Federal Litigation

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.

False and Misleading Sales and Promotional Materials – Florida Investment Adviser Fraud and Misrepresentation Litigation and Arbitration Attorney

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

Florida Investment Advisor and Broker/Dealer False and Misleading Offering and Promotional Materials Fraud and Misrepresentation FINRA Arbitration and Litigation Attorney:

Securities and Exchange Commission v. Patrick G. Rooney and Solaris Management, LLC, Civil Action No. 11-8264 (N.D. IL)

SEC Obtains Order of Permanent Injunctions Against Chicago-Area Investment Adviser and Its Owners for Fraud

Unregistered Offer and Sale of Securities – South Florida Unregistered Sale of Securities Litigation and Arbitration Attorney

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

Offer and sale of securities sold in violation of the registration provisions of Section 5 of the Securities Act of 1933 – South Florida Unregistered Sale of Securities Litigation and Arbitration Attorney:

Securities and Exchange Commission v. Dawn Wright-Olivares and Daniel Olivares, Civil Action No. 3:13-CV-700

SEC Charges Woman and Stepson for Involvment in Zeekrewards Pyramid and Ponzi Scheme; Parallel Criminal Charges and Plea Agreements Also Announced:

Should You Risk Your Home to Buy Securities or to Purchase Other Investments? South Florida Elder, Senior and Retirement Financial Abuse and Exploitation FINRA Arbitration and Litigation Attorney

Published on: December 11, 2011 | By Russell L. Forkey, P.A.

South Florida Senior, Elder and Retirement Financial Abuse and Exploitation FINRA Arbitration, Litigation and Probate Estate Attorney:

Should you risk your home to invest in stocks, bonds, mutual funds or other investments? In our opinion, the answer is no.

Over the years, in our representing investors, those individuals that have been impacted the most by losses suffered in the stock market or, for that matter in any other type of investments, are those that have borrowed money against their home and invested the proceeds, only to lose that money also.

Senior Investors and Senior Designations – South Florida Elder, Senior and Retirement Financial Abuse and Exploitation FINRA Arbitration and Litigation Attorney

Published on: November 18, 2011 | By Russell L. Forkey, P.A.

South Florida Senior, Elder and Retirement Financial Abuse and Exploitation FINRA Arbitration and Litigation Attorney:

The Financial Industry Regulatory Authority (FINRA) is a self-regulatory authority responsible for overseeing the practices of securities broker dealers. For several years, FINRA has focused on firms’ fair dealings with senior investors, as well as investors at or approaching retirement (hereinafter together referred to as senior investors).

In September 2007, FINRA issued Regulatory Notice 07-43, which highlighted certain issues that are common to many senior investors and reminded firms of their obligations in this area. In 2008 and 2010, FINRA joined with other regulators to issue findings and guidance on firms’ practices relative to senior investors. Most recently, in the 2011 Annual Regulatory and Examination Priorities Letter, FINRA reiterated that the protection of vulnerable customers, including senior investors, continues to be a high regulatory priority.

Investment Scams and some Tips on how to Spot them – South Florida Securities and Investment Fraud and Misrepresentation Litigation and Arbitration Attorney

Published on: October 12, 2011 | By Russell L. Forkey, P.A.

Investment Scams – South Florida Securities and Investment Fraud and Misrepresentation FINRA Arbitration and Litigation Attorney:

When it comes to making an intelligent investment decision, nothing is fool- proof. However, there are some basic sales tactics that should turn your “red light” on. Some of the most common include:

The “Phantom Riches” Tactic: Here the salesperson dangles the prospect of wealth, enticing you with something you want but can’t have. “These gas wells are guaranteed to produce $6,800 a month in income.”

Who Can You Trust? Elder, Senior and Retirement Financial Abuse and Exploitation FINRA Arbitration and Litigation Attorney

Published on: January 19, 2011 | By Russell L. Forkey, P.A.

South Florida Elder, Senior and Retirement Financial Abuse and Exploitation FINRA Arbitration and Litigation Attorney:

Normally, we provide information like this post on our main website. However, because of the contents of this post, we thought that it would constitute interesting reading for seniors, their care givers, personal representatives and trustees. This post reflects the extent that individuals will go to benefit themselves at the expense of elder or deceased persons.

