The SEC’s Bad Actor Rule: Citigroup Restricted from Selling Hedge-Funds to Private Clients

By Rachael Williams In July 2013, the Securities and Exchange Commission (SEC) adopted the “Bad Actor” rule. This rule prevents companies and individuals with a “criminal conviction, regulatory or court order or other disqualifying event” from participating in private offerings and selling investments in hedge-funds or private-equity funds to clients. The rule is part of [&hellip

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Federal Court Orders Former FINRA-Registered Broker’s Assets Frozen, Places Emergency Injunction on Firm

By Nathaniel Griffin On June 3, 2014, the Securities Exchange Commission (“SEC”) petitioned for an emergency injunction preventing Albany, NY-based Scott Valente and The ELIV Group, LLC. (“ELIV”) from engaging in fraudulent securities trading. In its complaint, the SEC alleges misappropriation of customer funds and misrepresentations of customer account performance, investment guarantees, account values under [&hellip

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Investing in Technology IPOs: Why You Should Think Twice About Uber-Valuations

By Eli Rodrigues On Friday, June 6, 2014, Uber Technologies Inc., a car-hailing smartphone application was valued at $18.2 billion, more than quadrupling its previous year’s valuation. Uber has secured more than $1.5 billion, with the most recent billion dollar round of funding coming from Fidelity Investments, Wellington Management and BlackRock Inc. According to Uber’s [&hellip

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Barclays Capital, Goldman Sachs and Merrill Lynch Fined $1 Million by FINRA for Submitting Inaccurate Blue Sheets

by Michael Lorigas On June 4, 2014, FINRA announced that it had censured and fined Barclays Capital, Inc., Goldman, Sachs & Co. and Merrill Lynch, Pierce Fenner & Smith, Inc. $1,000,000 each for their failure to provide complete and accurate electronic blue sheets to FINRA, the SEC, and other regulators. Blue sheets are questionnaires requested [&hellip

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FINRA Board of Governors Finds Charles Schwab & Co. Violated FINRA Rules by Attempting to Prevent Customers from Participating in Class Action Lawsuits

By Wayne Grossman On April 24th, the Financial Industry Regulatory Authority’s (FINRA) Board of Governors issued a decision that found Charles Schwab & Co. (Schwab) violated FINRA rules by sending certain amendments to its customer account agreements to 6.8 million of its customers. These amendments prohibit customers from participating in class action lawsuits against the [&hellip

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Risks and Benefits of Foreign Investments

by Raymond Nicholas On May 6th, 2014, Alibaba, a Chinese E-commerce goliath filed its IPO with the United States Securities and Exchange Commission (“SEC”), in what many economists predict could be the largest or one of the largest initial public offerings in United States history. Alibaba currently controls eighty percent of China’s E-commerce market and [&hellip

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The Puerto Rico Bond Crisis and Its Effect on U.S. Investors

By Thais DelaCuba The Puerto Rico Bond Crisis has had a large impact on the United States’ almost $4 trillion municipal-debt market, which includes bonds issued by states and other local authorities as well as by cities. As a result of the sinking market, Puerto Rico’s current debt is between $52 billion and $70 billion, [&hellip

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The Lehman Brothers Saga Continues: Broker Wins $5.4 Million Against UBS

By Abirami Ananthasingam On September 15, 2008, Lehman Brothers filed the largest bankruptcy in history with over $639 million in assets and $619 billion in debt. Despite the residual effects of this failure, for one broker, the torment is finally over. On April 7, 2014, Edward Graham Dulin, Jr. was awarded a $5.4 million award [&hellip

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Investors Eager for Puerto Rico’s $70 Billion Debt?

By Fernando Langa The Puerto Rican economy has significantly suffered because of the territory’s $70 billion debt.  The debt has constrained the island, which has been in recession since 2006, crimping tax revenue and pushing the jobless rate well into double digits. Rating agencies have reacted to the territory’s economic crisis.  On February 2014, Standard [&hellip

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FINRA Announces New Focus on Cockroaches – Recidivist Offenders in the Securities Industry

By Alexander Cook Cockroaching is an aptly crass name for a behavior in which some of the most devious brokerage firms and brokers have engaged.  The name is given to a pattern of conduct in which less-than-ethical brokers move between less-than-ethical brokerage firms at a rapid pace, allowing them to more effectively avoid detection while [&hellip

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