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

A Family Affair In FINRA Discretion Settlement

Mon, 20 May 2013 05:41:30 EST

You might not think it would be a big deal for a registered person to handle the brokerage account of a family member -- but, then again, not a lot of Wall Street regulation is intuitive and this is one of those issues that trips up many industry participants. In a recent case involving a former Schwab broker, he wound up on the wrong side of FINRA when he was found to have exercised trading discretion in a family member's account.For the purpose of proposing a settlement of rule violations alleged by the Financial Industry Regulatory Authority (FINRA), without admitting or denying the findings, prior to a regulatory hearing, and without an adjudication of any issue, Jonathan A. Browder submitted a Letter of Acceptance, Waiver and Consent (AWC), which FINRA accepted. In the Matt...

EMPLOYMENT TUESDAY at BrokeAndBroker.com

Mon, 20 May 2013 05:21:58 EST

EMPLOYMENT TUESDAY AT BROKEANDBROKER.COMVisit the BrokeAndBroker Employment Page BrokeAndBroker.com Jobs...

SEC Alleges Bank Guarantee Train Pulled Away From Trading Platform

Sun, 19 May 2013 08:27:04 EST

Standby Letters of Credit. Bank Guarantees. Trading Platforms. Oh the crap that gets pushed on the unsuspecting and the unasked questions that too many investors fail to voice. All of which usually ends with the collision of scam and failed due diligence to produce lots of missing money. Has the SEC filed yet another such case?Prime Bank InvestmentOn May 16, 2013, the Securities and Exchange Commission (SEC) filed an emergency action in federal court in the federal district in Atlanta, charging Robert Fowler, 51, Duluth, GA, and his company US Capital Funding Series II Trust 1 (Fowler was a control person), with violations of the federal securities laws for defrauding investors in a prime bank investment scheme. SEC v. Fowler et al. (NDGA, 13-CV-1656, May 16, 2013).&n...

ProEquties Tagged in TIC Arbitration

Fri, 17 May 2013 07:25:06 EST

In a Financial Industry Regulatory Authority (FINRA) Arbitration Statement of Claim filed in March 2012, Claimants alleged causes of action including breach of fiduciary duty, fraud, and elder abuse pertaining to an investment in a Tenant-in-Common ("TIC") real estate investment. Claimants sought indemnification under guaranty agreements; $499,365 in damages plus interest; punitive damages; fees, costs, and expense. At the close of hearing, Claimants sought $648,737.64 in damages. In the Matter of the FINRA Arbitration Between Suzy Asad and 1999 Suzy Asad Revocable Trust dated August 20, 1999, Claimants, vs. Mamdoh Aziz Abas and ProEquities, Inc., Respondents (FINRA Arbitration 12-01167, May 14, 2013).Respondents Abas and ProEquities generally denied the allegations a...

Weekend Update by Bill Singer of BrokeAndBroker.com

Thu, 16 May 2013 09:51:43 EST

The $2.6 Million Question In Goldman Sachs Suitability ArbitrationFINRA arbitration Decisions tend to be unanimous, but, with increasing frequency, we are seeing decisions by two of three arbitrators -- and ther...Read OnPublic Customer Wins Messy Private Placement ArbitrationIn a Financial Industry Regulatory Authority (FINRA) Arbitration Statement of Claim filed in November 2011, Claima...