Securities Fraud Category Archives — Page 6 of 8 — Securities Fraud Lawyers Blog Published by Securities Fraud Attorneys

Top 5 Ways to Prevent Elder Financial Abuse

Published on: April 14, 2017 | by Savage Villoch Law, PLLC

A recent New York Times article spotlights a renewed approach and increased legislative response to financial elder abuse. Featured in the article are personal accounts of real people whose family members and close friends have been affected by elder financial abuse.

Investment fraud and financial abuse directed towards seniors and the elderly has been a rising concern. We recently featured an issue focusing on the problem of increased elder financial abuse. Most elder abuse is perpetrated against those between the ages of 80-90, suffering from degenerative diseases such as Alzheimer’s.

Now, the issue is getting legislative attention. According to the Times article, 33 states have considered the issue of specific laws directed at financial abuse against the elderly. Other states are revisiting their existing laws.

What to Know About Shortened Securities Transaction Settlement Cycles

Published on: April 3, 2017 | by Savage Villoch Law, PLLC

Last week, the Securities and Exchange Commission (SEC) amended standing rules regarding broker-dealer securities transaction settlement cycles. The new rules shorten the amount of time between when an investment transaction is placed and when it is actually processed.

Previously, the transaction settlement cycle was set as “T+3”. This refers to the time, in days, that lapse before a transaction is settled. For instance, if you buy or sell a security on Monday, Thursday would be the day the transaction is settled.

The SEC has set the new settlement cycle to “T+2”, meaning only two days bass between transaction and settlement. This change is set to take effect for all transactions on or following September 5, 2017.

What Investors Should Know About Customer Advisory Centers

Published on: March 3, 2017 | by Savage Villoch Law, PLLC

Customer Advisory Centers vs. Call Centers

Although they sound similar, customer advisory centers differ from call centers in several important ways. Securities firms and investment broker-dealers typically rely on call centers to handle basic customer service issues and administrative functions. They do not provide investment or trading advice, nor do they earn commissions on trades and deals.

Customer advisory centers, meanwhile, are call centers staffed by securities professionals. They are able to provide trade and investment advice as well as sell securities services.

Tips for Tracking Your Investment Brokerage Activity

Published on: January 19, 2017 | by Savage Villoch Law, PLLC

Many passive investors are happy just leaving their investments at the hands of their brokerage firms. Many investors opt review brokerage activity via a monthly overview statement rather than from a hands-on approach. Broker-dealers handling investment accounts are free to make most decisions on quantity and frequency of investment securities.

Although ostensibly broker-dealers must have the investor’s interests at heart, some may take advantage of the lack of oversight from the investor.

The Securities and Exchange Commission (SEC) warns that, in some cases, investors have encountered excessive fees due to sharp increases in brokerage activity on investment accounts.

Brokerage Firms Fail to Protect Consumer Records

Published on: January 2, 2017 | by Savage Villoch Law, PLLC

The Financial Industry Regulation Authority (FINRA) announced fines against 12 securities firms for their failure to accurately protect consumer records.

FINRA carried out fines, totaling $14.4 million, against 12 securities brokerage firms, including some of the largest-backed firms in the country.

FINRA found that these firms storing broker-dealer and consumer records without precautions in place to prevent alteration.

Settling Broker-Dealer/Customer Disputes

Published on: December 19, 2016 | by Savage Villoch Law, PLLC

Ever wonder about how customer disputes are resolved between investors and broker-dealers?

Is a lawsuit necessary?

Do you need to hire a lawyer?

Reverse Mortgage Consumers Face False Claims

Published on: December 12, 2016 | by Savage Villoch Law, PLLC

Reverse Mortgage Companies See Reversal of Fortunes

This week, the Consumer Financial Protection Bureau (CFPB) announced charges against three top reverse mortgage companies with false claims and deceptive advertising. These companies lured consumers into reverse mortgage contracts under the claim that they would not stand a chance of losing their homes, among other promises.

American Advisors Group, Reverse Mortgage Solutions and Aegean Financial have all been ordered to cease deceptive advertising, comply with regulations and pay penalties by the CFPB.

Top Investment Scams

Published on: November 14, 2016 | by Savage Villoch Law, PLLC

We’ve talked a lot about investment scams in the past. Fraudsters are always finding new ways to take advantage of unwitting investors. However, there are several top investment scams that fraudsters favor and which serve as the basis for many new types of investment fraud.

Investors should recognize most of these, but being able to spot signs of these top investment scams may help you in assessing new potential investment risks or signs of fraud.

Pyramid/PONZI Scheme

SEC Warns of Form 4 Investment Scams

Published on: November 7, 2016 | by Savage Villoch Law, PLLC

The Securities and Exchange Commission (SEC) has announced that investors should be on the lookout for fraudulent claims using Forms 4.

A Form 4 is filed when investment insiders (officers, directors and anyone holding 10% or more in company securities) execute transactions. A Form 4, which must be filed within two days following a transaction, serves to inform the public of the insider’s transactions in company stock and other securities.

Apparently, scammers and fraudsters are posing as brokers and providing false Forms 4 and other official documentation to investors in order to sell them fake shares. By using forms that appear to be sent from the SEC and other regulatory agencies, scammers seek to legitimize fraudulent claims.

What to Know About Your Investment Broker

Published on: October 31, 2016 | by Savage Villoch Law, PLLC

Anytime you decide to invest, you always do background research on the asset or security, right? It is important to know the why and how of an asset or security’s performance before deciding to invest.

Shouldn’t this be the same for your investment broker?

Whatever security in which you invest, it is important to know who your investment broker is. Knowing your investment is in the right hands goes a long way in ensuring the security of your investment.