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Maryland Financial Advisor Gets Jail Time For Annuity Fraud

A Maryland financial advisor was recently sentenced to four years in prison and three years of supervised release for bilking vulnerable investors out of nearly $1 million. In fact, much of the money was fraudulently withdrawn from a trust account of a child suffering from cerebral palsy.

NASAA: Watch Out For Fraudulent Investments Promising Higher Returns

With interest rates projected to remain low until at least late 2014, the North American Securities Administrators Association (NASAA) is warning investors to be on the lookout for fraudulent investments promising higher yield or returns.

FINRA: David Lerner Continuing to Mislead Investors Over REITs

Apparently, David Lerner did not get FINRA’s message the first time. Despite a disciplinary complaint against his firm, David Lerner Associates Inc., Lerner continued to improperly sell illiquid real estate investment trusts to unsuspecting investors, according to the regulator’s amended complaint.

Nevada Investor Wins Big Against Banc of America Securities

Earlier this month, a Nevada investor was awarded a $1.38 million securities arbitration award against Banc of America Securities, now Merrill Lynch. The money represents all the money Bobby Hayes lost on a complex security, as well as accrued interest, lawyers’ fees, and other costs.

What Should Investors Look Out For? FINRA Outlines Biggest Risks

The Financial Industry Regulatory Authority recently released its regulatory and examination priorities for 2012. As detailed in the letter, the regulator is concerned that the volatile economy will continue to put investors at risk for unsuitable products that promise high returns.

Goldman Sachs Facing Securities Class-Action Lawsuit Over Risky Investments

Goldman Sachs Group Inc. is facing a securities lawsuit claiming it defrauded investors regarding a 2006 offering of securities backed by risky mortgage loans. Last week, it was certified as a class action led by the Public Employees’ Retirement System of Mississippi.

Charles Schwab Customer Agreements Called into Question By FINRA

The Financial Industry Regulatory Authority (FINRA) has filed a complaint against Charles Schwab & Company. The regulator has charged the firm with violating FINRA rules by requiring its customers to waive their rights to bring class action lawsuits.

New FINRA Arbitration Panel a Hit With Investors

As we discussed last week, the Financial Industry Regulatory Authority operates the largest securities-related dispute resolution forum in the world. Generally, arbitration panels are comprised of three people, one of which is an “industry” arbitrator who works in or is associated with the financial industry.

FINRA Teaming Up With NFL to Tackle Investment Fraud

The Financial Industry Regulatory Authority (FINRA) Investor Education Foundation and the National Football League (NFL) have announced that they are working together to teach incoming NFL players how to spot and avoid investment fraud. As we have frequently discussed on this blog, professional athletes are common targets for unscrupulous investment professionals looking to take advantage of their wealth and status.

Has Your Email Been Hacked? Be Sure to Alert Your Broker

Many of us use our email accounts to correspond with everyone in our lives, from our college roommate to our broker. Unfortunately, email hacking is becoming a growing problem. While in some cases it is a mere annoyance, in more serious breaches, it can lead to identity theft and even investment losses.