Breach of Fiduciary Duty

FAQ’s Warrants – Florida Securities and Investment Fraud, Misrepresentation and Breach of Fiduciary Duty FINRA Arbitration and Litigation Attorney

Published on: January 3, 2014 | By Russell L. Forkey, P.A.

FAQ’s Warrants – Miami, Hollywood, Fort Lauderdale, Deerfield Beach, Lighthouse Point and Boca Raton, Florida FINRA Arbitration and Litigation Attorney:

A warrant is a type of security, usually issued in conjunction with common or preferred stock, that entitles the holder to buy a proportionate amount of common stock at a specified price, usually higher than the market price at the time of issuance, for a period of years or to perpetuity.

Many times warrants are included as part of units issued in private placements. The warrants are included as part of the units as a “kicker” to the investor to take on the risk associated with investing in the private placement. Conversely, if the warrants are exercised, they provide the issuer with additional unsolicited funds.

FAQ’s Regarding Annuity Types – South Florida Immediate, Deferred, Fixed and Variable Annuity Twisting or Churning FINRA Arbitration and Litigation Attorney

Published on: January 3, 2014 | By Russell L. Forkey, P.A.

Florida Immediate Annuity, Deferred Annuity, Fixed Annuity and Variable Annuity Twisting or Churning FINRA Arbitration and Litigation Attorney:

There are several ways to categorize annuities, and any one annuity may fit into several categories. Immediate Annuities: With an immediate annuity, the annuant pays a single premium and immediately starts receiving payments at the end of each payment period, which is usually monthly or annually. Deferred Annuities: With a deferred annuity, the annuant pays one or more premiums over what is often called the accumulation period. The premiums paid and the interest credited to the premiums goes into a fund called an accumulation fund. There may be a minimum guaranteed interest rate at which the money will accumulate during the accumulation period. Fixed Annuities: A fixed annuity provides fixed-dollar income payments backed by the guarantees in the contract. The annuant cannot lose the investment once the income payments begin. The amount of those payments will not change. With fixed annuities, the company bears the investment risk. Variable Annuities: Variable annuity investments are securities, and fluctuate with economic conditions. The value of a variable annuity depends upon the value of the underlying investment portfolios associated with the annuity. The annuitant bears the investment risk for the value of the security. The value of the annuity will increase or decrease with the investment performance of the security.

Please keep in mind that the above 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 after reading this post, you should consult with a qualified professional.

Face Value of Bonds, Notes and Other Securities – Florida Securities and Investment Mismanagement and Breach of Fiduciary Duty FINRA Arbitration and Litigation Attorney

Published on: January 1, 2014 | By Russell L. Forkey, P.A.

Face Value of Bonds, Notes and Other Types of Securities – South Florida FINRA Arbitration and Litigation Attorney:

When using the term “Face Value” in referring to a security, it means the value as given on the certificate or instrument. For example, corporate bonds are usually issued with $1,000 face values, municipal bonds with $5,000 face values and federal government bonds with $10,000 face values. If these instruments are held to maturity, the investor, absent default, would receive the face value of the instrument. This is not necessarily true if the instrument is sold before maturity as the value of the bonds fluctuate in price from the time that they are issued until redemption. This price fluctuation is based upon a number of factors, including the credit worthiness of the issuer, the interest rate carried by the bond and the length of time until maturity.

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 you have any questions concerning the contents of this post, you should contact a qualified professional.

FAQ’s About Asset Allocation – South Florida Improper and Unsuitable Asset Allocation FINRA Arbitration and Litigation Attorney

Published on: December 25, 2013 | By Russell L. Forkey, P.A.

South Florida Improper and/or Unsuitable Asset Allocation FINRA Arbitration, Federal and State Court Litigation Attorney:

Asset Allocation – Asset Allociation involves dividing an investment portfolio among different asset categories, such as stocks, bonds, and cash. The process of determining which mix of assets to hold in your portfolio is a very personal one. The asset allocation that works best for you at any given point in your life will depend largely on your time horizon and your ability to tolerate risk.

Time Horizon – Your time horizon is the expected number of months, years, or decades you will be investing to achieve a particular financial goal. An investor with a longer time horizon may feel more comfortable taking on a riskier, or more volatile, investment because he or she can wait out slow economic cycles and the inevitable ups and downs of our markets. By contrast, an investor saving up for a teenager’s college education would likely take on less risk because he or she has a shorter time horizon.

Trade Execution / Markup and Markdown Fraud and Misrepresentation – South Florida FINRA Arbitration and Litigation Attorney

Published on: December 20, 2013 | By Russell L. Forkey, P.A.

