Colling, Gilbert, Wright & Carter Securites Fraud

tag:blogger.com,1999:blog-81452619303139657472010-02-18T10:36:10.560-08:00Colling, Gilbert, Wright & Carter Securites FraudKeep up on the latest Securities Fraud news and litigation by following our blog.Meli Thttp://www.blogger.com/profile/13014055967476853680noreply@blogger.comBlogger74125tag:blogger.com,1999:blog-8145261930313965747.post-7748552990201399142010-02-18T10:26:00.000-08:002010-02-18T10:36:10.569-08:00FINRA Proposes New Reporting Rules for Customer Complaints

The Financial Industry Regulatory Authority (FINRA) issued a press release indicating they are proposing positive changes to the BrokerCheck system whereby all broker complaints will stay on the registered representative's record for 10 years. Under the old guidelines, complaint information dropped of the Central Record Depository (CRD) two years after the broker left the industry. This is widely

William B. Young Jr. Esq.http://www.blogger.com/profile/02963660481766957534noreply@blogger.comtag:blogger.com,1999:blog-8145261930313965747.post-38359107956487058172010-02-10T07:22:00.000-08:002010-02-10T07:51:19.838-08:00UBS Continues to Lose Clients and Brokers over Recent Scandals

Union Bank of Switzerland's (UBS) Wealth Management division is still reeling from the multiple scandals that have plagued the firm for the past two years. Fresh on the heals of the accusations from the IRS that UBS was helping wealthy clients avoid income taxes came the structured note products that allegedly lost over a billion dollars for U.S. retail investors. Many of the structured notes

William B. Young Jr. Esq.http://www.blogger.com/profile/02963660481766957534noreply@blogger.comtag:blogger.com,1999:blog-8145261930313965747.post-62269087041058357632010-01-22T08:23:00.000-08:002010-01-22T08:56:27.673-08:00Report Shows Individual Securities Case Filings Rose Sharply in 2009

According to Advisen Ltd. Report Securities class action filings were flat, but regulator suits rose sharply.The press release appears below:Economic turmoil drove a surge in securities lawsuit filings in 2009, according to a new report from Advisen Ltd. The year saw securities lawsuit filings grow at a robust 13 percent rate to 910 suits, eclipsing an already-elevated 2008 at 804 suits. The

William B. Young Jr. Esq.http://www.blogger.com/profile/02963660481766957534noreply@blogger.comtag:blogger.com,1999:blog-8145261930313965747.post-71191380411572046252010-01-05T13:37:00.000-08:002010-01-05T13:49:30.677-08:00SunTrust Securities Slapped with $4.1 Million Dollar Damage Award

A FINRA arbitration panel found Suntrust Securities (now known as SunTrust Robinson Humphry), the securities brokerage arm of SunTrust Banks, Inc., guilty of defaming one of its former brokers. The award included $1.2 million dollars in compensatory damages, $2.5 million in punitive damages plus attorney's fees and cost. Punitive damages are typically used to punish the wrong doer and dissuade

William B. Young Jr. Esq.http://www.blogger.com/profile/02963660481766957534noreply@blogger.comtag:blogger.com,1999:blog-8145261930313965747.post-47365617069644343592010-01-05T12:07:00.000-08:002010-01-05T13:34:28.150-08:00Elderly Investor Receives $1.6 Million Including Treble Damages from FINRA Arbitration Panel

In what is believed to be one of the first rulings of its kind, a 95-year old California man received $1.6 million dollar award from a Financial Industry Regulatory Authority arbitration Panel against an on-line brokerage firm finding, among the offenses, elder abuse. The California elder abuse statue, like many similar state statutes (including Florida), allows for treble damages in instances

William B. Young Jr. Esq.http://www.blogger.com/profile/02963660481766957534noreply@blogger.comtag:blogger.com,1999:blog-8145261930313965747.post-25143256065608107932009-12-09T11:34:00.000-08:002009-12-09T11:59:33.253-08:00Investor Awarded Damages against UBS in Lehman Structured Note Arbitration Case

In late 2007 and early 2008, UBS packaged and underwrote nearly 2 billion dollars in Lehman Brother backe Principal Protected Notes (PPNs), Partially Principal Protected Notes (PPPNs) and Return Optimization Notes (RONs). Although the products were allegedly presented to UBS retail clients as conservative, income producing investments suitable for almost any client, in reality, the clients were

