A New Option for Resolving Investment Fraud Disputes

Block & Landsman by Block & Landsman

The following article was written by Laurence M. Landsman and published in the July, 2013 issue of the Illinois State Bar Association's Business & Securities Law Forum. Investment fraud is ubiquitous, and results in losses measured in billions of dollars. The recent financial crisis in the United States exposed a growing number of investment fraud schemes perpetrated against unsuspecting investors. In 2010, the Federal Bureau of Investigation, along with several other federal agencies, initiated a sweep known as Operation Broken Trust th...Read More

SEC Charges City of Miami with Securities Fraud

Block & Landsman by Block & Landsman

The U.S. Securities and Exchange Commission (SEC) has charged the City of Miami with violating a 2003 cease-and-desist order concerning the fraudulent sale of municipal bond offerings. According to the complaint, the City and its former Budget Director, Michael Boudreaux, made materially false and misleading statements while raising approximately $153.5 million from the investing public through several bond offerings in 2009.   The SEC alleges that the City and Mr. Boudreaux failed to disclose, among other things, inter-fund transfers of $...Read More

Scottrade Fined by FINRA for Allowing a CFO to Perpetrate Stock Fraud

Block & Landsman by Block & Landsman

The fall-out continues from a $110 million fraudulent scheme created by the former Chief Financial Officer and General Counsel of Industrial Enterprises of America, Inc.  In 2011, Andrew Marguilies was convicted defrauding investors through the illegal sale of unregistered securities in Industrial Enterprises.  He is currently serving a seven-to-21 year prison term for his crime. In response to Marguilies’ fraud, the Financial Industry Regulatory Authority (FINRA) has now assessed a $100,000 fine to Scottrade for failing to supervise his...Read More

SEC is Told that the Costs of Implementing a Uniform Fiduciary Duty Standard is Excessive.

Block & Landsman by Block & Landsman

The largest trade organization in the securities industry has advised the Securities and Exchange Commission that implementation of a uniform fiduciary standard would impose substantial costs on brokerage firms needing to revamp their compliance procedures. Since Congress directed the SEC to overhaul the securities laws in the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010, the agency has sought to establish uniform standards of care that will govern brokers who are registered with the Financial Industry Regulatory Authori...Read More