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Eccleston Law Blog

Illinois and Georgia Become Newest States to Adopt Best Interest Annuity Rules

March 13th, 2023 at 4:40 PM
Illinois and Georgia have become the 32nd and 33rd states to adopt rules mandating a best interest standard for annuity sales and recommendations following a model created by the National Association of Insurance Commissioners (NAIC). 
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Oil Entrepreneur Sues Wells Fargo and LPL For Mismanaging Securities-Based Loan Strategy

March 10th, 2023 at 2:22 PM
An oil refinery entrepreneur has filed suit against Wells Fargo Advisors and LPL Financial alleging that his advisor overleveraged his account with a $5 million securities-based loan as part of a strategy that failed amidst the Covid-19 pandemic.
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FINRA Bars High-Producing Beverly Hills Advisor

March 9th, 2023 at 5:40 PM
The Financial Industry Regulatory Authority (FINRA) has barred a Beverly Hills-based advisor, Antoine Souma, who allegedly participated in a private securities transaction in violation of industry rules.
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SEC Charges NBA Hall of Famer Paul Pierce For Improperly Promoting Crypto Security

March 8th, 2023 at 4:20 PM
The Securities and Exchange Commission (SEC) has charged NBA Hall of Famer Paul Pierce for promoting EMAX tokens, crypto securities sold by EthereumMax, on social media without disclosing the compensation he received from the company and for making misleading promotional statements regarding the tokens.
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KBS Growth & Income REIT Defaults on Commonwealth Building Loan

March 7th, 2023 at 3:03 PM
KBS Growth & Income REIT Inc., a publicly registered non-traded real estate investment trust, announced that the company has defaulted on the Commonwealth Building mortgage loan after failing to repay outstanding debt that was due on February 1, 2023, according to a filing with the Securities and Exchange Commission (SEC). 
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Hightower Fails To Stop Former Advisor From Establishing Competing Business

March 6th, 2023 at 3:03 PM
A former Alabama-based Hightower advisor has prevailed in court after the firm attempted to stop the advisor from establishing a competing firm. 
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FTX Investor Files Suit Against Sequoia Capital, Thoma Bravo, Paradigm

March 3rd, 2023 at 2:18 PM
A cryptocurrency investor has filed suit against private equity firms including Sequoia Capital, Thoma Bravo, and Paradigm for improperly touting the legitimacy of FTX. 
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FINRA Finds Schwab Liable to Investor For Recommending Unsuitable Complex ETF

March 2nd, 2023 at 12:11 PM
A Financial Industry Regulatory Authority (FINRA) arbitration panel has ordered Charles Schwab to pay an investor and his designated beneficiary plan $144,000 in damages plus interest. 
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Morgan Stanley Ordered to Pay $7.8 Million Over Improper Hiring of Schwab Financial Advisors

March 1st, 2023 at 1:32 PM
A Financial Industry Regulatory Authority (FINRA) arbitration panel has ordered Morgan Stanley to pay $7.8 million after its improperly recruited two financial advisors from Charles Schwab in 2019. 
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Prospect BDC Releases Going Concern Warning

February 28th, 2023 at 2:27 PM
Prospect Floating Rate and Alternative Income Fund Inc. (“Prospect”) announced in its most recent quarterly report submitted to the Securities and Exchange Commission (SEC) that “there is substantial doubt about the company’s ability to continue as a going concern” for at least one year after February 13, 2023. 
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