The market correction last week caused target-date funds to drop, resulting in up to 10% negative returns. However, market commentators argue that performance is far better than what happened to target-date funds in 2008. Funds last week saw just a 30% decrease in negative returns compared to 2008.
From the Desk of Jim Eccleston at Eccleston Law LLC:
Dear Friends,
As the unprecedented events of this week have unfolded, and as the environment has become more unpredictable due to COVID-19, our goal at Eccleston Law, LLC is to continue to be predictable, reliable, available, and responsive to your needs – legal or otherwise. Your health and well-being come first, and part of that well-being is the comfort of knowing your immediate concerns and legal needs are addressed.
Whether it is Coronavirus or any other exigent circumstance, rest assured we have plans, systems, and the technological infrastructure in place to ensure that you continue to receive uninterrupted and uncompromised services. At present, our building and office remain open, but this may of course be subject to change based on the changing building or city policies. Should Eccleston Law team members ultimately be required to work remotely in order for us to best protect their well-being, all would be connected real-time with full functionality. At moments like these, when your family, business, and personal planning are at risk, we are here to help you sort through the implications and provide solutions where necessary. Please feel free to contact us with any questions regarding our policies or to determine how your affairs may be currently impacted.
Like you, we will be doing our best to stay as healthy and positive as we can.
The attorneys of Eccleston Law LLC represent investors and advisors nationwide in securities and employment matters. The securities lawyers at Eccleston Law also practice a variety of other areas of practice for financial investors and advisors including Securities Fraud, Compliance Protection, Breach of Fiduciary Duty, FINRA Matters, and much more. Our attorneys draw on a combined experience of nearly 65 years in delivering the highest quality legal services. If you are in need of legal services, contact us to schedule a one-on-one consultation today.
Former Morgan Stanley Manager, Ben Fujihara, agreed to a $5,000 fine and a 30-day suspension from association with any FINRA member firm, following allegations by FINRA Enforcement that Fujihara failed to notify his FINRA-member firm about the full nature of his participation in an outside business activity, in violation of FINRA Rules 3270 and 2010.
The Securities and Exchange Commission convinced a federal court to freeze assets and put an advisory firm into receivership.
The Securities and Exchange Commission ("SEC") obtained a final judgment against a New York-based broker Donald J. Fowler who was charged with fraud for excessively trading customer accounts using a trading scheme that resulted in hefty commissions for the broker but significant losses for his customers.
In 2019, FINRA Enforcement ordered firms and associated persons to pay $70 million in fines, restitution and disgorgement. Of the $70 million, $44 million was in the form of fines, including 9 fines of over $1 million. These 9 “supersized” fines totaled $27.9 million. Additionally, FINRA ordered roughly $24 million in restitution and $2 million in disgorgement in 2019.
Several law firms have redoubled their efforts to solicit investors in the GPB fraud Ponzi scheme. One law firm recently filed a GPB fraud case against Pruco Securities and Kalos Capital for wrongful sale of private placements, including GPB Capital on behalf of an elderly investor who purportedly has suffered investment losses over $250000.
The Better Housing Foundation (“BHF”) has defaulted on roughly $170 million in municipal bounds. Additionally, Lindran Properties, a subsidiary of the BHF, filed for Chapter 11 bankruptcy on January 31, 2020. The Securities and Exchange Commission (“SEC”) since has launched an investigation into BHF. In a subpoena, the SEC sought “records related to the events that preceded current ownership’s involvement in [Better Housing Foundation] and its affiliates.”
A FINRA arbitration panel has ordered Bank of New York Mellon's Pershing to pay more than $5.6 million in damages to a bevy of victims of the Ponzi scheme run by R. Allen Stanford more than a decade ago, and more cases are on the way.
This is the second part of a three-part series.
As discussed in part one of this three-part series, written inquiries made pursuant to FINRA Rule 8210 are a tool used by FINRA Enforcement when investigating registered representatives for potential violations. Rule 8210 requires registered representatives to comply with FINRA’s requests for information and documents.