William B. Young Jr. Esq.http://www.blogger.com/profile/02963660481766957534noreply@blogger.comtag:blogger.com,1999:blog-8145261930313965747.post-49560785487299757232009-11-18T10:22:00.000-08:002009-11-18T10:30:12.368-08:00CA Attorney General Recovers $1.4 Billion from Wells Fargo for ARS Investors

Thousand of investors were sold auction rate securities (ARS) with the promise the investments were like cash and liquid in a day or two notice. When the auctions failed last year, investors learned these creations of Wall Street were anything but leading to consequential damages as a result of investors not having access to needed funds.Many state have already entered into settlements with the

William B. Young Jr. Esq.http://www.blogger.com/profile/02963660481766957534noreply@blogger.comtag:blogger.com,1999:blog-8145261930313965747.post-57277097956851460212009-11-11T05:54:00.000-08:002009-11-11T06:08:02.083-08:00Two Bear Stearns Hedge Fund Managers Acquitted

According to recent Associated Press article, the two Bear Stearns executives who ran hedge funds that crashed in 2007 during the subprime mortgage meltdown and almost toppled the financial markets were acquitted on Tuesday of lying to investors about the looming crisis on Wall Street. The full text of the article appears below:Jurors found Ralph Cioffi and Matthew Tannin not guilty of

William B. Young Jr. Esq.http://www.blogger.com/profile/02963660481766957534noreply@blogger.comtag:blogger.com,1999:blog-8145261930313965747.post-38941038069491387392009-11-09T06:31:00.000-08:002009-11-09T06:36:28.565-08:00More Information Releaed on Morgan Keegan RMK Bond Fund Probe

Additional information was released last week regarding the SEC's probe of the Morgan Keegan RMK bond funds. Apparently, state regulators are now getting into the game. The investigation results will determine if and how many securities related charges will ultimately be filed against Morgan Keegan for its sale and management of the funds. The article appears below:Regions Financial Corp., the

William B. Young Jr. Esq.http://www.blogger.com/profile/02963660481766957534noreply@blogger.comtag:blogger.com,1999:blog-8145261930313965747.post-28385588234638734932009-10-18T17:23:00.000-07:002009-10-18T17:37:55.600-07:00SEC Taps "Wizz Kid" to Head Up Enforcement Division in Aftermath of Madoff Scandel

According to an Associated Press article released on October 16, 2009, a former Goldman Sachs employee has been appointed to the recently created post of Chief Operating Officer of the Securities & Exchange Commission's enforcement division. The position was created in part due to the fallout from the Bernie Madoff fraud scandal that observers say should have been detected by the SEC long before

William B. Young Jr. Esq.http://www.blogger.com/profile/02963660481766957534noreply@blogger.comtag:blogger.com,1999:blog-8145261930313965747.post-83239570256874625302009-10-15T07:53:00.000-07:002009-10-15T08:06:58.361-07:00Citigroup Fined for Failure to Supervise Stock Transactions

The Financial Industry Regulatory Authority (FINRA) recently issued the following press release:Washington, DC — The Financial Industry Regulatory Authority (FINRA) today announced that it has fined Citigroup Global Markets Inc. $600,000 and censured the firm for failing to supervise complex trading strategies designed in part to minimize potential tax liabilities. The firm also failed to report

William B. Young Jr. Esq.http://www.blogger.com/profile/02963660481766957534noreply@blogger.comtag:blogger.com,1999:blog-8145261930313965747.post-62020884439236727692009-10-08T18:04:00.000-07:002009-10-08T18:19:20.195-07:00FINRA Extending Public Arbitrator Pilot Program

Washington, DC -- The Financial Industry Regulatory Authority (FINRA) announced today the expansion of its two-year pilot program that gives investors who are filing eligible claims the opportunity to select an arbitration panel composed of three public arbitrators instead of two public and one non-public.In its second year, the pilot will expand from 11 to 14 broker-dealers, and the number of

William B. Young Jr. Esq.http://www.blogger.com/profile/02963660481766957534noreply@blogger.comtag:blogger.com,1999:blog-8145261930313965747.post-76342347155371689552009-10-08T17:51:00.000-07:002009-10-08T18:00:05.926-07:00Notice Issued for Comments on Morgan Stanley/Salomon Smith Barney Merger

