Tim O'Connor's Blog

Educational Trusts, Family Trusts, and the Prudent Investor Act

Educational Trusts and Family Trusts in New York State are governed by the Prudent Investor Guidelines under §11-2.3 of the Estates, Powers and Trusts law of New York State.  This provision, also known as the Prudent Investor Act, requires that accounts be managed so as to avoid the risk of excessive losses.  Such accounts should […]

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Margin Trading is Inappropriate for Most Investors

Our law offices have handled a number of matters involving financial advisors who have convinced inexperienced and unsophisticated investors without any meaningful experience in the financial markets to engage in margin trading in their brokerage accounts.  Margin trading involves borrowing against the existing value of an investor’s account for the purpose of engaging in leveraged […]

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Is there Insurance Coverage for Fraud and Theft Victims?

In many instances, yes.  Victims of theft and embezzlement schemes often make the mistake of assuming they are not afforded any insurance protection or other financial security when their monies are stolen and embezzled.  Licensed brokerage firms are required to carry broker blanket bond and other types of insurance to cover acts of investor victimization.  […]

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Theft Cases Involving the Theft of Monies and Investments

The past five years have seen an increase of cases involving the theft of monies from investment accounts.  Most notably, the Bernard Madoff case involved a theft of over 20 billion dollars from unsuspecting investors.  While the rights of theft victims seeking the recovery of their monies under the civil laws are clear, many victimized […]

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