What Are Fraudulent Stock Promotions?

In fraudulent stock promotion scams, fraudsters hype a certain stock to generate investor buzz. Once a buy frenzy occurs, fraudsters will quickly sell off their shares, leaving investors to take the hit. Most successful fraudulent stock promotions are carried out by those perceived as “insiders” in the investment world and the stocks they push represent no real business operations.

Beware of Penny Stock Fraud

Penny stocks are a huge target for scammers. They and other microcap stocks are especially susceptible to fraudulent stock promotions. Because of the low capital risk and high turnover of these small businesses represented by penny stocks, there is little public information readily available on many of them. As with any kind of investment scam, fraudulent stock promotions rely on deception and investor ignorance. But you don’t have to fall victim to fraudulent stock promotions. All it takes are the right resources and education. With that, you can spot signs of fraudulent stock promotions and other types of investment fraud – and stop them before they happen.

Fraudulent Stock Promotions Come in Many Forms

While you should keep in mind that not all stock promotions are illegal, fraudsters take advantage of vulnerable networks to dupe investors. Stock promotions are often generated by paid promoters or some insider associated with the stock who stands to gain from a high-dollar stock sell-off. Stock promotions, fraudulent or not, do regularly appear through legitimate channels. This makes it all the more difficult to spot the scams. They can come through a variety of media whether it be print, email or social media platforms. You may see stock promotions come through any of the following channels:

Email solicitations

You may get an email promoting a great investment opportunity, offering you the chance to act. It may even appear to come from a legitimate source… it isn’t. Scammers love using email as a way to fish for unwitting investors. They can hide behind a false name and easily edit an email to make it seem official. You just need to remember that know legitimate investment opportunity will come through email – let alone an unsolicited one.

Online ads or “pop-ups”

With recent data breaches and cybersecurity mishaps, we’re starting to see just how much of our time spent online is tracked and analyzed. Scammers are taking advantage of online data tracking to create target ads offering fraudulent stock promotions. You should never click a pop-up or online ad promoting a stock opportunity.

Social media posts

Social media can be a great resource for tracking your favorite thought leaders and investment circles and keeping up to date on current trends. It can also be a breeding ground for fraudulent stock promotions. We’ve all seen how easy it is for hackers to create a fake profile and populate it with automated followers and content. If you see a stock promotion or other investment opportunity in your social media feed, investigate it. Are the media links legitimate? Do you recognize this as the regular type of content from that poster?

Investment newsletters

These can be especially tricky, because a promoter may pay a publisher to run a stock promotion in their investment newsletter. If you subscribe to an investment newsletter or periodical, you probably have seen these stock promotions. Remember, what you are seeing are essentially paid advertisements – not unbiased stock recommendations. Scammers may also generate and distribute fake newsletters to try and dupe investors. If you sign up for an investment newsletter, make sure you’ve first looked into the background and standing of the newsletter and verified its legitimacy. You should never act on the advice of an investment newsletter you receive unsolicited.

Direct-mail campaigns

While social media and other online platforms may be the focus of hype and attention, you should never underestimate the power of good, old mail. Scammers have long relied on direct mail to defraud investors. With direct mail, fraudsters can generate convincing, high-quality “investment portfolios” promoting stocks and other investment opportunities.

Fraudulent Stock Promotion Red Flags

If you do happen to receive an investment offering or stock promotion in one of the above listed forms, there are some sure-fire signs you can look out for to tell if it’s fraudulent:

• Look to see who’s promoting the stock; Find out if they have been suspended from promoting or trading on other stocks. You can view a list of all of the SEC’s trading suspensions here.
• Check out the stock’s promotional history – have past announcements actually occurred? If a press release promotes something that will reflect well on the stock’s performance, make sure you follow up to see whether those things actually happen/have happened.
• Research the company’s registered business history. If you see that the business name or type has changed frequently, it’s most likely a sign of fraud.

If you see any of these signs, take them as a major red flag. You should report fraudulent stock promotions when you see them. You can report potential or suspected securities fraud to the SEC directly: https://www.sec.gov/tcr

How a Stock Fraud Attorney Can Help You with an Investment-Loss

If you can spot fraudulent stock promotions or investment scams ahead of time, you’ll avoid a lot of trouble down the road. However, investment fraud isn’t always so clear. Fraudsters are getting more detailed with scams and emerging technologies make some securities and investment assets more vulnerable to fraud. If you find that you or a loved one has become a victim of fraud, know that you do have options. A qualified stock fraud attorney can help you filing a claim, recover investment losses and even bring the fraudster to justice. Our dedicated attorneys have been protecting Florida stock investors from fraud for over 20 years. Contact our team today if you believe you have been victimized by a stock fraud scam.

Ponzi Schemes Targeting Seniors

You’ve probably heard the term “Ponzi scheme”; it’s an ubiquitous phrase in (and out of) the investment community. But do you know how to spot one? Ponzi schemes may be dressed up with fancy tricks and smoke-and-mirrors, but at their heart, they are all based off the same formula. But your age doesn’t have to make you a target. If you’re a senior investor, there are resources out there to help you recognize and prevent investment fraud targeted toward you and your savings. In April, the SEC brought several charges against a company it alleges conspired in investment scams targeting seniors. All of the schemes involved some variation on a Ponzi scheme.

Lifepay, LLC

In April, the SEC brought a complaint against Lifepay Group, LLC, alleging the firm’s principals defrauded investors out of a total of nearly $3.8 million dollars in two separate scams. The SEC’s complaint outlines allegations that the founders of the retirement planning and real estate investment services firm promised elderly investors high returns on baseless claims. In an even more egregious case, the SEC alleges that thousands of senior investors lost out on their retirement savings through a Ponzi scheme perpetrated by the Woodbridge Group of Companies, LLC.

Woodbridge

The South Florida-based group duped thousands of retirees through a widespread advertising campaign promising high returns. The SEC’s complaint states that Woodbridge affiliates promised revenue returns from high-interest loans while actually just using investors’ capital for personal expenditures. New, incoming investments were then used to pay off initial investors. In total, the SEC complaint values investment losses of $1.2 billion.

Just because you’re a senior investor, that doesn’t have to make you a victim.

There are ways to protect yourself and your investments from fraud and threats to your retirement savings. If you educate yourself to the dangers out there, you can learn tips for protecting yourself against investment-loss. Ponzi schemes may posit an investment risk, but they all follow a basic formula. They have tell-tale signs that, with the right eye, you can spot. Here are five ways to spot investment fraud ahead of time so you don’t end up falling victim to a scam.

