BrokeAndBroker.com by Bill Singer, 917-520-2836

H&R Block Wins Promissory Note Arbitration

Wed, 31 Mar 2010 03:28:15 EST

In the Matter of the Arbitration Between H&R Block Financial Advisors, Inc., Claimant, vs. Brian Taylor Ainge, Respondent, and Charles A. Chambers (Third Party Respondent) and Andrew M. Kistler III (Third Party Respondent) (FINRA #08-02776, March 19, 2010), Claimant H&R Block (HRB) asserted breach of promissory note and unjust enrichment, arising from Respondent Ainges alleged failure to repay sums due pursuant to a fully executed promissory note dated November 16, 2007, ("The Note"). HRB requested: compensatory damage for the outstanding principle, in the amount of $330,227.88; accrued note interest, at the rate of 4.39%, from November 16, 2007 through June 30, 2008; post-default interest, at the rate of 7%, from June 30, 2008; and, all appropriate cost...

The Quote That Has Gone Viral

Wed, 31 Dec 2008 10:07:07 EST

By Bill Singer http://RRBDLaw.com http://BrokeAndBroker.com First off, a happy and healthy New Year to all of you! Let's hope that 2009 doesn't even come close to 2008 --- I mean, geez, can the coming year be worse? Let's hope not! Now back to the BrokeAndBroker.com blog. You know how you sometimes do or say something, and at the time you do or say whatever it is that you did or said, you don't think much of it -- and then, afterwards, it turns out that what you thought was a fairly mundane act or comment suddenly gets blown up out of all proportion? No??? Oh well, then you're just not going to get my point here so you might as well go surf somewhere else on the Internet. Enjoy the porn or the puppies or whatever else floats your boat. As to my...

Former Associated Persons Slam FINRA Member Firms in Arbitration.

Wed, 30 Jun 2010 07:31:33 EST

In a FINRA Arbitration Statement of Claim filed in October 2007 and amended in August 2008, Claimants asserted causes of action for Failure to Transfer IRA Account; Unpaid Commissions; Breach of Contract; and Violation of FINRA Rules. In the Matter of the Arbitration Between Keith J. Steidle, Roderick T. Norman, and Michael S. Astashkevich , Claimants, vs. Granite Securities. LLC. Obsidian Financial Group, and Princor Financial Services Corp., Respondents (FINRA Arbitration 07-02912, June 25, 2010), Claimant Steidle sought at least $90,000 in unpaid commissions and an order requiring Respondents to process his ACAT forms; Claimant Norman sought at least $9,000.00 in unpaid commissions; Claimant Astashkevich sought at least $7,500 in unpaid commissions; and&n...

What's the Big Deal About Transposing Your Clients' Phone Numbers? FINRA Has An Answer!

Wed, 30 Jun 2010 05:38:58 EST

A Not-So-Clever Resignation Strategy By: Bill Singer, Publisher of RRBDLaw.com and BrokeAndBroker.com Okay, you are really, really unhappy at your member firm. You're getting ready to quit and set up shop somewhere else. Take this as a friendly warning. That idea you have about changing your customers' phone numbers and mailing addresses in your firm's database? How can I put this d...

NYSE Specialist Convictons Reversed

Wed, 30 Jul 2008 13:21:26 EST

In a stunning rebuke, the United States Court of Appeals for the Second Circuit reversed the January 25, 2007 securities fraud convictions of former NYSE specialists Michael Joseph Hayward and Michael Stern (United States District Court for the Southern District of New York). The Defendants were charged with illegally trading their firm's proprietary accounts at a time when the government alleged they were obligated to match buy and sell orders as required by NYSE Rule 92(a)(which prohibitrs proprietary trading by specialists when in possesion of knowledge that a particular unexecuted customer order could be executed at the same price). The prosecution's theory was that the conduct described above violated Section 10(b) of the '34 Act in that it was a "manipulative or deceptive devi...

RRBDLaw.com: New FINRA Disciplinary Cases Analyzed by Bill Singer

Wed, 29 Jul 2009 06:15:59 EST

Now it's getting scary. Good...but scary.

Wed, 29 Apr 2009 08:28:03 EST

By Bill Singer http://BrokeAndBroker.com At the close yesterday, I would have sworn that today would be the third Down day in a row and the likely signal that the recent uptrend had finally broken. Hey, go figure! Even I am becoming a believer. At some point, we have to have three Down days in a row ...right? Geez, it's getting a bit spooky. http://www.brokeandbroker.com/index.php?a=blog&id=161 (April 6) http://www.brokeandbroker.com/index.php?a=blog&id=164 (April 8) http://www.brokeandbroker.com/index.php?a=blog&id=166 (April 14) http://www.brokeandbroker.com/index.php?a=blog&id=168 (April 14) http://www.brokeandbroker.com/index.php?a=blog&id=169 (April 16) http://www.brokeandbroker.com/index.php?a=blog&id=175 (Apri...

Is the FINRA Dissident/Reform Movement Dead?

Wed, 28 May 2008 15:33:00 EST

I have received many phone calls and emails today from members of the Financial Industry Association (FIA) asking if I know why the organization's website is not operating. As best I understand, the SEC recently froze the assets of North American Clearing, Inc and obtained a temporary restraining order against that FINRA member firm, which was founded by Richard Goble (who was also one of the founders of FIA). I believe that North American is now under receivership. My best guess is that the servers handling FIA's website were located on North American's property and, as such, may no longer be operating. I have no idea as to whether Richard Goble plans to continue to operate FIA. As many of you know, in July 2007, I severed my ties with FIA http://rrbdlaw.com/bro...

FINRA Panel Rules Against Wells Fargo / Wachovia -- but was it a victory or loss?

Wed, 28 Jul 2010 04:42:21 EST

In a Statement of Claim filed June 9, 2009, Alexander Moskvin and Claire Moskvin (the "Moskvins" or "Claimants") alleged that Respondent Wells Fargo Advisors, LLC f/k/a Wachovia Securities, LLC, engaged in fraud, omissions and misstatements, common law fraud, fraudulent inducement, unsuitable investments, breach of fiduciary duty, negligence, failure to supervise, breach of contract, breach of the covenants of good faith and fair dealing, respondeat superior, and violations of New York Business Law Article 22-A. Frankly, a fairly comprehensive list of alleged no-no's. Unfortunately, while the legal allegations are presented to us with exacting detail, the FINRA decision doesn't exactly provide us with more meaningful explanations beyond the legalese. In the Matter of...

NASD Revolt Takes Root

Wed, 28 Dec 2005 10:05:30 EST

One of the most important Wall Street stories of 2005 is one that the NASD appears to be sweeping under its carpet. The long-rumored grassroots revolution among the NASD's membership seems to be catching fire on a national basis. Within the last year, three NASD Districts have witnessed the successful campaigns of so-called dissident candidates who challenged the organization's official nominees (from the District Nominating Committees). The recent wave of protest votes saw the elections of Dan Roberts in San Francisco and Howard Spindel in New York City. You say you weren't aware of those two upset elections? Funny, the NASD makes such a big deal of sending out Notices to Members and press releases heralding all sorts of supposed news events. Odd that they wouldn't undertake the ...

Registered Rep. Magazine: The SEC's Fumbling, Bumbling Continues

Wed, 28 Apr 2010 14:42:28 EST

The SECs Own Report Says that It Missed Tips and Clues in a Giant Ponzi My mother is an old woman with more than 75 years of age and she has all her money my father inherited to her for his life work in CDs of Stanford Bank. This is the only money my mother has, and it is necessary for my mother, my sisters and me for living. My mother put it in the United States because of the bad situation in Mexico and because the most important thing is to look for security. I am an accountant by profession and work for a large bank in Mexico. I know some banking regulations of my country that are very different from practices in Stanford Bank and for that reason I am very nervous. Please look at this bank and investigate if everything is honest and correct. There are many investors from Mexico ...

FIA Prompts Historic NASD Reform of Sanction Guidelines

Wed, 27 Sep 2006 06:26:56 EST

The Financial Industry Association (FIA) applauds the NASD's announcement today in its Notice to Members 06-55 that it is revising the much-criticized Sanctions Guidelines to clearly reflect that regulatory sanctions are not supposed to be punitive. In a stunning victory for FIA's recent reform initiatives, the new NASD Chairperson and CEO Mary L. Schapiro stated that: "NASD sanctions are intended to be remedial, not punitive," said NASD Chairman and CEO Mary L. Schapiro. "In the absence of fraud or egregious conduct, their purpose is to correct violative conduct, not to damage a firm's ability to conduct business and to serve the investing public. NASD is committed to being a vigorous regulator, but it is equally committed to fairness in the way sanctions are levied." FIA arg...

SEC Refuses to Admit or Deny Climate Change (but provides guidance)

Wed, 27 Jan 2010 14:35:37 EST

Truly, this one you have to read to believe. If it were not so pathetic and absurd it would hysterical. Please visit this link http://sec.gov/news/press/2010/2010-15.htm and read the Securities and Exchange Commission's (SEC's) January 27, 2010, press release: SEC Issues Interpretive Guidance on Disclosure Related to Business or Legal Developments Regarding Climate Change. I would particularly call your attention to these two paragraphs: The interpretive release approved today provides guidance on certain existing disclosure rules that may require a company to disclose the impact that business or legal developments related to climate change may have on its business. The relevant rules cover a company's risk factors, business description, legal proceedings, and man...

Did You Hear the One About the Stock-Picking Lawyer?

Wed, 26 Nov 2008 12:08:17 EST

Below you will find links to the four-part Forbes Investor Team discussion published on November 24 and 25th. And "yes" to those of you who called me today --- two of my stock picks: CAT and CSCO were both up about 5% by 3PM ET today. Of course, being up and where the stock closes are two very different things. We've all learned that lesson with far too much pain in recent weeks. Nonetheless, a very happy and healthy Thanksgiving Day to all of you and your families! Bill Singer What To Tell Your Kids About The Markets November 25, 2008 David Serchuk and Michael Maiello Forbes.com The Forbes.com Investor Team gets the family involved. What's A Blue Chip Worth? November 25, 2008 ...

When You Wish Upon A Star You Go to Jail: New Disney Insider Trading Case

Wed, 26 May 2010 10:28:06 EST

Looking for the Blackjack story? It's the hot blog that everyone is talking about: http://www.brokeandbroker.com/index.php?a=blog&id=424 BREAKING STORY http://www.brokeandbroker.com/index.php?a=blog&id=428 DISNEY INSIDER TRADING CASE (SEC AND US Attorney) ...

Public Customer Wins FINRA Arbitration But Comes Out a Loser

Wed, 26 May 2010 04:41:58 EST

Looking for the Blackjack story? It's the hot blog that everyone is talking about: http://www.brokeandbroker.com/index.php?a=blog&id=424 I discuss this case not because it is a major one -- it's not -- but precisely because it is a relatively minor case that involves the frustratingly recurring problem of inexplicable FINRA arbitration decisions. Appearing without legal counsel, pro se Claimant Phillip A. Wells filed a Statement of Claim on May 5, 2009, against Respondent UBS alleging breach of contract, failure to supervise, breach of fiduci...

"I Think": A Must-Read Blog by Sharon Imhoff

Wed, 26 Mar 2008 05:28:04 EST

A while back, my news clipping service informed me that my name appeared in some securities-industry blog. Being as vain as the next guy (okay, "more" vain), I immediately clicked on the link. Wow!!! Was I blown away. If you want to read some insightful, on-the-money Wall Street regulatory/compliance commentary, add the "I Think" site to you bloglist: http://imhoffconsultingproject.blogspot.com/ The "I Think" blog is the brainchild of Sharon Imhoff, who formed the New Hampshire based Imhoff Consulting Project LLC in 2006, which provides compliance services to registered broker-dealers. http://imhoffconsultingproject.com/index.html Two decades ago, Sharon Imhoff began her career in New York City as an analyst with Kidder, Peabody & Co.; from there she became a priv...

FINRA Strikes Out

Wed, 26 Aug 2009 15:13:17 EST

FINRA Strikes Out The self-regulatory body has whiffed time and again when it comes to enforcement. Time to let someone else bat. ...

Going Public -- Are IPOs coming back in style?

Wed, 25 Nov 2009 06:09:41 EST

Energy IPOs Look Bright The IPO market is strengthening, and the energy sector is rife with offerings. With Hilary Kramer, Chief Investment Officer of A&G Capital Research Greg Ghodsi, Senior Vice President, Wealth Management Group of Raymond James & Associates, Inc.; Tim Walker, IPO Analyst at Hoovers; David Weild, Capital Markets Adviser at Grant Thornton, LLP; and Bill Singer, Attorney and publisher of http://BrokeAndBroker.com and http://RRBDLaw.com ...

Forbes Intelligent Investing Panel: Why the Street Loves Geithner and Short Selling

Wed, 25 Mar 2009 14:54:00 EST

Why The Street Loves Geithner The Street finally seems to like a plan from Tim Geithner. Should you? With Bill Singer, Stephen Roseman and John Osbon. A Big New ...

A Case That Gets Curiouser and Curiouser

Wed, 25 Mar 2009 07:13:18 EST

One reader of BrokeAndBroker.com writes the following in response to yesterday's Blog "No Margin of Error": Bill, Look up Brochu on Broker Checkyoull find a few more details. Looks like two errorsone in income; one in expensesnetted an overstatement of year-end cash to the tune of $500,000, or 1.4%. Also, Brochu and Schlesinger are not just little RRstheyre principals and corporate officers (Brochu is Pres/CEO; Schesinger is VP/Director) who seem to run the joint. The firms corporate structure looks like a spiderweblots of layered ownership levels and many affiliates under common control. And their BD does not show PPs as an approved business. so maybe the FINRA folks werent wrong in coming down on these guys. The accused had the a...

SEC Sanctions OPCO: Gifts, Gratuities, and Bloomberg Emails

Wed, 25 Feb 2009 08:10:45 EST

By Bill Singer http://RRBDLaw.com http://BrokeAndBroker.com Without admitting or denying the findings, Respondent Oppenheimer & Co., Inc. (OPCO) submitted an Offer of Settlement to the Securities and Exchange Commission. In the Matter of Oppenheimer & Co., Inc. ( Securities Exchange Act. Release No. 59438, Admin. Proced. File No. 3-13378 / February 24, 2009) http://sec.gov/litigation/admin/2009/34-59438.pdf You Scratch My Back ... Frank Lu (Lu) was a former OPCO salesperson specialized in emerging market securities and was compensated solely on a percentage of the revenue generated by his customers' orders. Victor P. Machado was a former Leumi Investment Services Inc and Bank Leumi USA (Leumi) trader. In mid-2003 Lu and Mac...

Charles Schwab Survey Offers Upbeat Forecast.

Wed, 25 Aug 2010 09:41:46 EST

Charles Schwab Corporation just released its semi-annual Independent Advisor Outlook Study (conducted by Koski Research), which measures the views of independent RIAs on a variety of topics. See, the press release. Nearly 1,200 independent investment advisors with more than $234 billion in total assets under management participated in the study between July 13 and July 23, 2010. In its promotional literature, Charles Schwab describes itself as a leading provider of custodial, operational and trading support for more than 6,000 independent registered investment advisors (RIAs). Here are some of the highlights from the Schwab Study -- While world events have caused independent investment advisors to maintain a somewhat conservative outlook, there are still a few b...

Wells Fargo / Wachovia Wins And Loses Against Former Employee

Wed, 25 Aug 2010 04:47:29 EST

By FINRA Arbitration Statement of Claim filed January 20, 2010, Claimant Wells Fargo, represented by Michael S. Colombo of StreetWide Asset Recovery Group, Inc., sought to recover from Respondent Joseph Morgan $14,090.05 representing the unpaid balance due on a promissory note, $4,227.01 in collection costs, and $1,475.00 in FINRA filing fees. Respondent Morgan represented himself without legal counsel (pro se) and filed a Counterclaim for $16,126.22 in commissions owed. In the Matter of the Arbitration Between Wells Fargo Advisors, LLC f/k/a Wachovia Securities LLC, Claimant, versus Joseph Morgan, Respondent (FINRA Arbitration 10-00284, August 19, 2010). A Double Knock-Out The single FINRA Arbitrator hearing the case found Responden...

The SEC: The Great Pretender

Wed, 24 Mar 2010 12:41:19 EST

Without admitting or denying the findings, Respondent Southwest Securities, Inc., a wholly-owned subsidiary of SWS Group, Inc., submitted an offer of settlement to the SEC. See, Order Instituting Administrative And Cease-And-Desist Proceedings, Pursuant To Sections 15(B), 15b(C)(2) And 21c Of The Securities Exchange Act Of 1934, Making Findings, And Imposing Remedial Sanctions And A Cease-And-Desist Order, In the Matter of Southwest Securities, Inc. (Release No. 34-61768; File No. 3-13831; March 24, 2010). http://sec.gov/litigation/admin/2010/34-61768.pdf The No-Name Gang? ...

Forbes Intelligent Investing: The Suitability Debate

Wed, 24 Jun 2009 06:01:39 EST

Suitability: Where Brokers Fail Fiduciaries require more training and have higher standards than most brokers, who are often glorified salespeople. With John Osbon, Founder and CIO of Osbon Capital Management; Marc Lowlicht, President of the Wealth Management Division of Further Lane Asset Management; and Bill Singer, Shareholder in the Securities Practice Group of the law firm Stark & Stark and Publisher of http://BrokeAn...

Gross Abuse: Broken PIPEs

Wed, 24 Feb 2010 06:57:58 EST

On September 22, 2008, the United States Securities and Exchange Commission (the "SEC") filed a civil complaint in the United States District Court for the Southern District of Florida against former Axiom Capital Management, Inc. ("Axiom") registered representative Gary J. Gross ("Gross"). Securities and Exchange Commission v. Gary J. Gross, (Case No. 08-CIV-81039-MARRA).http://www.sec.gov/litigation/complaints/2008/comp20732.pdf The Complaint alleged that from at least early 2004 through approximately September 2006, (the "relevant time") Gross defrauded several of his customers by making material misrepresentations and omissions about the risks and suitability of securities he bought for them, churning customer accounts, and fabricating customer ac...

RRBDlaw.com: New FINRA cases now online and analyzed by Bill Singer

Wed, 23 Sep 2009 06:20:51 EST

Wall Street's Galleon Case: A New Ending for the Movie Casablanca?

Wed, 23 Dec 2009 05:28:30 EST

The Street Sweeper by Bill Singer Galleon Gets No Casablanca Ending By Bill Singer, Attorney and publisher of http://BrokeAndBroker.com and http://RRBDLaw.com BILL SINGER: [A]t the end of my Bloomberg interview, Schatzker and Colarusso raised the provocative questions (which I paraphrase): Is the corruption on Wall Street so pervasive that this is what now passes for business as usual? Is the lowl...

Regulatory Post-Mortems: Executing the Dead

Wed, 22 Oct 2008 06:15:25 EST

This morning I began updating the http://rrbdlaw.com website's 2008 FINRA Cases of Note to add the monthly disciplinary reports for October. I came across this nugget, which I abstracted as follows: Lehman Brothers, Inc. AWC/2004100012901/October 2008 The Firm's written plan of organization maintained to identify each aggregation unit, specify its trading objective(s) and support its independent identity failed to accurately describe a separate aggregation unit established for its risk management purposes. The Firm failed to ensure that all traders in each aggregation unit pursued only the particular trading objective(s) or strategy (or strategies) of that aggregation unit and did not coordinate strategy (or strategies) with any other aggregation ...

What's Love Got to Do With It--ask FINRA.

Wed, 22 Apr 2009 15:18:56 EST

By Bill Singer The Financial Industry Regulatory Authority, Wall Street's self-regulatory organization, recently settled a disciplinary case against former Cowen & Company senior research analyst Dhulsini Hermani De Zoysa, who primarily covered companies that produce cardiovascular, orthopedic and wound care devices. FINRA alleged that in two research reports in 2006 and 2007, De Zoysa cited both a 2005 and a 2006 survey of 8,000 wound care centers; and in 2007 that referenced a non-existent Q1 2007 survey of 155 electrophysiology labs. Unfortunately, the 2006 wound care survey and the electrophysiology survey never took place. As such, the four reports that De Zoysa published between July 2006 and May 2007 not only misrepresented the existence of the two s...

Forbes Intelligent Investing Panel: Managing Risk in Today's Markets

Wed, 22 Apr 2009 05:19:21 EST

How To Control Your Risks Stock-picking gets all the glory, but asset allocation plays a bigger role in stabilizing your portfolio. With Michael Kitces, Director of Financial Planning for Pinnacle Advisory Group, Vahan Janjigian, Chief Investment Strategist for Forbes, and Bill Singer, Attorney and publisher of http://BrokeAndBroker.com and ...

Senator Ted Kaufman Comments on Naked Short Selling

Wed, 21 Oct 2009 08:49:37 EST

On October 20, 2009, in comments on the floor of the United States Senate about the need to reform short-selling rules and to protect against the pernicious influence of unrestrained naked short selling, Senator Ted Kaufman (D. Del) cited my Forbes.com Intelligent Investing column: At the Head of the Roundtable (October 2, 2009) and quoted my observation that We have become a nation that ponders everything without resolution. Senator Kaufman's remarks are available at this CSPAN link. I have waged an often lonely campaign for reforming Wall Street and overhauling its failed regulators. However, the Senator's comments are some measure of vindication. When you are favorably quoted on the floor of the Senate, you are no longer a pariah in the wilderness. It's nice ...

The Dead-Animal Man

Wed, 21 May 2008 13:17:20 EST

While Googling the phrase: "beating a dead horse," I was directed to this tidbit in the New York Times, December 3, 1895: Tried to Beat a Horse to Death. That article relates how on December 2nd in Jersey City, New Jersey, one, Thomas Brennan, picked up a "horse that had become worthless from old age [that] was turned out to die by its owner two weeks ago." Mr. Brennan was subsequently arrested when he was "found trying to beat the horse to death." Seems that Mr. Brennan "couldn't sell the animal alive, he thought he would kill it and sell the carcass to 'the dead-animal man.'" At his arraignment, the horse-beater pleaded guilty and was sentenced to six months in the penitentiary. The first thing that stunned me was Brennan's sentence. I just ...

FINRA Arbitrator Orders Expungement of Defamatory U5

Wed, 21 Jul 2010 09:01:32 EST

On its face, this appeared to be a relatively simple arbitration in which FINRA Associated Person E. Brent Lundgren asserted causes of action against FINRA Associated Persons William Brown Park and Mary L. Redell for owed commissions and expungement of his Form U5. Claimaint Lundgren also sought $7,069.56 in compensatory damages, $2,500 in punitive damages, and costs of $325. As to who Respondents Redell or Park were to Claimant Lundgren, don't ask me because I don't know and the Arbitration decision doesn't spell it out. In the Matter of the Arbitration Between E. Brent Lundgren, Claimant, vs. Will Brown Park and Mary L. Redell, Respondents (FINRA Arbitration 09-06571, July 13, 2010). While at first blush this looked like a straightforward case, as they say, appea...

January FINRA Cases Analyzed by Bill Singer at RRBDLaw.com

Wed, 21 Jan 2009 04:12:15 EST

By Bill Singer http://RRBDLaw.com http://BrokeAndBroker.com Bill Singers analysis of the just-released January 2009 Financial Industry Regulatory Authority (FINRA) cases is now online at http://rrbdlaw.com/RegulatoryLinks/CASESOFNOTE/NASD/2009.htm Lots of cash seems to be changing hands between brokers and customers these days. We have a number of cases where brokers are paying customers hush money not to file complaints or to settle some embarrassing issues. On the other hand, we have a couple of folks who got sanctioned for lending money to their customers! Dont believe it? well, read the Tipton and Chiappetta cases. Then there is the ever troublesome Taping Rule that is supposed to force certain firms to monitor brokers telephone conversations. Read about one ...

Bill Singer: One Lawyer. Has Pin. Will Pop All Overblown Legal Balloons

Wed, 21 Apr 2010 09:51:49 EST

The response to my SEC v. Goldman: Regime Change or Crowd Control? http://www.brokeandbroker.com/index.php?a=blog&id=373 has been phenomenal -- and I thank all of you for your emails and phone calls. I am particularly appreciative for those of you who fully understood that I was not defending the alleged actions but merely providing a lawyer's professional analysis of the SEC's Complaint. Those of you who know me know that I am a fervent supporter of the independent/regional brokerage community, a defender of defrauded investors, an advocate for the professionalism of the career of financial services providers, and an outspoken critic of ineffective and corrupt regulation. I have never been a fan of Goldman Sachs or its ilk and have regularly cited such firms as se...

One Trend Down; One to Go?

Wed, 20 May 2009 13:51:05 EST

It is neither a good thing nor a bad thing that has come to an end. It is merely a string of numbers. For the past ten trading days, the Dow Jones Industrial Average (DJIA) alternated between up and down closes. Today we put in a second consecutive day to the downside and ended that roller coaster ride. However, as many of you readers know, we still have a second trend in place, but it too is now facing extinction. Since March 3, 2009, we have not seen three or more DJIA Down days in a row. We may well see the end of that trend tomorrow. The question -- and a large, looming one at that - is what did those two trends mean for investors, and what does the end of those trends signal? I will stay true to my ongoing role...

Customer Complaint Problems at TIAA-CREF

Wed, 20 Jan 2010 05:31:59 EST

In 1918, Andrew Carnegie and his Carnegie Foundation established Teachers Insurance and Annuity Association (TIAA), a fully-funded system of pensions for professors. Funding was provided by a combination of grants from the foundation and Carnegie Corporation of New York, as well as ongoing contributions from participating institutions and individuals. After World War II, in reaction to rising inflation and lengthening life expectancies, TIAA recognized the need for its participants to invest in equities in order to diversify their retirement funds. In 1952, TIAA created the College Retirement Equities Fund ("CREF") for that purpose. TIAA-CREF is a Fortune 100 financial services company that is the leading retirement system for people who work in the academic, research, ...

FINRA: Tool of Management?

Wed, 20 Feb 2008 08:11:27 EST

In the just-issued February disciplinary reports, FINRA discloses that Gregory Gibala, Docket #007008400401, entered into an Acceptance, Waiver & Consent (AWC) settlement. Gibala wrote checks against his mutual fund account at a company affiliated with his member firm and deposited the checks into his checking account even though he knew the mutual fund account had insufficient funds to cover the checks, and that no additional funds would be deposited into the mutual fund before the checks were presented for payment. Gibala withdrew funds from the bank checking account although he knew, or should have known, that, excluding the mutual fund checks he had deposited, the checking account did not contain sufficient funds to cover the withdrawals. As a result of the above factors, FINRA fi...

Vote for John Moloney for FINRA Small Firm Board of Governors

Wed, 19 May 2010 09:28:46 EST

A personal note from Bill Singer to all FINRA Member Firms: If you recently read my "Time for a FINRA Tea Party?" article http://www.brokeandbroker.com/index.php?a=blog&id=405, you know that I have called for robust, open, democratic nominations for candidates to FINRA's Board of Governors. At present, for the reasons stated in the above article, I simply cannot support any FINRA Nominating Committee candidate. A number of individuals have contacted me seeking my support for their nomination as a Board Candidate. If, as, and when requested, I will consider supporting qualified men and women to run as Petition Candidates. Please, I beg you, do not simply check-off all the names on any slate of candidates -- whether those names are sent to you by FINRA or by an...

An Inexplicable FINRA Customer Arbitration. RRBDlaw.com Cases of Note Now Online!

Wed, 19 May 2010 04:15:22 EST

On May 12, 2009, Claimants Annette and Donald Smith filed a Statement of Claim with FINRA seeking $70,000 compensatory damages, interest, attorneys fees, costs, and other appropriate relief as a result of breach of conduct, breach of fiduciary duty, and unauthorized conduct involving their investments in the common shares of Cummins Engine, RIG (Transocean Ltd.) and Sigma-Aldrich. Respondents RBC Capital Markets and Alan A. Cook, II, generally denied the allegations and asserted various affirmative defenses. In the Matter of the Arbitration Between Annette Smith, individually and on behalf of Annette Smith individual Retirement Account; Donald L. Smith, individually and on behalf of Donald L. Smith SEP and Individual Retirement Account, Claimants, vs. RBC Capital Markets C...

Hurricane Bill -- Like I Haven't Heard That One?

Wed, 19 Aug 2009 06:44:36 EST

Home | Professional Services | Investor Resources | Broker Dealer | Blogs | Shopping Center | Employment | About Us/Contact As I post this blog, I am departing for my annual summer vacation at the beach. If you are horrified by the prospect of going a week without partaking of my incredible pearls of wisdom, Forbes just published a recent Intelligent Investing panel, which is noted immediately below. I've also added my greatest hits of 2009: My inspirational columns from Registered Rep. magazine and Forbes.com. Read everything slowly. It will have to last while I'm at the beach -- ah, yes, the annual vacation to the shore...and what could be better than waiting a whole year for those few precious days in the sun (trust me, even in this Recession the cost of the tri...

Dramatic Second Circuit Decision: Class Action against NASD, NYSE, Mary Schapiro gets second life

Wed, 18 Mar 2009 16:09:21 EST

On March 18, 2009, the United States Court of Appeals for the Second Circuit issued its decision in Standard Investment Chartered,Inc. (Plaintiff-Appellant) v. National Association of Securities Dealers, Inc., a/k/a NASD, NYSE Group., Mary L. Schapiro, Richard F. Brueckner and Barbara Z. Sweeney (Defendants-Appellants) (07-3372-cv). The case was submitted to the 2nd Circuit on appeal from the July 13, 2007, judgment of the United States District Court for the Southern District of New York; See, Standard Investment Chartered, Inc. v. NASD et al., 07 Civ. 2014, 2007 WL 1296712 (S.D.N.Y. May 2, 2007) (Shirley Wohl Kram, District Judge), dismissing, for failure to exhaust administrative remedies, a lawsuit challenging aspects of the merger of the regulatory functions of the Nati...

Forbes' Intelligent Investing Panel: Wall Street's Gurus

Wed, 18 Mar 2009 07:31:22 EST

Wall Street's Good Guy Gurus http://www.forbes.com/2009/03/17/gurus-stock-pickers-intelligent-investing-gurus.html Who should be featured on investing's Mount Rushmore? Buffett, Gross and John Paulson for starters. With Bill Singer, Vince Farrell and Randy Frederick. Intelligent Investing All-Stars ...

UBS: You and Us (keep it quiet...we're in this jam together)

Wed, 18 Feb 2009 15:35:48 EST

By Bill Singer http://RRBDLaw.com http://BrokeAndBroker.com From at least 1999 to 2008, UBS AG (UBS) acted as an unregistered broker-dealer and investment adviser to thousands of United States cross-border clients to facilitate the ability of those clients to maintain undisclosed accounts in Switzerland and other locations outside of the United States, which enabled those clients to avoid paying taxes related to those accounts. That allegation is contained in an 11 page Complaint filed by the Securities and Exchange Commission in the United States Court for the District of Columbia. Click on the link and read it. And it gets even more disgusting. From 2001 through 2008, as a result of its provision of unregistered broker-dealer and investment advisory ser...

Forbes Intelligent Investing Panel: Why the Street Hates Geithner

Wed, 18 Feb 2009 13:22:02 EST

http://RRBDLaw.com http://BrokeAndBroker.com Forbes.com Investor Team Intelligent Investing All-Stars Why The Street Hates Geithner http://www.forbes.com/2009/02/18/geithner-treasury-stimulus-intelligent-investing_0218_geithner.html The Forbes.com Investor Team discusses what it would have done to get the Street stimulated. In the wake of Timothy Geithner's first major public address as Secretary of the Treasury and the subsequent rebuke handed to him by Wall Street, we gathered three members of the Forbes.com Investor Team to try to figure out where Geithner went wrong. With John Jacquemin, Jason Thomas and Bill Singer. ...

Bill Singer in the News: Comments on Stanford case and investing in China

Wed, 18 Feb 2009 05:05:51 EST

Bill Singer in the News. Comments on stories ranging from Antigua to China. http://RRBDLaw.com http://BrokeAndBroker.com http://www.caribbeanworldnews.com/middle_top_news_detail.php?mid=2112 What Now For Sir Allen Stanford? CARIBWORLDNEWS.COM - Jackson Heights,NY,USA...

Yet Another PIPEs Hosing: Lawyer Facing 20-year Sentence

Wed, 17 Mar 2010 07:16:39 EST

On March 15, 2010, the United States Attorney for the Southern District of New York, Preet Bahrara, announced that Florida-based attorney Louis W. Zehil pleaded guilty to a criminal Information charging one count of Securities Fraud and one count of Conspiracy to Commit Securities Fraud arising out of a fraudulent scheme in which Zehil obtained unregistered, restricted securities that he subsequently falsely sold as registered and freely tradable. As part of his guilty plea, Zehil forfeited $17 million and to agreed to pay restitution to his victims. During all relevant times, Zehil was a law partner with the firm of McGuire Woods, where he specialized in both representing small companies seeking to become public through reverse mergers and obtaining capital for those...

Selling Your Book of Business: One Arbitration At a Time

Wed, 17 Mar 2010 03:50:30 EST

Pursuant to an Asset Purchase Agreement entered into between Claimant Vander Weide and Respondents on or about June 26, 2008, Vander Weide agreed to sell his financial services business to Respondents in exchange for a sum of money to be paid over a period of five years. In the Matter of the Arbitration Between Douglas D. Vander Weide (Claimant) vs. Richard J. Keeling, Robin Marshall, and David Jesse (Respondents) (FINRA Arbitration 09-02187, March 5, 2010). It appears that the agreement contemplated a number monthly installment payments beyond whatever front money was forthcoming. As of February 10, 2009, the Respondents informed Vander Weide that they would not make any further payments. Hide and Seek What FINRA reveals to us, in al...

BrokeAndBroker.com: Read the Obama White Paper Plan to Reform Wall Street's Regulation

Wed, 17 Jun 2009 10:15:34 EST

Home | Professional Services | Investor Resources | Trade Groups & Education | Starting/Expanding A BD/RIA | Broker Dealer | Blogs | Shopping Center | Contact Us AS POSTED ON THE WHITE HOUSE'S WEBSITE : THE WHITE HOUSE Office of the Press Secretary __________________________________________________________________ For Immediate Release June 17, 2009 President Obama to Announce Comprehensive Plan for Regulatory Reform WASHINGTON President Obama will lay out a comprehensive regulatory reform plan this afternoon to modernize and protect the integrity of our financial system. While this crisis has had many cause...

Two for One!: Forbes Intelligent Investing Panels with Bill Singer

Wed, 17 Jun 2009 05:10:48 EST

Post-Pregnancy College Planning Many four-year colleges now cost over $200,000 and will only go up. How to save for such an outlay? Building A Better 401(k) Half of all employers feel 401(k) plans don't cut it. Here are a few changes that need to happen to make them work better With ...

Is Nothing Sacred? Identity Theft Hits Federal Reserve Bank of New York

Wed, 17 Feb 2010 05:41:40 EST

Sometimes you just wonder where and when it all ends -- or whether it's just a bottomless cesspool and we're simply spending our time snorkeling in the filth. Thirty-five-year-old Curtis Wiltshire worked as an information and technical analyst at the Federal Reserve Bank of NY ("FRB-NY") in lower Manhattan, where he had access to the personal identification information (including names, dates of birth, Social Security numbers, and photographs) of many employees. In 2006, he stole identification information from FRB-NY and provided that to his forty-one-year-old brother Kenneth. Both brothers then used that identification information, and additional identification information Kenneth had stolen elsewhere, to apply for, and obtain, educational loans in the na...

U.S. versus the World: Global Recovery

Wed, 16 Sep 2009 04:50:51 EST

Keep Assets At Home For all their problems, U.S. firms still enjoy important regulatory advantages over places like Brazil and China. With Hilary Kramer, Chief Investment Officer of A&G Capital Research; Dr. Kenneth Shubin Stein, MD, CFA, is the founder of Spencer Capital Management, LLC; and Bill Singer, Shareholder in the Securities Practice Group of the law firm Stark & Stark and Publisher of http://BrokeAndBroker.c...

RRBDlaw.com: New June FINRA Cases Now Online and Analyzed by Bill Singer

Wed, 16 Jun 2010 08:00:49 EST

NEW FINRA MONTHLY DISCIPLINARY CASES NOW ONLINE AND ANALYZED BY BILL SINGER Regulatory lawyer Bill Singer has analyzed and posted the latest crop of FINRA disciplinary cases. Ever hear about a Client Verbal Instruction Form? See how one enterprising broker used that document to transfer customer funds to his own family member -- and not with the client's authorization. READ HERE Bet you didn't know that all it took for a broker to obtain credit cards attached to your bank account was one, simple, lousy, little-old phone call to the bank. Think I'm kidding? ...

Wall Street's Shame: Elderly Clients As Victims of Fraud

Wed, 16 Jun 2010 05:59:39 EST

Perhaps it is would be a classic understatment to say that times are tough -- fact is, it's been brutal for the past few years. The Great Recession has hit all of us hard. Sometimes, Wall Street forgets that it's not just the securities industry that has been battered by bad times. Sure, we can talk all we want about Lehman, Bear Stearns, AIG, and countless other firms; however, those institutions have not experienced anything all that different from the financial stresses imposed upon millions of Americans. Amidst all the hard-luck stories of failed brokerage firms and unemployed stockbrokers, a frightening problem appears to be emerging. Faced with hard times on Wall Street and dwindling financial resources of their own, some securities-industry professionals s...

New FINRA Disciplinary Cases Analyzed by Bill Singer

Wed, 16 Jul 2008 08:11:40 EST

http://rrbdlaw.com/RegulatoryLinks/CASESOFNOTE/NASD/2008.htm Not a particularly dramatic month but a number of interesting new FINRA disciplinary cases. FINRA busted a trader for running the old Best-Bid-Best-Offer scam. First you post a limit order through the prop account. Then you place a non-displayed order to cross the markets. Then you're off to the races. (Mason) We also have a wonderful example of regulatory doublespeak: It's no longer stealing. No, now it's withdrawing cash without permission from a bank! (Tucay) Also looks like some analysts know how to write but maybe not how to read...at least not how to read the Research Rules. Still got some clowns doing personal trades against their published recommendations, and also persisting in opening non-dis...

Regulators: Heal Thyself

Wed, 16 Jan 2008 11:02:53 EST

As I've started to update RRBDLAW.com for 2008 and am reading through FINRA's January 2008 cases, I noticed two interesting matters: MidSouth Capital and Loeb Partners Corp. Please read my analysis Cases of Note Squib In what appears to be a creative, new enforcement trend, FINRA sanctioned MidSouth with a 6 month suspension that prevents the firm from approving certain private securities transactions, and the regulator also sanctioned Loeb with a 30 business-day suspension that prevents the firm from engaging in research analyst activities. In both cases, FINRA tailored those suspensions to fit the perceived violations. Certainly a get-tough approach and one that will likely prove effective in getting the industry's attention. The recent merger of the New York Stock Exchan...

A Ralph Kiner Story for Wall Street:

Wed, 16 Dec 2009 16:44:14 EST

The Street Sweeper by Bill Singer The Ralph Kiner Lesson For Wall Street The old-guard brokerage industry just isn't getting the message.By Bill Singer, Attorney and publisher of http://BrokeAndBroker.com and http://RRBDLaw.com BILL SINGER: [M]any customers followed the high-priced advice of Wall Street's biggest brokerage firms and lost most or all of their investm...

The Pink OTC Market Says FINRA's Proposal Unlawful and Unconstitutional

Wed, 16 Dec 2009 09:22:55 EST

Some folks accuse me of being a tough critic of Financial Industry Regulatory Authority (FINRA). In some corners of Wall Street I am considered the nation's leading critic of FINRA. However, given the strong language and compelling allegations contained in the December 15, 2009, Comment Letter to the Securities and Exchange Commission from the Pink OTC Market, Inc. (Pink OTC), I may be in danger of losing my title.The Pink OTC is apparently upset -- perhaps, "enraged" would be a more fitting characterization -- at FINRA's November 13, 2009, rule proposal http://www.sec.gov/rules/sro/finra/2009/34-60999.pdf to restructure quotation collection and dissemination for OTC Equity Securities. FINRAs avowed purpose is...

NASD and NYSE merger: Multiplying Failures.

Wed, 15 Nov 2006 06:00:40 EST

Oh, puhlease! Here we go again. Nearly 70 years ago, following the collapse of the US financial markets and the onset of the Depression, Congress scrambled to come up with a two-pronged response to Wall Street's predicament. One, to implement a regulatory scheme that would restore investor confidence in the tarnished securities markets. Two, to initiate a regulatory system that would promote public oversight (the Securities and Exchange Commission and state regulation) with industry-savvy expertise (self-regulatory organizations such as the NYSE and NASD). For a time, the two-pronged approach worked. Unfortunately, the regulators of the US markets just didn't quite seem to notice the advent of the nuclear age, the space age, and the Internet. Life at the regulator...

Painful Lessons -- But are you a better investor for them?

Wed, 15 Jul 2009 05:00:23 EST

Getting Schooled By The Downturn Living through the greatest market downturn since the Great Depression has provided a fine education for investors. With Stephen Roseman, Managing Member of Thesis Capital Management; and Bill Singer, Shareholder in the Securities Practice Group of the law firm Stark & Stark and Publisher of http://BrokeAndBroker.com and http://RRBDLaw.com Bill Singer: [T]here are far too many self-styled investment gurus w...

Wall Street Reform: $5 Worth of No Substitutions by Bill Singer (Huffington Post / Business)

Wed, 14 Jul 2010 11:13:00 EST

Read Bill Singer's Huffington Post Column. Now on-line: Wall Street Reform: $5 Worth of No Substitutions http://www.huffingtonpost.com/bill-singer/wall-street-reform-5-wort_b_645664.html ...

FINRA Arbitration Panel Hits Losing Customer Claimants With Sanctions

Wed, 14 Jul 2010 06:21:33 EST

In a FINRA Arbitration Statement of Claim filed in March 2009, Claimants Kenneth J. and Penelope Iwanicki alleged that Respondents Richard and Robert Lewin (the "Lewins") made misrepresentations and purposeful omissions of material facts concerning high risk stocks in Claimants accounts at Respondent Basic Investors, Inc. Claimants alleged that the Respondents Lewins enaged in hundreds of unauthorized tranasactions for the sole purpose of generating commissions and advised Claimants to purchase unsuitable securities given their stated risk tolerance and financial goals. Further, Claimants alleged that Respondent Penson served as Respondent Basics clearing house and, as such, had an oversight responsibility for all the cited trading. Claimants sougth $1,300,...

Geithner and Mathis: Troubling Double Standard

Wed, 14 Jan 2009 12:38:17 EST

By Bill Singer http://RRBDLaw.com http://BrokeAndBroker.com From 2001 to 2004, when Treasury Secretary nominee Timothy Geithner worked for the International Monetary Fund, he was deemed "self-employed" and, as such, obligated to pay his own Social Security and Medicare taxes. Apparently, Geithner didn't make those payments. I suspect that his explanation will be a combination of inadvertent error, an embarrassing oversight, a misunderstanding of what he was supposed to do and whether someone else had done it for him, and a misplaced belief that it had been resolved. How do I know those likely explanations-- why, I often work as a defense lawyer. Those excuses are the most common answers that my clients give to me about the ever-critical "Why did you do that?" In 2006...

Beware the Trojan Horse (from Russia)

Wed, 14 Apr 2010 04:25:40 EST

In a case prosecuted by the Complex Frauds Unit of the United States Attorneys Office (Southern District of New York), we learn that from approximately September 2006 through December 2007, Aleksey Volynskiy and co-defendant Alexander Bobnev participated in a scheme to steal funds from bank and brokerage accounts by hacking into those accounts through the internet, using personal financial information obtained through computer viruses, and then laundering the stolen proceeds. Enter the Trojan Horse In carrying out their scheme, Bobnev and co-conspirators in Russia used concealed computer codes known as "Trojan Horses" to hack into the personal computers of multiple victims in the United States. These Trojan Horses were designed to steal personal account information fr...

The SEC's Dollar-Short-and-Day-Late Reforms

Wed, 13 Jan 2010 12:57:59 EST

Likely feeling the sting of criticism about its lackluster record of timely detecting fraud on Wall Street, the Securities and Exchange Commission (SEC) announced a series of measures that it hopes will strengthen its enforcement program by encouraging greater cooperation from individuals and companies in the agency's investigations and enforcement actions. See, SEC Announces Initiative to Encourage Individuals and Companies to Cooperate and Assist in Investigations (January 13, 2009). First, the SEC's Division of Enforcement amended its enforcement manual with a new section: Fostering Cooperation, which largely incorporates policies and procedures long used by the United States Department of Justice in its criminal investigations and prosecutions: Cooperatio...

Coalition Accuses Brokers and Insurance Agents of Spreading Misinformation

Wed, 13 Jan 2010 06:12:56 EST

The other day I read a sharp-edged and tartly worded document from, of all places, an apparent coalition of the North American Securities Administrators Association (NASAA), the Consumer Federation of America, the Certified Financial Planner Board of Standards, Inc., the Financial Planning Association, Fund Democracy, the Investment Adviser Association, and the National Association of Financial Planners Association. Not exactly the rabble of Wall Street. The title of their position paper says it all: There They Go Again: Brokers and Insurance Agents Are Spreading Misinformation About the Senate Regulatory Reform Bill's Fiduciary Requirement for Investment Advice. Wow --- and they say that I don't pull my punch...

Time for a FINRA Tea Party

Wed, 12 May 2010 04:50:42 EST

Time for a FINRA Tea Party? In response to my recent article announcing the FINRA Board elections, I have been inundated with queries from potential candidates. It seems clear to me that there will be a robust challenge to FINRAs officially nominated candidates most of whom are all-too familiar names and faces. ...

Bill Singer, William Cohan, and Arthur Levitt Comment on Cioffi / Tannin Verdict

Wed, 11 Nov 2009 13:11:58 EST

Cohan, Singer, Levitt Own Words on Cioffi, Tannin Case November 11 (Bloomberg) William Cohan, author of "House of Cards," Bill Singer, a partner at Stark & Stark, and former Securities and Exchange Commission Chairman Arthur Levitt speak about the implications of the acquittal of former Bear Stearns Cos. hedge-fund managers Ralph Cioffi and Matthew Tannin in a subprime-mortgage fraud case. This report also includes remarks on the case by jurors Diane Cohen and Serphaine Stimpson, and Dennis Gartman, editor of the Gartman Letter. ...

The Madoff Case Winds Down: Read the Criminal Information

Wed, 11 Mar 2009 10:45:27 EST

By Bill Singer http://RRBDLaw.com http://BrokeAndBroker.com Read the Criminal Information in the case of the United States of America v. Bernard L. Madoff (cr-00213-DC/March 10, 2009). For copies of the December 2008 SEC Complaint and the Criminal Complaint, visit this link. http://www.brokeandbroker.com/index.php?a=blog&id=98 A brief synopsis of where we presently stand: In 2008, Madoff purportedly told 4,800 investors that their accounts held $64.8 Billion, and that he was managing those funds through a split-strike conversion strategy that mimicked the price movement of the Standard & Poor's 100 Index, while "opportunistically" timing purchases. Seventy-year old Bernard Madoff was arrested on December 11 and presently free on $10 Billion bail. Madoff promised a...

Sitting and fuming while watching the politicos and bankers

Wed, 11 Feb 2009 08:57:57 EST

http://RRBDLaw.com http://BrokeAndBroker.com I'm sitting in front of the television today, listening to the House Financial Services Committee hearing--and not sure who I find more naive and more annoying. For years I have argued against the destruction of the independent/regional financial services community as part of what I saw as an overall strategy to further the development of international financial supermarkets and national firms. Frankly, I was (as I always am) blunt about it. I stated in stark terms that I believed the Wall Street regulatory community had a secret agenda to favor the big boys. Why do I believe this was a policy? For one, year after year it became increasingly onerous for smaller financial firms to expand; but, at the same time, their larger ...

TIAA-CREF and Wachovia in 529 Plan FINRA Arbitration

Wed, 11 Aug 2010 05:52:22 EST

In a Statement of Claim filed in November 2009, Claimant Peter Levine alleged that Respondents TIAA-CREF Individual and Institutional Services, LLC and Wachovia Securities Inc. failed to follow instructions to transfer funds pertaining to a TIAA-CREF 529 mutual fund. A 529 plan (also known as a "qualified tuition plan") is a tax-advantaged savings plan designed to encourage saving for future college costs. Pursuant to Section 529 of the Internal Revenue Code, these plans are sponsored by states, state agencies, or educational institutions, and are offered in the form of either a pre-paid tuition plan or a college savings plans. In May 2009, Claimant withdrew his claims against Respondent TIAA-CREF. In the Matter of the Arbitration Between Peter Levine, Claimant, vers...

Rules That Are Meant to Be Broken?

Wed, 10 Dec 2008 14:20:00 EST

By Bill Singer http://rrbdlaw.com http://BrokeAndBroker.com You know all those pesky requests you get from regulators to produce documents? And you know how some times Regulator A asks you to produce a truckload of stuff and then Regulator B comes in a few days later and asks you to produce the exact same stuff, or at least most of it? And you know how sometimes Examiner #1 from Regulator A asks for a gazillion pieces of paper (which you know is never fully read) and then Examiner #2 from the same Regulator A asks you to produce the same gazillion pieces again--and then gets nasty when you complain about the waste of your time and money? If you are nodding your head in knowing approval and exasperation, consider the incredibly petty, petulant, and inane case o...

Texas Man Pleads Guilty in Criminal Forex Ponzi Scheme

Wed, 09 Jun 2010 06:50:43 EST

Let's start with some basic facts: Ray M. White was never registered with the Securities and Exchange Commission (SEC) or the Commodities Futures Trading Commission (CFTC). In fact, White was never registered to sell securities anywhere. Also, in 2003 and 2006 he filed for bankruptcy. Knowing what you know about Mr. White, lemme ask you a question -- you gonna pull out yer checkbook and write him a big, fat one for his can't-lose FOREX trading program with promised annual returns of between 200 and 400 or so percent? Hey, before you hurt yourself laughing, how about you control those chuckles and read on. It isn't all that funny. Really. CFTC Complaint In a CFTC Complaint, the regulator charged that as early as November 2006, Defendant Ray M. White and Defendant CR...

