Breach of Fiduciary Duty

Alfred Clay Ludlum III – South Florida Investment Adviser Fraud, Breach of Fiduciary Duty and Misrepresentation Litigation and FINRA Arbitration Attorney

Published on: July 13, 2013 | By Russell L. Forkey, P.A.

The Securities and Exchange Commission Bars Alfred Clay Ludlum III Following His Injunction for Anti-Fraud Violations of the Securities Laws

The Securities and Exchange Commission recently announced that it has barred Alfred Clay Ludlum III, a registered investment adviser and the founder, president, and sole control person of Printz Capital Management, LLC, Printz Financial Group, Inc., and PCM Global Holdings, LLC, from association with any investment adviser, broker, dealer, municipal securities dealer, municipal advisor, transfer agent, or nationally recognized statistical rating organization. The Commission found that Ludlum agreed, among other things, to be permanently enjoined from future violations of the antifraud provisions of the federal securities laws. Based on the circumstances underlying that injunction, the Commission determined that the public interest required a full securities industry bar, noting that Ludlum defrauded investors-including several to whom he owed a fiduciary duty-out of approximately $850,000 and that he subsequently attempted to mislead regulators and thwart their investigations. The Commission concluded that an industry-wide bar was necessary because “Ludlum’s repeated and egregious misconduct evidences an unfitness to participate in the securities industry that goes beyond just the professional capacity in which Ludlum was acting when he engaged in the misconduct underlying these proceedings.” Commissioners Paredes and Gallagher concurred in the Commission’s decision, but dissented with respect to Commission’s decision to bar Ludlum from association with municipal advisors and nationally recognized statistical rating organizations.

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Sales Practice Violations – Discretionary Trading Without Authorization, Unauthorized Trading, Unsuitable and Excessive Trading and Churning – South Florida FINRA Arbitration and Litigation Attorney

Published on: July 3, 2013 | By Russell L. Forkey, P.A.

Securities and Exchange Commission Sustains FINRA Disciplinary Action against Registered Representative and Supervisor

The Securities and Exchange Commission has sustained disciplinary action by the Financial Industry Regulatory Authority (“FINRA”) against William J. Murphy and Carl M. Birkelbach, formerly associated with member firm Birkelbach Investment Securities, Inc. In its opinion, the Commission sustained FINRA’s finding of sales practice violations by Murphy, which included discretionary trading without authorization, unauthorized trading, unsuitable and excessive trading, churning, and the creation and distribution of misleading communications. In one customer account at issue, Murphy engaged in excessive options trading that generated over one million dollars in commissions in the span of approximately three-and-half years. The Commission also sustained FINRA’s findings of supervisory violations by Birkelbach for ignoring obvious and repeated red flags with regard to Murphy’s handling of customer accounts. Finally, the Commission has sustained FINRA’s imposition of sanctions: a bar in all capacities and the disgorgement of $585,174.67 for Murphy and bar in all capacities for Birkelbach.

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MayfieldGentry Realty Advisors, LLC. and Chauncey C. Mayfield – Florida Securities and Business Theft Litigation and Arbitration Lawyer

Published on: June 11, 2013 | By Russell L. Forkey, P.A.

Securities and Exchange Commission v. MayfieldGentry Realty Advisors, LLC, et al., Civil Action No. 13-cv-12520 (E.D. Mich.)

SEC Charges Top Officials At Investment Adviser in Scheme to Hide Theft from Pension Fund of Detroit Police and Firefighters

The Securities and Exchange Commission (“SEC”) recently charged the leader of a Detroit-based investment adviser for stealing nearly $3.1 million from the pension fund that the firm manages for the city’s police officers and firefighters so he could buy two strip malls in California. The SEC charged four other top officials at the firm for helping him try to cover up the theft.

Robert A. Gist and Gist, Kennedy & Associates, Inc. – Florida Sports Agent and Investment Breach of Fiduciary Duty FINRA Arbitration and Litigation Attorney

Published on: June 3, 2013 | By Russell L. Forkey, P.A.

Securities and Exchange Commission v. Robert A. Gist, et al., Civil Action No. 1:13-cv-01833-AT (N.D.Ga., May 31, 2013)

SEC Charges Atlanta Attorney with Converting Investor Funds

Recently, the Securities and Exchange Commission charged Robert A. Gist (“Gist”), an Atlanta attorney and former sports agent, and Gist, Kennedy & Associates, Inc. (“Gist Kennedy”) (collectively, “Defendants”), a company that Gist controls, with defrauding at least 32 customers out of at least $5.4 million while acting as an unregistered broker from approximately 2003 to the present.

Executor – Executrix – Florida Elder Abuse and Advocate Litigation Attorney

Published on: June 1, 2013 | By Russell L. Forkey, P.A.

Executor – Executrix – South Florida Elder Abuse and Advocate Litigation Attorney:

An Executor or Executrix is the administrator of an estate that is being probated. The administrator gathers the estate assets, files the estate tax return and final personal income tax return; and distributes the balance, of the estate, in accordance with the terms of the will or, if there is no will, in accordance with the law of the state where the estate is being administrated. The executor’s responsibility is relatively short term. An executor / executrix may be a bank trust officer, a lawyer, a family member or a trusted friend.

