Breach of Fiduciary Duty

Protecting Senior Investors – Report For Financial Service Firms Issued by the SEC, NASAA and FINRA

Published on: December 29, 2010 | By Russell L. Forkey, P.A.

This post contains a copy of a report issued by the staff of the SEC, NASAA and FINRA and does not reflect the view of, or include findings or conclusions of the Securities and Exchange Commission. The full release is contained on the attached pdf. document.

PROTECTING SENIOR INVESTORS:
COMPLIANCE, SUPERVISORY AND OTHER PRACTICES USED BY
FINANCIAL SERVICES FIRMS IN SERVING SENIOR INVESTORS
2010 Addendum
U.S. Securities and Exchange Commission’s
Office of Compliance Inspections and Examinations,
North American Securities Administrators Association, and
Financial Industry Regulatory Authority
August 13, 2010

Today in the United States, nearly 40 million people are age 65 and older. This number is expected to more than double to 89 million by 2050. In addition to these staggering numbers, many seniors find themselves with smaller nest eggs than they anticipated as a result of the economic downturn experienced over the past 18 months. Estimates show that total retirement assets decreased by $4.5 trillion, or 25%, from 2007 to the first quarter of 2009.

Elder and Senior Financial Abuse Attorney – Common Sense Tip for Seniors to Help Protect Your Nest egg

Published on: December 28, 2010 | By Russell L. Forkey, P.A.

South Florida Elder and Senior Financial Abuse and Breach of Fiduciary Duty Litigation FINRA Arbitration and Litigation Attorney:

The North American Securities Administrators Association, Inc. (NASAA) has issued a post that sets forth 10 general tips to help you protect your nest egg. I have modified this list somewhat based upon issues that I have help seniors deal with over the years.

First the bad news: As an older investor you are a top target for con artists. The files of state securities agencies are filled with tragic examples of senior investors who have been cheated out of savings, windfall insurance payments, and even the equity in their own homes. If the con artist is not associated with a major brokerage firm or other substantial company, it may be difficult to recover your losses. If you are a victim of a con artist, the faster you take action, the higher the probability that you will revocer some or all of your money.

Current Issues Relating to Municipal Bonds – South Florida Municipal and Corporate Bond Fraud and Misrepresentation FINRA Arbitration and Litigation Attorney,

Published on: December 27, 2010 | By Russell L. Forkey, P.A.

South Florida, including Vero Beach, Fort Pierce, Port St. Lucie, Jensen Beach, Hobe Sound, Jupiter and West Palm Beach, Municipal and Corporate Bond Fraud and Misrepresentation FINRA Arbitration and Litigation Attorney:

Municipal Bonds-Staying on the Safe Side of the Street in Rough Times

Municipal securities-often called “muni bonds”-are bonds issued by states, cities, counties and other governmental entities to raise money to build roads, schools and a host of other projects for the public good. The Financial Industry Regulatory Authority (FINRA) and the Municipal Securities Rulemaking Board (MSRB) have issued various alerts to remind investors that while munis have historically been considered relatively conservative investments, they do, like all bond investments, carry risk. As some state and local jurisdictions struggle with the fall-out from current economic conditions, investors should be aware that:

FAQ’s Relating to Life Settlements that Should be Considered by Not Only Seniors but All Investors

Published on: December 27, 2010 | By Russell L. Forkey, P.A.

South Florida Life Settlement Fraud, Misrepresentation, Breach of Contract and Breach of Fiduciary Duty FINRA Arbitration and Litigation Attorney:

This post contains important information that should be considered and questions that should be asked by anyone contemplating entering into a life settlement transaction

What is a life settlement?

Affinity Fraud: Beware of Con-Artists Who Claim Loyalty to Your Group – South Florida Affinity Fraud and Misrepresentation FINRA Arbitration and Litigation Attorney

Published on: December 25, 2010 | By Russell L. Forkey, P.A.

South Florida, including Boca Raton, West Palm Beach, Stuart and Jupiter, Affinity Fraud and Misrepresentation , Especially in the Area of Elder Abuse, FINRA Arbitration and Litigation Attorney:

Affinity Fraud:

State securities regulators are warning investors, especially elder people, to be on guard against a rise in affinity group fraud. What is affinity fraud? It`s simple, but the causes that give rise to it are often more complex.

