How to Spot Financial Advising Fraud Schemes

Block & Landsman by Block & Landsman

a business person, consumer fraudBy understanding some common financial advisor fraud schemes, Chicagoans can help to prevent their losses from growing significantly. Investors entrust their finances to financial advisors with the goal of growing their wealth and funding their retirements. When financial advisors perpetrate the fraud on their clients, the clients may lose thousands of dollars before the advisors are caught. Consumer fraud lawyers look for recognizable signs that financial advising fraud might be occurring so that they can move quickly to protect their clients'...Read More

Fritz Kramer Indicted on Fraud Charges

Block & Landsman by Block & Landsman

A business man world, Securities FraudSelf-styled “diamond and gold exporter” Mr. Fritz Kramer was indicted last week on wire fraud and commodities fraud charges. Wire fraud is implicated when a person uses telecommunication or information technology to commit financial fraud. Commodities fraud entails tricking investors into purchase or sale decisions by false information in violation of securities laws. Commodities fraud can implicate a variety of products encompasses a range of goods sold in commodities markets. The Indictment Per the indictment, Mr. Kramer’s last kn...Read More

DOL Makes Advisors Fiduciaries

Block & Landsman by Block & Landsman

Investors should cheer recent changes to the laws which identify a ‘financial advisor’s’ duties and obligations to the investor. Most investors are not aware that there is a difference between a ‘stock broker’, an ‘investment advisor’, a ‘wealth manager’, to name a few of the common designations for individuals who provide financial advice. Similarly, most investors are not aware that the manner by which advisors are compensated impacts their duties and obligations to investors. On April 8, 2016, the Department Of Labor Rel...Read More

FINRA Cracks Down on Firms Failing to Respond to Red Flags for Suspicious Activity

Block & Landsman by Block & Landsman

The Financial Industry Regulatory Authority (FINRA) has expanded its battle against financial firms that fail to respond to red flags indicating suspicious activity in customer accounts.  The latest target is a clearing firm, COR Clearing, LLC (formerly known as Legent Clearing, LLC), which was recently hit with a $1 million fine to a clearing firm for failing to detect suspicious account activity. FINRA’s action underscores the heightened responsibility that regulators impose on so-called gatekeepers in the securities markets to impleme...Read More