$70 MILLION Recovery for Investment Fraud

$44 MILLION Recovery for Ponzi Scheme Victims

$25 MILLION Recovery Against National Brokerage Firm

$9.1 MILLION FINRA Arbitration Award Against Brokerage Firm

$7.9 MILLION Securities Arbitration Award Against Stockbroker

$1 MILLION Securities Arbitration Award for Elder Financial Fraud

Securities Arbitration Lawyers Blog

New Jersey Broker Glenn King Barred by FINRA

September 19, 2016 | Silver Law Group

New Jersey Broker Glenn King Barred by FINRA on silverlaw.com

Allegations against King include making fraudulent misrepresentations to clients

Glenn King, a former broker based in New Jersey, has been barred from acting as a broker by the Financial Industry Regulatory Authority (FINRA) for misconduct. A veteran in the securities industry with a career that dates back to 1992, King has received 19 customer complaints and is the subject of several investigations and two financial disclosures.

According to FINRA, King allegedly made fraudulent misrepresentations and neglected to provide the required prospectus to clients in association with Unit Investment Trusts (UITs) while employed by Royal Alliance Associates, a national financial advisory firm. The FINRA report states that King made his elderly clients believe that he would use their investment funds to purchase safe, no-risk bonds and that he would not charge commissions for these transactions. However, investigations show that he purchased 44 UITs that caused his clients to lose tens of thousands of dollars while he made $38,000 in commissions. These FINRA allegations and an internal review by his member firm caused King to be terminated from Royal Alliance Associates in June of 2011.

WestPark to Acquire Some Newport Coast Securities Reps

September 19, 2016 | Silver Law Group

WestPark to Acquire Some Newport Coast Securities Reps on silverlaw.com

A majority of these representatives may have official complaints filed against them

WestPark Capital Inc. is set to acquire some of 109 registered financial representatives from Newport Coast Securities, a small, independent broker-dealer based in Irvine, CA. It’s notable that 63% of Newport’s representatives have at least one “disclosure event” on their Financial Industry Regulatory Authority (FINRA) BrokerCheck reports, which, in most cases, means that an official complaint has been filed against them.

WestPark hires Newport reps with multiple disclosure events

Silver Law Group Files another FINRA Arbitration Complaint Against RBC Capital Markets for Unsuitable Recommendations in the Oil and Gas Industry

September 15, 2016 | Silver Law Group

Silver Law Group has filed a FINRA arbitration complaint against RBC Capital Markets, LLC (CRD# 31194) for unsuitable recommendations to invest in oil and gas securities.

Our client, an older individual, had been working with her RBC broker, Lisa J. Lowi (CRD# 1347790), for many years. Our client alleges she was primarily invested in high-quality bonds to ensure healthy and consistent income for herself in her retirement years.

Rather than investing in conservative investments the client alleges, Lowi pushed oil and gas investments, including master limited partnerships (“MLPs”), and overconcentrated our client in the industry. Lowi failed to disclose the high risks that come with investing in the oil and gas industry.

Is FINRA’s Senior Helpline Working to Combat Elder Financial Fraud?

September 5, 2016 | Silver Law Group

Is FINRA’s Senior Helpline Working to Combat Elder Financial Fraud? on silverlaw.com

FINRA recognizes that our seniors are especially vulnerable to financial fraud—is HELPS helping?

In 2015, FINRA launched a new program called HELPS, a hotline for senior investors with questions about the legitimacy of their investments. The program is intended to help combat elder financial fraud, which is rampant across the US, but especially prevalent in South Florida, which is already a hotbed of national and international fraud.

Senior investors are especially vulnerable because of health and memory problems like Alzheimer’s and dementia as well as a lack of education about the changing financial environment and new investment products. To make the matter worse, unethical brokers may particularly target seniors in order to take advantage of their vulnerabilities, aiming to convincing them to purchase risky and expensive investments, and, on occasion, attempting to directly steal their funds.

5 Tips for Preventing and Discovering Stockbroker and Investment Fraud

September 2, 2016 | Silver Law Group

5 Tips for Preventing and Discovering Stockbroker and Investment Fraud on silverlaw.com

Frauds can go undetected for years, so what can investors do to prevent, identify, and address this growing issue?

