Eccleston Law Blog

FINRA Issues Warning Amid Surge in "Investment Group" Frauds on Social Media

February 8th, 2024 at 2:27 PM
The Financial Industry Regulatory Authority (FINRA) reports a surge in investor complaints related to fraudulent "investment groups" exploiting social media platforms.
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FINRA Takes Action Against Former Cambridge Advisor for Annuity Exchange Violations

February 7th, 2024 at 3:10 PM
Malay Kumar, a former advisor affiliated with Cambridge Investment Research, recently agreed to settle a disciplinary matter brought by FINRA. The AWC (Acceptance, Waiver, and Consent) reflects a $10,000 fine and a 12-month suspension. The settlement revealed that Kumar recommended a series of variable annuity exchanges that violated Reg BI.
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RIA EverNest Files Lawsuit to Sever Ties with Sanctuary Wealth Following FINRA Fine

February 6th, 2024 at 10:45 AM
EverNest Financial Advisors, a Carmel, Indiana-based registered investment adviser, has filed a lawsuit seeking to reverse a deal where it sold a 20 percent stake to Sanctuary Wealth almost two years ago.
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Former Ameriprise Advisor Barred by FINRA for Non-Cooperation in Crypto Business Investigation

February 5th, 2024 at 1:15 PM
A former Ameriprise Financial advisor, Eric V. Kubiak, has chosen an industry bar over full cooperation with a Financial Industry Regulatory Authority (FINRA) investigation into his undisclosed outside business activity involving crypto assets.
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Financial Advisor Sentenced to 8 Years for Defrauding Amish Investors

February 2nd, 2024 at 2:18 PM
Earl D. Miller, convicted in 2022 for defrauding Amish and Mennonite investors through his real estate investment firm, "5 Star", has been sentenced to over eight years in prison.
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FINRA Fines and Suspends Merrill Lynch Advisor Over Unauthorized Role as Estate Executor

February 1st, 2024 at 1:26 PM
Frederick R. Watson, a veteran advisor with 37 years of experience at Merrill Lynch, has been fined $10,000 and suspended for four months by the Financial Industry Regulatory Authority (FINRA).
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SEC Raises Concerns Over Arbitration Clauses in Investment Advisory Agreements

January 31st, 2024 at 1:17 PM
A cautionary note has been sounded by an investor advocacy group operating within the Securities and Exchange Commission (SEC), signaling potential fiduciary duty violations by registered investment advisers employing contract clauses to steer client disputes into arbitration.
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Financial Advisors Set to Boost Client Allocations to Alternative Assets in 2024

January 30th, 2024 at 2:29 PM
A recent independent survey conducted by CAIS and Mercer reveals that 62 percent of financial advisors currently allocate between 6 percent and 25 percent of clients' portfolios to alternative asset classes.
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Former JPMorgan Advisor Agrees to Injunction Amid Solicitation Allegations

January 29th, 2024 at 1:06 PM
A former JPMorgan advisor sued last week, in connection with his transition to an independent practice with Kestra Private Wealth Services, has agreed to a stipulated injunction prohibiting him from soliciting his former customers.
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JPMorgan Pursues Legal Action Against Advisor Who Moved to Wells Fargo

January 26th, 2024 at 1:21 PM
JPMorgan Chase & Co. has initiated legal action, seeking a temporary restraining order against former employee Jeffry Neal Carel. 
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Thank you for your professional assistance with this matter. You are very good at what you do.

John T.


February 22, 2024
Key Considerations for Advisors When Assessing the Financial Soundness of Annuities

While rating agencies like Fitch and S&P Global Ratings generally highlight the strength of annuity issuers, advisors still should scrutinize certain factors in their assessment process.

February 21, 2024
SEC Alleges Fraud Against Morgan Stanley and Former Executive in Block Trading Business

As reported by the Wall Street Journal, the Securities and Exchange Commission (SEC) has charged Morgan Stanley & Co. LLC and its former head of equity syndicate desk, Pawan Passi, with a multi-year fraud involving the disclosure of confidential information related to block trades.

February 20, 2024
Challenges Persist: Firms Struggle to Comply with Regulation Best Interest

FINRA's annual report for 2024 reveals a concerning trend among broker-dealers, with numerous instances of violations of Regulation Best Interest (Reg BI).