South Florida Arbitration & Litigation Lawyer Blog

October, 2011: It would be funny if it were not true. The Financial Industry Regulatory Authority (FINRA) is responsible for regulating the brokerage industry. The Securities and Exchange Commission (SEC) is responsible for overseeing FINRA. The SEC recently ordered FINRA to hire an independent consultant and undertake other remedial measures to improve its policies, procedures,…

Trading Seminar Fraud: Over the years, it has not been uncommon to see upstart individuals and entities promote the success of their trading strategies, which many times turn out to benefit them as opposed to the investor. This is because some trading seminar promoters may use misleading or untrue statements to lull investors into purchasing…

Securities and Exchange Commission v. Imperia Invest IBC, Civil Action No. 2:10-cv-00986-B (D. Utah) On October 6, 2010, the Securities and Exchange Commission obtained a temporary restraining order and emergency asset freeze against Imperia Invest IBC (“Imperia”) for defrauding more than 14,000 investors worldwide. The Commission’s complaint alleges Imperia raised in excess of $7 million,…

Florida Securities and Investment Fraud Litigation and FINRA Arbitration Attorney, Russell L. Forkey, Esq. The Securities and Exchange Commission periodically announces enforcement actions that have recently been filed by it. Periodically, we review these actions and provide selective information concerning what we feel relate to important issues or matters that have a wide alleged impact…

Securities Fraud, Misrepresentation and Negligent Supervision Lawyer, Russell L. Forkey, Esq. October, 2011: The Securities and Exchange Commission (SEC) recently charged multinational banking conglomerate Banco Espirito Santo S.A. (BES) with violations of the broker-dealer and investment adviser registration provisions and the securities transaction registration provisions of the federal securities laws. The SEC’s enforcement action finds…

It is not unusual for a brokerage firm to attempt to raise capital for legitimate business purposes such as expansion of its business or upgrading of its systems. However, not all capital raises are transparent. It is for that reason that we have included this post. Please keep in mind that the information discussed below…

Collateralized Debt Obligations Fraud and Misrepresentation FINRA Arbitration and Litigation Attorney, Russell L. Forkey, Esq. October, 2011: The Securities and Exchange Commission (SEC) recently charged Citigroup’s principal U.S. broker-dealer subsidiary with misleading investors about a $1 billion collateralized debt obligation (CDO) tied to the U.S. housing market in which Citigroup bet against investors as the…

Securities Fraud and Misrepresentation Litigation Attorney, Russell L. Forkey, Esq. October, 2011: Litigation Release No. 22133 Securities and Exchange Commission v. Long Term-Short Term, Inc. and Freddie Rick, Civil Action No. 1:11-cv-1127 (E.D.Va) SEC Charges Long Term-Short Term, Inc., d/b/a BetterTrades, and Its President with Securities Law Violations Recently, the Securities and Exchange Commission filed…

The following post will provide the reader with some does and don’ts relative to the purchase of private placements. Capital Financial Services, Inc. (CRD #8408, Minot, North Dakota) submitted a Letter of Acceptance, Waiver and Consent in which the firm was censured and ordered to pay $200,000 in restitution to investors. Without admitting or denying the…

Gold Stock Scams The purpose of this post is to provide the reader with general information on how to attempt to spot gold stock scams. The information is being provided for educational purposes only. Thus, this post should not be relied upon as providing legal or investment advice. If you have any questions, you should…