5 Ways to Spot Investment Scams

Beware of Unlicensed or Unregistered Agents

Anybody handling your hard-earned savings better be qualified to do so. Unfortunately, a lot of investment fraud targeting seniors is done so through unlicensed advisors and brokers. Always make sure you verify the background and credentials of anyone claiming to offer financial advice or an investment opportunity. It’s easy to check whether your financial advisor or stock broker is properly licensed and registered:

• Visit Investor.gov to check their free database of registered investment professionals

Don’t Fall for Offers of High Returns and Low Risks

It’s easy to see why these types of scams still exist; it’s hard not to fall for the offers that seem to good to be true. But stay vigilant – investment opportunities promising big returns with little risk are the sirens of the investment world; they’ll lead you down the primrose path and leave you hoodwinked. An easy out: just remember that if it sounds too good to be true, it probably is.

Never Feel Pressured to Buy

Your savings and assets are yours; it is your decision how and when you choose to invest it. A poor sales tactic – and one often used by those trying to scam you – is to corner a consumer; to rush their decision to commit. Never let anyone rush you into an investment decision. In fact, if you feel pressured by anyone to act prematurely on an investment, this should be your sure-fire sign to run for the hills. Any investment professional with integrity will allow you the time to research and investigate any potential opportunity before committing.

There is No Such Thing as a Free Lunch

Gifts and gimmicks are often used by scammers to ply investors into committing to their scheme. Cheap tricks like free lunches are used to lure investors into bogus sales opportunities.

• Treat ‘free meal’ investment seminars the same way you would a “free lift-ticket offer” when you go skiing.

If you’ve been on a ski vacation think about the time-shares that offer you a free lift ticket for attending a quick seminar about their resort: you only go for the lift ticket, not the time-share. No matter how great the investment might seem – or to what lengths you are wooed, you should not agree to anything without proper due-diligence.

Know the History and Background of Your Investment Professional

When choosing an investment professional to handle your retirement savings, you need to have a strong understanding of their professional background; you need to know that you can trust them with your investment. Even if they’re properly licensed, they could have a history of issues that could spell trouble in the future. Here are some common things you should find out before aligning yourself with an investment professional:

• What is their work history? Have they been employed at any firms that have faced regulatory scrutiny or sanctions?
• Have they experienced a personal bankruptcy?
• Has there been a previous termination from another firm? Why?
• Have they been subject to a review, either internally by an employer or externally by regulators?
• Are there a lot of consumer/investor complaints about them?
• Do they have a transient employment history?

Some of these questions may seem personal – and they are. You need to have absolute certainty that your investment professional has the integrity and capacity to handle your savings.

Additional Resources

While these tips can be a great resource to help you spot scams targeting your nest egg, it’s not a comprehensive one. You can check out more tips and resources for protecting your investments on our blog. If you have questions about investment-loss recovery due to fraud or stock broker malfeasance, contact us.

Everybody thinks they’ve got “the answer” when it comes to investing and everybody wants to share their secret to success. That’s why you’ve likely been offered quite a few tidbits of investing advice from everyone from your cousin to your neighbor. The truth is (and you’ve probably realized) that most of these sources aren’t actually qualified to be giving investment advice. While you should definitely take unsolicited investment advice with a grain of salt, there are some tried-and-true pillars of investment knowledge that you should keep in mind. These common investment rules can help you on your investment journey. Not only can they help you map out your investment goals, but they can help you plan and manage for the future. Keeping in mind these investment rules can help you maintain a focused investment strategy and avoid common pitfalls.

Here are five common investment rules that you should always keep in mind:

Thinking about starting an investment? Do it now!

This should be one of the first investment rules you learn. The early bird gets the worm – or, higher returns. The sooner you start saving for an investment, the more time it will have to generate returns. It also means a more manageable investment plan. The law of compound interest means that the earlier you start saving, the less you will have to put away and the more you will accrue in interest.

Greater risk=greater reward… most of the time

It’s a classic and oft-repeated axiom in the investment world, but that doesn’t mean you should take it for gospel. Just because you take a big risk, does not mean you’re in for a greater reward. Sometimes, you simply just take on an unnecessarily greater risk. While there is a link between risk and return, it’s not always going to be a given. You may have heard that holding a riskier asset for a long-term will produce a greater reward in the end, but this is not the case all the time, particularly if you are starting from a place of high valuation.

Understand your fees: Investment plans with higher fees don’t mean better returns

In fact, they probably mean you’re losing out on potential earnings. According to this report from the Securities and Exchange Commission (SEC), you could be losing A LOT on your investment if you go with an investment service plan with higher fees. Think of investment fees in terms of exponential growth: Let’s say you want to invest $10,000 over 20 years and you want 10% annual returns. You have the choice between two investment plans: one with 1.5% annual fees and one with 0.5% annual fees. If you go with the 1% fee plan, you actually stand to loose over $10,000 over those twenty years, as opposed to a plan with 0.5% fees. You can use the chart below to help you visualize the disparity in investment values after 20 years for portfolios with a 0.25%, 0.5% and 1%, respectively:

A diversified portfolio is the key to a healthy portfolio

Taking this one step further… a globally diversified portfolio is key to a healthy portfolio. You never want to keep all of your eggs in one basket; why should you contain that basket to domestic markets? If you’re serious about a resilient investment portfolio, you need diversified assets in global markets.

Diversified does not mean hodge-podge

When some investors hear the term diversified portfolio, they take that to mean simply stocking their portfolio with different asset types. While this is true on a fundamental level, you need to employ some strategy in building a healthy, diversified portfolio. Tossing in random assets just to make your portfolio “diversified” can actually make it volatile and subject to increased risks. You can find out more tips on building a diversified portfolio here.

Don’t buy into hype… before investigating the hype

In the investment world there are always hot new trends, surrounded by hot new hype. Often, this hype results in an investment frenzy. This, in turn, results in investors throwing money blindly towards funds of which they have – at best – a vague understanding. If you catch wind of a hot investment trend on the rise, investigate before any capital committal.

