Top Executives Involved in Financial Fraud Cases Are Still Innocent Until Proven Guilty … For Now

By Claudio Arruda “The scars of the Great Recession, its lingering impacts and its echoes throughout our financial system are not hard to find.” These words, spoken by then Attorney General, Eric Holder, to an auditorium filled with judges, U.S. Attorneys, law students, faculty members, administrators, staff and alumni at the New York University School of [&hellip

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Are You Being Offered an Opportunity to Invest in a Small Company with Tremendous Growth Potential? Ask Yourself, “Why Me?”

By Craig Tompkins In 2012, the Jumpstart Our Business Startups (JOBS) Act was passed by Congress with the goal of expanding the potential pool of investors from which small businesses can raise capital. While the final rules governing how this new game will be played are still pending, what is known, is that the average [&hellip

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Elements of Portfolio Management: Recognizing Potential Unsuitability Claims

By David Newfield The most common claim customers make against their brokers in FINRA arbitrations are unsuitability claims. Under FINRA Rule 2111, a broker has a duty to make sure any recommended transaction is suitable for the customer. Many factors contribute to an assessment of suitability for a portfolio. FINRA issued guidance on the specifics [&hellip

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Proposed FINRA Rule Change to Shift Professionals without Ties to Securities Industry into “Non-public” Arbitrator Pool

By Sunny Desai In a proposed FINRA rule change, persons who worked in the financial industry for any duration during their careers would always be classified as non-public arbitrators, as well as persons who represent investors or the financial industry as a significant part of their business. This would mean removing certain attorneys, accountants, and [&hellip

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Municipal Advisors Face Increased Regulation Under Dodd-Frank

By Nathaniel Touboul The financial crisis of 2008 led regulators to the realization that municipalities needed a system that protects their own interests when dealing with Wall Street. To achieve this goal, the Dodd-Frank Act, among other things, created a new class of regulated persons called “Municipal Advisors” (MAs). Under new regulations, MAs may not provide [&hellip

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Press Releases and the Dangers of Insider Trading

By Edel Gonzalez Illegal insider trading has undermined the trust that investors have in the securities market for many years. It cripples public confidence in the market and hinders growth for investors and companies. In response, the Securities and Exchange Commission (SEC) has strengthened its commitment of investigating and prosecuting insider trading. The SEC has [&hellip

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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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