In a financial environment where a uniform fiduciary standard for brokers doesn’t yet exist, it pays for clients to be constantly vigilant for signs of stockbroker and investment fraud. Even when brokers are legally required to act in your best interest, it is still in your best interest to confirm that they are. Sometimes it can take years to detect a problem, so what can you do to spot fraud? How can you confirm that a fraud has occurred? And what do you do when the worst has happened to you?

1. Choose the right broker

Silver Law Group Defending Thousands of Investors in an International Fraud Case Against Cryptsy CEO

September 1, 2016 | Silver Law Group

Silver Law Group Defending Thousands of Investors in an International Fraud Case Against Cryptsy CEO on silverlaw.com

Paul Vernon’s former clients say he stole millions from Cryptsy, which traded Bitcoin and other digital currencies, and then fled the country with $8M in investor funds. Now we’re representing them in a class action lawsuit.

Paul Vernon, CEO of Project Investors Inc., which does business as Cryptsy, a Delray Beach-based digital currency exchange, fled to China with $8 million dollars in client money, allege a group of international investors we’re currently representing in class action suit that was certified by U.S. District Judge Kenneth Marra in West Palm Beach on August 24.

In 2015, Vernon notified Cryptsy clients that software problems were causing the company to pause all electronic wallets. That December, he notified them of a phishing scam targeting the site. Plaintiffs alleged that Vernon shut down the exchange and stopped responding to client inquiries in late 2015.

The Definitive Guide to Securities Arbitration and Mediation

September 1, 2016 | Silver Law Group

The Definitive Guide to Securities Arbitration and Mediation on silverlaw.com

If you decide to use FINRA’s dispute resolution process to resolve a dispute with a broker or financial firm, you have two options, arbitration and mediation.

When investors have a dispute with a brokerage firm registered with FINRA that cannot be settled through mutual agreement or outside settlement, the case may be arbitrated or mediated through FINRA’s dispute resolution forum, which includes both arbitration and mediation.

Securities arbitration and mediation have been found to be much faster, less expensive, and less complex than litigation when it comes to resolving financial disputes between investors and brokers, financial advisors, or brokerage firms.

Crowdfunding and Securities: What You Need to Know to Stay Protected

August 31, 2016 | Silver Law Group

Crowdfunding and Securities: What You Need to Know to Stay Protected on silverlaw.com

Crowdfunding, like any investment, has both risks and benefits. Before investing, make sure you understand both.

As of May 2016, investors are able to buy stock in early-stage companies through crowdfunding, a system in which companies raise small amounts of money through many people, typically on internet-based platforms.

To many, crowdfunding sounds like an exciting new way to invest, but it’s important to understand the type of business you’re investing in: what it does, how it makes money, and the inherent risks in investing in start-ups and other early stage ventures.

What Keeps a Ponzi Scheme Running?

August 30, 2016 | Silver Law Group

What Keeps a Ponzi Scheme Running? on silverlaw.com

You would think that it would be easy to spot a Ponzi scheme when there are so many victims, but the truth is a lot more complicated

Ponzi schemes are fraudulent investment schemes that involve paying fake investment returns with funds contributed by new investors. Organizers of Ponzi schemes often promise investors incredibly high returns with little to no risk, paying them from funds invested by new victims.

One of the most famous Ponzi schemes in history was run by Bernie Madoff, who made $50 billion during a decades-long scheme. Investigators have found evidence that it began in the 1970s, yet charges weren’t brought against Madoff until his arrest in 2008.

What to Expect from FINRA Dispute Resolution

August 29, 2016 | Silver Law Group

What to Expect from FINRA Dispute Resolution on silverlaw.com

FINRA dispute resolution resolves disputes between customers and stockholders or Wall Street involved in fraudulent or negligent broker activity

If you’re an investor and have a dispute with a securities firm or broker that can’t be settled through a mutual agreement or outside settlement, the case may be arbitrated or mediated in FINRA’s dispute resolution forum.

Will FINRA hear my case?