and account for client assets.