Securities America Seeks to Resolve Arbitration Cases Involving Medical Capital and Provident Royalties

Block & Landsman by Block & Landsman

Last week, a federal court rejected Securities America's attempt to force arbitration claimants to abandon their cases and require them to participate in a class action settlement that would allow defrauded investors to recover only one-eighth (1/8) of their $400 million in losses due to investments in Medical Capital Holdings, Inc. and Provident Royalties. Securities America's effort to extinguish investors' arbitration rights came on the heels of a customer's $1.2 million arbitration award, which included punitive damages, against the firm fo...Read More

LPL Financial Disciplined For Allowing Broker To Improperly Transfer Customer Funds to His Own Account

Block & Landsman by Block & Landsman

Earlier this month, LPL Financial, LLC was fined $100,000 by the Financial Industry Regulatory Authority ("FINRA") for failing to maintain supervisory procedures to catch a representative who was transferring assets from a customer account to the broker's personal account with the firm. In the face of charges by the regulatory agency, LPL Financial submitted a Letter of Acceptance, Waiver and Consent by which the firm consented to a censure and the fine, while at the same time neither admitting or denying the facts. According to the FINRA...Read More

Charles Schwab Must Pay $18 Million to Investors for Improper Sales Practices Concerning YieldPlus Bond Fund

Block & Landsman by Block & Landsman

Earlier this year the regulatory agency that oversees brokerage firms ordered Charles Schwab to reimburse investors in its YieldPlus ultra short-term bond fund a total of $18 million through a fund to be set up by the Securities and Exchange Commission ("SEC"). The Financial Industry Regulatory Authority ("FINRA") determined that Schwab misrepresented the YieldPlus fund as a low risk alternative to money market funds despite the disproportionate impact the upheaval in the mortgage-backed securities market had on the YieldPlus portfolio. B...Read More

Chicago Bulls Star Carlos Boozer Files Investment Fraud Lawsuit

Block & Landsman by Block & Landsman

The parade of investment advisors who target professional athletes for fraud has claimed another victim. Carlos Boozer, a starting forward for the Chicago Bulls NBA franchise, has filed a lawsuit alleging that he and his wife were "maliciously" induced to invest $1 million in a Florida company that was marketed as being in the business of constructing affordable housing for disaster victims. According to Boozer's lawsuit, the owners of the company, InnoVida, represented that investors would receive returns of 1,000% while helping people in n...Read More