Targets of Investment Fraud: Professional Athletes

Block & Landsman by Block & Landsman

Professional athletes are the targets of relentless efforts of investment advisers who engage in fraudulent financial advice. According to a 2008 survey conducted by Sports Illustrated, 78% of former NFL players have gone bankrupt or are under financial stress by the time they have been retired for two years. The same survey found that 60% of former NBA players are broke within five years of retirement. Major league baseball players are also not immune from fraudsters, and dozens of players have filed lawsuits in the past several years seeking ...Read More

Budget Cuts Put Illinois Investors At Risk

Block & Landsman by Block & Landsman

Illinois investors will soon find themselves a little further out on the limb of self-reliance in the fight against investment fraud. Under the Dodd-Frank Wall Street Reform Act, enacted by Congress last year, state securities regulators are required to assume responsibility to oversee investment advisers who manage between $25 million and $100 million in assets, which previously was in the purview of the Securities and Exchange Commission ("SEC"). Unfortunately, this increase in responsibility is not being supported with an increase in fund...Read More

Securities Arbitration: Who Shot J.R. Down?

Block & Landsman by Block & Landsman

The need for the Financial Industry Regulatory Authority ("FINRA"), which oversees securities arbitration hearings, to revise its arbitrator disclosure procedures is under a spotlight because of a FINRA arbitration case brought by actor Larry Hagman, star of the 1980s program "Dallas," against Citigroup. On October 6, 2010, Hagman won an $11 million arbitration case against Citigroup Global Markets for the actions of a Smith Barney broker. Hagman and his wife claimed that the broker breached her fiduciary duty by creating an unsuitable portf...Read More

Victory for Investors – Securities Arbitration Now Offers All-Public Arbitrators

Block & Landsman by Block & Landsman

In a long-sought victory for investors, the Securities and Exchange Commission ("SEC") has approved a proposal by the Financial Industry Regulatory Authority ("FINRA") that arbitration panels, which decide investor claims of broker misconduct, no longer are required to include an arbitrator who is a member of the financial industry. For the first time since the U.S. Supreme Court allowed brokerage firms to require investors to arbitrate disputes, investors will have a choice of selecting an all-public arbitration panel. For years, investors ...Read More