NYSE-Traded Chinese Company CYD Settles Accounting Case with SEC

Wed, 09 Jun 2010 04:24:59 EST

The world is changing. Quickly. And it is taking a form that many of us no longer recognize. What better proof could I offer than to report about a recent United States Securities and Exchange Commission (SEC) case against a Bermuda holding company based in Singapore, which is a subsidiary of a People's Republic of China holding company, which trades on the New York Stock Exchange. Chew on that for a while. Draw up a flowchart. Scratch your head. Smile. Shrug your shoulders. Welcome to the brave new world. According to its website http://www.cyilimited.com/home/contents.aspx?id=1, China Yuchai International Limited (CYI) is a Bermuda holding company established on April 29, 1993, whose principal office is located in Singapore. CYI is a subsidiary of Hong Leong Asia Ltd (HL...

The One-Year Suspension that is a lifetime Bar

Wed, 09 Jul 2008 07:52:18 EST

In the just published In the Matter of the Application of Douglas J. Toth (Securities Exchange Act Rel. No. 58074 / July 1, 2008) http://sec.gov/litigation/opinions/2008/34-58074.pdf, on appeal, the Securities and Exchange Commission (SEC) sustained the NASD finding that by failing to disclose to his former member firm a pending state civil action against him for securities fraud, Toth willfully caused that firm to file on his behalf an inaccurate U4 and also to fail to amend the Form U4. The SEC also sustained the NASDs suspension of Toth in all capacities for one year. Boiled down to its basics, this is a garden-variety U4 non-disclosure case in which an individual going through financial difficulties and the loss of his own Broker-Dealer, joins another member firm. The twist he...

Forbes Intelligent Investing: Will FDIC Proposal Work?

Wed, 08 Jul 2009 13:52:15 EST

Beggars Can't Be Choosers The FDIC is looking into imposing harsher standards on private equity firms that want to buy troubled banks. Will this slow the bank's progress toward recovery? With Stephen Roseman, Managing Member of Thesis Capital Management; and Bill Singer, Shareholder in the Securities Practice Group of the law firm Stark & Stark and Publisher of http://BrokeAndBroker.com and http://RRBDLaw.com Alexandra Zendrian, Forbes...

Blowin' in the Wind: The Art of Stock Market Forecasting

Wed, 08 Apr 2009 13:18:35 EST

In the April 6, 2009, BrokeAndBroker.com Blog, I sort of blew a gasket when reading all the dire market commentary predicting the death and destruction of the recent rally (albeit, a modest one when compared to the depth to which we had fallen). As I noted in that prior blog: Nonetheless, we just came off a 30-day market run of two periods of four "up" days in a row and an offsetting run of no more than two "down" days in a row. Again, I'm not trying to divine anything from that data -- look at the chart and conclude what you will. Could the market go down four hundred or four thousand days in a row from here? Of course, and, in fact, as I write this Blog, we're down over ...

Of Piranhas and Great Whites

Wed, 07 Jan 2009 05:25:15 EST

By Bill Singer http://RRBDLaw.com http://BrokeAndBroker.com One of my fans (my -- have I actually arrived at the point where I have avid readers and fans?) just reminded me that in September 2003 I published one of my patented diatribes against dubious regulation and masturbatory regulators. I had completely forgotten about this piece, which you can find in its original format at http://rrbdlaw.com/2003/NASDLABDAY.htm . In light of the ongoing Madoff saga and questions about the complicity of our nation's failed regulatory system in that and similar catastrophes, I urge you to read this blog in concert with the previous Running on Empty entry in order to fully appreciate the incredible frustration that faced (and continues to face) those of us who have long advocated for re...

Industry Respondents Win Two Stunning Arbitrations

Wed, 07 Apr 2010 05:51:03 EST

A CASE OF CONVERSION In the Matter of the Arbitration Between Earl J. Smith, Claimant, and TD Ameritrade, Inc. (Respondent), Brian Fehr (Respondent), and Donna Givner (Respondent) (FINRA Arbitration 09-014525, March 23, 2010) Claimant Smith accused Respondents TD Ameritrade ("TDA"), Fehr, and Givner of converting his shares of Espiritu Santo Financial Holdings, and alleged the following causes of action: Common law conversion Embezzlement Breach of fiduciary duty Violation of North Carolina General Statutes, Sec. 78A-65(b). ...

UBS Loses An ARS Case -- Are Consumers Lost in a Regulatory Wasteland?

Wed, 07 Apr 2010 05:17:42 EST

In the Matter of the Arbitration Between Jeffrey and Linda Kraemer, Claimants, vs. UBS Financial Services, Inc. , Respondent (FINRA Arbitration 09-03944, March 22, 2010), the Kraemers alleged that they were unable to liquidate auction rate securities (ARS) purchased in July 2007. Claimants asserted that they needed to keep their money in liquid assets to finance the construction of a new home and when they were unable to liquidate their ARS, they were forced to liquidate two Roth accounts and an IRA to pay for the construction costs and suffered consequential damages in the amount of $65,956. Respondent UBS generally denied the allegations and asserted affirmative defenses including that Claimants failed to state a claim and that any loss they incurred was, in whole or in pa...

Rock me baby! We can take it!!

Wed, 06 May 2009 06:50:06 EST

By Bill Singer http: BrokeAndBroker.com We've climbed back from that dark hole in March and while things aren't necessarily better, they sure as hell aren't getting exponentially worse. Been some time since we had those thousand-point intra-day swings that raised us, drained us, and left us exhausted. You can only sit on a roller coaster for so long before the thrill wears thin and you need to lean over and puke. That was one hell of a ride. Enough, though. Happy to be amidst some two and three figure daily ups and downs. Perhaps we all can ride on the merry-go-round for the summer? I liked a quote from SEC Chair Schapiro the other day, in which she seemed to push back against suggestions that her organization add to its already...

Unregistered Securities: Unless and Unlawful

Wed, 06 Jan 2010 07:24:04 EST

Section 5 of the Securities Act of 1933 is as primordial a securities law as there is. It is truly one of the building blocks of our system of securities regulation. In somewhat ominous language, the section starts off by noting that unless a registration statement is in effect as to a security, it shall be unlawful to sell said security. Whenever you see something that includes the words "unless" and "unlawful," you sure as hell better be careful. See the section reprinted in full below: Section 5 -- Prohibitions Relating to Interstate Commerce and the Mails a. Sale or delivery after sale of unregistered securities ...

RRBDLAW.com: July FINRA Cases Analyzed by Bill Singer

Wed, 06 Aug 2008 09:23:19 EST

From: http://rrbdlaw.com http://BrokeAndBroker.com FINRA cases analyzed by nationally known regulatory lawyer Bill Singer. http://rrbdlaw.com/RegulatoryLinks/CASESOFNOTE/NASD/2008.htm One of the first of what will likely be a number of CMO/CDO cases from FINRA. This one involves a Principal with violations for suitability, material misstatements, and unauthorized discretion by another RR. Note the unusual agreement to voluntarily cooperate with ongoing prosecutions without requiring the service of a Rule 8210 Demand. (John David Webberly) http://rrbdlaw.com/RegulatoryLinks/CASESOFNOTE/NASD/2008.htm Then there is the clever Associated Person who helps himself to the huge sum of $550 in cash that was left on his banks counter. (Charles Thomas Popenoe) http://rrbdlaw.com/Regu...

Time for a FINRA Tea Party. Out With the Old. In With the New.

Wed, 05 May 2010 10:35:23 EST

The annual meeting of FINRA firms will take place on or about Monday, August 2, 2010, to elect individuals to fill the seven Elected Governor seats on the FINRA Board of Governors (FINRA Board). http://www.finra.org/Industry/Regulation/Notices/2010/P121377 . There are three (3) Small Firm Governor seats, one (1) Mid-Size Firm Governor seat, and three (3) Large Firm Governor seats up for election. Ever so kind and helpful , FINRA has its own nominating committees and they haved come up with a recommended slate of nominees. The best and the brightest culled from the ranks of thousands of registered folks and member firm executives. Or so those nominating committees would like you to think. Or so we would all so desperately hope. Time for a FINRA Tea Party? Alas,...

E*Trade Baby Craps on Desk. Transfer Requests Lost.

Wed, 05 May 2010 05:22:39 EST

Loudamy v. E*Trade E*Trade customer Laura Loudamy owned some Dell Inc. common stock but encountered some problem getting those shares transferred by the brokerage firm. Loudamy. Acting pro se (as her own lawyer), Loudamy filed a FINRA arbitration complaint alleging that E*Trade failed to transfer her Dell shares. Was it a failure to transfer those shares into or out of her account? Alas, the FINRA arbitration decisions doesn't specify. What is clear, is that Claimant Loudamy sought $6,050.00 in compensatory damages plus interest and $12,100.00 in punitive damages. In the Matter of the Arbitration Between Laura Loudamy, Claimant, versus. E*Trade Securities LLC, Respondent (FINRA Arbitration 09-04164, April 19, 2010). The FINRA A...

A FINRA Arbitration Decision to Make You Vomit.

Wed, 05 Mar 2008 14:40:44 EST

In The Matter of Margaret C. Lyon (Claimant) AND Merrill Lynch, Pierce, Fenner & Smith Incorporated (Respondent) (FINRA Dispute Resolution # 07-02992, March 4, 2008), Lyon alleged that erroneous language had been recorded by Merrill Lynch on her Uniform Termination Notice for Securities Industry Registration ("Form U5") dated August 16, 2007 and sought $1,000 in damages. Merrill acknowledged that a clerical error was made on Claimant's Form U5 and consented to its correction. The parties entered into an agreement to present to the Arbitrator a Stipulated Award, which was granted. The Arbitrator denied any monetary damages but ordered that Lyon's U5 be amended to show that the: [R]eason for Termination in Section 3 of "Other" be changed to "Voluntary" and that the date ...

Here I Stand. I Can Do No Other

Wed, 05 Aug 2009 06:37:08 EST

Home | Professional Services | Investor Resources | Broker Dealer | Blogs | Shopping Center | Employment | About Us/Contact In recent months, the debate has heated up -- and it is the old one that comes and goes with every recession and market collapse. Will Wall Street survive? Will there be a next generation of stockbrokers to service the investing public? Once again, the debate rages: albeit with new faces and voices but with many of the same old points (just burnished for the current day). I remain one of the very few advocates--outspoken advocates--for the rights of individual stockbrokers and smaller Financial Industry Regulatory Authority (FINRA) member firms, and, as such, I am frequently asked: "Bill, what do you think? Is there a future for Wall Street an...

Bachus Amendment DOA? New "Street Legal" Column Online

Wed, 04 Nov 2009 10:42:53 EST

SPECIAL UPDATE In my recent Forbes and BrokeAndBroker columns, I exposed the shenanigans attendant to jockeying at the House Financial Services Committee over whether self-regulation should be extended to the registered investment advisory (RIA)/financial planning sector. Pointedly, I took the Committee to task for its passage of both the McCarthy and Bachus amendments --- which, taken together, seemed an exercise in futility and a questionable plum for the Financial Industry Regulatory Authority (FINRA). Apparently, my broadsides carried some weight and influence. The Committee's Chair, Rep. Frank (D. MA) has stated that he is going to move to repeal the Bachus amendment, which granted FINRA self-regul...

14 Specialists Caught by SEC--better never than late?

Wed, 04 Mar 2009 12:35:09 EST

By Bill Singer http://RRBDLaw.com http://BrokeAndBroker.com There's nothing in the street Looks any different to me And the slogans are replaced, by-the-bye The Dramatic News Today, March 4th, the Securities and Exchange Commission --the new and improved federal regulator of Wall Street -- issued a dramatic press release entitled: SEC Charges 14 Specialist Firms for Improper Proprietary Trading (http://sec.gov/news/press/2009/2009-42.htm). We read that the SEC charged 14 specialist firms for violating their fundamental obligation to serve public customer orders over their own proprietary interests by "trading ahead" of customer orders, or "interpositioning" the firms' proprietary accounts between customer orders. Just the Facts For engaging in allegedly imprope...

Incompetency versus Corruption: Choose Wisely

Wed, 04 Feb 2009 12:59:34 EST

By Bill Singer http://RRBDLaw.com http://BrokeAndBroker.com In his explosive testimony before the House Financial Services Subcommittee, Harry Markopolos details the frustration he faced in trying to alert the otherwise preoccupied Securities and Exchange Commission. This unheeded whistleblower is now blowing the top off of the long-kept and well-guarded secret that the regulation of Wall Street is less about vigilance and too often nothing more than shady office politics. As the Associated Press' Marcy Gordon so perfectly captured in her story Lawmaker says SEC hindering House's Madoff probe Because of the SEC's inaction, "I became fearful for the safety of my family," Markopolos said. "The SEC is ... captive to the industry it regulates and is ...

Forbes Panel: China's Appetite for Construction and Commodities

Wed, 04 Feb 2009 05:23:13 EST

By Bill Singer http://rrbdlaw.com http://BrokeAndBroker.com Once again, Forbes' Editor David Serchuk put together another compelling Intelligent Investors panel -- this time composed of Robert Froehlich (chief investment strategist at DWS Investments, the retail arm of Deutsche Bank ), Greg Ghodsi (head of the 360 Wealth Management Division at Raymond James), and Bill Singer (Wall Street regulatory lawyer and private investor). The panel's focus was on China's Appetite For Construction and ways to play that nation's ravenous appetite for commodities. In addition to some useful investing insights and strategic approaches, it's hard to imagine an exchange of ideas on China not straying into some political considerations. Among Bill Singer's blunt assessments is thi...

UBS Loses $80 Million ARS Arbitration

Wed, 04 Aug 2010 09:23:25 EST

In a Statement of Claim filed July 2009, Claimant Kajeet, Inc. sought $110,000,000 (One-Hundred and Ten Million Dollars) in consequential damages arising from its inability to access its funds in an investment in student loan Auction Rate Securities ("ARS"). Respondent UBS generally denied the allegations and asserted various affirmative defenses. In the Matter of the Arbitration Between Kajeet, Inc., Claimant, versus UBS Financial Services, Inc., Respondent. (FINRA Arbitration #09-03990, August 3, 2010), The ARS Market Collapse The ARS market collapsed in mid-February 2008, leaving over 40,000 UBS customers (as well as customers of other firms) holding illiquid ARS indefinitely. When UBS marketed ARS as "cash alternatives," it failed to adequately disclose that t...

Time to Panic?

Wed, 03 Jun 2009 11:35:16 EST

Home | Professional Services | Investor Resources | Trade Groups & Education | Starting/Expanding A BD/RIA | Broker Dealer | Blogs | Shopping Center | Contact Us By Bill Singer Yeah, I know, You feel like hitting the Panic Button because the market is down over 100 points today (June 3rd) and it's only mid-day and everything that you read says that the dead cat has bounced and now you're afraid that this is the beginning of a new end of the world and you're going to lose everything that you made back the past three months and then some. Do I have all that about right? ...

SEC Open Letter: Don't Cost Cut. Don't Lay Off.

Wed, 03 Dec 2008 08:36:46 EST

As a child, I had a fascination with Napoleon (which may well account for the Napoleon complex many attribute to me--after all, I'm fairly short in stature, tend to walk around with my hand tucked into my shirt, and have a fondness for bicorne hats). Among Bonaparte's more trenchant quotes is this one: "If you wish to be a success in the world, promise everything, deliver nothing." By that measure, Wall Street's regulators have been an incredibly successful bunch the past few years. The Open Letter Prominently posted on the Securities and Exchange Commission's website--near the top of the page with some fanfare--is this December 2, 2008, nugget: SEC Staff Reminds CEOs Of Registered Firms of Importance of Compliance Programs Upon visiting that link, I was...

New FINRA Cases Analyzed at RRBDLaw.com

Wed, 02 Sep 2009 08:11:09 EST

A Little Birdie Taught Me (laced with profanity)

Wed, 02 Apr 2008 05:44:42 EST

WARNING: This blog contains a profanity. It's only one curse word, and I tried to avoid using it. Unfortunately, if I didn't use the nasty word, the story I wanted to tell wouldn't make as much sense. So, if you are a sensitive type, please don't read further. Guess what. Lately, I've been getting lots of calls from the press and readers asking my take on the disaster that has befallen our capital markets, and, more recently, on the Treasury Department's Blueprint for regulatory reform. Having spent more than a quarter of a century on Wall Street, I sort of know what's going on. More importantly, I'm a well-known critic of our markets' regulation and regulators. In a nutshell, I doubt that much, if any, of the Blueprint will see the light of day. First, politicians wil...

Gross Abuse: PIPEs Hosing -- an update and conclusion

Wed, 01 Sep 2010 08:11:53 EST

In February 2010, BrokeAndBroker reported on the Securities and Exchange Commission (SEC) case involving Axiom Capital Management, Inc., its former registered representative Gary J.Gross, and its former compliance officer David Siegel. See, "Gross Abuse: Broken PIPEs" at http://www.brokeandbroker.com/index.php?a=blog&id=317 As a result of the SEC's August 31, 2010, settlement with Gross's supervisor David Siegel, we have reprinted and updated that article. = = = = = = = = = = = = = = = = = = = = Gross Abuse: Broken PIPEs by Bill Singer, http://BrokeAndBroker.com On September 22, 2008, the United States Securities and Exchange Commission (the "SEC") filed a civil complaint in the United States District Court for the Southern District of Florida against former Axiom...

Former Ameriprise Employee Says Firm Lied to Him -- and FINRA Panel Forgives Promissory Note Debt

Wed, 01 Sep 2010 03:56:26 EST

In a Statement of Claim filed in October 2009, Claimant Ameriprise sought to recover $114,887.83 in damages as a result of Respondent Waro's failure to repay the outstanding balance due on a Promissory Note ("PN") from July 2007. Respondent generally denied the allegations. In the Matter of the Arbitration Between Ameriprise Advisor Services, Inc., Claimant, versus David W. Waro, Respondent (FINRA Arbitration 09-05778, August 20, 2010) Respondent Waro filed a Counterclaim seeking $336,415.01 in damages as a result of having been induced to leave his former employer based upon Claimant's misrepresentations. Respondent alleged that he lost signficant revenue and income following employment by Ameriprise because he did not receive promised infrasturcture s...

The Securities-Scam Beast That Won't Die!

Tue, 31 Mar 2009 08:03:06 EST

On August 7, 2008, BrokeAndBroker.com published a story entitled The International Securities Scam No One Cares About http://www.brokeandbroker.com/index.php?a=blog&id=71 , in which we detailed an apparent worldwide fraud involving the securities of Securetee International, Inc (Securetee). As detailed in that blog entry, mainly European investors (with a large proportion coming from the United Kingdom) were victimized by what seems to be a bogus public offering from bogus brokerage firms. Sadly, those folks were then further victimized by indifferent regulators. Despite my best efforts to get to the bottom of this mess and try to enlist the aid of some reputable regulator or prosecutor, the best I obtained was confirmation of a call or email and a promise to get back to m...

Former UBS Employee Settles With Firm and Obtains Expungement of U5

Tue, 31 Aug 2010 04:53:41 EST

As a result of disputes arising from his employment and repayment of two promissory notes, in March 2009, Claimant Peter Chiang asserted various claims against his former employer Respondent UBS. Claimant sought expungement of a defamatory statement from his Form U5; an Order rendering the two promissory notes null and void; and punitive damages, costs, and expenses. In the Matter of the Arbitration between Peter Chiang, Claimant, versus, UBS Financial Services, Inc., Respondent (FINRA Arbitration 09-01560, August 20, 2010). In February 2010, the parties reached a confidential settlement, and on July 30, 2010, they submitted to the FINRA Arbitrator a Joint Request for Expungement of Claimant's Form U5. Following an August 5, 2010, FINRA hearing, the Arbitrator found that&nb...

Slouching Towards Wall Street

Tue, 30 Sep 2008 07:08:06 EST

In listening to the ongoing debate about how to best revive our failing economy, I keep hearing pundits blaming Bush, Paulson, Pelosi, and others for failing to sell the deal to Main Street. Frankly, that complaint gives me pause. Seems to me that among the most pernicious problems with our society is the persistent patter of salespersons and their sales pitches. We can't sit down anywhere anymore in peace. You turn on your computer, there are ads. You sit down for dinner, and your phone rings with unwanted solicitations. You try to relax in your living room and watch a sporting event or movie on television, and every few minutes you are being bombarded with advertisements. And it gets worse. It's on the buses. It's on the trains and subways. It's on the taxis. It's ...

RRBDLaw.com: FINRA Cases Analyzed by Bill Singer

Tue, 30 Jun 2009 09:40:27 EST

Veteran regulatory lawyer Bill Singer's analysis of recent FINRA cases is now online at http://RRBDLAW.com. Make sure to click on the links to read Bill's commentary about these matters and more. http://www.rrbdlaw.com/RegulatoryLinks/CASESOFNOTE/NASD/2009.htm Also, Don't Miss Bill's Canadian Broadcasting Corporation's (CBC) interview by Andrew Nichols. It's a hard hitting, blunt discussion about the Madoff sentence and the message it sends to Wall Street. (Runs: 5:50) Play: Real Media » ...

The Supreme Court's PCAOB Ruling and Wall Street's Self-Regulation

Tue, 29 Jun 2010 09:28:03 EST

Read Bill Singer's Huffington Post Column. Now on-line: The Supreme Court's PCAOB Ruling and Wall Street's Self-Regulation http://www.huffingtonpost.com/bill-singer/the-supreme-courts-pcaob_b_628967.html After a series of celebrated a...

Did You Hear the One About the Dancer and the Broker?

Tue, 29 Jul 2008 08:22:50 EST

The NASD's Office of Hearing Officers (2005) and subsequently The Financial Industry Regulatory Authority (FINRA) National Adjudicatory Council (2008) found that registered representative John D. Audifferen: committed and caused FINRA member firm May Davis Group, Inc. ("May Davis") to commit a number of violations involving the improper extension of credit for the purchase of securities in the account of Audifferens customer, Keisha Williams; engaged in free riding in that account, that he improperly benefited from the extension of credit to that account, and that he shared in the profits of that account; committed and caused May Davis to commit violations involving the improper extension of credit to Audifferens personal May Davis cas...

Stockbrokers on Active Duty: No Laughing Matter

Tue, 28 Jun 2005 08:12:44 EST

In recent weeks I have been contacted by Registered Representatives (stockbrokers) or their family members concerning a number of issues involving members of the National Guard/Reserves who have been or expect to be called to active duty. Specifically, the queries involve two general areas of concerns. One, since many stockbrokers are paid commissions and not salaries, is there a way that they can continue to earn some income from their accounts while serving their country. Two, in a quirk somewhat unique to Wall Street, individuals who pass registration examinations must be employed in their registered status within a 24 month period or the registration is deemed expired and they must requalify (or seek a waiver of the requalification). Apparently, the inability to receive commissions...

Forbes Intelligent Investing Panel: Investing in Stock Markets and Airlines (a two-for-one feature)

Tue, 28 Jul 2009 05:44:18 EST

Investing In The Stock Markets NYX and NDAQ could be valuable buys if you think the IPO market is opening up. With Greg Ghodsi, Senior Vice President at Raymond James & Associates' 360 Wealth Management Group; Sacha Millstone, Senior Vice President with Raymond James & Associates' Millstone Evans Group; and Bill Singer, Shareholder in the Securities Practice Group of the law firm Stark & Stark and Publisher of http://BrokeAndBroker.com ...

FINRA's CEO Search Stumbles at the Gate

Tue, 27 Jan 2009 07:05:05 EST

By Bill Singer http://RRBDLaw.com http://BrokeAndBroker.com Please see earlier blog http://www.brokeandbroker.com/index.php?a=blog&id=115 for context of this entry. In response to yesterday's blog posting about FINRA's non-disclosure of the names of the members of the search committee charged with finding a replacement for departed CEO Mary Schapiro, some readers suggested that such "secrecy" was not only understandable but in keeping with the self-regulatory organization's past. For the record, I do not believe that non-disclosure of the names and affiliations of members of the search committee is "understandable," and it is certainly not part of the regulator's tradition--if anything, it is part of a worrisome trend by too many p...

The Con's Con: An FBI Warning

Tue, 27 Apr 2010 15:36:04 EST

The story below is reprinted from the referenced Federal Bureau of Investigation Press Release http://www.fbi.gov/page2/april10/con_042210.html . I found the tale so compelling that I just had to reprint it in BrokeAndBroker.com ======================================= CRIME FROM BEHIND BARSThe Case of the Con Turned Con Artist http://www.fbi.gov/page2/april10/con_042210.htmlHe was already in jail for fraud and other crimes, yet he managed to lead a massive, two-year identity theft and bribery scheme that earned him a separate 309-year prison sentencemore than twice that of crooked financier Bernie Madoff, and reportedly the fourth-longest in the history of U.S. white-collar crime. His name is Robert Thompson, and his story is an eye-opening one for consumers and business...

While the Senate Holds Goldman Hearings, Here Is What You're Missing (Cleverly hidden, perhaps?)