Be cautious with niche market-investing

Typically, there’s a lot of hype surrounding niche markets. Niche markets represent the bold, innovative products that people want to be associated with. And, while it’s true that there is true investment potential in niche markets, you should exercise caution if you’re thinking about investing in a niche market investment opportunity. You can run into a lot of risks dealing with niche offerings; they’re often untested markets and they can form dangerous bubbles as investors scramble to cash in on the latest hype. You can look at Bitcoin and other cryptocurrencies as a prime example of the issue with niche market investments. The Bitcoin-boom spawned one of the largest investor-frenzies of the past decade and spawned countless imitators, but now many worry the Bitcoin bubble is very close to bursting. The popularity and investor-appeal of Bitcoin snowballed and quickly grew beyond the expectations its creators – and beyond the control of regulators. Now the hulking behemoth that is Bitcoin is teetering on the verge of collapse and some investors may stand to lose out big.

Looking for more investment advice?

These investment rules of thumb are great to keep in mind as you build your portfolio, but they are by no means comprehensive. If you’re looking for in-depth resources for investment advice, news and tips, check out our blog! You can also visit the SEC website for their extensive archive of investor education materials. Contact our team if you believe that you may have suffered a capital-loss at the hands of your stockbroker or financial adviser. We can help sort through your claim and discuss your options, including whether you can sue your stockbroker and if you are entitled to investment-loss recovery.

Additional Investor Resources

• FINRA
• SEC’s ‘Investor’ page
• Investopedia

In today’s digital age, the use of technology to facilitate investments has become largely commonplace. We can see many examples of how investing has moved to the cyber-realm from online investing platforms to robo-advisers. While this has greatly empowered investors to take more direct control over their investment strategy, it has also increased the potential vulnerability to cyber fraud and theft.

“In a digitally connected world, cybersecurity presents ongoing risks and threats to our capital markets and to companies operating in all industries, including public companies…”

The above quote comes from a newly published memo by the Securities and Exchange Commission (SEC). The memo sets forth guidelines and procedures for public companies to inform investors and regulators of cybersecurity risks. The threat of cybercrime has become a major reality for business all over the world, and regulators say it will only become more prevalent.

• The SEC reports that, by 2021, cybercrime will costs businesses over $6 trillion.

As such, mitigating cybersecurity risks has become one of the prime points of focus for securities regulators. In addition to regulation and oversight, the SEC regularly informs and advises about common cybersecurity risks and related preventative measures.

SEC Report to Public Companies

The recent 24-page report provides an updated interpretation of the SEC’s stance on cybersecurity disclosure. The statement provides public companies with a clear understanding of how cybersecurity risks must be disclosed – particularly as they impact investors – per SEC regulations. The original report, published in 2011, described public companies’ obligations in disclosing cybersecurity threats but did not outline specific procedure. In the wake of widespread scandals involving large-scale data breaches of public companies (Sony- 2014, Equifax- 2017), the SEC has deemed it necessary to provide public companies with a clearer understanding of what they are required to disclose to regulators as well as how it needs to happen. It’s a system of checks-and-balances. If potential, or even actual, cybersecurity risks are left unchecked and/or undisclosed to regulators, there is

1. Nothing that can be done to mitigate damage to investors/stakeholders
2. No way to implement preventative measures/safeguards against future risk

This, in addition to the damage to reputation and potential legal consequences for businesses that fail to disclose risks properly.

So what does a public company’s disclosure of cybersecurity risks mean to you?

While the report is directed at public companies, there is information that you will find applicable as an investor. The most widespread (and costly) damages of cyber attacks is data loss; personal data: personnel records, shareholder information, account information. It’s the kind of stuff you don’t want getting into the wrong hands, especially if you are an investor. So, while a cybersecurity attack may be directed towards a public company, it’s investors that are getting hit. While the report does have info you need to know, all 24 pages may not be exactly relevant to you. So to save you some time, we took a look at the full SEC report. We’re bringing you the main takeaways so you can understand what this means for you and your investments.

If you would like to take a look yourself, you can also read the full report here

Understanding Disclosure Guidelines

When you invest, what is one the biggest factors to consider? R-I-S-K Before you pull the trigger on any investment, you will want to know the risks. There are always going to be risks – that’s the name of the game – but for the most part, these should be accountable risks; ones you can anticipate. But what happens if certain risks are concealed from you and you are not equipped the resources to address them, should those risks become a threat? That’s where disclosure laws come in. In any investment situation, whether you’re buying a house or securitized asset, you are entitled to a full disclosure of potential or real risks concerning that asset. The same goes when you are considering an investment in a public company; you will want to know the material risks with which it is associated. It is standard procedure to review a company’s risk profile in order to assess its investment value. The issue prompting the SEC’s updated guidelines report is that, in light of the rising threat of cybercrime, there is not a great enough effort to properly disclose cybersecurity risks to investors.

Assessing Cybersecurity Risks

Before investing in a public company, make sure you have done a proper risk assessment including:

• Thorough review of your disclosure agreement
• Inquiry into cybersecurity risks and cyber-threats

The SEC guidelines spell-out specific circumstances in which a public company must disclose cybersecurity risks to investors including with the issuance of any periodic reports disclosing business operations, risk factors, legal proceeding and upon furnishment of material information necessary to make an investment decision. Companies are not obligated to disclose cybersecurity frameworks or operations in order preserve existing security measures in the event of an attack. Essentially, they need to provide you with actionable resources to make an informed investment decision as well as with the ability to respond in the event of a cyber attack.

What to Do if You Become the Victim of a Cyber-attack

If you find that one or more of your investment accounts has been compromised by a cyber-attack, there are a few things you need to do immediately:

Notify your financial institution and/or investment firm

Letting them know as soon as possible that one or may of your accounts may have been compromised will help them catch any out-of-place changes to the account. Make sure you document all discussions you have for reference.

Change all of your investment/financial account passwords and login codes

If you believe that your login information to any of your accounts may have been stolen, change your passwords immediately. If you use one password for multiple accounts, make sure you have changed all of them.

Close hacked accounts

You may want to consider speaking with your investment firm or advisor about closing your account and transferring assets to a new one if you notice suspicious activity.

Put a fraud alert on your credit profile

If you believe you have been the victim of identity theft, you can notify any one of the major credit reporting companies to have an initial fraud alert placed on your account. This will allow any bank or crediting institution to view an identity theft alert when viewing your credit file.

Additional Resources

Suffering a cyber-attack that hurts your investments can leave you with a lot to deal with. If you need any information or assistance in recovering your investment after a cyber-attack, contact our team.

