Tag: FINRA

FINRA- Before You Invest, Working With Your Investment Professional

Posted by finralawyer on November 14, 2017 with 0 Comment

The Financial Industry Regulatory Authority (FINRA) issued an article titled Working With Your Investment Professional which provides tips to promote a productive relationship between customers and financial advisors.

FINRA has identified the following 10 tips for customers:

Review the background of any investment professionals you work with or are considering working with. This can be done by using FINRA’s BrokerCheck.
2. Be clear in your investment goals and risk tolerance with your financial advisor.
3. Prior to investing, research the product.
4. Discuss fees with your financial advisor. Fees include commissions, costs associated with the sale of an investment, or management charges.
5. Review and retain you monthly account statements, confirmations and other correspondence.
6. Contact your financial advisor immediately if you have questions or concerns about an investment. Additionally, contact the firm’s compliance department if you are unhappy with you financial advisor’s response.
7. Be wary of exaggerated claims about an investment.
8. Be wary of financial advisors who pressure you to invest quickly or do not provide you sufficient information about the investment.
9. Never send money to a firm or financial advisor that you are hearing from for the first time.
10. Contact the firm’s compliance department in writing if you suspect improper business conduct. Additionally, retain a copy of your complaint and in responses the firm sends.

If you and have suffered investment losses, please contact the Hanley Law to explore your legal options. The Hanley Law is dedicated to helping investors who have been victims of securities fraud. If you have lost money as a result of securities fraud, you may be able to recover your financial losses. Contact us today toll free at (239) 649-0050 for a free initial consultation.

FINRA Issues Article Titled Before You Invest, Suitability: What Investors Need to Know

Posted by finralawyer on November 14, 2017 with 0 Comment

The Financial Industry Regulatory Authority (FINRA) issued an article titled Suitability: What Investors Need to Know which provides investors with a guide to understanding their investment profile.

FINRA’s suitability rule (FINRA Rule 2111) is based on the requirement that brokerage firms and their brokers, financial advisers or financial consultants deal fairly with their customers. In compliance with FINRA’s suitability rule (FINRA Rule 2111) brokerage firms and their associated persons “must have a reasonable basis to believe” that a transaction or investment strategy involving securities is suitable for the customer prior to making such a recommendation. The firm’s reasonable belief must be based on information obtained through the brokerage firm’s obligation to recommend securities or transactions that are suitable for the investor based on the investor’s:

age
• other investments
• annual income
• liquid net worth
• tax status
• investment objectives
• investment experience
• expected time to reach financial goal
• liquidity needs
• risk tolerance

To help ensure that investors receive suitable investment advice, firms and their associated persons are required to diligently learn about a customer’s investment profile before recommending a transaction or investment strategy. Therefore, the suitability rule places an obligation on the brokerage firm and the firm’s associated person(s) to seek information from the customer prior to recommending a security or transaction.

If you and have suffered investment losses, please contact the Hanley Law to explore your legal options. The Hanley Law is dedicated to helping investors who have been victims of unsuitable investment recommendations. If you have lost money as a result of securities fraud, you may be able to recover your financial losses. Contact us today toll free at (239) 649-0050 for a free initial consultation.

FINRA Issues Article on Common Investor Problems

Posted by finralawyer on November 14, 2017 with 0 Comment

The Financial Industry Regulatory Authority (FINRA) issued a new article called Common Investor Problems and How to Avoid Them. The article discusses the four most reported investment problems and provides steps investors can take to avoid them.

Listed below are summaries of the common problems, how to detect them, and how to avoid them.

Misrepresentation: This is when the advisor makes untrue statements or omits information in regards to the investment. The problem is usually detected when the investor reviews prospectuses, account statements, confirmations and other documents or suffers a decline in their investment account. In order to avoid this problem, investors should understand the products they are investing in, ask the advisor to send them information on the investment and keep notes of their conversations with their advisor.
2. Cold-Calling: This is when investors receive unwanted phone calls from advisors and the advisors use high-pressure sales tactics to solicit the investor to purchasing a product. Usually a cold-call consists of an advisor calling frequently, pressuring the investor to move quickly, asking the investor to sell a well-known security for an obscure product and/or using a three-call system to entice a buy. Investors can avoid cold-calls by asking the cold-call firm to add them to their “do-not-call” list, being wary of sales pitches, conducting a FINRA BrokerCheck on the advisor and firm and/or visiting the firm prior to sending money for the investment.
3. Unsuitability: A suitability problem occurs when an advisor purchases an investment that is inconsistent with the investor’s objectives and investing profile. The problem can be detected by the investor reviewing their account and researching the investment or another professional pointing out the suitability issue. To avoid a suitability problem, an investor should read and understand all account documents, understand the investment, provide the firm with accurate data regarding income and risk tolerance and keep records of conversations with the advisor.
4. Unauthorized Trading: This problem occurs when an advisor makes a purchase in an investor’s account without the investor’s knowledge or authorization. The problem is usually detected when the investor reviews his or her confirmations and statements and discovers an unknown product. To avoid unauthorized trading investors should review and retain all documents received from their brokerage firm, document all conversations with advisors and always repeat clear instructions to their advisor.

FINRA also suggests that investors should research investments prior to purchase and act quickly if you believe you have been wronged.

FINRA Issues Article Titled Prohibited Conduct

Posted by finralawyer on November 14, 2017 with 0 Comment

The Financial Industry Regulatory Authority (FINRA) issued a new article called Prohibited Conduct. The article lists 13 actions that are prohibited in the securities industry. These actions include the following:

Recommending unsuitable investment products based on the investor’s profile, objectives and risk tolerance.
2. Making purchases or sales without the knowledge of the investor, unless the advisor received discretionary authority.
3. Moving an investor from one mutual fund to another when there is no legitimate purpose.
4. Misrepresenting and/or failing to disclose information to the investors in regards to an investment.
5. Removing funds or securities without the knowledge of the investor.
6. Charging the investor excessive mark-ups, markdowns or commissions on their investments.
7. Making price predictions, promising investors they will not lose funds or agreeing to share in any losses of the investor’s account.
8. Securities transactions that violate FINRA’s rules, these are usually private transactions between the advisor and investor in which the firm has no knowledge.
9. Placing an order for the firm’s account before entering a customer’s limit order when there is no legitimate purpose.
10. Failure by a market maker to display an investor’s limit order in its published quotes when there is no legitimate purpose.
11. Not using due diligence when executing an investor’s order, this includes executing at the best price.
12. Purchasing or selling an investment while in possession of non-public information about an issuer.
13. Using fraudulent methods to elicit a transaction or induce the purchase or sale of and investment.

FINRA Issues New Investor Alert, E-Cigarette Stock Scams: New Smoking Technology Could Light Up Pump-and-Dump Fraud

Posted by finralawyer on November 14, 2017 with 0 Comment

The Financial Industry Regulatory Authority (FINRA) issued a new Investor Alert called E-Cigarette Stock Scams: New Smoking Technology Could Light Up Pump-and-Dump Fraud cautioning investors against “pump and dump” fraud and offering tips to avoid being victimized.

FINRA has warned investors that while it is possible that E-Cigarettes could lead to promising investment opportunities, they could also give rise to “pump and dump” scams. FINRA is concerned that fraudsters may induce investors into purchasing stock through aggressive stock promotion activities which may ultimately result in a classic “pump and dump” fraud. FINRA has advised that the “pump and dump” scam begins when investors are lured into making investments as a result of aggressive and optimistic statements about the business. The promotion intended to create demand for the company’s shares. Then, once the share price and volume increase, the fraudsters behind the scam sell off their shares at a profit and stop promoting the stock. This in turn causes the price of the stock to fall and leaves the unsuspecting investors with worthless, or near-worthless, stock.

FINRA has provided eight (8) tips to assist would-be investors from being victimized by a potential e-cigarette stock scam.

Be skeptical of social media and promotional materials provided by unknown senders, especially if the information is always positive, similar and contains no mention of risk.
• Research the company before investing.
• Research where the stock trades.
• Research the company’s SEC filings.
• Be wary of reverse merger activity.
• Be wary of claims of being the next big thing.
• Be wary of companies that often change their name or business focus.
• Carefully read the disclosure statements.