Chad R. Duncan (CRD #4119031, Registered Principal, Hermitage, Pennsylvania, last registered with LPL Financial Corporation) submitted a Letter of Acceptance, Waiver and Consent in which he was barred from association with any FINRA member in any capacity. Without admitting or denying the findings, Duncan consented to the described sanctions and to the entry of findings that without permission or authority, he used $100,000 drawn from an elderly person’s bank account to pay his personal credit card expenses, which were related to costs associated with the construction of his home. The findings stated that when the executor of the deceased person’s estate became concerned about the withdrawals totaling $100,000, Duncan created fictitious cashier’s checks totaling $100,000 and payable to charities, falsely representing that the checks represented evidence of the payments made by the deceased and the beneficiaries of the payments. The findings also stated that the withdrawals were earlier used to purchase cashier’s checks payable to an international commercial bank to pay down Duncan’s credit card expenses. The findings also included that a bank compensated the customer for the wrongfully taken funds, and Duncan has reimbursed the bank approximately $91,484.75 and continues to make monthly payments to cover the amounts the bank paid to the customer. (FINRA Case #2009017755101)

High Pressure Sales of Annuities to Seniors and Others – Florida Variable and Fixed Annuity Fraud, Misrepresentation and Twisting FINRA Arbitration and Litigation Attorney

Published on: January 15, 2011 | By Russell L. Forkey, P.A.

South Florida Variable and Fixed Annuity Fraud, Misrepresentation, Breach of Fiduciary Duty and Twisting FINRA Arbitration and Litigation Attorney:

We recently were presented with the following factual situation. A single 82 year old, long retired woman received a “cold call” from a mortgage broker, who, after repeated telephone calls and visits to the woman’s home, convinced her to refinance her residence, She somehow got the woman to believe that it would be beneficial to pay off her $200,000 fixed rate, first mortgage, on her house that she had owned for many years, and to take out a new variable rate mortgage for almost $1,000,000 and put the difference in the bank for emergencies. If that was not enough, the 82 year old woman took the net proceeds to deposit into a bank account and the securities arm of the bank got a hold of her. Instead of telling the woman that it was a terrible idea to have taken out the new first mortgage, the securities arm of the bank sold the woman an annuity for $500,000, which started paying her monthly for 10 years. All of the payments that the woman got went to make the monthly mortgage payments. Obviously, the problem that this created for the woman was that after 10 years she would not be getting any more income from the annuity and the principal balance of the mortgage would be unchanged, thereby building into the transaction an automatic default in the mortgage. This is but one of many examples that could be given to show the extent to which some variable sellers will go to sell a product because of the large commission associate with the product.

While variable annuities can be appropriate as an investment under the right circumstances, as an investor, you should be aware of their restrictive features, understand that substantial taxes and charges may apply if you withdraw your money early, and guard against fear-inducing sales tactics.

Reverse Mortgages – Boon or Boondoggle – Florida Elder, Senior and Retirement Abuse and Exploitation Litigation and Arbitration Attorney

Published on: January 14, 2011 | By Russell L. Forkey, P.A.

Reverse Mortgages – Boon or Boondoggle – South Florida Retirement Abuse and Exploitation Litigation, Arbitration and Probate Estate Attorney:

If you are approaching retirement age, and own your home, chances are you have heard about reverse mortgages-or will soon. Reverse mortgages can be helpful to homeowners who want to stay in their homes but are having trouble keeping up with their mortgage payments, or who have no other source of funds to pay bills or meet unexpected expenses. This is something that I recently was exposed to when I assisted my aunt in obtaining one and I can tell you that it is important to deal with a mortgage broker that is schooled in these types of mortgages because the hoops that the homeowner has to go through to obtain a reverse mortgage, especially if it is coming from private investors, are substantial. But not a night goes by where I do not see an advertisement for a reverse mortgage as an easy, cost-free way for retirees to finance lifestyles. In the investment arena, unscrupulous “financial advisors” tout reverse mortgages as a why to obtain capital to invest in “can’t lose” investments so that seniors can secure their financial futures.

The first question that you have to ask your self is what is a reverse mortgage and how does it work?

Promissory Note Fraud and Misrepresentation – Bullet Points – South Florida Promissory Note Fraud and Misrepresentation FINRA Arbitration and Litigation Attorney

Published on: December 31, 2010 | By Russell L. Forkey, P.A.

South Florida Promissory Note Fraud, Misrepresentation, Unregistered Sale of Securities and Unsuitable Investment FINRA Arbitration and Litigation Attorney:

A Brief Description of a Promissory Note and How the Scam Works:

An investment scam that has been gaining in popularity among fraudsters is the sale of promissory notes, especially to seniors. Unlike many investments today, promissory notes sound simple and safe, and appear to be an attractive alternative to volatile stocks and bonds. However, while promissory notes can be legitimate investments, some promissory notes sold widely to individual investors are not. Investors need to be informed and understand the investment they are considering.