Thanks to OppenheimerFunds, Puerto Rico Municipal Bond Funds Continue to Cause Serious Investor Losses

Block & Landsman by Block & Landsman

Recently, this blog reported on investigations into UBS’ sales practices concerning $10 billion worth of bond funds concentrated on Puerto Rico municipal debt.  Puerto Rico has been hit hard by serious economic problems, including slow economic growth as well as the unsustainable growth in its public pension obligations.  Any bond fund with sizeable holdings in the Puerto Rico municipal bonds can expect significant losses, as the S&O Municipal Bond Puerto Rico Index was down 21% year-to-date through October 10, 2013. OppenheimerFunds...Read More

Warning to Advisers and Brokers: The SEC Is Putting You Under a Microscope

Block & Landsman by Block & Landsman

Investment advisers and brokers can expect greater scrutiny for small infractions, according to interpretations of a speech recently given by the Chairwoman of the Securities and Exchange Commission.  During a keynote speech before the Securities Enforcement Forum 2013, Mary Jo White said, “retail investors, in particular, need to be protected from unscrupulous advisers and brokers, whatever their size and the size of the violation that victimizes the investor.”  Securities insiders believe this comment signals a new focus by the SEC on m...Read More

The United States Supreme Court to Decide Whether Victims of Ponzi Schemes Can Bring State-Law Class Actions Against Defendants Who Aid and Abet Fraud

Block & Landsman by Block & Landsman

An important decision on the ability of Ponzi scheme victims to use class action lawsuits to recoup their losses is expected from the U.S. Supreme Court.  At the opening of the current term, the Court heard oral argument in the case Proskauer Rose, LLP v. Troice, a consolidated appeal of a decision by the U.S. Court of Appeals for the Fifth Circuit involving claims by victims of the infamous multi-billion dollar Ponzi scheme perpetrated by Allen Stanford. In the Proskauer cases, the plaintiffs filed class action lawsuits in Louisiana sta...Read More

October 08th, 2013

Block & Landsman by Block & Landsman

Last month we wrote about the Commodity Futures Trading Commission’s unprecedented lawsuit against U.S. Bank for aiding and abetting the $1.2 billion fraud perpetrated by Russell Wasendorf, Sr., that resulted in the collapse of Peregrine Financial Group.  It was an opening salvo by a major U.S. regulator against a firm that did not fall within the traditional umbrella of the CFTC’s jurisdiction. Adopting a similarly aggressive enforcement strategy, the Securities and Exchange Commission has charged TD Bank with violating several secti...Read More