Straight Talk

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

|Comments Off on Former JP Morgan Adviser Guilty of $20M Client Theft
In a New York federal court, a former JPMorgan Chase & Co. investment adviser has plead guilty to stealing over $20 million from clients. In addition, he has admitted to squandering funds on unprofitable trades and personal expenses. Michael Oppenheim, 49, plead guilty to embezzlement and securities fraud on November 5, 2015. He also agreed [...] Read More
|Comments Off on SEC Identifies Lack of Compliance Programs
Investment adviser firms’ growing use of outside chief compliance officers has prompted the U.S. Securities and Exchange Commission to identify several that are not effectively implementing compliance programs. The Office of Compliance Inspections and Examinations has detailed the results of over a dozen examinations conducted by the SEC of investment advisers and investment companies’ CCOs. [...] Read More
|Comments Off on Fidelity Charged with Unethical Behavior
Generating fees for the firm and unregistered advisers has been deemed unethical behavior by the commonwealth of Massachusetts. According to a statement from the secretary of commonwealth, William Galvin, at least 13 unregistered Massachusetts investment advisers used Fidelity’s broker-dealer platform. Gavin said, “Fidelity served as a haven from regulatory oversight as it ignored blatant unregistered [...] Read More
|Comments Off on SEC Hammers Down on Securities Fraud, Records Highest Fines in 2015
The Securities and Exchange Commission targeted multiple types of fraudulent behavior this year as it filed a record high of enforcement actions and fines against individuals and companies, said the agency. The agency obtained $4.2 billion in penalties, resulting in a 7% increase from the previous fiscal year 2014. Kohlberg Kravis Robert & Co. took [...] Read More
|Comments Off on Adviser Access to Outside Accounts of Clients Forces SEC Hand
The Securities and Exchange Commission (SEC) is cracking down on advisers who can access their clients’ employer sponsored retirement accounts. Managing director of Graydon Compliance Solutions, Kevin Woodard, has declared that the agency will closely monitor scenarios in which clients have given their advisers usernames and passwords for financial accounts that are not managed by [...] Read More
|Comments Off on $18M to FINRA by 5 Firms for Overcharging Funds
Five broker-dealers have been ordered by the Financial Industry Regulatory Authority to pay more than $18 million in restitution for overcharging charities and retirement funds on mutual fund sales. Among the broker-dealers are Edward D. Jones & Co. LP and Stifel Nicolaus & Co. Inc. The firms failed to waive sales charges on the mutual [...] Read More
|Comments Off on Scott Starr to present at ICLEF Elder Law Seminar on October 16, 2015
Securities Fraud Update for Seniors Scott Starr will give a presentation titled “Securities Fraud Update for Seniors” at the Indiana Continuing Legal Education Forum (ICLEF) Elder Law Seminar on October 16, 2015 at 3:30 pm. The address for the presentation is ICLEF Conference Center, 230 East Ohio Street, Suite 300, Indianapolis , IN 46204. Read More
|Comments Off on Settlement of Puerto Rico Investor Claims Costs UBS $2.9 Million
UBS AG, a Swiss global financial services company, was ordered by the Financial Industry Regulatory Authority Inc. (FINRA) to pay about $2.9 million to two investors in Puerto Rico closed-end municipal bond funds. A closed-end fund is a publicly traded investment company that raises a fixed amount of capital through an initial public offering (IPO). [...] Read More
|Comments Off on Brokers Plead Guilty in Post-It-Note-Eating Insider Trading Case
In scenes reminiscent of a spy movie, a Brooklyn, New York, mortgage broker showed secret tips written on Post-it notes to a former Morgan Stanley broker, then swallowed the notes. True story! Insider Trading Frank Tamayo pleaded guilty in September 2014 for his role as the middleman in the insider trading case. Tamayo repeatedly met [...] Read More
|Comments Off on SEC Charges Broker with Inflating Assets and Exaggerating Returns
Dawn J. Bennett, founder of Bennett Group Financial Services in Washington D.C. and host of the radio show, “Financial Myth Busting,” has been busted by the Securities and Exchange Commission (SEC). The reason? She allegedly inflated her firm’s assets under management by as much as five times the actual amount, and exaggerating investment returns. Inflated [...] Read More