INVESTMENT COMPANY ACT RELEASEMorgan Stanley Investment Management Inc., et al.A notice has been issued giving interested persons until Oct. 28, 2009, to request a hearing on an application filed by Morgan Stanley Investment Management Inc., et al., for an order pursuant to Sections 6(c) and 17(b) of the Investment Company Act for an exemption from Sections 17(a) of the Act; and pursuant to

William B. Young Jr. Esq.http://www.blogger.com/profile/02963660481766957534noreply@blogger.comtag:blogger.com,1999:blog-8145261930313965747.post-14762840248950969002009-09-14T12:21:00.001-07:002009-09-14T12:32:33.092-07:00Morgan Keegan Slapped with $1.4 Million Arbitration Award for RMK Fund Losses

Last Friday (9/11/09), ex-NBA Star Horace Grant recently received an arbitration award totalling $1.46 million for losses he experienced investing in several of the Regions Morgan Keegan Bond Funds (RMK Funds). In his arbitration claim filed with the Financial Industry Regulatory Authority (FINRA) Mr. Grant alleged the true risk of the funds were note disclosed and the funds were speculative. The

William B. Young Jr. Esq.http://www.blogger.com/profile/02963660481766957534noreply@blogger.comtag:blogger.com,1999:blog-8145261930313965747.post-18702653230483117102009-09-14T05:51:00.000-07:002009-09-14T06:00:36.137-07:00UBS Employee Refers to CDO's as "Vomit"

In a recent Wall Street Journal article, an email produced in a civil court case against UBS, an employee referred to Collateralized Debt Obligations (CDOs) as "vomit." The evidence indicates UBS employees were aware of the problems in the CDO market and were actively trying to unload the debt on unsuspecting fund managers and retail investors. The full WSJ article appears below:In the summer and

William B. Young Jr. Esq.http://www.blogger.com/profile/02963660481766957534noreply@blogger.comtag:blogger.com,1999:blog-8145261930313965747.post-30698621781842835232009-09-09T08:58:00.000-07:002009-09-09T09:22:25.931-07:00Lehman Brothers Executives Keep Low Profile Amid Bankruptcy and Lawsuits

As many an investor knows, the Lehman Brother Bankruptcy filing has left an indelible scar on both institutions and investors. Also, many wonder why the investment bank was not saved by the Fed.The individual investor was particularly hurt by investing in Lehman unsecured debt that was packaged up by firms such as UBS as Principal Protected Notes (PPN's), Partially Principal Protected Notes (

William B. Young Jr. Esq.http://www.blogger.com/profile/02963660481766957534noreply@blogger.comtag:blogger.com,1999:blog-8145261930313965747.post-15543722715676425492009-08-25T08:30:00.001-07:002009-08-25T08:56:48.636-07:00Colling Gilbert Wright & Carter Investigating Claims Related to Medical Capital Holdings Private Placement Notes

The law office of Colling Gilbert Wright & Carter is currently investigating and pursuing claims against brokerage firms that solicited and sold securities of Medical Capital Holdings. The Med Cap notes, including those titled MPFC V and MPFC VI, were sold as private placements under Rule 506 of Regulation D to accredited investors. On July 16, 2009, the Securities and Exchange Commission ("SEC")

William B. Young Jr. Esq.http://www.blogger.com/profile/02963660481766957534noreply@blogger.comtag:blogger.com,1999:blog-8145261930313965747.post-8450868949819577252009-08-13T06:46:00.000-07:002009-08-13T06:58:40.253-07:00Morgan Keegan Receives SEC Wells Notice Regarding RMK Bond Funds

In early July, regional brokerage firm Morgan Keegan received a Securities and Exchange Commission (SEC) Wells Notice notifying the firm they are investigating the possible violation of securities laws believed to be related to the RMK Bond and Income Funds.The notice does not mean the SEC will ultimately take action but in about half of the cases, once a Wells notice is issued, enforcement

William B. Young Jr. Esq.http://www.blogger.com/profile/02963660481766957534noreply@blogger.comtag:blogger.com,1999:blog-8145261930313965747.post-57909077144612058412009-08-12T10:18:00.000-07:002009-08-12T10:31:30.740-07:00FINRA Opposes Rule Change Regarding Industry Arbitrator