Peer-to-Peer Lending – Florida Breach of Fiduciary Duty and Negligent Supervision FINRA Arbitration and Litigation Attorney

Published on: December 21, 2010 | By Russell L. Forkey, P.A.

South Florida Peer-to-Peer Lending Litigation and Arbitration Attorney:

Peer-to-Peer lending has come under the scrutiny of state regulators as it gains in popularity. State securities regulators are warning investors to be careful of peer-to-peer lending over the Internet, a trend they say is on the rise as conventional loans have become scarcer and more costly.

As indicated in the first blog that was filed on this site, it is amazing what may constitute a security. Therefore, it is not surprise that the National American Securities Administrators Association Inc. has issued an alert advising investors about the risks of online loan “matchmaking,” also called social lending or P2P.

Elder and Senior Investor Alert: Free Meal Seminars – Broker/Dealer Fraud, Mismanagement and Negligent Supervision Florida FINRA Arbitration and Litigation Attorney

Published on: December 18, 2010 | By Russell L. Forkey, P.A.

Elder and Senior Investor Alert: Free Meal Seminars – Broker/Dealer Fraud, Mismanagement and Negligent Supervision Florida FINRA Arbitration and Litigation Attorney

Free Lunch Seminars, Misleading Professional “Senior Specialist” Designations and Abuse Sales Practices:

State securities regulators warn senior investors to be aware that a combination of “free lunch” seminars, misleading professional “senior specialist” designations, and abusive sales practices can create a perfect storm for investment fraud. Remember: there’s no such thing as a free lunch.

Seniors Beware: What you Should Know About Life Settlements – Florida Senior and Elder Financial Abuse Fraud, Misrepresentation and Breach of Fiduciary Duty Litigation and Arbitration Attorney

Published on: December 15, 2010 | By Russell L. Forkey, P.A.

Seniors Beware: What you Should Know About Life Settlements – South Florida Senior and Elder Financial Abuse Fraud, Misrepresentation and Breach of Fiduciary Duty Litigation and FINRA Arbitration Attorney:

Life Settlements:

Lately, more and more seniors are hearing about opportunities to sell their existing life insurance for cash in transactions known as life settlements. A life settlement, or senior settlement, as they are sometimes called, involves selling an existing life insurance policy to a third party-a person or an entity other than the company that issued the policy-for more than the policy’s cash surrender value, but less than the net death benefit.

FAQ’s – What Constitutes A Security? Florida Securities Fraud and Misrepresentation Litigation and Arbitration Attorney

Published on: December 8, 2010 | By Russell L. Forkey, P.A.

South Florida, including Dade, Broward, Palm Beach and Martin County, Securities and Investment Broker/Dealer, Investment Advisor and Private Fraud, Mismanagement and Misrepresentation Arbitration and Litigation Attorney

What Constitutes a Security:

What initially comes to most people’s minds when the word security is mentioned is a stock or bond. Yet, from a legal standpoint, the word security has a much more expansive meaning. For example, in the State of Florida the word “security” is defined in Florida Statute 517.021(21). The word “security” includes a note, stock, treasury stock, a bond, a debenture, an evidence of indebtedness, a certificate of deposit, a certificate of deposit for a security, a certificate of interest or participation, a whiskey warehouse receipt or other commodity warehouse receipt, a certificate of interest in a profit-sharing agreement or the right to participate therein, a certificate of interest in an oil, gas, petroleum, mineral, or mining title or lease or the right to participate therein, a collateral trust certificate, a reorganization certificate, a preorganization subscription, any transferable share, an investment contract, a beneficial interest in title to property, profits, or earnings, an interest in or under a profit-sharing or participation agreement or scheme, any option contract which entitles the holder to purchase or sell a given amount of the underlying security at a fixed price within a specified period of time, any other instrument commonly known as a security, including an interim or temporary bond, debenture, note, or certificate, and receipt for a security, or for subscription to a security, or any right to subscribe to or purchase any security or a viatical settlement investment. Wow!