South Florida Transaction Markup, Markdown and Other Cost Fraud, Misrepresentation, Nondisclosure, Breach of Fiduciary Duty and False Disclosure FINRA Arbitration and Litigation Attorney:

The Securities and Exchange Commission recently announced fraud charges against three brokerage subsidiaries and two former employees of a global trading services provider that caused many institutional clients to pay substantially higher amounts than disclosed for the execution of trading orders.

These subsidiaries of ConvergEx Group agreed to pay more than $107 million and admit wrongdoing to settle the SEC’s charges. The former employees, Jonathan Daspin and Thomas Lekargeren, also agreed to admit and settle the charges against them.

Collateralized Debt Obligation (CDO) – South Florida Investment Advisory Firm Fraud, Misrepresentation and Breach of Fiduciary Duty Arbitration and Litigation Attorney

Published on: December 17, 2013 | By Russell L. Forkey, P.A.

South Florida Investment Advisor Fraud, Breach of Contract, Breach of Fiduciary Duty and Mismanagement Litigation and Arbitration Attorney:

The Securities and Exchange Commission recently charged the managing partners of a Charlotte, N.C.-based investment advisory firm for compromising their independent judgment and allowing a third party with its own interests to influence the portfolio selection process of a collateralized debt obligation (CDO) being offered to investors.

The investment managers have agreed to collectively pay more than $472,000 and exit the securities industry to settle the SEC’s charges.

Accounting Negligence and Fraud – South Florida Accounting Fraud, Misrepresentation, Negligence and Breach of Fiduciary Duty Arbitration and Litigation Attorney

Published on: December 17, 2013 | By Russell L. Forkey, P.A.

South Florida Accounting, Fraud, Negligence, Breach of Contract and Misrepresentation Litigation and Arbitration Attorney:

Securities and Exchange Commission v. Michael H. Taber, CPA, Civil Action No. 13-mc-0282 (S.D.N.Y. filed Aug. 8, 2013)

SEC Awarded $400,000 in Disgorgement from Certified Public Accountant for His Violations of Commission Suspension Order

Arcturus Corporation and Aschere Energy LLC. – South Florida Oil and Gas Securities Fraud and Misrepresentation Litigation and Arbitration Attorney

Published on: December 16, 2013 | By Russell L. Forkey, P.A.

South Florida Unregistered Securities, Joint Venture and Securities Misrepresentation and Litigation Attorney:

Securities and Exchange Commission v. Arcturus Corporation, et al., Civil Action No. Civ. Action No. 3:13-cv-04861-K (N.D. Tex., Dallas Division, filed December 12, 2013)

SEC Charges Texas Oil and Gas Promoters for Securities Fraud

Florida Shareholder Notice and Consent Requirements and Dissenters’ Rights – Broward and Palm Beach County, Florida Corporate and Business Litigation and Arbitration Attorney

Published on: December 8, 2013 | By Russell L. Forkey, P.A.

Florida Shareholder Notice and Consent Requirements and Dissenters’ Rights – South Florida Corporate Litigation and Arbitration Attorney:

Shareholder notice and consent requirements and dissenters’ rights statutes are intended to insure that directors do not fundamentally change the nature of the shareholders’ investments without the check and balance of informed shareholder approval, and the opportunity for dissenters to withdraw from the corporation. A critical part of Florida’s statutory scheme giving dissenters the right to withdraw from the corporation is section 607.1301(2), which defines the term “fair value” for purposes of the dissenters’ rights statute. ‘Fair value,’ with respect to a dissenter’s shares, means the value of the shares as of the close of business on the day prior to the shareholders’ authorization date, excluding any appreciation or depreciation in anticipation of the corporate action unless exclusion would be inequitable.

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 the contents of this post, you should consult a qualified professional.

Prohibited Activities of Corporate Officers and Directors – Florida Corporate Misconduct Litigation and Arbitration Attorney

Published on: December 8, 2013 | By Russell L. Forkey, P.A.

Prohibited Activities of Corporate Officers and Directors – Broward and Palm Beach County, Florida Corporate Misconduct Litigation and Arbitration Attorney:

It is a cardinal principle, in Florida, that an officer or director of a corporation will not be permitted to make profit out of his official position and because of their fiduciary character, officers and directors will not be permitted to acquire for their own advantage interests adverse or antagonistic to the corporation. While it is true that corporate officers or directors are not precluded, because of the fiduciary nature of their position, from entering into and engaging in another similar enterprise separate from the corporation, they must refrain from interfering with the business of the corporation and they must act in good faith.

Examples of such activity include: