Archive for May, 2010

Napoli Bern Ripka, LLP Investigates Recent New York Affinity Fraud Scheme

NEW YORK May 26, 2010
Affinity fraud refers to investment scams that target members of identifiable groups, such as the elderly, religious, or ethnic groups. Perpetrators portray themselves as members of the group in order to gain trust and eventually solicit investments in fraudulent scheme. Ponzi schemes are often combined with affinity fraud.
Recently, the SEC filed [...]

Investors Never Advised of Substantial Risks of Unlisted REITs

Napoli Bern Ripka LLP warns investors of inappropriate industry sales practices in the sale of unlisted real estate investment trusts. Investors across the country are seeking to enforce their right to be compensated for losses stemming from their advisors unsuitable recommendation of unlisted, or non-traded, real estate investment trusts (REITs). Investors allege that brokers failed [...]

Provident Asset Management LLC Expelled By FINRA Over Fraudulent Private Placement

One March 18, 2010, the enforcement division of FINRA expelled Provident Asset Management LLC. It is alleged that the firm marketed a series of fraudulent private placements through an affiliate, Provident Royalties LLC, in what was a massive ponzi scheme that led to investors l. Provident Royalties sold $480 million of its offerings through an [...]

Trust Assets, Beneficiaries, Investment Advisors & Your Rights

Napoli Bern Ripka LLP continues to represent trustees in claims against financial advisors to enforce their right to be compensated for the loss of trust assets as a result of their brokers’ failure to either recommend suitable investments in accordance with the trusts purpose or failure to properly disclose the risks inherent in their investment [...]

Wachovia to Pay $160 Million in Money Laundering Settlement

Wachovia has agreed to pay $160 million to settle a federal investigation alleging that the US bank facilitated the laundering of illegal drug profits. The failure of the bank to maintain a system to monitor the transactions at issue for potential money laundering allowed millions of dollars from Mexican exchange houses to be laundered into [...]

Broker Liability For Assisted Investor “Economic Suicide”

Investors are generally unaware of the plethora of rights that both state and federal securities laws provide to protect investors from the conduct and actions of their advisors. Industry professionals are highly regulated and several duties to investors. One less known duty is that of a broker’s responsibility to refuse to execute a transaction that [...]

Former Charles Schwab Employee Awarded $1.8 Million by FINRA Arbitration

A FINRA Arbitration Panel has awarded a former Charles Schwab & Co. Inc. employee punitive damages for wrongful termination and defamation. Mr. Timothy Leahy was employed at the Orlando office of Schwab since 1991. In 2006, Mr. Leahy was terminated for his alleged failure to adhere to human-resources policies. Mr. Leahy successfully alleged that he [...]

Napoli Bern Ripka LLP Investigates Tenant-In-Common Securities

The Securities Fraud Department of Napoli Bern Ripka LLP is investigating inappropriate sales practices by brokerage firms in the recommendation of tenant-in-common investments vehicles. Investors allege that brokers and brokerage firms promoted this speculative investment product as safe incoming producing investments.
Tenant-in-Common (“TIC”) investments allow investors to acquire a fractional interest or co-ownership in real estate. [...]

FINRA Fines H&R Block Financial Advisors $200,000 For Sale of Reverse Convertible Notes

Regulators are becoming concerned over the lack of full disclosure of the risks inherent in reverse capital notes and the lack of supervisory procedures in place to ensure consumers’ interest are protected. On February 16, 2010, the Financial Industry Regulatory Authority (FINRA) announced its first enforcement action concerning the sales of reverse convertible notes (RCNs). [...]

FINRA Warns Brokerage Firms On Social Media Communications

The Financial Industry Regulatory Authority (FINRA) is examining the way both brokerage firms and industry professional use social media sites to promote their services and products. Social media sites are growing as a vital medium for business to communicate with the public and potential customers. A recent study shows that an estimated 46% of Americans [...]