SEC Issues Investor Alert for Seniors – Five Red Flags of Investment Fraud

Stockbroker Law - Tuesday, August 30, 2016
SEC Issues Investor Alert for Seniors – Five Red Flags of Investment Fraud

In an investor alert and bulletin dated July 18, 2016, the United States Securities and Exchange Commission Office of Investor Education and Advocacy noted the following red flags to help senior investors identify possible fraudulent schemes which have been targeting seniors. These include: 


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The SEC Announces Operation Invest Wisely to Educate Military Personnel and Their Families

Stockbroker Law - Tuesday, August 23, 2016
The SEC Announces Operation Invest Wisely to Educate Military Personnel and Their Families

The SEC has announced in its Investing Basics series, the U.S. Securities and Exchange Commission has announced Operation Invest Wisely to promote investing education and resources for military service members and their families. Too often, military service members and their families have fallen prey to unscrupulous financial planners suggesting that military members and their family avoid falling prey to investment fraud by understanding risks, researching financial advisors and avoiding high pressure investment offers. 


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Prudential Annuities Distributors, Inc. Fined by FINRA for Failing to Detect Variable Annuity Scheme

Stockbroker Law - Tuesday, August 16, 2016
Prudential Annuities Distributors, Inc. Fined by FINRA for Failing to Detect Variable Annuity Scheme

In a Press Release dated Tuesday, July 19, 2016, the Financial Industry Regulatory Authority (FINRA) announced a finding against Prudential Annuities Distributors, Inc. for failing to detect forged variable annuity withdrawal requests from a Prudential Annuities variable annuity customer. Various of these withdrawals included third party payee transfers which FINRA determined should have detected as fraudulent transfers. 


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Merrill Lynch Fined for Disclosure Failures on Notes

Stockbroker Law - Thursday, August 11, 2016
Merrill Lynch Fined for Disclosure Failures on Notes

The SEC and Financial Industry Regulatory Authority (FINRA) announced an assessment of a $5,000,000 fine against Merrill Lynch for misleading information relating to its strategic return notes. Merrill Lynch sold over $168,000,000 worth of these notes to customers, which were promoted as a hedge against declines in the financial markets. FINRA determined that Merrill Lynch failed to disclose quarterly transaction costs of 1.5% per quarter


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Expungement of Adverse Information on Forms U4 and U5

Stockbroker Law - Tuesday, August 02, 2016
Expungement of Adverse Information on Forms U4 and U5

The Financial Industry Regulatory Authority (FINRA) maintains an archive of frequently asked questions regarding the application of FINRA Rule 2080 relating to the disclosure of customer dispute information. Additional procedures relating to expungement sought of the arbitration panel stage customer dispute proceedings are contained in Rules 12805 and 13805 of the FINRA Code of Arbitration Procedure for Customer Disputes and Code of Arbitration Procedure for Industry Disputes.

The first step includes the filing of a petition, together with a recorded, in-person telephonic hearing, with the arbitrators who were originally assigned to the underlying case. If favorable, the expungement award must then be submitted to a court of competent jurisdiction for confirmation of the expungement.

The Arbitration Code requires the arbitrators to explain in their award the full factual bases for finding that an expungement is appropriate under one or more of the standards set forth in FINRA Rule 2080.

 


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