A recent Wall Street Journal article details the the Financial Industry Regulatory Authority (FINRA) resistance to the elimination of the industry arbitrator from panels hearing customer complaints. The Plaintiffs bar has long advocated the elimination of the industry arbitrator on the perceived bias the industry arbitrator may bring to the proceeding. FINRA put a pilot program in place last year

William B. Young Jr. Esq.http://www.blogger.com/profile/02963660481766957534noreply@blogger.comtag:blogger.com,1999:blog-8145261930313965747.post-2215435520846694982009-08-07T14:41:00.000-07:002009-08-07T14:53:37.693-07:00Morgan Keegan Asks Courts to Overturn Abitration Awards

According to an August 4, 2009 Wall Street Journal article, Regions Morgan Keegan has taken an unprecedented and unusual step when the firm filed motions to vacate arbitration awards in favor of three Morgan Keegan bond fund investors. Arbitration awards are only appealable in very limited circumstances and are considered binding. This move appears to be a stall tactic to put off the payment of

William B. Young Jr. Esq.http://www.blogger.com/profile/02963660481766957534noreply@blogger.comtag:blogger.com,1999:blog-8145261930313965747.post-25074455554181416922009-07-09T08:04:00.001-07:002009-07-09T08:28:09.386-07:00Is Securities Arbitration Getting Better for Customers?

A recent Wall Street Journal article chronicles some recent events involving mandatory securities arbitration giving some hope the system may be improving for investors defrauded or otherwise injured by their stock broker or money manager. Excerpts from the article appear below:Many investors who suffered massive losses in their portfolios are filing complaints against the brokers and brokerage

William B. Young Jr. Esq.http://www.blogger.com/profile/02963660481766957534noreply@blogger.comtag:blogger.com,1999:blog-8145261930313965747.post-13326637623249804082009-07-01T07:03:00.000-07:002009-07-01T07:21:56.740-07:00Regions Bank to Sell Morgan Keegan?

According to a June 30, 2009 article in the Memphis Commercial Appeal Regions Financial is disputing a report by in trade publication American Banker (AB)that the bank plans to sell it brokerage unit Morgan Keegan.According to the article, Regions Morgan Keegan remains an integral part of Regions Financial Corp., which has no plan to sell its Memphis-based investment firm.The AB article, which

William B. Young Jr. Esq.http://www.blogger.com/profile/02963660481766957534noreply@blogger.comtag:blogger.com,1999:blog-8145261930313965747.post-48429874222054525912009-06-29T09:51:00.000-07:002009-06-29T09:58:06.327-07:00Gov. Crist Signs Securities Fraud Bill

Governor Charles Crist signed a bill giving attorney general Bill McCollum additional ammunition in the battle against securities fraud. This is very important as Florida is home to one of the largest retiree populations in the country and retirees are often the most targeted and most vulnerable to this type of financial fraud. Investor confidence, seen as a key component of a economic turnaround

William B. Young Jr. Esq.http://www.blogger.com/profile/02963660481766957534noreply@blogger.comtag:blogger.com,1999:blog-8145261930313965747.post-73804816472095987452009-06-25T06:14:00.000-07:002009-06-25T06:27:28.393-07:00Target-Date Funds May Not Hit the Mark

Touted as an efficient and sensible way to invest for retirement, target date funds have come under scrutiny for not living up to their promise. According to a June 24, 2009, NY Times article, some of the funds may not provide the returns (and in some cases provided losses) touted when they were sold, leaving prospective retirees short of the money they need to comfortably retire. Excerpts of the

William B. Young Jr. Esq.http://www.blogger.com/profile/02963660481766957534noreply@blogger.comtag:blogger.com,1999:blog-8145261930313965747.post-12557968687436938282009-06-08T06:25:00.001-07:002009-06-08T06:38:03.992-07:00Morgan Keegan Denies RMK Funds Were Toxic but Arbitration Panels See it Differently

In a June 7, 2009 Birmingham New article, Morgan Keegan continue to deny there was anything wrong with the way the funds were presented and managed. However, Claimants have won 16 of the last 25 arbitrations involving the funds, indicating the FINRA arbitration panels found the evidence indicates otherwise.Losses associated with the RMK funds approximates $2 billion dollars, much of which was

William B. Young Jr. Esq.http://www.blogger.com/profile/02963660481766957534noreply@blogger.com