Tue, 27 Apr 2010 07:23:37 EST

Silly season is now if full bloom among Wall Streets regulators. As we all wait this morning with bated breath to hear the testimony of Goldman Sachs executives before the Senate Permanent Subcommittee on Investigations, we learn that the industrys cops are still up to their old shenanigans. Consider this absurd tidbit posted on the Securities and Exchange Commissions (SECs) website at http://sec.gov/news/studies/2010/oig-526-memo.pdf. It seems that on April 22, 2010, SEC Inspector General (OIG) H. David Kotz sent a Memorandum to SEC Chair Mary Schapiro, with a copy to the SECs Ethic Counsel William Lenox. The subject of that Memo was: Report of Investigation, Case No. 01G-526 Investigation of the SEC's Response to Concerns Regarding Robert Allen Stanf...

A Marginal FINRA Arbitration With A $44.99 Twist At The End

Tue, 27 Apr 2010 04:16:45 EST

Claimant Saul Crafton asserted that Respondent TD Ameritrade Clearing, Inc. had wrongfully liquidated Bank of America common stock shares in his account without authorization. Specifically, Crafton complained that Respondent raised margin requirements and sold securities out of his margin account without notice to him or opportunity to deposit adequate additional funds or securities. As a consequence of TD's actions, Claimant alleges that he lost profits because the liquidated shares later increased in value. Claimant sought $16,695.00 in damages or reversal of sale of his Bank of America shares. In the Matter of the Arbitration Between Saul Crafton, Claimant, and TD Ameritrade Clearing, Inc. , Respondent (FINRA Arbitration 09-06201, April 19, 2010) Br...

Forbes.com's Intelligent Investing: Future of Regulation

Tue, 26 May 2009 05:43:26 EST

VIDEO Litigation On The Street Four top flight securities attorneys discuss the future of regulation and litigation on Wall Street. Video introduction by Steve Forbes. Topics include: Steve Forbes: Not Another Sarbox! Lessons From The ...

Forbes.com / Intelligent Investing: Nero's SEC Violin Concerto

Tue, 26 Jan 2010 10:19:30 EST

The Street Sweeper by Bill Singer Nero's SEC Violin Concerto On Jan. 14, 2010, the Securities and Exchange Commission published a 74-page document that, in the unique parlance of Washington's do-nothing, time-wasting bureaucrats, is described as a "Concept Release on Equity Market Structure." . . . [N]ow? Now is the time that the Securities and Exchange Commission decides to start "conducting a broad review of the current equity market structure"? Mind you it's not just an old-fashioned, regular-way review but the far more impressive "broad" review. It's so broad that it takes 74 pages just to explain what's involved. How many SEC staffers and staff hours do you think were invested in churning out this expansive document? Perhaps as many as were allocated to catchin...

What's a Blue Chip Worth: Forbes Panel Part III

Tue, 25 Nov 2008 09:10:09 EST

Intelligent Investing All-Stars What's A Blue Chip Worth? As once-impregnable firms ride south, the definition of blue chip must change. The Forbes.com Investor Team weighs the impact of Citi, Ford and GM as penny stocks. With Bill Singer, Greg Ghodsi and Matthew Lloyd. ...

No Margin of Error.

Tue, 24 Mar 2009 11:33:49 EST

In preparing to update my monthly FINRA Cases of Note for http://RRBDLaw.com, I just came across the case of David Francis Brochu (Principal) and Jill Schlesinger (Principal) AWC/2006005242501/March 2009. Letters of Acceptance, Waiver, and Consent (AWC) are entered into by Respondents without admitting or denying the allegations, but consent is given to the described sanctions and to the entry of findings. Let me know if you are as annoyed with this outcome as I am. Here's What FINRA Says Happened Brochu and Schlesinger sold Class B units pursuant to a private placement memorandum (PPM) containing inaccurate financial projections. Brochu and Schlesinger worked on the PPM, and Brochu supervised registered representatives who worked on the memorandums financial projections...

Spousal Cases: Till FINRA Do Us Part?

Tue, 24 Aug 2010 03:49:32 EST

In a FINRA Arbitration Statement of Claim filed in October 2008, Claimant Illa Mellul alleged that Respondent David Allan Marcus sold off every posttion in her account without her direction, consent, or acquiescence; and then transferred the proceeds to Claimant's estranged husband. Claimant Mellul further alleged that as a result of Respondent M Holdings Securities's failure to have proper procedures in place, Respondent Marcus was able to close Claimant's account based on documentation provided by Claimant's estranged husband wtthout verification by Claimant. Claimant alleged breaches of fiduciary duty and contract, failure to supervise, and negligence, and sought $1 million in damages. Illa Mellul, Claimant, versus M Holdings Securi...

So, Bill, Tell Us How You Really Feel.

Tue, 23 Sep 2008 05:16:28 EST

Every so often, someone gets it right. This time, Forbes.com editor David Serchuk not only hit the nail on the head but drove the damn thing through the two-by-four and into the very heart of the matter. In his just published piece: Death of the Capital Markets, Serchuk asked some of the day's tough questions to a three-person industry panel of Lana Hock of Robert W. Baird & Co., Joe Battipaglia of Stifel Nicolaus, and yours truly (Bill Singer). What emerged from the panel is a chilling assessment of what's wrong with Wall Street and why it may not get fixed. This is not cheerleading. This is a sober warning. For my part, I pulled no punches. We no longer have time to dance around in this ring. When asked to comment on why we find ourselves in the present predicament, I...

BrokeAndBroker.com: Featured Blogger and New Service Providers

Tue, 23 Mar 2010 13:17:52 EST

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Internet Crime Report: All Too Familiar?

Tue, 23 Mar 2010 05:54:28 EST

IC3 2009 Annual Report on Internet Crime The Internet Crime Complaint Center (IC3), a partnership among the Federal Bureau of Investigation (FBI), the National White Collar Crime Center (NW3C), and and the Bureau of Justice Assistance (BJA) released the 2009 Annual Report about fraudulent activity on the Internet. From January 1, 2009 through December 31, 2009, the Internet Crime Complaint Center (IC3) Web site received 336,655 complaint submissions. The vast majority of referred cases contained elements of fraud and involved a financial loss by the complainant. The total dollar loss from all referred cases was $559.7 million with a median dollar loss of $575. Complaints received by IC3 cover many different fraud and non-fraud categories, including auction fraud, non-delivery...

Forbes Intelligent Investing Panel: Commodities -- buy, sell or hold?

Tue, 23 Jun 2009 13:36:51 EST

Cautiously Buy Commodities Even as commodities track higher, our industry observers don't see a 2008-sized bubble yet. With John Osbon, Gerard Klingman and Bill Singer. With John Osbon, Founder and CIO of Osbon Capital Management; Gerard Klingman, President of Klingman & Associates; and Bill Singer, Shareholder in the Securities Practice Group of the law firm Stark & Stark and Publisher of http://BrokeAndBroker.com...

SEC's Salvatore Sodano Saga Suddenly Stops

Tue, 23 Feb 2010 09:56:25 EST

This is a saga but not a great one. Frankly, not even a modest one. Come to think of it, as sagas go, this is more like a shaggy-dog story that starts with much promise only to fritter away into so much fluff and meaningless detail. Way Back When: 1999 through 2004 From September 1999 until January 2005, Salvatore F. Sodano was the Chairman and CEO of the American Stock Exchange (AMEX), a quasi-governmental self-regulatory organization ("SRO"). From 1998 through 2004, the AMEX was a subsidiary of the NASD, Inc. In December 2004, following the sale of the AMEX, Sodano resigned as Chairman and CEO in January and April 2005, respectively. He subsequently became Dean of the Frank G. Zarb School of Business at Hofstra University in New York. In 2007...

FBI Warns of Phone Scam That Ties Up Your Line -- Targets Your Bank or Brokerage Accounts

Tue, 22 Jun 2010 12:30:11 EST

THE LATEST PHONE SCAMTargets Your Bank Account Imagine getting hundreds or thousands of calls on your home, business, or cell phone, tying up the lines. And when you answer, you hear anything from dead air to recorded messages, advertisements, or even phone sex menus. Its annoying, no doubt. But it could be more than thatit could be a sign that youre being victimized by the latest scam making the rounds...

Grant Thornton LLP IPO Market Study: Dysfunction fueling unemployment and hurting IPOs.

Tue, 22 Jun 2010 04:42:29 EST

Bill Singer's Comment: Yesterday, I received an interesting email from Grant Thornton LLP's Capital Markets Group concerning their take on the ongoing challenges for U.S. Initial Public Offerings and the ramifications of that problem. Authors Weild and Kim propose a modernized market structure as a possible solution for the difficulties many companies are now facing when attempting to go public. Frankly, it's a very compelling piece and I have reprinted it verbatim for your consideration. Grant Thornton Announces Update to U.S. IPO Market Study Dysfunctional Market Structure Fuels Unemployment and Undercuts Small Cap IPOs ...

FINRA's Regulatory Mulligan: SEC Not Amused

Tue, 22 Jul 2008 07:32:29 EST

NASD Conduct Rule 2110: Standards of Commercial Honor and Principles of Trade: Members (and associated persons), in the conduct of their business, shall observe high standards of commercial honor and just and equitable principles of trade. NASD Conduct Rule 3030:Outside Business Activities of an Associated Person: No associated person shall be employed by, or accept compensation from, any other person as a result of any business activity, other than a passive investment, outside the scope of his relationship with his employer firm, unless he has provided prompt written notice to the member. Two for the Road In April 2002, Debra McClure, a client of of American Express Financial Advisors....

RRBDLAW.com: New FINRA Cases Analyzed by Bill Singer

Tue, 21 Apr 2009 09:33:21 EST

RRBDLAW.com: Bill Singers Monthly Analysis of FINRA Cases BrokeAndBroker.com RRBDLaw.com April 21, 2009 New York, NY Cases analyzed and presented by nationally known regulatory lawyer Bill Singer of http://BrokeAndBroker.com and http://RRBDLAW.com . Among the dozens of cases just added to the April FINRA reports are these: The Discounted Sign of the Beast? No, its not 666 more like $6 or $600. Read about the ATM scam. http://rrbdlaw.com/RegulatoryLinks/CASESOFNOTE/NASD/2009.htm#rodri...

Huffington Post Article: Daniel Dravot, Goldman Sachs, and the SEC by Bill Singer

Tue, 20 Jul 2010 11:44:30 EST

Read Bill Singer's Huffington Post Column. Now on-line: http://www.huffingtonpost.com/bill-singer/daniel-dravot-goldman-sac_b_649003.html Daniel Dravot, Goldman Sachs, and the SEC http://www.huffingtonpost.com/bill-singer/daniel-dravot-goldman-sac...

New FINRA Monthly Disciplinary Cases Now Online and Analyzed at BrokeAndBroker.com

Tue, 20 Jul 2010 07:02:32 EST

NEW FINRA MONTHLY DISCIPLINARY CASES NOW ONLINE AND ANALYZED BY BILL SINGER Regulatory lawyer Bill Singer has analyzed and posted the latest crop of FINRA disciplinary cases. As the financial crisis continues, many registered representatives are feeling the economic pinch. One remedy for bridging the gap appears to be borrowing from customers. Of course, in some cases, an even better idea is to borrow and not repay. Another crop of cases reported for July 2010. READ HERE at http://www.rrbdlaw.com/enforcement-actions/tags.php?term=Borrowing&a...

Why Wall Street Reform Is Doomed to Fail. A Case in Point.

Tue, 20 Apr 2010 14:27:13 EST

Oh my . . . the Obama Administration has called the last play of the game, the offense claps as it breaks the huddle, the team is set to bang the financial markets' reform ball over the goal line. But Team GOP is digging in for the last-ditch stand. Suddenly, the Democratic running back goes wide -- the SEC amazingly announces a Friday Complaint against Goldman Sachs. Is that a misdirection or the real thing? Next, the tight end goes in motion and sets as a wide receiver -- Dick Fuld is grilled by Congress. Then the quarterback drops back into a shotgun formation -- the President will speak on Wall Street this Thursday. The Republican middle linebacker barks out his new coverage, as the defense re-sets. Now, all that ...

Gettin' Freaky Here! Ten Days of Alternating DJIA

Tue, 19 May 2009 13:12:18 EST

BrokeAndBroker.com/3daychart.htm : rrbdlawyer@aol.com The Bill Singer Three-Day-Down/Occam's Razor Chart http://BrokeAndBroker.com/3daychart.htm ...

SEC Shenanigans

Tue, 19 May 2009 06:04:50 EST

For years, I felt as if I were the only critic of Wall Street's regulators and their organizations. Talk about feeling like a lonely prophet cast out into the forbidding wilderness. Folks kept telling me to hush -- it wouldn't be good for my business. You don't want to take the big boys on. Those regulators can get downright nasty. Unfortunately, I'm one of those ornery guys who if you want to get me to do something, just tell me that I can't or shouldn't do it. Must be something to do with authority figures and all. Oh well, too late to retrace those career steps. The funny thing, though, is that all my years of complaining didn't hurt me. To the contrary. Just goes to show you. Sometimes, you just have to be that one dolt who stands up in the town meeting, po...

Act Now! Loan Program Investment Participation Units

Tue, 19 Jan 2010 06:30:11 EST

A SPECIAL MESSAGE FROM SAVI TRAYDAH, PH.D., INTERNATIONAL ECONOMIST, INVESTING SPECIALIST, and PROGRAM MANAGER The BORDER ASSETS Loan Program Investment Participation Units (the "LPIPUs") International economist and investing specialist Savi Traydah, Ph.D. has opened for a limited period of 30-days effective January 19, 2010, investment participation units in his BORDER ASSETS loan program. A particularly attractive vehicle for investors who have recently sustained losses in the international stock and real estate markets, the BORDER ASSETS LPIPUs provide a secure opportunity to realize significant returns within a guaranteed construct. Given the incredible rate of return offered by this investment (which will only be provided via sealed courier protocols to qualified partie...

FINRA's Egregious Egregiousness

Tue, 19 Feb 2008 06:07:00 EST

In FINRA's just-released February 2008 Monthly Disciplinary Actions, we have the following nugget, which I have reproduced below verbatim: Legend Merchant Group, Inc. (CRD #5155, New York, New York) submitted a Letter of Acceptance,Waiver and Consent in which the firm was censured, fined $22,500 and required to file an application with FINRA, consistent with NASD Rule 1017 for approval of the material changes referenced in the AWC concerning changes to its Membership Agreement, and the firm must comply fully and timely with related FINRA requests for additional information and documents.Without admitting or denying the findings, the firm consented to the described sanctions and to the entry of findings that it effected material and ongoing changes in its business operations by addi...

NASD Members: Vote "NO" on Proposed NYSE Merger

Tue, 19 Dec 2006 07:49:50 EST

Those of you familiar with my published columns, websites, and law practice know that I have been an outspoken and ardent advocate for the rights of individual registered reps and independent/regional broker-dealers for many years. Over a decade ago I helped found the NASD Dissident movement and have remained a staunch supporter of regulatory reform. As such, rather than restate all my beliefs and opinions about self-regulation, I will merely refer you to the results of whatever GOOGLE search you might undertake on that issue. For now, I prefer to be brief and to the point. The NASD membership is being asked to vote in favor of a proposed merger of the regulatory arms of the NASD and the NYSE. Except . . . those self-regulatory organizations (SROs) say it's not really a merger bu...

LOST: One Securities and Exchange Commission Regulatory Priority

Tue, 18 May 2010 04:22:51 EST

Oh, puhleaaaaase, somebody, anybody, help! The Securities and Exchange Commission has announced yet another public meeting of yet another advisory committee. One more laughable event in an endless stream of idiocy. Apparently, the new theory of Wall Street regulation is that if you can't do anything to prevent securities fraud, maybe you can talk it to death. Count 'em: Four SEC commissioners and one SEC Chair. These five professionals were presidentially appointed because they supposedly brought something to the job -- background, experience, insight. Despite those credentials, these SEC leaders have no opinions and no workable ideas. Why do I say that? Well, SEC Press Release after SEC Press Release after SEC Press Release reference&...

Need to Cheer Up for the Holidays? Here's my advice!

Tue, 17 Nov 2009 08:37:15 EST

A holiday message from Bill Singer of Broke And Broker It has been a difficult and trying year for all of us in the financial services community. Frankly, that's an understatement. For many of you this has been a year of devastation. Firms have closed. Jobs lost. Savings wiped out. There is no way to sugar coat it, and I will not pretend otherwise. Sadly, the Great Recession battered many charities. The annoyance of looking for your checkbook and keeping a record of the donation for your accountant, is now replaced by a more difficult concern: Can I afford this? Such painful choices test our humanity. Would you please join with me and make a holiday donation to the Starlight Children's Foundation. I can think of no better holiday gesture than to put a smi...

Forbes' Intelligent Investing Panel: Panic and the Market Pros

Tue, 17 Mar 2009 05:55:14 EST

Intelligent Investing All-Stars Are You Afraid Of Stocks? http://www.forbes.com/2009/03/16/panic-selling-vix-intelligent-investing-volatility.html Fear remains at a high, despite positive stock action. What do market pros fear, and how do they deal with it? With Vince Farrell, Bill Singer and Randy Frederick. var csstype="external" //Specify type of CSS to use. "Inline" or "external" var mac_externalcss='http://images.forbes.com/css/intelinvest_mac.css' //if "external", specify Mac css file here var pc_externalcss='http://images.forbes.com/css/intelinvest_pc.css' //if "external", specify PC/defau...

John Reid's Take on Senior Citizen Initiative

Tue, 17 Jun 2008 11:37:45 EST

A recent Wall Street Journal article: Regulators to Speed Probes of Defrauded Senior Investors (http://online.wsj.com/article/SB121314476769562823.html), noted that the Financial Industry Regulatory Authority (FINRA) Chief of Enforcement, Susan Merrill, called for the speeding up of the self-regulatory organizations (SROs) investigations of possible fraud against senior investors. Merrill wants such investigations completed in four months. You wouldnt think such an initiative would be dangerous or counter-productive. Well, think again. The reason I think this initiative is potentially hazardous is because when regulatory examiners get rushed, things get overlooked (or quickly dismissed). Before you throw rocks at me, keep in mind that I worked as a FINRA examiner for ma...

Bill Singer Resigns from FIA -- for the time being.

Tue, 17 Jul 2007 12:22:55 EST

On July 17, 2007 the following comment was posted on the Financial Industry Association (FIA) Blog: 7/17/2007 9:11:09 AM A month and a half after numerous people on this site agreed with Bill Singer in that we need to pay dues to have a real voice like a REAL union and nothing has happened. Looks like this merger will go through with nothing more than grumbling from us as we bend over and take it. So disappointing the best we could do is act like whiney babies, say stupid comments on this site and do NOTHING! Sadly, in response to that post, another Blog entry appeared that same day: 7/17/2007 12:44:34 PM To the schmuck who posted this.....why don't you stop crying and send in a donation of $1000? Or better yet , why don't you do the world a favor and fall on a kni...

An Armistice at NASD --- for now

Tue, 17 Jan 2006 12:17:52 EST

We are in the midst of an historic contested election between a slate of NASD Board candidates nominated by the NASD's National Nominating Committee and a slate of Dissident candidates who garnered petitions from more than 10% of the NASD's member firms. It is a dramatic moment in the history of Wall Street's self regulatory process. It is as close to civil war as an industry can be. Why have we reached this point? I think there are several reasons. The seeds of Wall Street's self-regulatory organization scheme were planted in the late 1930s in legislation that essentially thought the brokerage industry could regulate itself. At the time, a noble idea --- if not one that made some sense. But the securities industry at the dawn of World War II is not remotely similar to the s...

NYSE Suitability Case: Illegal Tape Recording Okay Says SEC

Tue, 17 Feb 2009 07:31:13 EST

By Bill Singer http://BrokeAndBroker.com http://RRBDLaw.com Former A.G. Edwards and Sons, Inc. (AGE) registered representative Luis Miguel Cespedes was found by the New York Stock Exchange (NYSE) to have recommended and effected unsuitable transactions that resulted in high concentrations of technology sector unit investment trusts ("UITs") in the accounts of fourteen of his customers, and frequently using margin debt, without due consideration of the age, investment experience, financial sophistication, and personal circumstances of the customers. All fourteen customers at issue filed arbitration complaints against AGE, which reached settlement agreements with...

A Nasty Partnership Split

Tue, 17 Aug 2010 12:16:31 EST

In a FINRA Arbitration Statement of Claim filed in March 2009, James Alan Tekavec alleged that Frank Patrick Cunnane breached their partnership agreement and misrepresented to Tekavec that their partnership of continued commission sharing would continue once the parties moved to FiNet, an independent broker-dealer division of Wachovia Securities. In the Matter of James Alan Tekavec, Claimant, versus Frank Patrick Cunnane and Wachovia Securities, LLC, Respondents (FINRA Arbitration #09-01561, August 12, 2010). The Gotcha? Claimant Tekavec alleged that shortly after he and Respondent Cunnane registered with FiNet, Cunnane presented an employment agreement, which offered an untenable position of taking a substantial pay cut. Claimant further alleged that Respondent Wachovia tortio...

As Woody Allen Said

Tue, 16 Sep 2008 06:38:02 EST

By Bill Singer http://BrokeAndBroker.com http://RRBDLAW.com Many of you have phoned and written to me in recent days. Some of the stories have been heart wrenching: the closing of your firm, the loss of your job, the loss of your savings. The personal and professional carnage is considerable; however, after nearly three decades on Wall Street, I am no longer surprised when the pendulum swings, as it now has. As most of we old hands know, this is not simply another recession or another bear market. No, this is a more fundamental change--it is the likely death of Pax Americana: the post-War ascendancy of the United States of America to the role of world's sole economic and military superpower. Although I doubt that the USA is headed for third-world status or even that of ...

Forbes Intelligent Investing Panel: Interest Rates

Tue, 16 Jun 2009 10:44:59 EST

Interest Rates Will Stay Low The Federal Reserve is committed to keeping rates low. Why fight them? With John Osbon, Head of Osbon Capital; Gerard Klingman, President of Klingman & Associates; Bill Singer, Shareholder in the Securities Practice Group of the law firm Stark & Stark and Publisher of http://BrokeAndBroker.com and http://RRBDLaw.com ...

Have Arthur Levitt's Words Come Back to Haunt Him?

Tue, 16 Dec 2008 05:26:47 EST

By Bill Singer http://rrbdlaw.com http://BrokeAndBroker.com New York Post writers Mark DeCambre and Kaja Whitehouse published a fascinating story today in the New York Post: Ex-SEC Boss: Not My Fault. Frankly, they have opened a window into the inner sanctum and thoughts of those charged (and once charged) with regulating Wall Street. On the heels of the recent lurid disclosures about Bernard Madoff's multi-billion dollar fraud, former SEC Chair Arthur Levitt is quoted in the article as saying: " At this point, I don't see any evidence that the SEC dropped the ball. That comment infuriates me and likely many others who have spent countless hours this past week listening to the devastation brought upon the life savings of many victims of Madoff's apparent fraud. M...

Bill Singer Discusses Caribbean Financial Markets

Tue, 15 Apr 2008 14:24:30 EST

Bill Singer Discusses Caribbean Financial Markets Broadcast on Thursday, April 17, 2008, at 9AM ET and 8PM ET Time Warner Cable Channel 34 and Cablevision 67 Simulcast at http://www.briconline.org/bcat/default.asp Veteran securities-industry lawyer Bill Singer is scheduled to ap...

Forbes Intelligent Investing Panel: Luck vs. Skill vs. Talent (Picking Investments)

Tue, 14 Jul 2009 06:02:11 EST

Luck vs. Talent vs. Skill Some traders have had long streaks of good investments, but then those fizzled out. That's not skill. With Stephen Roseman, Managing Member of Thesis Capital Management; and Bill Singer, Shareholder in the Securities Practice Group of the law firm Stark & Stark and Publisher of http://BrokeAndBroker.com and http://RRBDLaw.com Bill Singer: ...

Is the Trend Your Friend?

Tue, 14 Apr 2009 13:36:12 EST

As of Tuesday's Dow Jones Industrial Average (DJIA) market close of 7,920.18, we are just about back to February 2, 2009, when that average closed at 7,936.83. Essentially, the DJIA has neither moved up nor down for about two and a half months. That's a lot of sideways. However, given how dire things seemed then, that's quite a surprising fact; and all the more so when you remember that on March 9th the DJIA was at 6,547.05, or some 1,400 points below where we now stand. On the other hand, we closed at 9,015.10 on January 6, 2009, so let's not start celebrating the net loss to date of 1,000 points. My newfangled tool for taking the market's temperature seems likely to get a test today. We have not had three DOWN days in a row since February 23, 2009 (or March 3rd if you want...

Kudos from (and to) retirement planning blogster

Tue, 14 Apr 2009 09:10:45 EST

I just found this little nugget in my in-box: Bill Singer's Broke and Broker Blog added to our blog roll 04 | 14 | 2009 Posted By Jerry Kalish Much of whats out there on blogs is pretty vanilla at best. Except for those individuals that combine their expertise with a definite point of view. It makes for interesting reading and provides context for whats going on in their particular field and sometimes in the larger picture of the economy and business environment. And thats been the criteria for adding blogs to our blog roll. So heres one more. Its Bill Singers Broke and Broker Blog...