Hanley Law Investigating Claims Involving Douglas West and Wells Fargo Advisors, LLC

Posted by finralawyer on November 14, 2017 with 0 Comment

Hanley Law is currently investigating claims against Douglas West (CRD No.: 724774) and Wells Fargo Advisors, LLC (CRD No. 19616). The Hanley Law recently filed a FINRA Arbitration claim on behalf of a Claimant in which it was alleged that registered representative Douglas West made unsuitable recommendations to Claimant to purchase investments heavily weighted in the real estate sector. In fact, the majority of Claimant’s retirement portfolio was allocated to equities or equity funds including:

Alpine Total Dynamic Dividend Fund
• American Capital Ltd.
• American Home Mortgage Investment Corp.
• Cohen & Steers Premium Income Realty Fund, Inc.
• Cohen & Steers REIT & Preferred Income Fund, Inc.
• Health Care REIT, Inc.
• ING Clarion Global Real Estate Income Fund
• Kohlberg Capital Corp.
• MLP & Strategic Equity Fund, Inc.
• PIMCO High Income Fund
• TEPPC Partners UT, LP

Claimant alleges that as a result of Wells Fargo Advisors over allocation of his portfolio into equity investments and the real estate sector that Claimant’s IRA account suffered devastating losses from 2007 through the present. Claimant alleges that his investment losses are the direct result of Wells Fargo Advisors’ failure to adhere to their own asset allocation models. Claimant alleges that due to the misconduct of Douglas West and Wells Fargo Advisors, Claimant has suffered out-of-pocket losses for which he seeks a recovery.

Claimant has alleged that Respondent Wells Fargo Advisors is liable for common law fraud; breach of fiduciary duty; breach of contract; breach of the implied covenant of good faith and fair dealing; and negligence. Claimant has alleged that Wells Fargo Advisors breached FINRA rules, including but not limited to, FINRA rule 2111, 2110 and 3010 which are the basis for and the standard of care for FINRA member firms and their associated persons. Claimant further alleged that Wells Fargo Advisors was negligent in the hiring, retention, and supervision of Douglas West.

If you were a client of Douglas West or Wells Fargo Advisors and have suffered investment losses, please contact the Hanley Law to explore your legal rights. The Hanley Law is dedicated to helping investors who have been victims of securities fraud. If you have lost money as a result of securities fraud, you may be able to recover your financial losses. Contact us today toll free at (239) 649-0050 for a free initial consultation.

Hanley Law Investigating Claims Involving Anthony Fisher and Morgan Stanley & Co. Inc.

Posted by finralawyer on November 14, 2017 with 0 Comment

Hanley Law is currently investigating claims against Anthony Fisher (CRD No.: 2428633) and Morgan Stanley & Co. Incorporated (CRD No. 8209). The Hanley Law recently filed FINRA Arbitration claims on behalf of Claimants in which it was alleged that Anthony Fisher made unsuitable and fraudulent recommendations to purchase the Tube Media Corp. and Cardiac Network, Inc. Claimants allege that Anthony Fisher never explained the dangers of the penny stocks. Moreover, Claimants alleged that Anthony Fisher knew or should have known that these stocks were extremely risky investments and penny stock frauds. Further, the Securities and Exchange Commission mandates penny stock disclosures be provided to Claimants. Claimants alleged that Morgan Stanley did not provide the proper disclosures and are thus liable for their material omission. Due to Morgan Stanley’s misconduct, Claimants allege they have suffered out-of-pocket losses for which they seek a recovery.
In the recently filed arbitration claims, the Claimants alleged that Morgan Stanley & Co. Inc. through its registered representative Anthony Fisher, violated industry rules, including but not limited to, FINRA’s customer suitability standard (Rule 2310) as well as FINRA rules 3010 and 2110 and that Morgan Stanley violated their duty of care and were negligent. Furthermore, it has been alleged that Morgan Stanley breached the contract that was entered into between Claimants and Morgan Stanley and Morgan Stanley also breached the fiduciary duty that a securities firm and its employees/agents owe to their clients. Lastly, it has been alleged that Morgan Stanley’s misconduct constitutes common law fraud and that the Claimants’ accounts at issue were handled negligently and Morgan Stanley & Co. Inc. was negligent in their hiring, retention, and supervision of their employees.
If you were a client of Anthony Fisher or Morgan Stanley & Co. Inc. and have suffered investment losses, please contact the Hanley Law to explore your legal rights. The Hanley Law is dedicated to helping investors who have been victims of securities fraud. If you have lost money as a result of securities fraud, you may be able to recover your financial losses. Contact us today toll free at (239) 649-0050 for a free initial consultation.

