It is inevitable that advisors have certain clients who have a high percentage of their portfolio in cash because they are reluctant to purchase equity investments. This caution likely stems from the market meltdown during the 2008 financial crisis. Even though these fears are understandable, clients typically cannot hold onto cash their entire lives unless they are extremely wealthy.
In separate enforcement actions, the SEC and FINRA have censured and fined the Syracuse, New York-based firm, Cadaret Grant & Company, Inc., for its failure to properly supervise the sale of complex products.
The SEC has announced that it will pay two unidentified whistleblowers a combined $54 million for their roles in providing information that led to an enforcement action.
The SEC has charged former Raymond James & Associates branch manager, Joel Burstein in Florida federal court for aiding and abetting the misuse of investor money flowing through customer brokerage accounts.
When your team or partnership has issues or no longer can get along, the first step may not be to seek a resolution from your manager – whose interests may not be aligned with your interests. Instead, financial advisors need to locate their team agreement and seek assistance from a competent securities lawyer familiar with employment practices within the financial services industry.
The SEC has filed a complaint in the Northern District of Illinois against real estate investment firm, Equitybuild, Inc, its CEO and President Jerome Cohen and Vice President Shaun Cohen accusing them of running a $135 million Ponzi scheme in violation of the Securities Exchange Act.
The SEC has barred investment adviser Caleb Overton for dramatically misleading clients regarding the risks of investing in his fund while its underlying value shrank to near zero.
The SEC has filed a lawsuit against Florida businessmen, Joseph J. Walsh Sr. and Robert V. Matthews, along with their companies, Palm House Hotel LLLP and South Atlantic Regional Center LLC, for defrauding at least 88 investors out of $44 million.
The SEC has barred unregistered investment adviser and founder of Cornerstone Capital, Melvin Wimmer Jr., who pled guilty to one count of securities fraud in U.S. District Court earlier this year.
As a result of the SEC’s proposed “best interest” rule, TD Ameritrade has offered its 6,000 RIAs insight into how it interprets the language in the proposal.