The Mysterious Three-Day Trend

Tue, 14 Apr 2009 05:13:03 EST

By Bill Singer For some reason, a lot of folks are intrigued by my recent analysis of the Three-Day-Down trend. As I noted in my earlier blogs on the issue http://www.brokeandbroker.com/index.php?a=blog&id=161 http://www.brokeandbroker.com/index.php?a=blog&id=164 I was annoyed that the boo-birds were flocking to the media with dire predictions based upon seemingly little more than regurgitated fears. My point was to try and bring some objective data into the debate. Pointedly, I am NOT predicting a Bull Market or a continuation of an uptrend. I am merely hoping to introduce a thermometer -- a device that does not predict the temperature but records it. You do with the data what you will. In analyzing Year-to-Date market data, I took the most popular index: the Dow Jones In...

Vote for Small Firm Petition Candidates. Vote

Tue, 13 Jul 2010 05:13:27 EST

A Personal Message from Bill Singer --- The Financial Industry Regulatory Authority (FINRA) has just distributed its Proxy for the Annual Meeting of FINRA Firms on August 12, 2010. http://rrbdlaw.com/FINRAProxy2010.pdf As to the eight propositions on the ballot, FINRA's representatives will vote "NO" on items #2 through #8 in the absence of your voting instructions. FINRA member firms cannot defer these critical choices to the self-regulator and its supporters. A failure to ensure that your voice is heard -- now, this year -- is irresponsible. Your career and your business are at stake. You complained about the ongoing destruction of the independent/regional community, but the agenda catered to the big boys and the too-big-too-fail. The com...

FINRA Employment Arbitration: Never Mind

Tue, 13 Apr 2010 04:29:22 EST

In the Matter of the Arbitration Between Steven Esposito, Claimant, versus Citigroup Global Markets, Inc., Respondent. (FINRA 08-03070, March 31, 2010), Claimant Esposito alleged Breach of Contract; Violation of Right to Privacy; Intentional Interference with Existing and Perspective [Ed: I believe that should be Prospective] Business Relationships; and Conversion (at the hearing, Claimant was granted permission to add a claim for Fraud). Claimant sought $600,000 in compensatory damages and $375,000 in punitive (at the close of the hearing, Claimant amended those claims by seeking compensatory damages of over $906,500 and $38,000 in attorneys fees). Promises, Promises, Promises Claimant alleged that he and Respondent Citigroup Global Markets, Inc. (CGMI) entered ...

Integritas et Probabiliter

Tue, 12 Jan 2010 06:11:04 EST

When you think about a Wall Street regulatory organization -- be that federal, state, or self-regulatory -- you would like to think that the words "integrity" and "credibility" would sort of find their way on to whatever escutcheon or seal is used to depict the organization. They sure as hell spend enough bucks hiring some fancy-schmanzy public relations firm to re-brand tarnished images these days. Of course, it's nice that we have those new regulatory websites and blogs. It's nice that they got everyone all gussied up for the headshots,the webcasts, and videos. Darlings, you all look fah-bulous!Still, with all the new logos floating around, couldn't someone find space to add the Latin words Integritas and Probabiliter? As has been made all too clear in recent months,...

Forbes Intelligent Investing Panel: Hire or Lower? (Yeah, it's a pun)

Tue, 11 Aug 2009 15:12:54 EST

Ride The Next Hiring Boom Once the recession ends, there could be a hiring boom. Using jobs numbers as an indicator to get in to an investment has worked before. With John Osbon, Founder of Osbon Capital Management; and Bill Singer, Shareholder in the Securities Practice Group of the law firm Stark & Stark and Publisher of http://BrokeAndBroker.com and http://RRBDLaw.com Bill Singer: ...

Are First Amendment Rights Now Second-Class?

Tue, 10 Jul 2007 08:48:33 EST

BILL SINGER Publisher of http://rrbdlaw.com http://BrokeAndBroker.com July 10, 2007 The following comment is submitted in response to the NTM 07-30: Supervision of Electronic Communications. NASD and NYSE Request Comment on Proposed Joint Guidance Regarding the Review and Supervision of Electronic Communications. Please note that this comment is submitted by me in my personal capacity and should not be taken to reflect the views or opinions of any law firm or organization with which I may be affiliated. Although I take issue with the scope of the proposed guidance and what I consider an unwarranted expansion of regulation that restricts the First Amendment rights of hundreds of thousands of individuals registered on Wall Street, I also concede that under the established parame...

GUEST BLOG: Hiding the Historic Madoff Settlement

Tue, 10 Feb 2009 10:19:48 EST

BROKEANDBROKER.COM GUEST BLOG http://RRBDLaw.com http://BrokeAndBroker.com By Peter J. Chepucavage The SEC Madoff settlement release posted yesterday may seem anticlimactic to many given what we now know. But for those of us with over 30 years experience, it marks a major eve...

BILL SINGER ENDORSES JAMES

Tue, 10 Feb 2009 06:52:23 EST

BILL SINGER ENDORSES JAMES "JIM" JONES FOR SMALL FIRM NAC SEAT http://RRBDLaw.com http://BrokeAndBroker.com The Financial Industry Regulatory Authority's (FINRA's) National Adjudicatory Council (NAC) is composed of members who will serve three-year terms. This year, one Large Firm and one Small Firm NAC seat are open for election. FINRA's Nominating and Governance Committee has nominated one candidate for each of the two available seats. In the case of the Small Firm NAC seat, there will be a contested election between an individual who made the effort to seek petition ballots, and another individual who was picked by FINRA's committee and not required to overcome the nominating ballot threshold. I do not like that discrepancy. I believe that all candidates seekin...

Morgan Stanley Agrees to $800,000 Research Report Fine

Tue, 10 Aug 2010 12:38:27 EST

In a Press Release titled: FINRA Fines Morgan Stanley $800,000 for Deficient Conflict of Interest Disclosures in Equity Research Reports and Public Appearances by Research Analysts / Firm Also Violated 2003 Research Analyst Settlement at http://www.finra.org/Newsroom/NewsReleases/2010/P121785, the Financial Industry Regulatory Authority (FINRA) announced on August 10, 2010, that it has censured and fined Morgan Stanley & Co., Inc. $800,000 for failing to make public disclosures required by FINRA's rules governing research analyst conflicts of interest. The firm also failed to comply with a key provision of the 2003 Research Analyst Settlement by failing to disclose the availability of independent research in customer account statements. In addition to the censure a...

Another Pro Se Respondent Settles a Promissory Note Case

Tue, 10 Aug 2010 05:06:11 EST

In a Statement of Claim Filed in April 2009, Claimant Banc of America Investment Services, Inc. (BOA) alleged, in part, that its former associated person J. Michael Sciara was liable for damages which became due and payable at the time of his termination on December 31, 2004. In accordance with the terms of two Promissory Notes dated Febmary 14, 2003 and September 25, 2003 (the "Notes"), Claimant alleged that Respondent Sciara failed to make payments to Claimant and that additionai interest, attorneys' fees and costs have accrued.. NOTE: In connection with its purchase of Merrill Lynch & Co., Inc. by BOA in October 2009, BOA merged with and into Merrill Lynch, Pierce, Fenner & Smtth Incorporated. . Claimant sought: $48,040.00 in principal; $1...

You Have Email: Give Me Your Money or Your Life

Tue, 09 Mar 2010 10:06:00 EST

A federal criminal Complaint unsealed on March 8, 2010, paints a frightening story. On February 22, 2010, more than a dozen employees,executives, and one board member of a New York-based life insurance company (the "Company") received an email that read, in part, "I HIGHLY suggest you visit this websiteand contact me afterwards." The message was signed signed "Anthony Digati." ("Digati") The email provided a website address that connected a viewer to a website created by Digati (the"Website"). The Website includes, among other things, the following text a. These things, unless you honor the below claim, WILL HAPPEN on March 8, 2010. 　 b. As you have denied my claim I can only respond in this way. You no longer have a choice...

Josh Brown's "the Reformed Broker" Hits Another Nail on the Head

Tue, 09 Mar 2010 05:47:36 EST

My Wall Street blogging buddy and sometime intellectual foil, Josh Brown of The Reformed Broker seems to be coming over to the dark side of things in the regulatory-reform world. He recently railed against the photo-op sessions that too often pass for dialog as Congress and the Bush Administration continue to jockey over the future face of financial services regulation. Taking the Treasury Department to task, Josh explained it this way -- with his now trademark wit and barely repressed sarcasm: Inviting the milquetoast Huffington Post in for a face-to-face open house, the Treasury Department missed a golden opportunity to gain some real Street Cred. I don't know the backgrounds of everyone on the list, but I can tell you right now that other than Felix, I don'...

Bill Singer to Appear this Sunday June 14th on

Tue, 09 Jun 2009 12:11:54 EST

Join Larry Doyle every Sunday night at 8 p.m. ET for an hour's worth of internet talk radio about the economy, markets and global finance. Call in, ask questions, and share thoughts as we navigate the economic landscape. ****** Listen NOW to an audio recording of Larry's latest show: ...

Marketplace Radio: Reforms to Derivatives

Tue, 09 Jun 2009 06:37:57 EST

MARKETPLACE / American Public Media Reforms to derivatives could be costly Traders bought and sold complex financial contracts called derivatives over the last decade. But no one knew the destruction they'd cause in the new millennium. John Dimsdale reports on new regulation that could be coming to the industry. With Michael Greenberger, University of Maryland law professor Hal Scott, Director of the Committee on Capital Markets Regulation Cory Strupp, Managing Director of The Securities Industry and Financial Markets Association (SIFMA) Senator Tom Harkin (D-Iowa) Bill Singer, Shareho...

Former Broker Avoids Full Repayment of $142,000 Bonus

Tue, 09 Feb 2010 12:41:13 EST

Among the consequences of the Great Recession is the ongoing realignment of Wall Street -- which involves brokerage firms closing, industry mergers and acquisitions, and the attendant dislocation. Registered representatives who went to sleep working for one firm, awake and find that they are working for another (or the doors to the old shop are locked and the firm out of business). As such, the Financial Industry Regulatory Authority's (FINRA's) arbitration forum is seeing a marked increase in employee-employer disputes, particularly cases involving allegations by employers that former employees have violated non-solicit/compete clauses, are not entitled to severance packages, and must repay so-called Employee Forgiveable Loans ("EFLs") and...

High-Profile FINRA Arbitration BECK-ons once more.

Tue, 09 Feb 2010 05:47:09 EST

The high-profile Financial Industry Regulatory Authority (FINRA) arbitration between Lance R. Beck and SunTrust Robinson Humphrey, Inc. (STRH) has found a tortured path back onto the radar screen. A decision in this case was first announced on December 29, 2009, but an Amended Award was issued February 5, 2010. In the Matter of the Arbitration Between Lance R. Beck and SunTrust Robinson Humphrey, Inc. (Amended Award FINRA 08-02482 / February 5, 2010). The purpose for the amendment seems to be a technical substitution of the name of the Claimants legal counsel. In recent weeks I have received an increasing number of calls from brokers troubled by U5 disclosures and ongoing issues arising from prior Auction Rate Securities (ARS) sales. As such, Beck pro...

Regulatory Budget Crisis (wink, wink, nod, nod, say no more)

Tue, 08 Dec 2009 14:12:39 EST

Regulators Plead Poverty Wall Street's cops want bonuses too. Bill Singer: [I]n 2008, when FINRA lost $696.3 million, it spent some $13 million on salaries for just 13 of its heavy hitters. Two things got my attention: One, how the hell does a regulator lose $696 million; and, two, 13 regulators each earned at least $1 million in a year when life as we knew it ended on Wall Street? Among the more troubling findings were that, "SEC Chairman Mary Schapiro, who received $3.3 million last year as FINRA's chief executive officer, is paid $162,900 to run the government agency. Earlie...

Back at Black: Honest Services . . . indeed!

Tue, 08 Dec 2009 12:12:16 EST

A number of reporters have asked me about the so-called "honest service" fraud on which U.S. v. Conrad Black et al. http://www.justice.gov/usao/iln/indict/2005/us_v_black2.pdf was indicted, convicted, and which now serves as the basis for his appeal before the United States Supreme Court. I reprint below the verbatim applicable sections: TITLE 18 > PART I > CHAPTER 63: CHAPTER 63-MAIL FRAUD AND OTHER FRAUD OFFENSES § 1341. Frauds and swindles Whoever, having devised or intending to devise any scheme or artifice to defraud, or for obtaining money or property by means of false or fraudulent pretenses, representations, or promises, or to sell, dispose of, loan, exchange, alter, give away, distribute, supply, or furnish or procure for unlawful use a...

The Fiduciary Standard: Battle Lines Are Drawn

Tue, 08 Dec 2009 05:37:26 EST

As Wall Street reform moves through Congress, the jockeying for advantage between the investment advisory/financial planning sector and the rival broker-dealer sector grows even testier. The lobbying is intense. The dollars pour into the pockets of our elected representatives. We have already seen far too much nonsense to believe that the drafting and subsequent voting will be based upon pristine considerations -- much less the best interests of the public investor. Among the more critical fights is over the imposition of a unified Fiduciary Standard on all financial industry representatives. As I warned in my Forbes column earlier this year The Death of the Salesman: As a wizened Wall Street veteran, I know that he who contr...

FINBAR...FUBAR...Not much of a difference

Tue, 07 Apr 2009 14:22:43 EST

By Bill Singer http://BrokeAndBroker.com Brief Summary On April 7, 2009, The Securities and Exchange Commission announced that it has halted the fraudulent conduct of Finbar Securities Corp., an unregistered West Covina, California broker-dealer, and its president Robert Tringham, a United Kingdom national who resides in Diamond Bar, California, and Portland, Oregon. Tringham has operated Finbar since at least 2006. On April 3, 2009, the Commission obtained an order freezing the assets of Finbar and Tringham, appointing a temporary receiver over Finbar, requiring accountings, prohibiting the destruction of documents, granting expedited discovery, and temporarily enjoining Finbar and Tringham from violating Section 17(a) of the Securities Act of 1933, Sections 10(b) and 15(a) o...

Ten Years After: The failure to reform Wall Street

Tue, 06 May 2008 10:02:18 EST

Ten years have passed since I helped found the NASD Dissident Movement, when we took our first steps with the historic 1998 contested election for the NASDs Board of Governors. After fielding four candidates and given little chance of success, our slate won two seats and our fledgling coalition seemed destined to flourish. Unfortunately, as with many things in life, the loftier the goals, the greater the crash to earth. Personal disputes and professional differences soon found their way into the movement and things collapsed into a balkanized bevy of self interests. It is with great sadness that I look back over a decades effort to reform Wall Street and see an industry much worse for the wear. With the blessings of a co-opted regulatory system, the major ...

Eliot Spitzer Leaves the Farm for Wall Street

Tue, 06 Jul 2010 14:51:16 EST

Eliot Spitzer Leaves The Farm For Wall Street http://www.forbes.com/2010/07/06/cincinnatus-new-york-fed-intelligent-investing-spitzer.html During two brief terms as Dictator, Lucius Quinctius Cincinnatus led Romes armies into battle and vanquished the Republic's enemies. Thereafter, Cincinnatus twice retired to his farm and left the political arena. Where other men would have been consumed by their appetite to retain power, Cincinnatus was content to till the soil. Eliot Spitzer is no Cincinnatus. . . . [I]n the end, Spitzer's attempt to reinsert himself into the political arena comes off as opportunistic and calculated. Whatever sincerity he brings to the table comes off as comically ironic. When I read the title of hi...

A Pro Se Respondent and a Lawyered-Up Respondent: Similar Cases -- How did they fare?

Tue, 06 Jul 2010 05:51:28 EST

Respondent Proceeded Pro Se In its Statement of Claim filed October 20, 2009, Claimant Morgan Stanley Smith Barney, LLC. ("MSSB") alleged that on November 9, 2007, Respondent Malcolm G. Taaffe had defaulted on his agreement to pay three promissory notes, and, as a result, had breached his agreement to pay the sums due. Claimant sought to recover on three promissory notes executed respectively on September 10, 2003 ("Note 1": $300,113.96 principal plus accrued interest of $1,973.40[sic: as stated in the FINRA Decision], plus accruing interest at 4% per annum); November 24, 2004 ("Note 2": $262,371.54 principal plus accrued interest of $10,062.5, plus accruing interest at 4% per annum); and November 26, 2006 ("Note 3": $106,685.75 principal plus accrued inte...

Running on Empty

Tue, 06 Jan 2009 06:30:24 EST

By Bill Singer http://RRBDLaw.com http://BrokeAndBroker.com I have spent nearly three decades on Wall Street, from my beginning in the Legal Department at Smith Barney, Harris Upham & Co., through two stints as a regulator, and eventually to my present role as a law firm partner representing public investors and industry clients. If there is one thing that has often set me apart, it has been my persistent agitation for substantive reform of our ineffective regulatory system--and make no mistake about that: I am no Johnny-come-lately to that pulpit! Search online and you will see years of articles and comments about unfair, abusive, ineffective, and corrupt regulation. Now, I find myself amidst much company. Isn't that just wonderful! So much public hand-wringing by ...

Forbes.com Intelligent Investing All-Stars: Tax Season -- calling all amateurs?

Tue, 06 Apr 2010 13:23:33 EST

Intelligent Investing All-Stars http://www.forbes.com/2010/04/06/intuit-turbo-tax-intelligent-investing-taxes_3.html USA, CPAPreparing sophisticated tax returns is easy for the everyman.With Carol Pepper, Gary Shilling and Bill Singer. Pepper: Well, the tax code is so complicated, and there are so many ways to get tripped. If you own your own business or you have a consulting business on the side and, you know, you're moonlighting, et cetera, you're much better off to have somebody do it for you. One area that people get into a lot of trouble with, one of the flags for example for being audited, is the home office deduction. A...

BrokeAndBroker Welcomes Rosenthal Consulting Group (See Job Openings)

Tue, 05 May 2009 13:29:13 EST

BrokeAndBroker.com welcomes the Rosenthal Consulting Group to its list of professional service providers. Specialized Recruiting and Staffing for Tri-state, National and Global Companies and Firms Whose Missions Include Compliance, Legal and Financial Services. Featured Current Placements: Blue Sky opening with a Top LAW FIRM for Attorney with 4-5 years of experience. This opportunity is located in NY. Operations Manager - who knows Broadcourt and Pershing Clearing systems, New Account processes, Settlement, Trade Issues and more. A nice growing Broker-Dealer - Trenton, NJ area. Series 7, 24 preferred. 5 + years of related work experience. Senior-level Audit Man...

U Sure U Know About U5?

Tue, 04 Mar 2008 07:35:31 EST

In the Beginning In 2003, MetLife terminated registered representative Chaskie Rosenberg, and filed a Form U5 with NASD that disclosed the following explanation: "AN INTERNAL REVIEW DISCLOSED MR[.]ROSENBERG APPEARED TO HAVE VIOLATED COMPANY POLICIES AND PROCEDURES INVOLVING SPECULATIVE INSURANCE SALES AND POSSIBLE ACCESSORY TO MONEY LAUNDERING VIOLATIONS." Rosenberg then sued MetLife in the United States District Court for the Southern District of New York and sought damages for employment discrimination, fraudulent misrepresentation, breach of contract and libel. Rosenberg alleged that MetLife terminated his employment because he is a Hasidic Jew. With respect to his libel claim, he asserted that MetLife's statements on the Form U-5 were defamatory and made with m...

Bill Singer Endorses Small Firm Advisory Board Candidates

Tue, 04 Dec 2007 11:15:04 EST

On or about December 14, 2007, FINRA is slated to mail its Election Notice and Ballots to small firms' executive representatives for the Small Firm Advisory Board (SFAB) contests involving the five open regional seats in Midwest, New York, North, South, and West. The best way for you to maintain the decade long momentum started by the NASD Dissident Movement (now known as the FINRA Dissident Movement) is to support the election of candidates seeking to restore self regulation to a partnership of the regulator and the regulated. To further that process, we must promote a collegial dialog between regulators and the regulated, and between various industry factions. One way to accomplish those goals is by supporting sincere, progressive candidates seeking election to FINRA offices. ...

Rep. Bachus Slips One In (and not everyone is cheering)

Tue, 03 Nov 2009 08:31:07 EST

My Forbes column: Regulating Wall Street by J. Wellington Wimpy http://www.forbes.com/2009/11/02/regulation-finra-sec-intelligent-investing-mary-schapiro.html warned the public about the games being played by the House Committee on Financial Services as it began consideration on Oct. 1, 2009, of the Discussion Draft of the Investor Protection Act of 2009. By now, we are all used to some of the backdoor deals and unprincipled compromises that too often masquerade as politics -- so, to that extent, we have become a bit numb to the nonsense. However, I think that Capitol Hill took its legislative legerdemain to new depths, when Representative Spence Bachus (R. Ala) inserted an amendment to the draft Act that gave the Financial Industry Regulatory Authority (FINRA) ...

Driving a Point Home: Stockbroker Registration

Tue, 03 Feb 2009 12:22:59 EST

By Bill Singer http://RRBDLaw.com http://BrokeAndBroker.com In the Matter of the Application of Michael Stegawski (Securities Exchange Act Rel. No. 59326/ Admin Proc. File No. 3-13001/January 30, 2009) http://sec.gov/litigation/opinions/2009/34-59326.pdf Rather than present the numbing five years of facts in my typically artful prose, I have opted for the rather more convenient numbered format below. Frankly, I hope this choice of format better depicts the Juggernaut of inanity that passes for serious regulation. 2004 In January 2004, Michael Stegawski began working as a trainee for Morgan Stanley DW Inc. ("Morgan Stanley"). On March 26, 2004, Stegawski passed the Series 7 Examination and became registered as a general securities repres...

Yet Another Wall Street Stripper Case

Tue, 02 Mar 2010 06:25:37 EST

Harry Markopolos (one of my heroes) recently lambasted the culture of lawyers at the Securities and Exchange Commission (SEC). In Markopolos view, a key problem, perhaps even the seminal problem, at the SEC is a lack of mathematicians, accountants, and other finance professionals. The rebuffed Madoff whistleblower argues that lawyers cant decipher financial statements and have waylaid the federal regulator. In more stark terms, he said that lawyers poisoned the SEC he also calls many of them idiots. I understand where Markopolos anger comes from. Been there, done that. However, I refuse to accept his thesis that if there were simply more number-crunchers at the SEC that the failures to competently investigate and examine Wall Street would ceas...

Bill Singer Admits SEC Had Hard-on For Bad Guys

Tue, 02 Feb 2010 14:07:49 EST

When I'm wrong, I'm wrong. And when I'm wrong, I think it is incumbent upon me to apologize -- no matter how humiliating it is. As many of you know, for some twenty or so years I have been among the nation's leading critics of Wall Street's regulators. I have consistently chided the Securities and Exchange Commission (SEC), the NASD, and now FINRA for inept and incompetent regulation. I have pointed a finger (and wagged it) at the SEC for a number of atrocious regulatory lapses. Pointedly, I have charged the SEC with failing to timely detect the Madoff fraud, the Stanford Financial scam, and any number of recent high-profile con games and con artists. Past and present SEC staffers took exception to my barbs. Those regulators complain that...

An All Too Human Appeal

Tue, 02 Feb 2010 08:32:08 EST

As a lawyer, I have a quirky way of reading. The first time I read a decision or opinion, I start at the beginning and read straight through to the end. I underline everything that strikes me as important or interesting. Then I take a yellow highlighter and read through a second time, from start to end, highlighting only the key issues and points.Finally, armed with a different color highlighter, I read from the end of the case backwards looking to highlight the few takeaway points of the case. Why such an oddball approach? I find that this method helps me best understand the facts, the law, and the nuances of both. In that spirit, let me offer you a somewhat jumbled presentation of a recent Opinion issued following an appeal to the Securities and Exchange Commiss...

SEC Charges Unregistered Brokers From Unregistered Firm Sold Fictitious Securities in Affinity Scam

Tue, 01 Jun 2010 04:11:14 EST

On May 26, 2010, the Securities and Exchange Commission (SEC) charged that between 2004 and 2009, Gedrey Thompson and GTF Enterprises, Inc., with the assistance of Dean Lewis and Sezzie Goodluck, engaged in an offering fraud and ponzi scheme, raising over $800,000 from at least 20 investors who invested in GTF. Thompson primarily targeted unsophisticated investors in the Caribbean and African-American communities in Brooklyn, New York. Securities And Exchange Commission, Plaintiff, V. GTF Enterprises, Inc., Gedrey Thompson, Dean Lewis, And Sezzie Goodluck,Defendants (May 25, 2010, United States District Court, Southern District of New York http://sec.gov/litigation/complaints/2010/comp-pr2010-87.pdf ). Please note that the Defendants are presumed innocent unless and until proven guil...

RRBDlaw.com: November FINRA Cases Online

Tue, 01 Dec 2009 06:51:41 EST

Bill Singer has just posted his analyses of some of November's interesting FINRA cases. There are a number of interesting National Adjudicatory Council (NAC) appeals -- and Bill raises provocative questions about sanctions and delays in posting the appellate decisions on FINRA's website. Read the cases at: http://www.rrbdlaw.com/enforcement-actions/index.php?cid=1 ...