It seems that we may not have yet seen the end of the Wells Fargo accounts scandal. The Justice Department has taken an increased interest in Wells Fargo’s wealth-management unit following whistle-blower claims that the bank’s wealth-management customers have been affected. According to a Wall Street Journal (WSJ) article, the Justice Department ordered Wells Fargo to conduct an investigation into the bank’s own wealth-management business, in response to claims of unfair practices. The investigation into any potential wrong-doing is the first focused on services offered by Wells Fargo outside banking, namely its financial and investment advisory business.

The well runs deep…Or rather, Wells runs deep

While it is the first examination into its wealth-management business, it is only the latest inquiry into the bank’s systemic history of engaging in unfair practices against consumers, uncovered in 2016 as part of an investigation by the Consumer Financial Protection Bureau (CFPB). The CFPB’s investigation revealed that branch employees had created over 2 million fraudulent accounts and services in order to meet unrealistic sales goals imposed by the bank. Thousands of Wells Fargo customers were subject to fees accrued through accounts they had never created and charged for services they had never requested. That discovery resulted in the largest fine ever imposed by the CFPB in the organization’s history, and the aftermath led to an end to Wells Fargo’s sales goals along with the termination over over 5,000 Wells employees and resignation of the bank’s CEO. Things came to a head again in 2017 with more false accounts being uncovered. When the dust seemed to finally settle, the number of false accounts had ballooned from 2 to nearly 4 million, with the bank being ordered to pay back millions in credits and refunds to customers. Additionally, the Federal Reserve placed a series of serious growth restrictions on the bank.

Fed Restrictions

The sanctions imposed by the Fed are some of the most uniquely harsh the central bank has ever set forth. The represent the final order of outgoing Fed-chair, Janet Yellen. In a statement given following the order in February, Yellen’s harsh tone reflects the harsh restrictions set forth:

“We cannot tolerate pervasive and persistent misconduct at any bank and the consumers harmed by Wells Fargo expect that robust and comprehensive reforms will be put in place to make certain that the abuses do not occur again… The enforcement action we are taking today will ensure that Wells Fargo will not expand until it is able to do so safely and with the protections needed to manage all of its risks and protect its customers.”

Under the sanctions, Wells may conduct on-going business like accepting deposits and offering loans, however any other growth strategies have been halted. What this essentially means is an all-out freeze on doing any business that would grow its current $1.95 trillion asset portfolio. And, until The Fed deems that Wells Fargo has ‘cleaned up its act’ – including a C-Suite-level purge – , those sanctions don’t appear to be lifted anytime soon.

What does it mean for Wells Fargo’s wealth-management business?

This is already proving to have serious repercussions, as financial analysts are beginning to slash Well’s investment ratings. It could also majorly effect its wealth-management advisory business. Institutions like Wells Fargo recruit advisors to manage their various wealth-management service offerings. As such, they are not employees of Wells Fargo, but independent advisors contracted through the bank. If Wells Fargo’s wealth-management business looses face in the public eye, advisors are the ones directly affected. This could spell serious trouble for Wells’ advisory recruiters approaching reps. It could also result in an advisor-flight from Wells; those seeking to separate themselves from any hint of scandal. In fact, Wells’ wealth-management business has already been hit with hundreds of millions of dollars in losses from the exits of brokers managing high-dollar accounts.

Have wealth-management customers been affected?

While the initial scandal appeared only to affect Wells’ credit services customers, the WSJ article raises new questions about whether customers of other service-offerings by the bank may have been affected, namely wealth-management customers. According to the WSJ article, the bank initiated an independent investigation of several aspects of its wealth-management business, including that relating to 401(k) and alternative investment plans. The review is still in “preliminary stages”, so remains unclear to what extent customer accounts have been affected. However, the investigation has sparked concerns in the financial industry, especially among advisors. In addition to the Justice Department’s inquiry, Bloomberg also reports that Wells may be facing an investigation by the Securities and Exchange Commission (SEC) to determine whether an in-house, investment services system directed at the bank’s wealth-management customers violated securities laws.

What can wealth-management customers do?

While its currently indeterminate as to what extent this has affected customers, if you have any investments serviced through Wells Fargo you should contact your advisor or Wells Fargo account representative for more information. You should also make sure to review any recent account statements over the past year. This is especially important if you have any alternative investment wealth assets. If you have any 401(k) investments or if you hold any fiduciary or custody accounts with Wells Fargo, you should be aware of all fees assessed on your account(s).

Additional Resources

To report a securities complaint to the SEC, complete this form. To find out more about your investment-loss protection and recovery options, contact our team. You can find out more about this issue as it unfolds and other securities law & investment news from our blog.

This month The Trump administration, through acting CFPB Director Mick Mulvaney, announced sizeable restrictions to CFPB’s enforcement and day-to-day oversight of the financial industry’s fair lending practices. The move comes shortly after Mulvaney was installed as Acting Director following the departure of Richard Cordray. Speculation of the CFPB’s impending dismantlement under the Trump Administration has been swirling since the election and this is just one of the latest in a series of moves pertaining to the CFPB that lends some credence to that speculation. The decision will restrict the role of the Office of Fair Lending and Equal Opportunity – the fair lending enforcement arm of the CFPB – to one strictly focused on education and advocacy. The Office was also moved under the direct oversight of the Director’s Office, placing even more first-hand control with the Director. Additionally under Mulvaney’s direction, the bureau has dropped several payday loan cases and has announced plans to review current restrictions on payday lenders recently put in place by the CFPB under the Obama Administration. You may be more familiar with payday loans as a cash advance or paycheck loan. They are short term loans given at significantly higher interest rates. They are typically requested for immediate funds available in advance of a payroll check, with the principle and interest being paid shortly (typically after a paycheck is received).

What’s the CFPB’s role in fair lending enforcement?

Critics of the CFPB have long claimed that the bureau over-extends itself in terms of regulation and oversight. A prominent component of its oversight responsibilities focus on fair lending enforcement; ensuring that consumers are not discriminated against by lenders. This means, that you cannot be denied credit based on superficial terms such as race, sex, or religion. Have you ever heard the term “redlining”? It is a term used by the financial industry to describe lenders refusing credit based on residential demographics. Essentially, if you live in an area that the lender deems high-risk, they may reject your loan application. Of course this is completely illegal, but it hasn’t stopped lenders from trying. And this, along with other forms of discrimination, are exactly what the CFPB has been tasked with monitoring.