Hanley Law Investigating Claims Involving Jason Marshall and Wells Fargo Advisors, LLC

Posted by finralawyer on November 14, 2017 with 0 Comment

Hanley Law is currently investigating claims against Jason Marshall (CRD No.: 4012664) and Wells Fargo Advisors, LLC (CRD No.: 19616). The Hanley Law recently filed a FINRA Arbitration claim on behalf of a Claimant in which it was alleged that Jason Marshall made certain representations that were materially false, and that the Claimant relied on those false representations to his detriment. Furthermore, Claimant alleged that Wells Fargo Advisors omitted material facts in making investment recommendations to him. Claimant alleged that Wells Fargo Advisors, through their registered representative Jason Marshall, recommended an unsuitable investment strategy. Indeed, Claimant alleged that Wells Fargo Advisors and Jason Marshall recommended a 72(t) election with unsustainable monthly distributions. Additionally, Claimant alleged Marshall over-allocated his accounts to equity investments. It was further alleged that Wells Fargo Advisors ignored Claimant’s age and financial position in making the unsuitable investment recommendations. Claimant alleges that due to Wells Fargo Advisor’s misconduct, Claimant has suffered out-of-pocket losses for which he seeks a recovery.

FINRA Rule 3010 requires each member to establish and maintain a system to supervise the activities of each registered representative and associated person in order to achieve compliance with the securities laws, regulations, and FINRA rules. FINRA rule 3010 requires broker dealers to ensure that their associated persons adhere to FINRA’s suitability guidelines.

In the recently filed arbitration claim, the Claimant alleged that Wells Fargo Advisors, through its registered representative Jason Marshall, violated industry rules, including but not limited to, FINRA’s customer suitability standard (Rule 2310) as well as FINRA rules 3010 and 2110 and that Respondents violated their duty of care and were negligent. Furthermore, it has been alleged that Wells Fargo Advisors breached the contract that was entered into between Claimant and Wells Fargo Advisors and that Wells Fargo Advisors also breached the fiduciary duty that a securities firm and its employees/agents owe to their clients. Lastly, it has been alleged that Wells Fargo Advisor’s misconduct constitutes common law fraud and that the Claimant’s account was handled negligently, that Wells Fargo Advisors was negligent in their hiring, retention, and supervision of their employees.

If you were a client of Jason Marshall or Wells Fargo Advisors and have suffered investment losses, please contact the Hanley Law to explore your legal rights. The Hanley Law is dedicated to helping investors who have been victims of securities fraud. If you have lost money as a result of securities fraud, you may be able to recover your financial losses. Contact us today toll free at (239) 649-0050 for a free initial consultation.

Hanley Law Investigating Claims Involving Peter Bruno and Wall Street Money Center Corporation

Posted by finralawyer on November 14, 2017 with 0 Comment

Hanley Law is currently investigating claims against Peter Bruno (CRD No.: 1180960) and Wall Street Money Center Corporation (CRD No.: 21788). The Hanley Law recently filed FINRA Arbitration claims on behalf of Claimants in which it was alleged that Wall Street Money Center Corp. and Peter Bruno invested Claimants’ accounts unsuitably and further used a fee structure that was fraudulent. Furthermore, Claimants allege Bruno did not disclose to Claimants a fraudulent transaction fee. Indeed, it is alleged that Wall Street Money Center Corp. and Peter Bruno misinformed Claimants that they were passing on a clearing fee from their clearing firm Sterne Agee and Leach. It was further alleged that Wall Street Money Center Corp. and Peter Bruno failed to recommend and implement a suitable investment strategy for Claimants’ accounts in breach of their duty and obligations to Claimants under industry rules and regulations. Claimants allege that Respondent, Wall Street Money Center Corporation through their registered representative Peter Bruno, informed Claimants that they would meet their investment objectives. It has been alleged that Wall Street Money Center Corp. and Peter Bruno invested Claimants’ accounts contrary to their stated objectives and risk tolerance. Claimants allege that due to Wall Street Money Center Corp. and Peter Bruno’s misconduct, Claimants have suffered out-of-pocket losses for which they seek a recovery.
In the recently filed arbitration claims, the Claimants alleged that Respondent, Wall Street Money Center Corporation through its registered representative Peter Bruno, violated industry rules, including but not limited to, FINRA’s customer suitability standard (Rule 2310) as well as FINRA rules 3010 and 2110 and that Wall Street Money Center Corp. and Peter Bruno violated their duty of care and were negligent. Furthermore, it has been alleged that Wall Street Money Center Corp. and Peter Bruno breached the contract that was entered into between Claimants and Wall Street Money Center Corp. and Peter Bruno and that Wall Street Money Center Corp. and Peter Bruno also breached the fiduciary duty that a securities firm and its employees/agents owe to their clients. Lastly, it has been alleged that Wall Street Money Center Corp. and Peter Bruno’s misconduct constitutes common law fraud and that the Claimants’ accounts at issue were handled negligently and Wall Street Money Center Corporation was negligent in their hiring, retention, and supervision of their employees.
If you were a client of Peter Bruno or Wall Street Money Center Corporation and have suffered investment losses, please contact the Hanley Law to explore your legal rights. The Hanley Law is dedicated to helping investors who have been victims of securities fraud. If you have lost money as a result of securities fraud, you may be able to recover your financial losses. Contact us today toll free at (239) 649-0050 for a free initial consultation.