Of Mortgages and Outperforming the S&P 500 Index

Thu, 30 Jul 2009 07:36:01 EST

How To Save Troubled Mortgages Obama wants to save more mortgages. But defaults have yet to abate, and new mortgage applicants face harsh guidelines. With Greg Ghodsi, Senior Vice President at Raymond James & Associates' 360 Wealth Management Group; Sacha Millstone, Senior Vice President with Raymond James & Associates' Millstone Evans Group; and Bill Singer, Shareholder in th...

Does FINRA have the integrity to do the right thing?

Thu, 29 May 2008 11:58:14 EST

Many of you have telephoned and emailed me the last few days about the reported SEC action against Richard Goble, who now serves as a small-firm Governor on FINRA's Board. See this recent blog posting for further details: http://www.rrbdlaw.com/brokeandbroker/index.php?a=blog&id=49. Pointedly, you raise concerns about whether FINRA will force Goble to resign (or that he will do so voluntarily), and whether the regulator will use that opportunity to seat another of its cronies. Richard Goble was elected in 2007 to serve as a small-firm Governor. He was not nominated by FINRA's National Nominating Committee. To the contrary, he headed up a ticket populated with Dissident and Reform contested candidates, including folks running at the district and National A...

Wells Fargo / Wachovia awarded promissory note balance, overpaid commissions, and trade errors

Thu, 29 Jul 2010 04:01:15 EST

In a Statement of Claim filed on July 23,2009. Claimant Wells Fargo Advisors, LLC f/k/a Wachovia Securities, LLC alleged that Respondent William G. Adelsberger failed to repay sums allegedly due Claimant pursuant to the terms of a fully executed promissory note dated June 15, 2007 (the "Note"), owed repayment of overpaid commission fees from Claimant; and owed repayment of payments made by Claimant to settle Customer Complaints #1, #2, #3 and #4, which involved Respondents' trading errors. Claimant requested: outstanding principal due on the Note in the amount of $52,500.00, plus Interest on the principal amount at the annual percentage rate of 8.25% that has accrued since August 22, 2008 until paid in full; damages from overpaid commissions in ...

Handicapping the FINRA CEO Race: The Touts Weigh In

Thu, 29 Jan 2009 14:58:47 EST

By Bill Singer http://RRBDLaw.com http://BrokeAndBroker.com I recently read an Investment News story: Rumors fly over wholl be next Finra CEO (January 29,2009) in which Bruce Kelly wrote that at a recent Financial Services Institute (FSI) conference, some participants were discussing successors to departed FINRA CEO Mary Schapiro and that among Those [names] being bandied about as potential replacements for Mary Schapiro, who now heads the Securities and Exchange Commission, include Rick Ketchum, CEO of NYSE Regulation Inc.; Annette Nazareth, a former member of the SEC; and Douglas Shulman, commissioner of the Internal Revenue Service. As I have recently written in this Blog, FINRA has apparently decided to conduct the sear...

Bill Singer Endorses NASD Dissidents in Board Race

Thu, 29 Dec 2005 08:53:28 EST

December 29, 2005 As with far too many undertakings of great import, time is short and much has to be done on the run and at the last minute. Under the circumstances I hope you will understand that this message has been written quickly and will likely not be as comprehensive as I would otherwise wish. For nearly a decade I have been in the forefront of what is often referred to as the NASD Dissident Movement. I helped to plan and oversee the first contested NASD Board of Governors election (with two candidates elected), and I have served as pro bono publico Legal Counsel to subsequent dissident efforts to contest Board and local District Committee elections. How is the NASD run? The process is simple. The NASD nominates a hand-picked slate of candidates for its few elective o...

Broker Wins FINRA U5 Defamation Arbitration -- Sort of, maybe, perhaps?

Thu, 29 Apr 2010 06:47:43 EST

In the Matter of the Arbitration Between Gary Duane Hicks, Claimant, vs. Pruco Securities, LLC and The Prudential Insurance Company of America, Respondents (FINRA Arbitration 09-05528, April 19, 2010), Claimant Hicks asserted that Respondents filed false and misleading language on his Form U5. He sought $100 in damages, attorneys fees, costs, and an Order of Expungement. The FINRA Arbitrator found Respondents jointly and severally liable for compensatory damages of $100.00 and denied attorneys fees. Based upon the "defamatory" nature of the statements, the Arbitrator recommended expungement of Section 3 of Claimants Form U5 dated February 5, 2008, which stated: REGISTERED PRINCIPAL REPRESENTED TO THE COMPANY THAT HE HAD IMPLEMENTED A PROCESS IN THE OFFICE TO HELP ENSURE COMPLIAN...

Effitti : Online Graffitti . . . a problem seeking a solution

Thu, 28 Sep 2006 07:31:36 EST

One of the truly frustrating things about the Internet is that it enables anonymous posters to deface the online world with a form of graffiti --- lets call it Effiti. What is Effiti? Likely youve seen it if you visit forums on Yahoo! or at so many other community sites that spring up daily. Its the mindless raging at everyone and everything. Its the virulent attacks against racial and ethnic groups in a discussion about the weather. Its the persistent effort to derail any meaningful dialog through repetitive, abusive postings. Some say we should revel in the freedom of speech that encourages such conduct. They say that we all have the right to just ignore the poster and the postings. And with much merit, these defenders of free speech warn that the remedy may well be worse ...

Forbes' Intelligent Investing: It's Not Personal -- It's an Institutional Thing

Thu, 28 May 2009 06:50:47 EST

SEC, Let The Sunshine In! Two SEC attorneys are being investigated for insider trading. But don't worry, it's not Mary Schapiro's fault. By Bill Singer, Attorney and publisher of http://BrokeAndBroker.com and http://RRBDLaw.com SINGER: Odd, isn't it, how our regulatory system is patrolled by career regulators who should know what's going on--after all, they've been on the job for years--b...

GUEST BLOG (Chepucavage): Uncontrolled Leverage, New Derivatives, and Benign Regulation

Thu, 26 Mar 2009 13:43:03 EST

BrokeAndBroker.com Guest Blog BrokeAndBroker.com GUEST BLOG The Lethal Mixture of Uncontrolled Leverage, New Derivati...

The $600 Million Teddy Bear: WG Trading

Thu, 26 Feb 2009 06:25:32 EST

By Bill Singer http://BrokeAndBroker.com http://RRBDLaw.com On February 25, 2009, the Securities and Exchange Commission issued a 22-page Complaint: Securities and Exchange Commission v. WG Trading Investors, L.P., WG Trading Company, Limited Partnership, Westridge Capital Management, Inc., Paul Greenwood And Stephen Walsh,(Defendants) And Robin Greenwood And Janet Walsh (Relief Defendants) (SDNY, 09-CV-1750). The SEC characterizes the matter as an "emergency enforcement action to halt ongoing securities fraud involving the misappropriation of hundreds of millions of dollars of investor assets.." In reality, the WG Trading case represents yet another long-term fraud (described in the Complaint as dating back to 1996) that went undetected by our nation's many regulators...

Insider Trading: Frequent Flyers, Potatoes and Macy's

Thu, 25 Mar 2010 05:47:34 EST

THE SEC CASE On March 24, 2010, the Securities and Exchange Commission (SEC) alleged in a Complaint filed in the United States District Court for the Southern District of New York that Defendant Igor Poteroba, a high-ranking investment banker in UBS Securities LLCs Global Healthcare Group in New York City, tipped his friend Defendant Aleksey Koval with highly confidential inside information about impending transactions involving pharmaceutical companies. Koval, who held positions at securities industry firms at the time, then traded in stocks and options of the companies targeted for acquisition. Koval also tipped their friend Defendant Alexander Vorobiev, who traded ahead of four of the deals. The SEC further alleges that some of the insider trading was conducted through br...

What Is On First? No, what is on second. Who is in arbitration.

Thu, 25 Feb 2010 11:33:30 EST

In July 2004, public customer Jay Lombard purchased in his retirement account at GunnAllen Financial, Inc., one Unit of Florida Capital Apartments 2004, Ltd., which was sold to Lombard as an Accredited Investor through a private placement. And that folks, is about the last intelligible thing that I can say about this oddball case. 2006 Settlement In March 2006, Lombard and GunnAllen executed a written ...

Congress Tackles Reform: What Is the Point?

Thu, 24 Sep 2009 12:25:47 EST

Home | Professional Services | Investor Resources | Broker Dealer | Blogs | Shopping Center | Employment | About Us/Contact Maybe I've gotten to the point where nothing that anyone will do anymore satisfies me. In some worlds you reach the stature of a Jedi Knight. In my world, I have reached the stature of a Royal Curmudgeon - and with good reason. I'm just fed up with all the crap that passes for politics these days. Seems like nothing changes and never will. Meaningful reform? Not in my lifetime. On Wednesday, September 23, 2009, the House Committee on Small Business heard testimony regarding how changes to the financial regulatory system could affect entrepreneurs and smaller lenders. They billed this as a hearing on The Impact of Financial Regulatory Restr...

Broker Loses EFL / Promissory Note Arbitration But Wins Dramatic Counterclaim

Thu, 24 Jun 2010 14:32:25 EST

In a Statement of Claim filed on March 20, 2009, Claimant Morgan Keegan & Company, Inc. (MK) asserted causes of action for breaches of a promissory note and contract against Respondent Paul Peter Kotos. Claimant MK sought $277,106.01 in compensatory damages and accrued/accruing interest at the rate of 10% per annum, plus attorneys fees, costs, and other relief. In the Matter of the Arbitration Between Morgan Keegan & Company, Inc., Claimant v. Paul Peter Kotos, Respondent, (FINRA Arbitration #09-01573, June 15, 2010) Respondent Kotos generally denied the allegations and asserted various affirmative defenses. Also, Kotos filed a Counterclaim seeking $1,700,000 in punitive damages, interest, costs, and expert witness fees. He further sought a FINRA Panel-ordered amendment to ...

Supreme Court's Opinion on Skilling v. U.S. Now Online At BrokeAndBroker.com

Thu, 24 Jun 2010 08:30:35 EST

An irreverent Wall Street Blogby Bill Singerhttp://www.brokeandbroker.com/index.php?a=blog&id=460READ THE ENTIRE SUPREME COURT DECISION IN SKILLING V. U.S. http://www.supremecourt.gov/opinions/09pdf/08-1394.pdfBill Singer's Comment: ...

A Hobson's Choice for Pro Se Respondents in FINRA Arbitrations

Thu, 24 Jun 2010 06:21:03 EST

In its FINRA Arbitration Statement of Claim filed June 9, 2009, Claimant Banc of America Investment Services, Inc. (BAI) sought damages of $71,250.00, representing the principal amount due from former employee Respondent Mark Embertone on a Promissory Note dated December 1, 2006. Additionally, BAI sought accrued interest of $3,572.16 (computed at 5% per annum) and accruing interest (determined to be $9.76 per diem from the alleged default date of December 1, 2008) plus attorneys fees and costs. In the Matter of the Arbitration Between Banc of America Investment Services, Inc., Claimant, v. Mark R. Emberton, Respondent (FINRA Arbitration # 09-03507, June 11, 2010).Respondent Embertone represented himself (pro se), generally denied the allegations, and...

A Pat On The Back Too Many?

Thu, 23 Oct 2008 13:56:35 EST

On October 23, 2008, the Financial Industry Regulatory Authority (FINRA) announced that it had reached agreements in principle with City National Securities (CNS), of Beverly Hills, CA, BNY Mellon Capital Markets, LLC of New York and Harris Investor Services, Inc. of Chicago, to settle charges relating to the sale of Auction Rate Securities (ARS) (terms subject to being formalized in an approved FINRA settlement document called a Letter of Acceptance, Waiver and Consent (AWC), in which the firms will neither admit nor deny the charges, but will consent to the entry of FINRA's findings). The good news for investors is that three firms agreed to offer to repurchase at par ARS that were purchased by individual investors and some institutions between May 31, 2006, and ...

Bill Singer interviewed on RepTV

Thu, 22 Oct 2009 08:30:44 EST

Whats Next for New Regulations on Financial Advisors? A video interview by David Geracioti, Editor-In-Chief of Registered Rep. magazine and Host of Rep.TV Guest: Bill Singer, Publisher of RRBDLaw.com and BrokeAndBroker.com David Geracioti and Bill Singer sat down and shot the breeze. The hot buttons and flashpoints in regulatory reform. The Dangerous Mix: unprecedented uncertainty in our markets and Capitol Hill The Fiduciary Came...

Barbie and Bratz Battle. Demure versus Urban, Multiethnic, and Trendy. Farting Fred.

Thu, 22 Jul 2010 12:47:34 EST

Okay, so, look, it's a muggy, disgusting Friday morning in New York City, and while I would just as soon dazzle you all with my incredible legal knowledge, it's just too damn hot. I'm thinking that today calls for a lighter touch. Perhaps you've heard of the lawsuit between Mattel, which owns the Barbie doll, and MGA Entertainment, which owns the Bratz dolls. Although round one of the epic Battle of the Dolls went to Mattel, the appeal didn't go so well for Barbie. Now for the fun part! The judge who authored the circuit court's opinion has a finely honed sense of humor and appreciation for some of the delicious idiocy in this case. Here are some of the wonderfully oddball comments in the Opinion: Barbie was the unrivaled queen of the fas...

FINRA Regulatory Cases Analyzed by Bill Singer. Major SEC Case Explained. E*Trade Problems Disclosed.

Thu, 22 Jul 2010 04:46:28 EST

NEW FINRA MONTHLY DISCIPLINARY CASES NOW ONLINE AND ANALYZED BY BILL SINGER Regulatory lawyer Bill Singer has analyzed and posted the latest crop of FINRA disciplinary cases. http://www.rrbdlaw.com/enforcement-actions/index.php?cid=1 ======================================================================== Significant New SEC Ruling: Compliance Officer Slammed Over Emails and Instant Messages ...

Goldman on the Bridge: The Firm That Would Be King

Thu, 22 Apr 2010 13:47:30 EST

In Rudyard Kiplings novel The Man Who Would Be King, we are introduced to Daniel Dravot and Peachey Carnehan, perhaps best described as 19th Century con men and adventurers who managed to become Kings of the Kafirs. At one point, Dravot managed to convince his followers that he was a god -- a descendant of Alexander the Great -- which, if you think about it, is far better than a mere king. Alas, Dravot and Carnehan should have left well enough alone. When Dravot decided to marry a Kafir girl, she bit him when he tried to kiss her. Unfortunately, Dravot bled from the bite. Gods do not bleed. Seeing that Dravot was "Neither God nor Devil but a man!" his followers abandoned him. Dravot walked out upon a rope bridge high above a gorge, bedecked ...

Mr. Obama, Tear Down This Wall !

Thu, 21 May 2009 14:57:37 EST

Mr. Obama, Tear Down This Wall! The SEC missed virtually ever major scandal that rocked the business world. It doesn't need to be reformed, but removed. By Bill Singer, Attorney and publisher of http://BrokeAndBroker.com and http://RRBDLaw.com SINGER: Recent press reports suggest the Federal Reserve and other agencies may be granted some powers presently reserved solely for the SEC. Moreover, there is talk of creating a brand new investor watchdog that will act as an overseer of the many financial product...

RRBDLaw.com: MAY FINRA Cases Analyzed by Bill Singer

Thu, 21 May 2009 09:22:51 EST

BrokeAndBroker.com/3daychart.htm : rrbdlawyer@aol.com Home | Professional Services | Investor Resources | Trade Groups & Education | Starting/Expanding A BD/RIA | Broker Dealer | Blogs | Shopping Center | Contact Us Veteran regulatory lawyer Bill Singer's analysis of recent FINRA cases is now online at http://RRBDLAW.com. Make sure to click on the links to read Bill's commentary about these matters and more. ...

FINRA Fires (Streamlines) Five Regulators

Thu, 21 Jan 2010 14:01:46 EST

Dan Jamieson of InvestmentNews reports Finra Laying Off Five Enforcement Officials, Report Says (January 21, 2010) that the self-regulator is terminating Katherine Malfa, vice president and chief counsel, Rory Flynn, vice president and chief litigation counsel, Evan Rosser, vice president of strategic planning, Michael Armelin, an assistant director, and a fifth unnamed individual from its New York office. If you revisit my December 8, 2009 Forbes.com column: Regulators Plead Poverty, you will see one of my diatribes about the hypocrisy that masquerades as Wall Street regulation. In that article, I noted that no sooner had the SEC warned Wall Street against laying off compliance staff and cutting-back on compliance, then FINRA offered early-retirement to it...

RRBDLaw.com: New FINRA Cases Analyzed by Bill Singer

Thu, 21 Jan 2010 05:40:26 EST

Regulatory lawyer Bill Singer has analyzed and posted the latest crop of FINRA disciplinary cases. Frankly, it's not a pretty sight. As the Great Recession's shocks and aftershocks are felt, many Wall Streeters seem to be feeling a personal financial pinch -- and their means of self-help are often at the expense of others. Consider some of these more troubling revelations: Associated Person Daphne Michelle Easley http://www.rrbdlaw.com/enforcement-actions/index.php?cid=1#2008013474501 converted to her own benefit approximately $6,500 in gift checks, which were used by her member firm to reward employees Justin C. Sidaway http://www.rrbdlaw.com/enforcement-actions/index.php?cid=1#2008013305801 obtained customer information from a bank affiliates systems to forg...

Regulators Slam Mortgage Market Fraud

Thu, 21 Feb 2008 05:33:14 EST

Just when I lost all hope with the integrity of the U.S. financial regulatory system, those darn regulators pull me back from the brink and fully restore my confidence. Here I have been sitting the past couple of years worrying about the growing impact of questionable subprime paper that had all too easily filtered its way into the stream of securitization. Not being a babe in the woods and fiercely independent in nature, I refused to shift the blame. The greed of bankers and their Wall Street cronies fueled the fires of excess. It wasn't that no one saw the danger signs. No, it was that no one cared. Come on, let's all be honest with that one. It was a great party while it lasted. Lots of champagne. Free canapes for all. All of which leads us to the proper role of regula...

Broker-Dealer Cited by SEC for Lacking Curbside Appeal

Thu, 20 May 2010 11:16:21 EST

On September 14, 2006, Anthony Dean Russell (Russell), a Branch Chief in the Office of Compliance Inspections and Examinations at the Securities and Exchange Commissions (SECs) Atlanta Regional Office, saw a local news report about customer records left on the curbside of a home in Alpharetta, Georgia. The news story identified the records as belonging to J.P. Turner & Co., LLC (J. P. Turner), a national broker-dealer headquartered in Atlanta, Georgia. At the time, J.P. Turner had some 150 independent branch office in the United States staffed with nearly 500 registered representatives. This story clearly piqued Branch Chief Russell's interest. On September 15, Russell told his immediate supervisors about the curbside customer records, and they all watched the video news repor...

UBS Wins $800,000 Against Former Employee, Who Wins $300,000 Against UBS.

Thu, 20 May 2010 04:27:39 EST

Ah yes, old UBS -- that's you and us, or however their television commercial goes. Whatever. Notwithstanding the touchy-feely advertising, UBS isn't sitting around the campfire singing Kumbayah when it comes to its former stockbrokers and collecting money owed on outstanding promissory notes. In a Statement of Claim filed with FINRA on June 4, 2009, UBS sought $809,922.00 in compensatory damages; interest; costs; attorneys' fee; and other just relief as a result of former employee Richard Lee's alleged breach of a promissory note. Lee generally denied the allegations, asserted various affirmative defenses, and Counterclaimed for $4,000,000.00 in compensatory damages arising from misrepresentation; fraudulent inducement; and unjust enrichment. In the Matter of the Arbitrati...

A Generation of Inbred Regulators

Thu, 19 Jun 2008 11:48:34 EST

I just listened to Treasury Secretary Paulsons news conference and came away with the idea that he remains confident in the ability of our economy to weather the current storm but remains concerned about the need to overhaul the current regulatory system. All of which put a smile on my facea bitter onesome might even say a sardonic one. For years I have warned that Americas tripartite system of federal, state, and self-regulatory regulators was showing signs of age and falling apart. Alas, much like the cursed Cassandra, I was but another voice doomed to sound an alarm that no one would hear. There had been clear signs of smoke, and then even clearer signs of fire but nary a firetruck sped to the scene. Only after buildings started burning down did our regulators seem to ...

GUEST BLOG: Regulatory Reform in the Obama Era. (Chepucavage and Broy)

Thu, 19 Feb 2009 14:26:08 EST

BROKEANDBROKER.COM GUEST BLOG http://RRBDLaw.com http://BrokeAndBroker.com Regulatory Reform in the Obama Era By Peter J. Chepucavage and Tony Broy Senator Jack Reed, a Democrat and Chairman of the Senate Subcommittee on Securities, said last Thursday that he will hold a hearing to review the Securities and ...

Richard Ketchum and FINRA: Time to Answer for his Past?

Thu, 19 Feb 2009 07:12:54 EST

By Bill Singer http://RRBDLaw.com http://BrokeAndBroker.com PRE-SCRIPT In response to the calls from my readers, I am adding this Pre-script (if it were a post-script it would be at the end) to remind you that I sort of predicted the Ketchum nomination on January 29, 2009. Read this http://www.brokeandbroker.com/index.php?a=blog&id=117 According to the Wall Street Journal, The Financial Industry Regulatory Authority's (FINRA) 21-member Board plans to name Richard Ketchum as its Chief Executive Officer. Richard Ketchum was Chief Executive Officer of NYSE Regulation, Inc., since 2006 and had served as the first Chief Regulatory Officer of the New York Stock Exchange since March 8, 2004. From June 2003 to March 2004, Mr. Ketchum was General Counsel ...

GUEST BLOG by David M. Sobel, Esq.: High Frequency Trading

Thu, 19 Aug 2010 10:13:04 EST

BrokeAndBroker.com GUEST BLOG by David Sobel, Esq. If we do not acknowledge and remember history, we are doomed to repeat it. Here is a perfect example: SEC CHARGES FOUR BROKERS AND DAY TRADER IN FRAUDULENT "SQUAWK BOX" SCHEME FOR IMMEDIATE RELEASE 2005-114 Washington, D.C., Aug. 15, 2005 - The Securities and Exchange Commission today charged four brokers and a day trader with cheating investors through a fraudulent scheme that used s...

Goldman Sachs Sacked by Computer Programmer

Thu, 18 Feb 2010 05:49:30 EST

Goldman Sachs' high-frequency trading system generates millions of dollars in annual profits for the firm. Obtained in 1999 as part of Goldman's $500 million acquisition of Hull Trading Company, the high-frequency trading system has since been modified and maintained, and Goldman Sachs took significant measures to protect the confidentiality of the system's computer programs (including firewalls to limit access to the firm's computer network, and limiting internal access to the high-frequency trading program). Several measures were taken to protect the system's source code, including requiring all Goldman Sachs employees to agree to a confidentiality agreement.From May 2007 to June 2009, Sergey Aleynikov was employed at Goldman Sachs as a computer programmer responsible for develop...

Rumsfeld, Neibuhr, Lord Tennyson, Levitt, Cox, and Schapiro.

Thu, 18 Dec 2008 06:26:04 EST

By Bill Singer http://rrbdlaw.com http://BrokeAndBroker.com "Forward, the Light Brigade!" Was there a man dismay'd? Not tho' the soldier knew Someone had blunder'd: Their's not to make reply, Their's not to reason why, Their's but to do and die: Into the valley of Death Rode the six hundred. The Charge of the Light Brigade, Alfred, Lord Tennyson Former Secretary of Defense Donald Rumsfeld infamously said "As you know, you go to war with the army you have, not the army you might want or wish to have at a later time." You only need to visit military cemeteries and Veteran's Administration hospitals to comprehend the stupidity, if not true horror, of that quote. Inadequate vehicle armoring. Insufficent numbers of and defective combat vests. Failed t...

The UK Junks its Financial Services Authority (FSA) -- When Will the US Junk its Securities and Exchange Commission (SEC)?

Thu, 17 Jun 2010 06:27:07 EST

Those of you familiar with my published work know that I am no fan of the Securities and Exchange Commission (SEC) or the Financial Industry Regulatory Authority (FINRA). I view those Wall Street regulators as failed institutions that are pursuing failed policies and are overburdened with many inept and incompetent managers. Despite the SEC's horrendous track record of failed oversight and compromised enforcement, the federal regulator has its staunch supporters and protectors. In the end, Napoleon's admonition has become the SEC's Gospel: If you wish to be a success in the world, promise everything, deliver nothing. Our lives are regrettably filled with tales of the old car that we should have junked, and which broke down at the worst time possible. Then...

A Double Header: On the Future of Citi and the SEC (with a side order of FINRA)

Thu, 16 Jul 2009 05:29:57 EST

Changing Citigroup Citi's management is shifting around. Is this enough to save the troubled bank? With Vince Farrell, Chief Investment Officer for Soleil Securities in New York.; and Bill Singer, Shareholder in the Securities Practice Group of the law firm Stark & Stark and Publisher of http://BrokeAndBroker.com and http://RRBDLaw.com Bill Singer: I ...

The Trifecta Trend Triumphs!

