Straight Talk

The purpose of this blog is to provide education and news that will help clients through the litigation process.

|Comments Off on Adviser Gets 9 Years in Prison for Diverting Investment Funds
Self-styled “Financial Coach” also must pay $3.6 million in restitution for fraud Bryan C. Binkholder, a St. Louis-area financial adviser, was sentenced to nine years in prison and ordered to pay more than $3.6 million in restitution to clients who participated in a real-estate investment program Binkholder used to pay personal expenses and salaries. According [...] Read More
|Comments Off on FINRA Toughens its Sanctions on Suitability Violations
The self-regulator suggests barring offenders, expelling more firms, uping suspensions to two years The Financial Industry Regulatory Authority Inc. is tightening the screws on its disciplinary responses to violations of the suitability standard by brokers. As part of its Sanction Guidelines, which provide suggestions for the National Adjudicatory Council, the committee that oversees disciplinary proceedings, [...] Read More
|Comments Off on Morgan Stanley Sued for $170M by Home Shopping Founder’s Widow
Lynnda L. Speer, the widow of cable shopping pioneer Roy M. Speer and the personal representative of Mr. Speer's estate, is suing Morgan Stanley Wealth Management plus an adviser and branch manager for more than $170 million. The suit was filed under the Financial Industry Regulatory Authority Inc.'s (FINRA) arbitration forum, and was disclosed in [...] Read More
|Comments Off on It Just Got Easier to Sue Over 401(k) Plans
Individuals who have retirement investments in a company 401(k) plan may now have more success filing a suit against the company for infractions such as breach of fiduciary duty. Recently, the United States Supreme Court unanimously ruled in favor of participants in employee retirement plans, in which the participants object to the companies’ investment decisions [...] Read More
|Comments Off on Wells Fargo Broker Banned for Undisclosed Business Interests
Aaron Parthemer, a Wells Fargo adviser, has been barred by the Financial Industry Regulatory Authority Inc. (FINRA) for engaging in a number of undisclosed businesses, including running a dance club in South Beach, Fla., plus running an Internet branding startup and a tequila marketing operation. Undisclosed loans and business involvements FINRA alleges that Parthemer managed [...] Read More
|Comments Off on FINRA Focusing on Protecting Elderly Investors
While brokers and investment advisers are targeting older clients to build their book of business, regulators are attempting to protect graying investors. Misrepresentation of company strength Recently, the Financial Industry Regulatory Authority Inc. (FINRA) filed a cease-and-desist order against Avenir Financial Group for sales of equity in the firm. FINRA claims Avenir lied about the [...] Read More
|Comments Off on Starr Austen Helped Secure Huge Recovery for Fraud Victims
In a better-than-average outcome, more than 90 investors who lost $9.7 million in a securities fraud debacle will recover a very substantial percentage of their losses. The investors had put money in a hedge fund, Samex Capital Partners, run by a Fishers, Ind., hedge fund manager Keenan Hauke. The court appointed William Wendling, Senior Partner [...] Read More
|Comments Off on Investor Awarded $1.3 Million in Churning and Breach of Fiduciary Duty Case
A three-person Financial Industry Regulation Authority Inc. (FINRA) panel awarded Mississippi investor Tracy Noble Gilbert $1.29 million in compensatory damages and $250,000 in attorneys' fees over the handling of her finances by a former broker for Stifel Nicolaus & Co. Inc. Churning and breach of fiduciary duty Gilbert accused her former father-in-law, Lanis Dale Noble, [...] Read More
|Comments Off on SEC Panel Recommends Single Database to Run Background Checks
Imagine being able to get information about any financial professional in the United States by visiting one web site. Investor protection To make it easier for investors to track securities violations by advisers and brokers, the Securities and Exchange Commission (SEC) Investor Advisory Committee (IAC) pitched the idea that the SEC work with other federal [...] Read More
|Comments Off on Make Sure You Discuss Wealth Transfer With Your Adviser
If your financial adviser has never broached the subject of passing on your assets to the next generation, you have lots of company. A J.D. Power 2015 U.S. Full Service Investor Satisfaction Study finds that only 42 percent of investors say their advisers have asked them what will happen to their money when they die. [...] Read More