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Citigroup Fined for Inadequate Background Checks

The Financial Industry Regulatory Authority (FINRA) has issued a $1.25 million sanction against Citigroup Global Markets (Citigroup) for failing to conduct adequate background checks on personnel. According to FINRA, Citigroup did not adequately conduct background investigations of approximately 10,400 non-registered associated persons between 2010 and 2017. FINRA found that at […]

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Selling Away

One of the most dangerous things a broker can do to an investor is selling away. In layman terms, selling away is a private transaction whereby a broker sells a product that is not offered or approved by his or her firm. In other words, the broker is selling an […]

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Excessive Trading (Churning)

Excessive trading, also called “churning”, happens when a broker buys and sells a high volume of securities for the purpose of generating commissions in a customer’s account. In doing so, they are creating a roundtrip transaction to earn more money. Churning violates federal and state securities law and FINRA rules. […]

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Merrill Lynch pays $40 to Settle Churning Claim

According to a CNBC report, Merrill Lynch has paid $40 million to settle a customer complaint against a former Boston area broker named Charles Kenahan.  The customer, Robert Levine, was a co-founder of Cabletron Systems.  Levine filed a complaint with FINRA alleging that Kenahan made unsuitable investment recommendations and churned […]

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SEC Adopts Regulation Best Interest and Other Reforms Aimed at Protecting Retail Investors

Last week, the Securities and Exchange Commission passed a package of regulations aimed at reforming standards for brokers and financial advisors providing investment advice. According to the SEC, the regulations are “designed to enhance the quality and transparency of retail investors’ relationships with investment advisers and broker-dealers, bringing the legal […]

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Brokerage Firms May Be Responsible for Selling GPB Capital Funds

GPB Capital Holdings, an alternative asset management firm based in New York, is the subject of investigations by FINRA, U.S. Securities and Exchange Commission (SEC), and state regulators. GPB Capital raised approximately $1.8 billion from investors in private placement funds primarily invested in the waste management and auto dealership sectors. […]

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Filing a Claim Against a Stockbroker or Financial Advisor

How to complaint against stockbroker

Stockbrokers (or ‘Brokers’) can be trusted competent professionals upon whom their clients can rely to safeguard their investments.  Unfortunately, even smart and competent stockbrokers and financial advisors can give clients bad or even fraudulent advice. In these circumstances, it is difficult for a client to know what their options are […]

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What Does a Securities Lawyer Do and Do I Need One?

what does a securities lawyer do

If you have heard the terms “investment lawyer” or “securities attorney” but are not sure of what they mean, you are not alone.  The world of securities law is complex and can be confusing. With this article, we hope to explain what a securities or investment lawyer does and how […]

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Investor Choice Act of 2019 and Legislative Proposals

On April 3, 2019, the Subcommittee on Investor Protection, Entrepreneurship and Capital Markets, part of the House Committee on Financial Services, held a hearing entitled: Putting Investors First: Reviewing Proposals to Hold Executives Accountable.  The hearing examined six legislative proposals that are designed to hold public company executives accountable to […]

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Maryland Fiduciary Rule

Legislation proposed in the Maryland Senate, Senate Bill 786 – Financial Consumer Protection Act of 2019, contains a controversial fiduciary rule which defines certain investment professionals as fiduciaries. Under the bill, investment advisers, broker-dealers, broker-dealer agents, and insurance producers would be defined as fiduciaries and would be required to act […]

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