Thu, 16 Apr 2009 05:02:10 EST

Okay, let's all be honest -- very honest. Yesterday (April 15th), I didn't think there was a chance in hell that the Dow Jones Industrial Average was going to close up. I know that I had this theory about the power of the three-day DOWN pattern, but, geez, that's just one of those idiotic technical analysis thingies and while I call it a fun "toy" for taking the market's temperature, well, you know, there was no way that the Power of Three was going to deter the inevitable. Who knew. Maybe I should put this thing away before it becomes a tool for evil and the darkside? 15-Apr-09 8,029.62 -10.931% UP 14-Apr-09 7,920.18 -12.145% DOWN 13-Apr-09...

Geithner: A Devil's Bargain

Thu, 15 Jan 2009 05:41:14 EST

By Bill Singer http://rrbdlaw.com http://BrokeAndBroker.com An anonymous reader (Ednomore) of my last blog entry: Geithner and Mathis: Troubling Double Standard , wrote to me the following: Bill, You make very good points. I would like to make only one point about the possible treasury secretary. I think the fact that he did not know or ignored current tax law by not paying taxes due may indicate that he may not be qualified to head up the treasury department which includes the IRS. I would speculate that he did know the law because he ignored earlier failure to pay taxes after being audited on 2006 taxes. He obviously knew or should have known that he did not pay taxes due in those earlier years. My reply back to him follows: Ednomore: I want to b...

Wall Street Sweethearts (Partners in Crime)

Thu, 15 Apr 2010 14:51:58 EST

BREAKING STORY SEC v. Goldman Sachs & Co., Fabrice TourreThe SEC civil action in the Southern District of New York alleges securities fraud against Goldman, Sachs & Co. ("GS&Co") and a GS&Co employee, Fabrice Tourre ("Tourre"), for making materially misleading statements and omissions in connection with a synthetic collateralized debt obligation ("CDO") GS&Co structured and marketed to investors. This synthetic CDO, ABACUS 2007AC1, was tied to the performance of subprime residential mortgage-backed securities ("RMBS") and was structured and marketed by GS&Co in early 2007 when the United States housing market and related securities were beginning to show signs of distress. Synthetic CDOs like ABACUS 2007-AC1 contributed to the recent financial crisis b...

SHOCKING FINRA Regulatory Settlement Involving Merrill Lynch

Thu, 15 Apr 2010 11:24:56 EST

Ya Gotta See This To Believe It! http://www.rrbdlaw.com/enforcement-actions/index.php?cid=1#2008012391401 Am I the only Wall Street regulatory lawyer who almost fell on the floor this afternoon when I read this nugget from FINRA? I have long suspected that there was disparate treatment for large and small firms, but, geez, how come there wasn't some Press Release issued about this one? You know, the type of Press Release that the regulators love to post when trumpeting their settlements with the indie/regional firms. If this isn't among the more disturbing allegations of misconduct from FINRA, I'm not sure what is. And, by the way, just who the hell are the geniuses behind the alleged cover-up and misconduct? Don't the compliance staffers at Merrill Lynch have nam...

What A Child Sexual Abuse Case Teaches Wall Street

Thu, 14 Jan 2010 14:11:22 EST

The Street Sweeper by Bill Singer We Need Better Financial Policing [Y]ou pick the tragedy or calamity. You pick the organization we entrusted with our protection--be that the Congress, FBI, CIA, Securities and Exchange Commission or the Financial Industry Regulatory Authority. Frankly it just doesn't matter what you pick. The storyline is too similar. Public safety was sacrificed for turf. Who got the credit was deemed more important than getting the bad guy. Too many folks sleep-walked through critical jobs while those set on destroying our way of life worked overtime. . . [C]onsider the recent story in which the Royal Canadian Mounted Police noticed in 2007 online images of a 6-year-old girl being sexually abused by an adult male. After transmitting those images to other law...

The Regulatory Woodshed

Thu, 14 Jan 2010 07:45:46 EST

As noted in my current Street Legal column at Registered Rep. Magazine, without admitting or denying the allegations, respondents Fortune Financial Services and its Registered Principal Brian Lee Daniels consented to the entry of findings and sanctions pursuant to the Financial Industry Regulatory Authority's (FINRA's) Acceptance, Waiver and Consent (AWC) settlement process. FINRA found that acting through Daniels, FFS failed to maintain and preserve all of its business-related electronic communications (and lacked adequate policies and procedures relating to such record retention); improperly increased the number of registered representatives in its offices despite failure to obtain FINRA's approval; and conducted business at unregistered branch offices. Daniels was fined $...

A Deal with Real Firepower!

Thu, 14 Feb 2008 06:00:10 EST

On February 7, 2008, the Securities and Exchange Commission filed a civil action in the United States District Court for the Southern District of Florida against Dean A. Esposito, Frederick J. Birks, Joseph DeVito, Theodore B. Holbrook and Walter A. Tye, a group of Florida-based brokers alleged to have violated the federal securities laws in connection with the sale of stock in two companies, SCL Ventures Ltd. and Weida Communications, Inc. According to the SEC's complaint, from approximately late January until early May 2004, defendants sold approximately $3 million worth of SCL Ventures securities to approximately 78 investors while working out of the company's offices. Defendants were not registered with the SEC or associated with a registered broker or dealer during this period. D...

If You Like Sausage, Don't Read This

Thu, 14 Aug 2008 11:39:53 EST

By Bill Singer, http://BrokeAndBroker.com http://rrbdlaw.com William Donald Redfern ("Respondent"), a former registered representative with Bear, Stearns & Co., Inc. ("Firm"), was charged by the New York Stock Exchange (NYSE) with having: Caused his member firm employer to violate NYSE Rule 405, in that he failed to use due diligence to learn the essential facts relative to a customer of his member firm employer, the customers orders and/or the customers accounts. Caused his member firm employer to violate NYSE Rule 405, in that he failed to communicate to his member firm employer the essential facts relative to a customer of his member firm employer, the customers orders and/or the customers accounts. Viola...

Driving Ms. Schapiro in a Vehicle for Discussion

Thu, 13 May 2010 04:35:10 EST

On May 10, 2010, we the people of the United States of America were notified pursuant to Securities and Exchange Commission Release No. 33-9123, http://sec.gov/rules/other/2010/33-9123.pdf (the "Notice") that the Chairmen of the Securities and Exchange Commission and the Commodities Futures Trading Commission, with the concurrence of the other SEC and CFTC Commissioners, respectively, intend to establish the Joint CFTC-SEC Advisory Committee on Emerging Regulatory Issues (the Committee). We've got this huge regulatory problem on Wall Street. Thankfully, SEC Chairman Mary Schapiro and CFTC Chairman Gary Gensler, the industry's leading regulatory cops, will aggressively confront those problems by intending to establish a joint advisory committee with the c...

Forbes Intelligent Investing: The Troubled TARP

Thu, 13 Aug 2009 14:44:39 EST

TARP Remains Troubled The Congressional Oversight Panel has concerns about the still very much present troubled assets on banks' balance sheets. With John Osbon, Founder and Chief Investment Officer of Osbon Capital Management; and Bill Singer, Shareholder in the Securities Practice Group of the law firm Stark & Stark and Publisher of http://BrokeAndBroker.com and http://RRBDLaw.com Bill Singer: ...

Of Crystal (and Brass) Balls: Picking Investments

Thu, 13 Aug 2009 06:41:12 EST

Stocks To Rise In Five Years Stocks are down over five and 10 years, but the immediate future looks brighter. With John Osbon, Founder and Chief Investment Officer of Osbon Capital Management; and Bill Singer, Shareholder in the Securities Practice Group of the law firm Stark & Stark and Publisher of http://BrokeAndBroker.com and http://RRBDLaw.com Bill Singer: ...

The Ties That Bind: A Knotty Problem

Thu, 12 Mar 2009 18:48:24 EST

The other day I sent around an email heralding my illustrious live television appearance on the Canadian Broadcasting Corp. (CBC). I'm not sure if many of you know this, but I am very big -- should I daresay HUGE??? -- in Canada and it is rumored (okay so I started the rumor but that still counts as a rumor, even if it's pure fabrication) that I am now challenging Jerry Lewis for dominance in France (and that is adding to my growing appeal in many parts of French Canada). In response to my shameless self promotion of my Madoff television interview on CBC, a poster on the Registered Rep. Magazine website complimented my perfectly made tie. Okay, so some folks are swept off their feet by my oratorical wizardry and others are staggered by my sartorial resplendence. Here'...

Bill Singer Comments on Madoff on TV

Thu, 12 Mar 2009 10:14:48 EST

If you haven't had enough of me yet, you can watch me "live" on television. (Okay, so it's not exactly "live" anymore because it was broadcast on Wednesday afternoon, March 11th, but it was live when I did it. And, another thing, keep in mind that I was summoning up all of my powers of prognostication about what would happen to Madoff the day before he allocuted in federal court). So, if you would like to see me, catch the Canadian Broadcasting Corp.(CBC) interview by Suhana Meharchand in either QuickTime or RealMedia formats (Runs: 5:38). Have your peeps call my peeps. Let's do lunch. Ciao! Play: QuickTime » Play: Real Media » http://RRBDLaw.com http://BrokeAndBroker.com (the New Website!) The BrokeAn...

Charging Commissions on No-Load Funds?!

Thu, 12 Jun 2008 08:37:40 EST

In the Matter of the Financial Industry Regulatory Authority (FINRA) Department of Enforcement v. Paul Zenke (FINRA Office of Hearing Officers Disciplinary Proceeding #20060043777, May 2, 2008) http://www.finra.org/web/groups/enforcement/documents/oho_disciplinary_decisions/p038594.pdf , presents a case involving Respondent Zenke, who after practicing law for over 13 years, in December 2000, registered as a general securities representative with FINRA member Investment Centers of America (ICA). Zenke remained with ICA until December 2006, when he resigned due to his disagreement with the firm over the circumstances alleged in FINRAs one-count Complaint: that he violated NASD Conduct Rule 2110 by charging impermissible commissions in connection with the sale of six no-l...

When Guidance Is Really Rule-Making

Thu, 12 Jul 2007 07:02:17 EST

Thanks for the calls and emails about my posting on the NASD/NYSE's proposed "guidance" for electronic communications. In response, let me clarify my point. Yes --- I agree! --- the Notice to Members says that it is merely seeking to publish "guidance" about pre-existing electronic communication rules. It is NOT a new rule proposal, per se. However (and this is the point) you should all know by now the danger of a published regulatory guidance. If you don't, let me clarify the problem. The regulator is required to submit a rule proposal to its membership for approval and also to the SEC. Politics sometimes forces proposed rules to be watered down. A cute trick around that fact is to write a somewhat vague rule and then "CLARIFY" what you, the regulator, "meant". That clarif...

Bill Singer Comments on Banks on National Public Radio's Marketplace

Thu, 12 Feb 2009 14:14:44 EST

What the banks may be hiding from American Public Media's Marketplace radio Treasury Secretary Timothy Geithner promised more transparency when he announced the government's new bailout package. But do investors really want to know what the banks are hiding? Ashley Milne-Tyte reports. Hear Bill Singer's comments. /*...

Registered Rep. Magazine: Bill Singer's August

Thu, 12 Aug 2010 04:33:44 EST

FINRA Arbitration: Sometimes It Pays To Settle http://registeredrep.com/securities_law/finance_finra_arbitration_sometimes/index.html Within weeks of your departure from your former brokerage firm, the first of what are typically three letters arrives. It's sort of friendly and all. Sorry that you left. You may recall that we gave you a $140,000 Employee Forgivable Loan (EFL) secured by seven years of promissory notes. You left after only five and one-half years. You didn't make it to the sixth anniversary. You owe us a two-year refund in the amount of $40,000. You think that you should at least get full credit for the partial sixth year of service, and, at most, owe your former employer $20,000. Of course, you're still fuming at having to pack up and leave. Yo...

What We Got Here Is Failure to Communicate: An odd FINRA arbitration

Thu, 11 Feb 2010 13:23:17 EST

Every so often an odd one comes along and here is just such an example in the form of a Public Customer arbitration complaint against Fidelity. See, In the Matter of the Arbitration Between Jorge A. Perez, Claimant, vs. Fidelity Brokerage Services LLC, Respondent (FINRA #09-04340, February 9, 2010). Moreover, we have a Decision that seems to combine the linguistic stylings of Yoda from Star Wars with the pithy insights of the Road Prison Captain in the movie Cool Hand Luke. Claimant Perez filed a Complaint against Fidelity on July 16, 2009, alleging that there had been a communications failure between the Claimant and Respondent in respect of Respondents handling of the Claimants request that his Account with the Respondent be reopened on a certain date. I'm channeling...

As Calvin Coolidge Said It Best

Thu, 10 Jul 2008 13:49:30 EST

A journalist I admire recently attempted to compliment me--but it was a bit of a failed effort. In trying to capture the spirit of my writings on Wall Street, this reporter said he loved the way that I "ranted." I knew what it meant and, okay, perhaps he wasn't that far off. At times I can be like a pit bull who chomps down on its prey and refuses to let go until the life is drained out of the subject. Not the prettiest of pictures but at least an effective approach to dealing with adversaries and problems. I am disgusted with the state of regulation on Wall Street. I am equally disgusted with the state of politics in the United States. Our regulatory and political system have failed us in recent times. When I watch Congressional testimony, as I did today, I don't know w...

Raising the Titanic (A reply to my readers)

Thu, 09 Oct 2008 12:04:58 EST

In over a decade of market commentary, no single piece has generated more positive reaction than Of Wall Street, The Titanic, and the Britanic. I thank all of you who have written to me and phoned me. I truly appreciate the feedback, and it lets me know that my scribblings are of some consequence. The Asymmetrical Warfare of Wall Street Wall Street is too often a battlefield on which asymmetrical warfare occurs. Major, powerful financial interests (wirehouses, international banks, hedge funds) take to the field with overwhelming firepower in the form of their sheer numbers, their influence, and a more pernicious weaponry: regulators who act as their proxies and politicians who are purchased and stored in their pockets. Smaller firms (namely, regional/independent) and indi...

Why Is the NYSE and NASD Soft on Racism and Sexism?

Thu, 09 Mar 2006 12:18:12 EST

This morning I read a story by Evelyn Juan of the Dow Jones Newswires: Merrills ONeal Attends Discussion With Black Brokers, in which she writes that Merrills Chairman and Chief Executive Officer Stanly ONeal has met with a number of his firms African-American brokers who are considering joining a racial discrimination suit against the nations largest broker-dealer. The lawsuit referenced was filed by George McReynolds in federal court in Chicago and is seeking class-action status. Okay, thats a good step, a commendable effort by Mr. ONeal --- even if it may be nothing more than a public relations ploy. Of course, this lawsuit raises two intriguing questions. Where is the New York Stock Exchange? Where is the NASD? What? You say. This has nothing to do with a regulatory v...

BrokeAndBroker.com: Forbes Panel Tackles BRIC

Thu, 09 Jul 2009 13:30:28 EST

Building BRICs What would happen if the dollar were dethroned as the world's reserve by currencies from Brazil, Russia, India or China? WIth Stephen Roseman, Managing Member of Thesis Capital Management; and Bill Singer, Shareholder in the Securities Practice Group of the law firm Stark & Stark and Publisher of http://BrokeAndBroker.com and http://RRBDLaw.com Bil Sin...

The Spring Update from BrokeAndBroker and Bill Singer

Thu, 09 Apr 2009 09:11:33 EST

Being There is an absolutely wonderful gem of a movie starring Peter Sellers as Chance the Gardener. I'd tell you more about the plot, but that would ruin the film for those of you who haven't seen it. Rent this one tomorrow. Aficionados of this 1979 cult classic often quote the famous scene between Sellers and Jack Warden (President Bobby). For those of you unfamiliar with the film, the scene is on the right. Watch a trailer of the film. President "Bobby": Mr. Gardner, do you agree with Ben, or do you think that we can stimulate growth thr...

Forbes Intelligent Investing Panel: A Lost Decade for US?

Thu, 08 Oct 2009 11:00:10 EST

We're Not Japan Despite the threat of a second recession the U.S.'s younger workforce, natural resources and political culture can save it from a lost decade. With Gerard Klingman, Founder and President of Klingman & Associates, LLC; Marc Lowlicht, President of the Wealth Management Division of Further Lane Asset Management; and Bill Singer, Attorney and publisher of http://BrokeAndBroker.com and http://RRBDLaw.com FORBES: The obvious fe...

Moffat's Sex. Nietzsche's Memory.

Thu, 08 Jul 2010 12:05:51 EST

It used to be sex, drugs, and rock 'n roll -- now it's sex, drugs, rock 'n roll, politics and Wall Street. For some reason, a lot of folks just get hung up about that sex thing. For example, consider the recent revelations about Robert Moffat, Jr., the former IBM vice President who was snared in the ongoing Galleon insider trading case. In a March 29, 2010, press release from the United States Attorney for the Southern District of New York: FORMER IBM SENIOR VICE PRESIDENT PLEADS GUILTY IN MANHATTAN FEDERAL COURT TO INSIDER TRADING at http://www.justice.gov/usao/nys/pressreleases/March10/moffatrobertpleapr.pdf., we were told in matter-of-fact style that: From August to October 2008, MOFFAT engaged in an insider trading scheme i...

Guest Blog (Chepucavage): Limiting the Paul Anka Finder's Fee Exemption

Thu, 08 Jul 2010 04:31:42 EST

BrokeAndBroker.com GUEST BLOG ...

The Sodano Saga Continues:What is "is"?

Thu, 08 Jan 2009 05:42:55 EST

By Bill Singer http://rrbdlaw.com http://BrokeAndBroker.com On November 16, 2007, I posted a blog entry concerning the Securities and Exchange Commission's Initial Decision to not impose a Censure upon former American Stock Exchange Chairman and CEO Salvatore S. Sodano. On March 22, 2007 the SEC charged Sodano with failing to enforce compliance with the Exchange Act during his term as the AMEXs Chairman and CEO. The SEC alleged that the AMEXs regulatory deficiencies resulted in large part from Sodanos failure to pay adequate attention to regulation, to put in place an oversight structure, to ensure the regulatory staff was properly trained, and to dedicate sufficient resources to ensure that the AMEX was meeting its regulatory obligations. The SEC alleged that Sodan...

Did You Hear the One About the CEO, His Parents, and His Divorced Sister?

Thu, 07 Jan 2010 09:59:45 EST

Opinion: Kirlin Securities, Inc. Anthony Kirincic and Andrew Israel...

The International Securities Scam No One Cares About

Thu, 07 Aug 2008 09:26:11 EST

By Bill Singer, http://BrokeAndBroker.com http://RRBDLAW.com A few years back I attempted to help a number of defrauded investors who had been scammed into buying so-called "pre-IPO" shares of Securetee International, Inc. In a nutshell, Securetee was a bogus offering sold mainly to unwary European investors by unregistered brokerage firms. Prominent among the phony broker-dealers was an outfit called Jackson Cole Investments. Briefly, SecureTee appeared to have been incorporated in Nevada. However, the State of Nevada advised me that the company was no longer a corporation in "good standing." The original address the company provided upon incorporation was in Czechoslovakia (alas, even the country now no longer exists) and was probably a bogus address. SecureTee ...

Bill Singer and Forbes.com's Intelligent Investing All-Stars

Thu, 06 Nov 2008 04:26:37 EST

The Intelligent Investing Panel at Forbes.com has published a fascinating commentary. http://www.forbes.com/intelligentinvesting/2008/11/05/intelligent-investing-private-equity-real-estate-panel.html Intelligent Investing All-Stars More Barbarians At The Gate The Forbes.com Investor Team sees opportunities in the stocks, but also warns that there's likely another spectacular failure on the horizon. With John Osbon, Bill Singer and Bill Stone. ...

Let's All Settle Down: Former Employer and Employee Work It Out At the Last Minute

Thu, 06 May 2010 15:04:22 EST

Following former associated person Jonathan Ted Marcus termination of his employment (apparently pursuant to a voluntary resignation by Marcu), a dispute arose concerning the repayment of a promissory note (Note) and monies owed; and, as a result, his former employer, SMH Capital, Inc., filed a FINRA Arbitration Statement of Claim against Marcu. In the Matter of the Arbitration Between SMH Capital Inc., Claimant, versus Jonathan Ted Marcu, Respondent (FINRA Arbitration 08-04963, May 3, 2010). Claimant SMH sought $112,500 in compensatory damages with interest at the rate of 5%, reasonable attorneys fees, expenses, and costs. Loading for Bear? Respondent Marcu denied the allegations and asserted affirmative defenses including: Claimant failed to st...

An Instructive Employee Promissory Note Case (FINRA Arbitration Case)

Thu, 06 May 2010 08:13:53 EST

About a year ago, on May 22, 2009, the more formal litigation phase of this mess began when Claimant Wedbush Morgan Securities, Inc. (WMS) filed a FINRA Arbitration Statement of Claim against Respondent John Buckingham. The dispute isn't all that unique -- it's somewhat of a garden-variety case in which WMS alleged a breach by Buckingham of the terms of a Promissory Note dated December 15, 2006 (Note), and, for good measure, the Claimant tossed in claims for Breach of Contract and Unjust Enrichment. Respondent Buckingham generally denied the claims and filed his own Counter-Claim for Breach of an Employment Contract. In the Matter of the Arbitration Between Wedbush Morgan Securities, Inc., Claimant, versus John Buckingham, Respondent (FINRA Arbitration 09-02996 May 3, 2010). This Could...

Blind, Dumb and Heartless Justice

Thu, 06 Mar 2008 05:16:11 EST

I just received the letter below from one of BrokeAndBroker.com's subscribers. The writer is commenting on http://www.rrbdlaw.com/brokeandbroker/index.php?a=blog&id=34. Other than deleting the sender's name, I have reprinted his comments and my reply. Bill, re Lyons v Merril Maybe I'm missing something but: 1. Ms. Lyons could have requested reimbursement of all costs associated with the expungement. 2. If the above wasn't requested the arbitrator should have provided for the above in his order. 3. Ms Lyons could go back to Merrill and ask them to have their lawyers go to court to handle the expungement. 4. If Merrill refused above Ms. Lyons could go into swear out a Small Claims summons against Merrill for legal costs; Merrill would just write a check at that point. FINR...

Bill Singer Live on Bloomberg TV (Bear Stearns Hedge Fund Case Goes to Jury)

Thu, 05 Nov 2009 07:48:32 EST

Nov. 5 (Bloomberg) -- Bill Singer, a partner at Stark & Stark, talks with Bloomberg's Erik Schatzker about the outlook for the fraud trial of former Bear Stearns Cos. hedge-fund managers Matthew Tannin and Ralph Cioffi. Jurors in Brooklyn, New York, will hear closing arguments in the case starting today. Cioffi and Tannin are accused of misleading investors about the health of two funds, which cost investors $1.6 billion when they collapsed in 2007. Bloomberg's Dan Colarusso also speaks. (Source: Bloomberg) http://www.youtube.com/watch?v=znnHzZPRT6s VISIT WALL STREET'S LEADING ONLINE COMMUNITY BrokeAndBroker.com ...

Open Letter to FINRA: The Last Tango?

Thu, 05 Mar 2009 13:54:28 EST

Readers of this blog write to me with ideas about how to improve Wall Street's regulation and with complaints about its failures. The voices of the independent and regional FINRA community -- both owners and registered persons -- express frustration with inept rulemaking, ineffective regulation, and the perception that regulation has long been biased in favor of the larger firms and high-profile players who brought much of the present economic devastation upon our heads. I am flattered to read my mail when it says that I am viewed as a credible advocate for regulatory reforms to protect both the public and the industry. Sadly, it pains me to explain to such folks that I am disheartened by years of dealing with regulators and trade groups who chose to play organizational p...

Is Another Regulatory Scandal Brewing: Who is regulating the Exchanges?

Thu, 05 Mar 2009 06:51:45 EST

By Bill Singer http://RRBDLaw.com http://BrokeAndBroker.com Yesterday I posted an article (14 Specialists Caught by SEC -- better never than late?) about the SECs actions against 14 Specialist firms for violations that first occurred in 1999 and largely ended in 2002 (or by 2004 at the latest). I got some interesting comments and am posting this follow-up in reply. Why did it take the SEC so long to bring these cases? That was about the most common question and, frankly, I dont have a simple answer. First off, if you are fairly reading yesterdays blog, you should note that the misconduct occurred on the floors of the American Stock Exchange, the Philadelphia Stock Exchange, the Chicago Stock Exchange, and the Chicago Board Options Exchange. To be fair, ...

Can the SEC Continue to Oversee FINRA ? (By guest bloggers Broy and Chepucavage)

Thu, 05 Feb 2009 10:18:51 EST

Can the SEC Continue to Oversee FINRA with its Current Conflicts? Yes But? http://RRBDLaw.com http://BrokeAndBroker.com By Tony Broy and Peter J. Chepucavage One yet unexamined aspect of the Madoff case is the SECS role in the oversight of FINRA with regard to the Madoff matter. The legislation that empowers FINRA made very clear according to former SEC Chairman and Supreme Court Justice Douglas that the SEC would stand behind the door with a shotgun to insure that the self-regulatory organizations did their job. In addition, conflicts have been a major concern of the SEC examining staff over the last 10 years. But given the Madoff issues the SEC surely has its own conflicts. These include the number of former SEC staff at FINRA together with FINRAs former CEO as t...

Funny Business by Jane Wells -- CNBC's Finest Is At It Again!

