SECURITIES LAW

It takes just an hour and 30 minutes to drive west from Lexington to New Albany, Indiana. The modestly sized city sits across the Ohio River from Louisville. It’s there that a securities fraud scheme was launched, investigators say, reeling in more than 150 victims from around the nation.

[MORE]

FINRA REGULATIONS

We have often lamented about how investment banks have been taking advantage of retail and even institutional investors by charging excessive, undisclosed markups and markdowns on principal trades of bonds and other debt securities.   [MORE]

On behalf of Mihalek Law posted in Securities Law on Sunday, March 14, 2016.Lexington Baseball Fans Might Well Be Familiar With The Five-Hour Drive Northeast To The Sport’s Sacred Hall Of Fame In Canton, Ohio. A Few Days Ago, An Investment Broker There Was Sentenced To 12 Years In Prison After He Pled Guilty To 135 Charges Of Securities And  [MORE]

In October, the SEC approved FINRA’s proposed rule change requiring broker-dealers to provide customers with an estimated per-share value for Non-Traded REITs. The current practice is to carry the Non-Traded REIT on the customer’s account…  [MORE]

The idea behind investing for most people is to make a profit and walk away with more money than they had when they initially invested. As a result, investment opportunities that will generate a high rate of return are often appealing. This is particularly true when the high rate of return is not tied to a lot of risk. Investors who are solicited such offers should be cautious however. The investment opportunity being offered could be a Ponzi scheme.   [MORE]

In the last few years, FINRA (Financial Industry Regulatory Authority) has taken a number of actions against firms for charging excessive markups and markdowns on bond transactions. In the last three years, FINRA has fined several firms for charging their customers excessive markups and markdowns. A markup/markdown is charged to a customer, (as opposed to a commission), on a principal transaction.   [MORE]

Though the term securities fraud is one that is often heard on the news or read in papers, it is possible that some readers are not aware of what it is. The reality is that the term encompasses a series of activities that are deemed to be illegal. Some are attributed to individuals while others are committed by businesses. [MORE]

The Financial Industry Regulatory Authority (FINRA) – the largest regulator for all securities firms doing business in the United States – recently released a survey of U.S. investors designed to measure perceptions of fairness and to gauge demand for additional regulatory protections.    [MORE]

In the past few years, we have seen a trend involving relatively “sophisticated” investors, actually community banks, being taken advantage of by their investment banks who are managing their multi-billion dollar bond portfolio.  The scenario goes like this…  [MORE]

The Financial Industry Regulatory Authority (FINRA) recently released guidance to help securities firms implement a new rule requiring enhanced price disclosure to retail investors for trades in corporate and agency bonds. The new requirements go into effect May 14, 2018.  [MORE]

In the traditional Broker-Dealers, also referred to as “wirehouses”, registered representatives are employees of the firm and they generally offer financial advice and the firm’s approved products and services to the customers they serve.  However, the last decade has been witness to the [MORE]

So…What is FINRA Arbitration?

We have written before about the fact that if you open a securities account with almost any broker-dealer, you have, perhaps unknowingly, waived your right to sue your broker in a court of law and have contracted to settle any dispute you may have by arbitration.  So what is mandatory pre-dispute securities arbitration?  Let’s start with a historical perspective READ MORE.