In marshalling the assets of an estate, the executor / executrix will review bank statements, brokerage statements, annuities and other investments to file inventories and various tax returns. Frequently, these reviews will uncover abuse to which the decedent has been exposed. In such circumstances, it is important to consult with a qualified professional to determine whether or not there is any legal recourse to recover losses associated with the activity.

Contingent Deferred Sales Load – Florida Elder Abuse Mutual Fund and Breach of Fiduciary Duty FINRA Arbitration and

Published on: June 1, 2013 | By Russell L. Forkey, P.A.

Contingent Deferred Sales Load (Charge) – South Florida Elder Abuse Mutual Fund Breach of Fiduciary Duty FINRA Arbitration and Litigation Attorney:

A contingent deferred sales load (charge) is a sales charge levied by a mutual fund if a customer sell fund shares within a specified number of years. Instead of charging a traditional front end load of 5%, for example, a brokerage firm may offer the same fund with a contingent deferred sales load. Customers who sell the fund within the first year pay a 5% load. In the second year, the charge would be 4%. Each year the charge declines by one percentage point until there is no fee for selling fund shares after the fifth year.

Please keep in mind that this information is being provided for educational purposes only. It is not designed to be complete in all material respects. Thus, it should not be relied upon as legal or investment advice. If the reader has any questions concerning this post, you should contact a qualified professional.

Bond Discount – Florida Bond Investment Breach of Fiduciary Duty FINRA Arbitration and Litigation Attorney

Published on: May 31, 2013 | By Russell L. Forkey, P.A.

Bond Discount – Florida Bond Investment Breach of Fiduciary Duty, Breach of Contract and Negligence FINRA Arbitration and State and Federal Litigation Attorney:

A bond discount is the amount by which the market price of a bond is lower than its face value. Outstanding bonds with fixed coupons go to discounts when market interest rates rise. Discounts are also caused when supply exceeds demand and when a bond’s credit rating is reduced. When opposite conditions exist and market price is higher than face value, the difference is termed a bond premium. Premiums also occur when a bond issue with a call feature is redeemed prior to maturity and the condholder is compensated for lost interest.

Please keep in mind that the information provided in this post is for educational purposes only. It is not designed to be complete in all material respects. Thus, it should not be relied upon as legal or investment advice. If the reader has any questions concerning the contents of this post, you should contact a qualified professional.

Numismatic Coin – Florida Precious Metals and Numismatic Coin Fraud and Misrepresentation State and Federal Court Litigation Attorney

Published on: May 26, 2013 | By Russell L. Forkey, P.A.

Numismatic Coin – Florida Precious Metals and Numismatic Coin Fraud and Misrepresentation State and Federal Court Litigation Attorney:

A Numismatic Coin is a coin that is valued based on its rarity, age, the quantity originally produced, and condition. These coins are bought and sold as individual items within the coin collecting community. Most Numismatic Coins are legal tender coins that were produced in limited quantities to give them scarcity value. They are historic coins which also can be rare. The current price of gold is a minor factor when dealing with Numismatic Coins. Premiums are traditionally far higher than those of Bullion Coins, and values fluctuate to a much wider extent. For example a $5 gold piece may may contain $70 dollars of gold but may sell for as much as $700. The minimum amount recovered from Numismatic Coin investments is always either its face value or its metal content.

With the above in mind, anyone considering investing in Numismatic Coins should think twice, especially if the investor is dealing with a firm located in another city or state. In our opinion, Numismatic Coins should never be purchased with anything other than absolute risk funds.

Merger – Florida Breach of Contract or Letter of Intent Commercial and Business Dispute and Litigation Attorney

Published on: May 24, 2013 | By Russell L. Forkey, P.A.

Merger – Florida Breach of Contract, Breach of Letter of Intent, and Breach of Fiduciary Duty Commercial and Business Dispute and Litigation Attorney:

A merger is a combination of two or more companies, where the amount paid over and above the acquired company’s book value is carried on the books of the purchaser as goodwill; or a consolidation, where a new company is formed to acquire the net assets of the combining companies. Strictly speaking only combinations (mergers) in which one of the companies survives as a legal entity are called mergers.

Mergers can also be classified in terms of their economic function. Thus a horizontal merger is one combining direct competitors in the same product lines and markets; a vertical merger combines customer and company or supplier and company; a market extension merger combines companies selling the same products in different markets; a product extension merger combines companies selling different but related products in the same market; a conglomerate merger combines companies with none of the above relationships or similarities.

Leverage Buyout (LBO) – Florida Breach of Contract and Fraud – Commercial and Business State and Federal Court Litigation Attorney

Published on: May 23, 2013 | By Russell L. Forkey, P.A.

Leverage Buyout (LOB) – Florida Breach of Contract and Fraud – Commercial and Business State and Federal Court Litigation Attorney:

A Leverage Buyout (LOB) is the takeover of a company using leverage. Frequently, the target company’s assets act as security for the loans taken out by the acquiring firm, which repays the loan out of cash flow of the acquired company. Management of the target company may use this technique to retain control by converting a company from public to private. A group of investors may also borrow money from banks or other sources, using their own assets as collateral, as part of the takeover. In almost all leveraged buyouts, public shareholders receive a premium over the current market value for their shares.

Please keep in mind that the information provided in this post is for educational purposes only. It is not designed to be complete in all material respects. Thus, it should not be relied upon as legal or investment advice. If you have any questions concerning the contents of this post, you should consult with a qualified professional.