Looking for redlining and other lending discrimination

There are the few things that the CFPB looks at when a bank or lender is suspected of engaging in discriminating practices:

• Comparisons with other loan applications and originations in a minority area
• Where physical branches and offices are located
• Marketing scope and practices
• Current lending policies

Curbing predatory payday loans

In addition to ensuring that consumers have fair, equitable access to credit options, the CFPB has also played a considerable role in protecting consumers from being victimized by predatory loan practices. Most specifically, as they relate to payday loan or cash advance loan programs. The CFPB has aggressively gone after payday lenders in the past, including bringing lawsuits against those that the bureau alleged engaged in deceitful and predatory practices.

Why the changes to fair lending enforcement?

Since the bureau’s inception as part of Dodd-Frank, the Office of Fair Lending and Equal Opportunity has pursued lending discrimination, bringing several high-profile cases against lenders. Not only did it aggressively pursue discriminatory mortgage lenders, but other institutions as well, including automotive lenders. Herein lies the issue with most opponents of the bureau: Why, as measure created out of housing lending crisis and created to address oversight and enforcement for mortgage lending, intervening in auto lending enforcement? Well Dodd-Frank grants broad access for the CFPB, through the Office of Fair Lending and Equal Opportunity, to oversee and enforce fair lending practices. Under the Act, the Office of Fair Lending is tasked with:

• Providing fair lending enforcement under federal guidelines, including oversight for:
  • Equal Credit Opportunity Act (ECOA)
  • Home Mortgage Disclosure Act (HMDA)
• Coordinating fair lending enforcement efforts with federal and state regulators
• Working with private sector fair lending advocates

Essentially, this means that the CFPB has had a say (one with the authority to force compliance) in any form of consumer credit offering… but moves under the current administration are setting the stage for a drastically different CFPB.

What roll-backs at the CFPB mean for consumers

So how does the changing role of the CFPB affect you and other credit consumers? First, this does not mean the end of fair lending enforcement and consumer credit protection. The CFPB’s fair lending oversight responsibilities were concurrent with the regulation and oversight duties of other organizations. However, the relative autonomy in exercising its enforcement policies made the CFPB an aggressive and effective regulator in the financial lending industry. Critics of the announcement worry that the move will greatly reduce the CFPB’s efficiency in addressing lending discrimination.

There are also concerns raised over the pull-back by Mulvaney on the CFPB’s efforts to try payday lending discrimination cases. Under the Acting Director, the bureau has dropped several payday lending lawsuits, including one lawsuit file just a year ago, involving four different lending firms. Additionally, Mulvaney has announced plans for a review (and potential roll-back) on legislation the CFPB put in place this past October regarding payday lending regulation. The new regulations, which were set to take effect in January, would address lenders properly vetting loan applicants as well as set restrictions on certain lending practices. Unfortunately, this puts even more oneness on you as a credit consumer to be diligent when consider loans or other financing options. It’s now even more important to make sure that you completely understand all details of a potential loan, including repayment structure and fees and penalties. While there are other agencies tasked with reviewing and regulating fair lending enforcement, the recent announcement most likely means a decrease in efficiency and effectiveness in addressing discrimination cases as they will now be encompassing roles and responsibilities previously occupied by the CFPB.

Resources

Do you have questions about current loan programs in which you are enrolled or would like further information on how the CFPB’s decision will affect future credit applications, contact our team to discuss. You can also get more info on lending and investment information from our blog page.

Read that over a few times. Are those two words beginning to sound similar? That’s what the founders of My Big Coin, Inc. were hoping when they created their cryptocurrency investment offering. The Nevada-based company has been accused of defrauding investors hoping to cash-in on the recent investment trend. The Commodity Futures Trading Commission (CFTC) recently filed a lawsuit alleging the company used false and misleading information to steal from cryptocurrency investors. The My Big Coin founders preyed on the investor frenzy surrounding virtual currencies, like the popular Bitcoin – which has been yielding dizzyingly high returns – and widespread misunderstanding of the digital assets. By simply choosing a name that sounded vaguely familiar to “Bitcoin”, the company managed to solicit a total of $6 million from 28 investors. In what the CFTC essentially refers to as a Ponzi Scheme, My Big Coin, Inc. solicited investors and wooed them with false claims about values and usage of the fraudulent cryptocurrency. The fraudsters used investments from incoming investors to pay off initial investors, thereby sustaining the appearance of healthy investor returns. Other earnings were used to purchase lavish personal items.

New Players, Same Old Game

What this should teach us – aside from the alarming fact of how widely unregulated the cryptocurrency boom remains – is that cryptocurrency scams are just variations on a theme. In other words, they’re a new dog with the same old tricks. While cryptocurrency is a new and currently-evolving asset class, the investment scams cropping up around them are nothing more than the same ones fraudsters have been using for years – just adapted to suit the current climate. What makes these particular scams especially dangerous is the apparent lack of information investors have regarding cryptocurrency investing or even what cryptocurrency is for that matter. Fraudsters are able to so easily take advantage of investors because of the widespread insufficient understanding of the asset.

Don’t be an Ignorant Investor

We all know the phrase “ignorance is bliss”. However if you’re an investor, ignorance is sure to get you into hot water sooner than later. You need to be completely aware of not only in what you are investing, but also the how and why you are investing.

In the case of My Big Coin, investors allowed themselves to get caught up in the hype and fervor over the virtual currency boom. Realistically, little research (if any) was probably done on the company, with investors choosing to rely on fraudulent earnings reports showing big returns. The trouble is, it is not just novice investors falling victim to cryptocurrency scams. Fraudsters continue relying on the same old scamming methods, because they continue to work. While the blind hype around virtual currencies has certainly made it easier for scammers to dupe some investors, other fraudsters are getting more creative. By employing the basic tactics of “tried and true” investment fraud schemes, scammers create elaborate and complex scams that can dupe even experienced investors. The fact is, virtual currencies remain largely unregulated and existing measures are shaky, at best. Cryptocurrency as, an emerging investment class, continues to evolve at a rapid pace and regulators are constantly playing catch-up.

Blindspots in Oversight Leave Room for Cryptocurrency Scams

While there is an effort to ramp up enforcement and oversight for crypto-assets, regulators are warn that investor protection – like investment-loss recovery – is largely insufficient or non-existent. Unfortunately, these conditions are ripe for fraud. As you might imagine, severe lack of oversight and minimal enforcement of a new and widely misunderstood investment class probably sounds like the perfect opportunity for fraudsters, or what financial industry regulators call, ‘bad actors‘.