Thu, 04 Mar 2010 09:49:53 EST

Not only is Jane Wells one of CNBC's best on-air personalities, but her Funny Business column is among my favorite online content. Make sure to visit this site daily -- it will certainly put a smile on your face.On Tuesday, Jane ran a piece with the titillating title of Bride Porn -- It's Not What You Think. Frankly, that's dirty pool because she had to know that running a story with the words "bride" and "porn" was calculated to entrap more than a few males -- not that we always click on porn links, course not. What does she think? It's some Pavlovian experiment? You just put "porn" and "bride" in a headline and every guy on Wall Street will click? Oddly, when I found my way to that page (not sure how that happened...someone must have been surfing on my...

Forbes Intelligent Investing Panel: China

Thu, 04 Jun 2009 16:00:58 EST

China And Commodities: A Discussion China is buying up raw materials at a feverish pace, motivated by fear of a falling dollar. What does this mean for the U.S.? With David Joy, Chief Market Strategist for Riversource Investments; Liz Ann Sonders, Chief Investment Strategist for Charles Schwab & Co.; Bill Singer, Shareholder in the Securities Practice Group of the law firm Stark & Stark and Publisher of http://BrokeAndBroker.com an...

A Twofer: Street Legal (Registered Rep. Magazine) and The Street Sweeper (Forbes)

Thu, 04 Feb 2010 07:30:03 EST

Some Expense-ive Lessons By: Bill Singer, Publisher of RRBDLaw.com and BrokeAndBroker.com [A]ssuming that FINRA is justified in disciplining registered persons who abuse the business expense process, why do we see so little regulatory concern for compensation and workplace abuses by member firms? Speak to enough brokers and you will hear the stories about employers who wrongfully withhold commissions (often as a post-termination maneuver), renege on salary/bonus promises, or engage in workplace discrimination/harassment. Funny thing, though I can't find nearly as many fines and suspensions imposed upon such firms as I find imposed upon their employees for similar misconduct. ...

Earn $1 Per Postcard -- at home!!!

Thu, 04 Feb 2010 06:07:13 EST

Husband and wife Philip Pestrichello and Rosalie Florie apparently had a dream about helping folks make money. So, in June 2007 this entrepreneurial couple started a company that would permit you to earn income from the comfort of your home. To further their enterprise, they set up several companies: Preferred Platinum Services Network,LLC PPSN, LLC The Home Based Associate Program, and The Postcard Processing Program. While a prodigious undertaking, its far too many names to deal with in this blog, so Im just going to refer to the whole shebang as "PPSN." PPSN was marketed to the public through the mail, Internet, and classified print advertisements that promised a weekly paycheck for merely labeling postcards advertising a Mortgage Accelerator Program. For such a ...

Diamond Dust: Prominent Cuban-American Florida Jeweler Named in Affinity-Fraud Ponzi Scheme

Thu, 03 Jun 2010 08:10:17 EST

This all starts out somewhat mundane. According to Social Affairs Charity Register http://socialaffairscharityregister.com/blog/?p=101 (January 28, 2009), Luis Felipe Perez was born in Havana, Cuba in 1972 and subsequently lived with his family in Miami, Florida. In 1977, Perez went on to the Gemological Institute of America to learn the study of gems and precious stones after graduating high school in 1990. In 1995, he opened his first retail jewelry store, quickly establishing a large base of private and wholesale clients. Soon after, he followed his success by moving into the business of diamonds and wholesale and the designing of his own collection. The article notes that , "Since that time, Luis Felipe Perez has established himself as one of the most successful indepen...

Somehow, Someday, Somewhere -- a FINRA Customer arbitration.

Thu, 03 Jun 2010 05:43:58 EST

Acting as his own legal counsel, public customer Guy Girgenti filed a Financial Industry Regulatory Authority (FINRA) arbitration on March 12, 2009, seeking $160,000 in compensatory damages plus interest, attorneys fees, and costs., against Janney Montgomery Scott LLC and Janice Ginsburg. Pro Se Claimant Girgenti alleged causes of action for breach of contract, breach of fiduciary duty, unsuitable investments, negligence, failure to supervise, and respondeat superior. Guy Girgenti, Claimant, vs. Janney Montgomery Scott, LLC and Janice Ginsburg, Respondents (FINRA Arbitration 09-01381, May 26, 2010). Respondents generally denied the allegations and asserted various affirmative defenses. On or about March 1,2010, Claimant Girgenti withdrew his claims against Respondents. Why? As usu...

Da Big Kahuna Indicted For Securities Fraud

Thu, 03 Jun 2010 05:11:09 EST

The Federal Criminal Case A federal grand jury returned an indictment under seal on May 26, 2010, charging Blake Williams, 27, of Dallas, and Derek Lopez, 43, of Torrance, Calif., with one count of conspiracy to commit securities fraud and seven counts of securities fraud. The charges, filed in U.S. District Court for the Northern District of Texas/Dallas Division, were unsealed on May 27, 2010, and Williams and Lopez were arrested. http://www.justice.gov/opa/pr/2010/May/10-crm-626.html NOTE: THE DEFENDANTS ARE PRESUMED INNOCENT UNLESS AND UNTIL PROVEN GUILTY. ALL CHARGES ARE MERELY ALLEGATIONS AT THIS TIME. According to the indictment, Williams was a securities broker-dealer and employee of TBeck Capital Inc., a purported investment banking and securities trading ...

David Serchuk: Brooklyn Baby Daddy

Thu, 02 Apr 2009 16:45:33 EST

By Bill Singer http://BrokeAndBroker.com These are tough time to persevere. These are tough times to ask folks to climb through the ropes knowing that they are going to get a beat down for a small purse. It's even tougher when you realize that you're just being chewed up by the machinery and this may be your last paycheck. The Bum of the Month Club is not a job that anyone aspires to--it's what you accept when it's near the end of the line and you have rent to pay and a family to feed. Everyday, we see folks swallow their pride in order to get through the day, and the next. There have been some recent glimmers. We were up a few hundred points this week in a resurgent market. Still, the stories keep coming in of layoffs and business failures; and that's likely t...

Dead Dogs of the Dow

Thu, 01 Oct 2009 05:17:32 EST

The Dead Dogs Of The Dow No surprise: Firms dropped by the Dow Jones industrial average tend to underperform. But so do firms added by the Dow. With Marc Lowlicht, President of the Wealth Management Division of Further Lane Asset Management; and Bill Singer, Attorney and publisher of http://BrokeAndBroker.com and http://RRBDLaw.com BILL SINGER: Bill Singer, a securities attorney and shareholder at the firm Stark & Stark, says the changes in the Dow ov...

Securities and Exchange Commissioner Luis A. Aguilar 's Sage Words About Effective Regulation

Thu, 01 Jul 2010 07:16:42 EST

Longtime readers of BrokeAndBroker know that I am not a fan of the time-wastin' speechifyin', masturbatory roundtabling, and high-fallutin' blue-ribbon panels that enervate our government. Sadly, we are saddled with legislators and regulators who belatedly cobble together ineffective solutions for yesterday's problems, or opt for abject inaction that paves the way for tomorrow's crises. In the end, we get neither an ounce of prevention nor a pound of cure. E Pluribus Unum has been replaced with Too Little, Too Late. Among the worst examples of institutionalized procrastination is the United States Securities and Exchange Commission (SEC). On June 30, 2010, during an open meeting of the SEC, Commissioner Luis A. Ag...

FINRA U5 CRD Expungement: We Have Two Winners!!

Thu, 01 Apr 2010 04:12:13 EST

What's the point? Why should I even waste my time and money? Isn't the FINRA Arbitration process stacked against the individual RR? -- So goes what passes for common wisdom. As with so much industry lore, it ain't always right and if you invest too much credibility in such water-cooler lawyering, you may regret it. Without question, it's tough for an individual RR to prevail in any FINRA Arbitration, be that a customer or intra-industry dispute. However, "tough" doesn't mean impossible and sometimes you just have to suck it up, put your head down, and be prepared to run through walls in order to preserve your rights and reputation. Consider these two recent expungement cases brought by two lowly brokers -- one against a household name (Merrill L...

RRBDLAW.com: FINRA November Cases

Sun, 30 Nov 2008 11:04:28 EST

RRBDLAW.com: November FINRA Cases Analyzed by Bill Singer From: http://rrbdlaw.com Numb is probably the best word I can use to describe Wall Street these days. Many folks on the Street seem burned out, confused, broken, and with little interest for the findings of any industry regulator. Nonetheless, life does go on and so does the task of overseeing the securities industry--or what is left of it. Be it sleepwalking or simply taking the first unsure steps along the road to rehabilitation and recovery, the regulators and the regulated must return to their dance. Painful to some. Annoying to others. For me, the initial signs of a return to at least a semblance of normalcy. As such, with that understanding and that worldview, let me continue ...

BrokeAndBroker.com: A Man For One NASD Season

Sun, 28 Mar 2010 09:53:01 EST

Timothy P. Pedregon, Jr. (Pedregon) worked as an examiner with the self-regulatory organization National Association of Securities Dealers, Inc. (NASD) from April 2003 until November 2004. According to an NASD Memorandum (Probationary Memo), Pedregon was placed on probation by NASD in June 2004 because: Your overly aggressive approach has been brought to your attention in the past by your supervisor, your mentor, and at least one other co-worker . . . . The impact of your behavior has been considerable. By engaging in inappropriate and unprofessional conduct you have negatively impacted NASD's image as a fair and objective regulator. In addition, your conduct on the examination in question has provided the firm with the opportunity to complain about its treatment by NASD, causing reso...

Wall Street Blackjack Player Busts, Busted, and Barred

Sun, 23 May 2010 06:45:24 EST

They do quite a bit of surveillance at most casinos. Frankly, those paid to watch the games of chance do a better job than those paid to watch our stock markets. Take this recent case. Blackjack Players Go Bust And Get Busted On September 20, 2008, five blackjack players and the dealer at a blackjack table at the Mohegan Sun Casino in Uncasville, Connecticut were under in-house surveillance that allegedly caught them cheating. The six suspects were arrested and initially charged with committing a sixth-degree larceny on September 20, 2008. However, sometimes things are not what they seem. All charges against four of the players were dropped. ...

SEC v. Goldman Sachs: Regime Change or Crowd Control? In-depth analysis by Bill Singer.

Sun, 18 Apr 2010 08:05:50 EST

My view on SEC v. Goldman Sachs & Co. is that it will likely become a watershed event in the history of Wall Street regulation. It's time that we pull back the curtain between us and the mighty Wizard of Oz -- so that we might see the old man pulling the bells, whistles, and levers. It is also appropriate for us to stop pretending that laissez-faire regulation must tolerate financial products that are little more than roadside IEDs along the highway that is Wall Street. The larger question is are we now about regime change on Wall Street or merely crowd control? Since the Securities and Exchange Commissions (SEC) announced its Goldman Sachs Complaint last Friday (Copy of the SEC Complaint and my initial comments at http://www.brokeandbroker.com/index.php?a=bl...

Pulling Up Weeds at the SEC

Sun, 06 Sep 2009 07:51:55 EST

Pulling Up Weeds At The SEC The problems at the SEC and FINRA are too deep to merely require a few changes. The whole U.S. regulatory system needs uprooting. By Bill Singer, Attorney and publisher of http://BrokeAndBroker.com and http://RRBDLaw.com ...

Swine Flu: Lessons for Wall Street

Sun, 03 May 2009 08:17:19 EST

Swine Flu: Lessons For Wall Street When the swine flu hit, the medical establishment drew on the past for ways to act. Wall Street didn't, and failed. While no one necessarily saw the swine flu coming at this time and with these public health and economic impacts, you don't get the sense that the medical community was caught totally unprepared. To the contrary, it seems as if there was a playbook for just exactly this type of situation, and that efforts are being coordinated to detect and contain the swine flu. There are existing stockpiles of Tamiflu, and efforts are underway to develop a swine flu vaccine. All of which i...

Elusive FINRA Reform

Sat, 28 Aug 2010 07:13:52 EST

I started my career on Wall Street in the early 1980s, and, by now, I've pretty much seen it all and know where far too many bodies are buried. If you look at my resume at http://www.rrbdlaw.com/bios_singer.html you will get a better sense of my career arc: Smith Barney, the American Stock Exchange, the NASD, mutual funds, investment advisors, public customers, registered representatives, trade groups, and more. I've been on both sides of the litigation table and both sides of the regulatory table. I am a proud pariah to those who blindly defend self regulation of our securities markets and to those who just as blindly advocate the end to all regulation. The Battle Rages Let me be clear, I am not a fan of self regulation. I believe that it ...

Go to the FBI Cold by Bill Singer, Forbes Intelligent Investing

Sat, 24 Oct 2009 14:12:52 EST

Go To The FBI Cold I alerted the SEC's Division of Enforcement to a possible scam weeks ago. I still await a response. Did Madoff teach them nothing? By Bill Singer, Attorney and publisher of http://BrokeAndBroker.com and http://RRBDLaw.com Email Reply from the SEC to Bill Singer: Dear Mr. Singer: ...

The UK Junks Its FSA, When Will We Junk The SEC

Sat, 19 Jun 2010 07:00:58 EST

Top Story The UK Junks Its FSA, When Will We Junk The SEC Jun 18, 2010 9:42 AM, By Bill Singer The SEC is a gas-guzzling dinosaur of a vehicle whose engine warning-light went on years ago. It is a wheezing, dyspeptic boiler in our basement. Nothing good will come of this.... READ THE FULL ARTICLE AT: http://registeredrep.com/securities_law/uk_junks_fsa_what_about_sec_0618/ Re-read Bill Singer's June 2009 Forbes article "Obama's Titanic Regulatory Overhaul" for some fascinating context: ...

Vote for Howard Spindel for FINRA Small Firm Governor

Sat, 15 May 2010 07:40:40 EST

American Public Media's Marketplace Radio: Bill Singer Comments on Flash Crash

Sat, 15 May 2010 07:00:33 EST

Wall Street's New Gamble After last week's chaotic stock market free fall, heads of the major exchanges came up with a solution: Some trades are off, while some will still stand. Critics say that this idea will lessen the legitimacy of the market. Hear Bill Singer's comments at: http://marketplace.publicradio.org/display/web/2010/05/13/mm-wall-streets-new-gamble/...

FINRA Reply to Bill Singer: Lost in the Mail?

Sat, 14 Mar 2009 09:28:22 EST

My colleagues in the FINRA Dissident/Reform Movement, Peter Chepucavage and Tony Broy, have posted on the International Association of Small Broker Dealers and Advisors' (IASBDA) website, their thoughts for a more effective Wall Street Whistleblower program. I am flattered by their kind words concerning some of my prior suggestions in this area and look forward to working with them and IASBDA on this initiative. By way of update, despite having sent a March 5, 2009 email to FINRA seeking a meeting to discuss many reform-oriented ideas (that letter was published at http://www.brokeandbroker.com/index.php?a=blog&id=143 and by Registered Rep. Magazine at http://registeredrep.com/regulatory/dissidents_complain_finra_biased_regulator0306/index.html), FINRA has still failed to respon...

Rep. Bachus's FINRA Amendment Flames and Crashes -- thankfully!

Sat, 12 Dec 2009 07:15:06 EST

http://registeredrep.com/advisorland/regulatory/house_passes_regulatory_reform_sro_up_in_the_air_1211/ House Passes Regulatory Reform, SRO Up In The Air Dec 11, 2009 3:11 PM, By Kristen French The House of Representatives passed the financial regulatory reform bill Friday afternoon by a narrow margin: 223 votes in favor to 202 against. But it will still be a long time before the regulatory future for broker/dealers and investment advisers is clear. ... "The likely legacy of the defeat of the Bachus Amendment will be to weaken the support on Capitol Hill for similar FINRA efforts," says regulatory attorney Bill Singer, a columnist f...

The SEC's Inspector General's Report: Laocoon dies again!

Sat, 11 Oct 2008 15:22:15 EST

With a genuine mixture of sadness and vindication, I read the just-posted report by the United States Securities and Exchange Commission's (SEC) Inspector General/Office of Audits: SEC's Oversight of Bear Stearns and Related Entities: The Consolidated Supervised Entity Program, September 25, 2008, Report No. 446-A. (the Report). I have posted the Report in full and urge all of you to read its findings and allegations. The Report is a disturbing indictment of our regulatory system that presents a disheartening picture of regulators who sat by as Wall Street was consumed by a spreading conflagration--one that could have and should have been contained as a smaller brushfire. The Report details the ineptitude of higher-ups who persistently frustrated the prescient concerns ...

Time for Wall Street to Make Restitution?

Sat, 05 Sep 2009 07:22:47 EST

Home | Professional Services | Investor Resources | Broker Dealer | Blogs | Shopping Center | Employment | About Us/Contact Madoff. Stanford. The SEC ripped by its Inspector General. Amerivet v. FINRA. Yeah, I know . . . not much good news these days about Wall Street. Even worse, it's as if the industry's regulators think the only option is to pretend this is a football game, it's fourth down, and let's just punt the damn thing down the field. Trouble is, this isn't a game. Someone needs to take charge and fix this mess. For starters, how about compensating those who were robbed? In a recent New York Post article SIPC Says Stanford Vics are Outta Luck, reporter Paul Tharp hones in on rising investor outra...

FINRA Board of Governors Nominations: Singer's Acid Test

Sat, 04 Aug 2007 12:42:31 EST

On August 3,2007 the new Financial Industry Regulatory Authority (FINRA) announced its seven nominees for its first Board:three from the Small Firm pool, one from the Mid-Size, and three from the Large Firm. Individuals seeking to contest FINRA's slate must file petitions within 45 days (needing 3% of member signatures for each category or 10% if running as part of a multi-category slate). In reviewing the list of FINRA's official nominees, I sadly see a predisposition to regurgitate familiar faces (and firms) through a system desperately in need of innovation and reform. Despite a vibrant dissident/reform community that won dramatic contested elections during last year's District,NAC, and Board levels, FINRA persists in pretending that such opposition does not exist. FINRA is...

Paulson, Regulatory Reform, and the Maginot Line

Mon, 31 Mar 2008 08:13:35 EST

Treasury Secretary Henry Paulson stated that I do not believe it is fair or accurate to blame our regulatory structure for the current market turmoil. I am not suggesting that more regulation is the answer or even that more effective regulation can prevent the periods of financial market stress that seem to occur every five to 10 years. A full copy of the Department of the Treasury's Blueprint for a Modernized Financial Regulatory Stucture can be downloaded here: http://www.treas.gov/press/releases/reports/Blueprint.pdf. While it would be unfair to solely blame ineffective and inept regulation for our present woes, certainly a great deal of the blame must come to rest there. As I have publicly stated and written about for years, much of our present-day regulatory structure ...

PHLX Denied Six-Figure Recovery Against And Suspension of Disgruntled Member

Mon, 30 Mar 2009 14:32:43 EST

Richard B. Feinberg became a member of the Philadelphia Stock Exchange (PHLX) in 2003 by purchasing a seat on the Exchange for approximately $18,000. In January 2004, the PHLX converted from a nonprofit mutual organization to a for-profit corporation through a process called demutualization. As a result of this process, each of the PHLX's seat-holders became shareholders, with each seat converting into 100 shares of common stock. Feinberg's seat was thus converted into 100 shares of PHLX common stock. If Only I Had Known (but did she?) In the fall of 2004, Feinberg decided to sell his shares of PHLX stock. He initially offered the shares for $25,000 but was unable to attract a buyer. After lowering his price to $20,000, Feinberg sold the shares on December 1, 2004; but di...

New Custody Rules. BrokeAndBroker.com Rated Top Site by FINS/Bull & Bear Report

Mon, 29 Mar 2010 06:27:30 EST

Quite an accolade! Many thanks to Julie Steinberg of the Bull & Bear Report/ FINS "Where Compliance Pros Connect Online" (March 26, 2010) http://www.fins.com/Finance/Articles/SB126954368805367487/Where-Compliance-Pros-Connect-Online?Type=0&idx=1 for ranking the BrokeAndBroker Blog among the top three in the industry: Blogs-- BrokeandBroker, a blog run by Bill Singer, a high-profile securities attorney who represents whistleblowers, broker-dealers and investors. -- Corporate Compliance Insights offers a job board, articles and a forum for pressing compliance matters. It's from Conselium, an execu...

See Bill Singer's TV Interview on Madoff Sentencing

Mon, 29 Jun 2009 13:29:16 EST

SEC Madoff gets 150 years for fraud June 29, 2009 | 2:23 PM ET Canadian Broadcasting Corporation's (CBC) Andrew Nichols interviews securities lawyer Bill Singer on Madoff's sentence and the message it sends to Wall Street (Runs: 5:50) Play: Real Media » Play: QuickTime » V...

Madoff's Day of Reckoning (Bill Singer's Forbes Column)

Mon, 29 Jun 2009 08:19:17 EST

Madoff's Day of Reckoning Bill Singer, 06.26.09, 02:00 PM EDT On June 29, Bernie Madoff will be sentenced. Let's hope that it leads to substantive regulatory change, and not just headlines 06.12.09, 02:00 PM EDT By Bill Singer, Attorney and publisher of http://BrokeAndBroker.com and http://RRBDLaw.com ...

Forbes Intelligent Investing: Just the FX, and nothing but the FX

Mon, 28 Sep 2009 05:02:06 EST

Playing The Downward Dollar Playing The Downward Dollar A weak greenback can be played multiple ways. Consider ETFs and American firms that export. With Randy Carver, the founder and registered investment adviser at Carver Financial Services; Jeff Rubin, Director of Research and a portfolio manager at Birinyi Associates and Bill Singer, Attorney and publisher of http://BrokeAndBroker.com and http://RRBDLaw.com BILL SINGER: [A]s to American goods, that's an intriguing questio...

Supreme Court Rules PCAOB Construct Partially Unconstitutional -- Terminable At Will Is New Standard

Mon, 28 Jun 2010 09:31:22 EST

http://www.brokeandbroker.com/index.php?a=blog&id=464 FREE ENTERPRISE FUND ET AL. v. PUBLIC COMPANY ACCOUNTING OVERSIGHT BOARD ET AL. CERTIORARI TO THE UNITED STATES COURT OF APPEALS FOR THE DISTRICT OF COLUMBIA CIRCUIT No. 08861. Argued December 7, 2009Decided June 28, 2010 http://www.supremecourt.gov/opinions/09pdf/08-861.pdf We are asked, however, to consider a new situation not yet encountered by the Court. The question is whether these separate layers of protection may be combined. May the President be restricted in his ability to remove a principal officer, who is in turn restricted in his ability to remove an inferior officer, even though that inferior officer determines the policy and enforces the laws of the United States? We hold that such multilevel protection from...

The End of an Era: Harvey Houtkin

Mon, 28 Jul 2008 13:06:27 EST

It was with sadness that I learned recently that my former client Harvey Houtkin died this Saturday. Up until the 1990s, Wall Street's old guard was entrenched at the New York Stock Exchange and NASDAQ. Under the banner of market stability, those market mainstays extracted a quarter of a point here and a half of a point there. They kept the spread based upon an archaic formula of 1/16ths, 1/8ths, 1/4s, and similar fractions. Further, the brokerage industry was a chokepoint through which all orders intended for execution had to pass, and the tribute exacted on such order flow was a price-fixed commission system. Of course, in 1987 when the stock market crashed, all those vaunted guardians of market stability just let the phones ring on their market making desks. Hey, you didn't hav...

Bill Singer In the News

Mon, 27 Oct 2008 11:33:58 EST

Stories to Follow for November 2008 FINRA Case Analysis by Bill Singer RRBDLAW.com is now updated with Bill Singer's comments about recent FINRA disciplinary actions. Catch up on new enforcement trends. Read some of Bill's criticisms and critiques. A Touchy-Feely Wall Street What will emerge after Wall Street picks up the pieces? Hugs from your broker. The Forbes.com Investor Team brings the love back to personal finance. With Bob Froehlich, Greg Ghodsi and Bill Singer. Bill's comments start off with a bang: Singer: In years past, Wall Street was a somewhat forgiving parent. If its children were fired or laid off, Mom and Dad often welcomed them back home. However, Wall Street is now living in an assisted living facility and there is no room fo...

Okay, so maybe Mary Schapiro wasn't a great stock picker.

Mon, 27 Jul 2009 12:52:41 EST

Home | Professional Services | Investor Resources | Broker Dealer | Blogs | Shopping Center | Employment | About Us/Contact Mary Schapiro is no money manager By Reuters Columnist Matthew Goldstein July 27, 2009 http://blogs.reuters.com/commentaries/2009/07/27/mary-schapiro-is-no-money-manager/ From the annals of when the hell does this nonsense ever stop, Matt Goldstein uncovers yet another painfully funny regulatory story. Painfully funny as in pathetic ...

Paulson: Thumbs Up or Down ? (Forbes Intelligent Investing Panel)

Mon, 27 Jul 2009 05:39:33 EST

BofA's Shotgun Wedding Henry Paulson admitted that he pressured Bank of America to acquire Merrill Lynch, but more forced mergers are unlikely. With Greg Ghodsi, Senior Vice President at Raymond James & Associates' 360 Wealth Management Group; Sacha Millstone, Senior Vice President with Raymond James & Associates' Millstone Evans Group; and Bill Singer, Shareholder in the Securities Practice Group of the law firm Stark & Stark and Publisher of ...