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Eccleston Law Blog

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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SEC Examiners to Target Complex Products, Annuities, Non-Traded REITs in Reg BI Investigations

February 27th, 2023 at 3:26 PM
The Securities and Exchange Commission’s (SEC’s) Examinations Division will target advisors’ recommendations of complex derivatives and leveraged ETFs, as well as annuities and nontraded REITs in Regulation Best Interest (Reg BI) investigations in 2023. 
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Former Edward Jones Advisor Prevails in TRO Dispute After Joining Ameriprise

February 24th, 2023 at 10:42 AM
A federal judge has denied Edward Jones’ request to restrict an Illinois-based advisor from contacting his former clients after departing for Ameriprise. 
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Hightower Sues Texas Advisor Who Departed For Avidian

February 23rd, 2023 at 4:29 PM
Hightower Advisors has filed suit against a Texas-based advisor, James McGinness, for allegedly misappropriating confidential client information and improperly soliciting his former clients in violation of his employment agreement. 
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Hartman vREIT XXI Suspends Investor Distributions

February 22nd, 2023 at 4:38 PM
Hartman vREIT XXI announced that its sponsor, Hartman Income REIT Management, has indefinitely suspended investor distributions. 
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SEC Charges Centaurus Financial, Branch Manager, and Advisor Over Unsuitable Recommendations of Complex Structured Securities

February 21st, 2023 at 2:29 PM
The Securities and Exchange Commission (SEC) has agreed to a settlement with Centaurus Financial, branch manager Ricky Mantei, and financial advisor Atul Makharia over unsuitable recommendations of variable interest rate structure products (VRSPs) to certain retail customers. 
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DOJ Probes Silvergate Over FTX, Alameda Research Involvement

February 20th, 2023 at 4:00 PM
U.S. Department of Justice (DOJ) prosecutors have launched a criminal investigation into Silvergate’s dealings with FTX and Alameda Research, including Silvergate’s hosting of accounts tied to Sam Bankman-Fried’s businesses. 
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SEC Uncovers Massive $500 Million Ponzi Scheme

February 17th, 2023 at 2:30 PM
After Las Vegas investigative reporter Jeff German was killed outside his home in September 2022, The Washington Post and the Las Vegas Review-Journal collaborated to complete one of the stories German had planned to pursue prior to his death. 
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