Until sufficient measures can be put in place, regulators are imploring investors to exercise caution and practice due diligence before committing to any investment opportunity. The Securities and Exchange Commission (SEC) is warning investors interested in Initial Coin Offerings (ICO) to be especially vigilant, as cryptocurrency scams involving this investment offering have been on the rise. In December, the SEC issued a public statement warning investors of the regulation realities. In it, SEC Chairman Jay Clayton states:

Investors should understand that to date no initial coin offerings have been registered with the SEC. The SEC also has not to date approved for listing and trading any exchange-traded products (such as ETFs) holding cryptocurrencies or other assets related to cryptocurrencies.[2] If any person today tells you otherwise, be especially wary.

Currently, lawmakers and regulators are meeting to discuss building a stronger regulatory infrastructure for cryptocurrency investing. SEC Chairman Jay Clayton and CFTC Chairman J. Christopher Giancarlo appeared at a Senate hearing to discuss legislators’ concerns over crypto-assets.

Spotting ICO and Other Cryptocurrency Scams

Despite their apparent vulnerabilities, cryptocurrency investments remain popular. Even regulators have to concede some merit to the use-potential of crypto-assets. In that same December statement warning of industry risks, Clayton also recognized the effectiveness of initial coin offerings as fund raising method for entrepreneurs and startup businesses. The world of virtual currency industry is very much a modern Wild West; there’s promise and potential, but there are also dangers. Until the dust finally settles, regulators stress that investors need to remain vigilant against fraud. There are many resources available to educate investors interested in learning more about cryptocurrency. If you are considering a cryptocurrency investment offering, check out these resources:

• SEC
  • Ponzi Schemes Using Virtual Currencies
  • Sample Questions for Investors Considering a Crytpocurrency or ICO Investment Opportunity
• CFTC
  • Primer on Virtual Currencies
  • Virtual Currency Resource page
• FINRA
  • “Don’t Fall for Cryptocurrency-Related Stock Scams”

For even more information on cryptocurrency scams and news updates, check out our blog.

These are the buzz words among investors as we head into 2018. Building on the success and popularity of Bitcoin – which seems to be hitting new record highs every week – has caused a stir among investors, and it’s getting the attention of businesses. As investors look to find out how they can invest in the emerging cryptocurrency boom, startups and businesses are trying to find ways to capitalize. Initial Coin Offerings (ICOs) have started popping up as opportunities for investors to get involved with cryptocurrency investing at ground-level. However, financial regulators say investors need to be aware of fraud risks. The Securities and Exchange Commission (SEC) is warning investors to exercise caution when considering ICO investment opportunities or other forms of cryptocurrency investing. Due to the emerging nature of crypto-assets, state and federal regulators say it may be difficult to protect investors against fraud. A recent Reuters report states that adequate enforcement of this new industry does not exist and regulators may be unable to investment-losses due to fraud. Another added risk for investors is the recent revelation of widespread security vulnerabilities in nearly all consumer phones, laptops and computers. The recently discovered CPU flaws leave billions vulnerable to having sensitive financial information open to hackers. The two flaws, dubbed Meltdown and Spectre, affect nearly all digital devices at the CPU level. For investors in Bitcoin or other forms of cryptocurrencies, that means your cryptocurrency keys may be left vulnerable to a hack.

What You Can Do if You’re Intersted in Cryptocurrency Investing

Don’t let this news scare you. As with any emerging market or industry there is a learning curve. Regulators are taking action to address enforcement policies for ICO and other cryptocurrency investing opportunities. However, they recommend any investor interested to diligently research a company or business before deciding to invest.For more information on ICO-related investing, check out our blog. As for Meltdown and Spectre-related hacker risks, computer processor manufacturers are working to fix the flaws. In the meantime, here are some things you can do to protect yourself and your assets against hacker-risks.

With another new year just around the corner, you may be thinking about financial planning as a part of your New Year’s resolutions. For those of you with a newborns or young children in the family, you may be thinking about opening a college savings plan. A 529 account can be a great way for parents and grandparents to start a college savings plan. Here’s some commonly asked questions about opening a 529 account.

Who can use a 529 savings plan?

529 accounts can be used to start college saving for any student or future student in your family, including yourself.

When should I start my college savings plan?

Obviously, the best thing you can do is to start saving right away. However, it is never too late to start a 529 account for you or a loved one planning on attending college or a higher education institution.

Is a 529 account the only college saving plan available?

No, you don’t have to open a 529 account to start saving for college. There are several other college saving options available. Each has it’s advantages and disadvantages and it may be wise to consult with a financial or tax adviser when finding a saving plan that fits your needs.

College savings plan or prepaid tuition plan?

Along with the traditional, 529 college savings plan, some state and private colleges offer prepaid tuition plan options. With prepaid tuition plans, you can purchase credits towards college and university tuitions and fees at current prices. Keep in mind that prepaid tuition plans are typically subject to requirements such as mandatory residency requirements and you can only apply your prepaid credits to approved colleges and/or universities. While a traditional college savings plan can be more flexible in terms of requirements and restrictions, it’s important to remember that, as with any investment, it is subject to loss-risks.

Investor Resources

If you’d like more details on 529 accounts and other college savings plans, check out the College Savings Plan Network for information and educational resources.

Understanding Wrap Fees

Wrap fee programs sound like a great idea, and they are – for some. When considering a wrap fee program, you’ll first need to determine what you’ll actually be paying in wrap fees. Investment advisers and firms like to push sponsored wrap fee programs onto investors with the claim that bundled services make the investment process easier. They offer investors a one-stop-shop for managing investments and wrapped fees means easy payment. However, wrap fees may end up being more costly than a la carte services. Depending on your investment goals and activity a wrap fee program may not be the right choice. If you’re approached by your adviser with a wrap fee program, consider the services you currently use. Make sure you have an understanding of what fees and services are contained in the wrap fee program. All wrap fees offer slightly different services and fees, so understanding what’s in them is essential. Depending on your portfolio and needs, wrap fees may end up costing you more for services you don’t even need.