Hanley Law Investigating Claims Involving Jose Ramirez, UBS Financial Services Inc. and UBS Financial Services of Puerto Rico

Posted by finralawyer on November 14, 2017 with 0 Comment

Hanley Law is currently investigating claims against Jose Ramirez (CRD No.: 1519748), UBS Financial Services, Inc. (CRD No.: 8174) and UBS Financial Services, Inc. of Puerto Rico (CRD No.: 13042). The Hanley Law recently filed a FINRA Arbitration claim on behalf of a Claimant in which it was alleged that UBS caused Claimant to incur investment losses in excess of $600,000 when UBS, through their registered representative Jose Ramirez, made a recommendation and sale of an over-concentrated position in leveraged Puerto Rican municipal bond funds which were underwritten, issued and administered by UBS. Claimant alleges in the complaint that UBS, and their registered representative, Jose Ramirez, assured Claimant that, among other things, he would safely make a reasonable return on his money by investing in safe funds that held “bonds” guaranteed by the Puerto Rican government. Claimant further alleges that the funds were actually UBS proprietary mutual funds that invested in local municipal bonds and that such funds were underwritten, structured, marketed and managed by UBS and their corporate affiliates. Claimant alleged that unbeknownst to him, leverage was utilized in the funds to boost returns which increased the risks associated with the funds. Claimant further alleged that UBS marketed the funds as conservative investments with a primary investment objective of preservation of capital. Claimant alleged that UBS made an institutional decision to promote their closed-end mutual funds to investors with full knowledge that the funds were leveraged securities that could easily and quickly suffer substantial losses if Puerto Rico’s municipal debt declined in value.

In the recently filed arbitration claim, Claimant alleged that Respondents UBS Financial Services, Inc. and UBS Financial Services Inc. of Puerto Rico, through its registered representative Jose Ramirez, breached the fiduciary duty that a securities firm and its employees/agents owe to their clients. Claimant alleged that Respondents were negligent and that they failed to perform adequate due diligence on the products offered and sold to Claimant, that they approved unsuitable investment products for sale to their customers, and that UBS recommended and sold unsuitable and risky securities to Claimant. It has been further alleged that UBS breached their customer agreements which obligated UBS to comply with all FINRA, SEC, and other regulatory rules and regulations, as well as state and federal laws, including but not limited to, Florida Statute § 517. Lastly, it has been alleged that UBS’s misconduct constitutes common law fraud, that the Claimant’s account at issue were handled negligently and that UBS Financial Services, Inc. and UBS Financial Services Inc. of Puerto Rico were negligent in their hiring, retention, and supervision of their employees.

If you were a client of Jose Ramirez, UBS Financial Services, Inc. or UBS Financial Services Inc. of Puerto Rico and have suffered investment losses, please contact the Hanley Law to explore your legal options. The Hanley Law is dedicated to helping investors who have been victims of securities fraud. If you have lost money as a result of securities fraud, you may be able to recover your financial losses. Contact us today toll free at (239) 649-0050 for a free initial consultation.