Securities and Investment Blog

Finra Continues To Investigate Expense Reports
          There are numerous examples of FINRA cracking down on expense report violations.  Following are a few of the reported cases. In September, 2017, a former Morgan Stanley corporate stock manager accepted an industry bar over allegations that “event attendees on employee’s expense report incorrectly included one person who did not attend event.”  The employee     said she “couldn’t afford to fight her dismissal or to take the time to work with the regulator.”  “The direct cause of the bar was [her] refusal to appear for the hearing into the matter.” ...

Santander Bank Hammered In Reasoned Award It Requested
           Last month a FINRA arbitration panel in Boston issued a reasoned award in an employment matter pitting a former employee against the bank.  Ironically, both the employee and the bank requested a reasoned award.  A reasoned award is pretty rare as the FINRA member almost never requests one and both sides must request the reasoned rather than typically scant and unjustified written award.              Beyond issuing an extremely incriminating award, the panel gave the Claimant every penny he requested - - over $1.3 million. ...

2018 Finra Exam Report: Does Your Investment Portfolio Need A Legal Audit?
The Financial Industry Regulatory Authority (“FINRA”) released its 2018 Examination Findings Report on December 7, 2018.  This examination report recounts specific areas in which FINRA members are not measuring up to industry standards.  So, if your investment advisers just sent to you statements for your investment portfolio and you think perhaps it’s not what you expected, then it may be because they engaged in some of the substandard practices as identified by FINRA in this report. And if you have those concerns, then it may be advisable to have a legal audit of your investment portfolio performed by experienced...

Broker Terminations
Are you a financial adviser who has been terminated unfairly?  Well, if you are, you are not alone.  The attorneys at Cosgrove Law Group, LLC have represented advisers all over the country who have fallen prey to a system very unique to the financial services industry – the internet publication of involuntary termination justifications via the Form U-5.  And while the regulators thought this system would be a good thing for investors, it has proven to be a devastating system for many innocent advisers.  We refer to it as “the weaponization of the U-5.”You will not obtain a new position with a Broker-Dealer...

Purchasers Of 1st Global Capital Finance Securities In Missouri May Be Able To Recover From Their Brokers
On August 23, 2018, the U.S. Securities andExchange Commission (“SEC”) filed a complaint for injunctive and other relief against 1 Global Capital, LLC (“1st Global Capital”) in the U.S. District Court for the Southern District of Florida alleging, among other things, that 1st Global Capital “fraudulently raised more than $287 million from more than 3,400 investors.” And as 1st Global Capital filed for Chapter 11 bankruptcy protection, it’s unlikely the victims of this fraud will recover more than a fraction of their money from 1st Global Finance. But all may not be lost if you are such a victim of this fraud and...