Here’s a tip:

Wrap fees are typically based of the value of assets. For accounts with frequent trading a wrap fee program can be a great option if it covers transaction fees. However, if you don’t have frequent trade activity and/or your transactions aren’t subject to a fee, a wrap fee program could actually end up costing you more. Of course, this only serves as a general rule-of-thumb. You will need to consider access to all the other services a wrap fee program offers. It is essential that you understand all the services and fees tied to your wrap fee program. Unfortunately, some advisory firms attempt to take advantage of investors by improperly disclosing or falsely advertising costs and services for wrap fee programs. If you want more info on wrap fees and typically wrap fee program services, check out this SEC Investor Bulletin.

Moderating Economy or Downturn Preparation?

While economists and financial experts seem to be in basic agreement about the projected number of rate hikes we should be expecting, there appears to be two schools of thought as to the Fed’s reasoning for hiking interest rates. A recent Reuters poll surveyed 103 economic experts. When asked what factors contributed to federal rate hikes, 40 percent said they believed it was to cap future inflation, while nearly a third believed the Fed is padding for a market downturn.

What Federal Rate Hikes Mean for You

Most experts agree on projections that the Fed will bump the current rate by 25 basis points, raising the current percentage from 1.25 to 1.50 percent. At the current pace, federal interest rate hikes wouldn’t hamper economic growth. There’s still room to grow and we’re still a comfortable distance from pre-recession levels. If you’re wondering how the expected rate hikes are going to be affecting your day-to-day, you probably won’t see too much change. As with any interest rate hike, savers benefit from increased higher interest rate returns,while spenders will find themselves paying higher rates on credit cards and loans.

What exactly is the CFPB?

You’ve probably heard of the Consumer Financial Protection Bureau, but you may not be entirely sure what it actually does. For those of you who aren’t aware, the CFPB is governmental oversight and regulating body that monitors the financial industry and protects consumers from predatory or unethical behavior. The bureau was formed as a measure under the Dodd-Frank Act, the legislation that provided much of the framework for our financial regulation post-recession. Its strict oversight and regulation has definitely come as a benefit to consumers, but businesses and banks have railed against it for its perceived overreach and autonomy. Along with regulatory oversight, the CFPB also provides a platform to empower consumers. In addition to providing educational resources to consumers, the bureau has made complaint filing much more accessible improving transparency between consumers and the banking industry.

Uncertain future the bureau

Many Republican lawmakers have expressed criticism over the CFPB. Additionally, it has long been the subject of attack from the Trump Administration. Many experts believe that, with Cordray’s departure the bureau will almost certainly be placed in the cross-hairs as the administration considers a major financial regulation review.

There’s a new online scam targeting investors. The Securities and Exchange Commission (SEC) has issued an alert to investors to watch out for Paid-to-Click (PTC) fraud. PTC scams involve fraudsters duping investors out of money for purchasing online advertisements. With Paid-to-Click fraud, investors are targeted by scammers who promise a share of profits for the upfront purchase of ad bundles and packages. Some scams may promise easy financial returns and online advertising space while others simply promise returns in exchange for an upfront fee alone. While PTC investment opportunities can be a legitimate source for passive income, you need to be aware of the risks of paid-to-click fraud. Here are some red-flags to watch out for if you are approached with a PTC investment opportunity.

Promise of easy money

We all know there’s no such thing as money for nothing. If you’re approached with a paid-to-click opportunity promising easy money in for minimal investment on your part, it’s most likely a scam.

Investments requiring money up front

Most PTC opportunities are just that: opportunities. No legitimate paid-to-click investment should be asking you for money upfront, even if it’s for a membership or subscription plan.

Lack of product or service revenue

Look up the financials of any company offering you a paid-to-click opportunity. If the company is legitimate, you should be able to find revenue for the goods or services advertised. If you only find incoming revenue from existing members, it’s more than likely paid-to-click fraud.

False or transient business address

A good way to check that any company is legitimate is to verify its listed business address. It should have a verifiable physical location. If the company lists offices remotely, call the virtual office service provider and enquire whether the company’s presence can be confirmed.

Issues with funds withdrawals

If you have any issues withdrawing funds from your investment account, this could be a major red flag. If you are unable to withdraw funds or the company requires you to reinvest your profits, it could mean that there is not enough money to pay off existing investors. Unfortunately, this red flag might come to late for some investors. If possible, request a review of the company’s investment plan(s). Make sure there are established procedures for repayments and withdrawals.

Investor Resources

For more information on paid-to-click fraud or to report a scam, see the full SEC bulletin. If you have questions about investment-loss recovery resulting from paid-to-click fraud, contact our team.

• mortgage brokers
• investment bankers
• credit bureaus
• debt collectors

Now these entities should be making sure you receive fair, equitable options for your finances and investments, instead they are taking advantage of the elderly and carrying out senior financial scams for their own benefit. Since 2011, the Consumer Financial Protection Bureau (CFPB) has received over 70,000 complaints of or relating to senior financial scams. The complaints outline predatory practices directed at elderly citizens to disenfranchise and or intimidate.

Don’t Fall Victim to Senior Financial Scams

The elderly are targeted because scammers and fraudsters see them as easy targets. Advanced age or the presence of medical disabilities make many seniors susceptible prey. You can prevent senior financial scams. If you are over the age of 60 and you still manage your financial portfolio, take steps to educate yourself against these predatory practices. If you manage the finances for a loved one, who can no longer look after their own, it becomes especially important to protect those assets. As a designated trustee, you are the only one standing between your loved one’s financial security and the threat of fraud.

Investor Resources

To read the full report on senior financial scams, click here. Check out our past blog on tips for preventing elder financial abuse.

Or Litecoin?

Or Dash?

What about platforms like Ripple or Zcash?

A New Frontier

Cryptocurrency investing has risen from an underground, financial trading outpost for techies to a full-blown investing phenomenon. Cryptocurrency has emerged as an innovative and major trading platform. However, the rapid rise and deeply technological nature of this type of investing has left it a largely foreign concept to many traditional investors. In fact, cryptocurrency is very much a new frontier, even for those familiar with it. While cryptocurrency investing can be an exciting new platform, the industry around cryptocurrency is still establishing itself. As a recent Reuters article reports, cryptocurrency investing is still very much a Wild West for investors. Sufficient, standardized regulation really has yet to take hold, and with the diverse array of available cryptocurrencies, it has proven difficult to police. If you’re considering cryptocurrency investing, you should not let potential risks deter you. After all, any investment type comes with risks. What’s important to remember is to practice smart investing. There is a learning curve, but if you practice smart investing and take proper measures to protect your investments, you can safely mitigate those risks.

Tips for Safe Cryptocurrency Investing

• Familiarize yourself with the cryptocurrency marketplace
  • Understand basics of investing and trading
• Research available cryptocurrencies
  • Cryptocurrency varies widely in terms of how it is designed, distributed and exchanged
  • Available offerings differ in terms of traceability, anonymity and security
• Research and verify trading and exchange platforms
  • Don’t lose your investment to fraudulent traders or fake exchange platforms
  • Make sure you’re trading on a secure and verified platform

Investor Resources

You can read the full Reuters special report on cryptocurrency exchange risks here. If you’ve been approached with an investment opportunity for an Initial Coin Offering (ICO), check out our past post on what to know before investing in an ICO.

It never hurts to seek out investing advice. Even the most experienced investors get investment advice, either from a single investment adviser or a trusted group. The key term here is trusted. If you’re considering opening an investment advisory account, it’s important to choose the right one.

Choosing the Right Investment Adviser

An investment adviser should serve as a trusted sounding board providing investment advice that is most in-line with your investment goals and strategy. As such, it’s important to go over these objectives with your potential adviser; don’t be afraid to ask questions. You should never be intimidated or feel pressured by an adviser or advisory firm. When choosing an investment advisor, be up front about your needs. Here are some common things you should address when considering any investment advisory account:

• Communicate your investment goals:
  • Set investment timelines
  • Discuss limits and risk tolerance
• Set service expectations
• Discuss associated costs and fees

These are just some of the fundamental things you should cover with any potential investment adviser. You should always come prepared with questions of your own that are tailored to your specific investment goals. After you have found an adviser you feel you can trust, make sure you understand your advisory contract. Although an adviser or firm may be the right fit for your investment needs, advisory contracts can be complex; outlining costs and fees for service, communication between you and your adviser and other terms and conditions. Before signing an agreement, make sure you go over any questions you have with your investment adviser. Common things to look for and consider are:

• Level of service
• Fee breakdowns and calculations
• Your responsibilities as an investor
• The responsibilities of your adviser
• How to communicate with your adviser
• Contract cancellation procedures

Investor Resources

These are just some easy tips to help you choose the right investment adviser. For even more helpful advice check out this SEC bulletin.

On Thursday, it was announced that the Securities and Exchange Commission (SEC), the nation’s top finance and securities regulator, had experienced a critical cyber security breach. The breach, which occurred in 2016, allowed hackers access to the SEC’s EDGAR system, a database which houses corporate filings and announcements for a multitude of Wall Street firms. The SEC hack has shaken investors and lawmakers as it poses serious questions regarding the SEC’s security measures and protocol. It is also possible that hackers may have profited on the insider info by trading on it. According to a Reuters report, the database contained sensitive, “market-moving information”. The announcement came as a shock to everyone and with concerns arising over the SEC’s ability to maintain and protect its security systems, you may be wondering what this means for your investments. For it’s part the SEC has taken steps to assure that the security breach has been addressed, however the SEC hack comes at a period of heightened concern over cyber security. This breach follows close on the heels of the massive Equifax scandal, in which hackers gained access to millions of customer records.

Security Protocol in Question

The SEC hack has raised questions in Washington among policymakers concerning what steps are being taken by regulators to prevent critical breaches like this one from occurring. SEC Chairman Jay Clayton will be on Capitol Hill on Tuesday, appearing before the Senate Banking Committee. The chairman is expected to come under fire from policymakers, who will demand a clear account of the exact nature and extent of the SEC hack. Ahead of this hearing, other financial and securities regulators have come forward with their cyber security measures.

Investor Resources

If you’d like to find out more about the SEC hack, read the full Reuters article here. For more regulatory news and investing tips, check out our blog.

This week, market analysts and investors saw Wall Street regaining upward traction. Dow and S&P indexes soared to record weekly gains, buoyed by a flurry of trading activity. According to a Reuters report, financial investing has been one of the major drivers, followed by industrial and tech.

Financials

• Bank of America, MorganStanley and Citigroup up 1 percent

Industrials

• Boeing and Caterpillar up 1 percent

This rebound comes ahead of the upcoming, two-day Federal Open Market Committee meeting at which Federal Reserve Chair Janet Yellen will speak. Investors will be looking for signals as to when new interest rate hikes might be announced. Investors are also watching for an announcement on the Fed’s plans to unpack much of its $4.2 billion portfolio of mortgage-backed securities and Treasuries The recent Wall Street rally also comes at a relatively calm period of uncertainty and market anxiety. Concern over global conflicts, as well as uncertainty over domestic policy has led many investors to hold back on riskier investments.

Calm Before the Storm?

Recent activity has reached record level. Dow and S&P recorded their best and second best weekly gains this year, respectively. However, there remains major uncertainty over future market outlooks. There is still uncertainty over how the Trump Administration will effect changes to current financial regulations as well as trade policy. Additionally, concern over foreign policy and rising geopolitical tensions has led to an apprehensive investment market. Until this rebound, financial investing, as well as other markets, had seen a slump after an initial, post-election boost.

Investor Resources

If you want to find out more about the recent, record-setting weekly gains, read the full Reuters article. For questions about protecting your investments or investment-loss recovery contact our team. Our expert legal team is here to ensure that you don’t fall victim to financial scams or investment fraud.

Review Your Insurance Settlement

Make sure you carefully review any insurance settlement you receive for damages. Before you accept it, make sure it makes sense. You should not be intimidated by your insurance provider, they are there for YOU. If something does not look right to you or you have a question, discuss it with your insurance company. Sometimes, it can be helpful to get a second opinion or another set of eyes to review your insurance settlement. An attorney specializing in insurance disputes or contract review can be a great resource to you when reviewing your claim. They can help you catch any issues and even provide some reinforcement if you end up disputing the claim amount. Hurricane Irma is projected to majorly impact Florida. It will likely result in extensive home and property damage as it passes through the state. If you file a claim and have questions about your settlement that the insurance companies won’t answer, contact an attorney for a review.

Wells Fargo Fake Accounts Scandal: By the Numbers

$185 million in fines and penalties to regulators $6.1 million in credits and refunds $910,000 in refunds for unauthorized online bill pay fees

Investor Resources

You can find out more info about the Wells Fargo fake accounts scandal here. If you believe you have been negatively affected by fake or unauthorized accounts, contact our team. You may have loss-recovery options. Check out our blog for even more investment tips and business news!