Articles Posted in Firm News

The State of Florida has adopted its own version of the Uniform Commercial Code (UCC). The UCC, for most people including some lawyers, is not a easy statute to understand. Thus, if you believe that you have a claim under the UCC, prudence would suggest that you contact a qualified professional to represent your interests. For example, to state a claim for breach of an express warranty under the Florida UCC, the complainant must allege and prove (1) the sale of goods;(2) the express warranty; (3) breach of the warranty; (4) notice to the seller of the breach; and, (5) the injuries sustained by the buyer as a result of the breach of the express warranty.

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

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The purpose of this post is to raise investor awareness concerning phony Certificates of Deposits (CDs) promoted through internet advertising and “spoofed” websites – websites that mimic the actual sites of legitimate financial instructions. Investors should be extremely cautious when purchasing CDs from sites found only though internet searches. 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, if you have any questions concerning the contents hereof, you should contact a qualified attorney.

“Spoofed” websites – often using URL addresses similar to those of legitimate firms’ websites, or using legitimate-sounding names and URLs – may be used to trick investors into buying bogus CDs. Spoofed websites selling fake CDs often have red flags of fraud. They may:

• Offer interest rates higher than you can find at any other financial institution, with no penalties for early withdrawals;

Ameriprise Financial Services, Inc. and David Bradley Tysk – Boca Raton, Florida Stock Broker Fraud and Breach of Fiduciary Duty FINRA Arbitration Attorney

The Financial Industry Regulatory Authority, Inc. (FINRA) is a self-regulatory authority assigned the responsibility, by the Securities and Exchange Commission, to license, regulate and discipline securities broker/dealers and their employees, including account executives. In the event that FINRA elects to institute an enforcement action, firms and licensed individuals have the responsibility to reflect such action on their U-4 and/or U-5 filings, which can be viewed on the FINRA website under the broker-check section of the site or by viewing the monthly disciplinary information also provided on the FINRA site.

The monthly disciplinary information is referenced on the FINRA site generally in alphabetical order. This post relates to the following company or individuals. If the reader would like to review the entire FINRA release or the broker-check information concerning this matter, you can follow these highlighted links:

South Florida Customer Protection and Negligent Supervision FINRA Arbitration and Litigation Attorney:

SEC Charges Texas-Based Brokerage Firm With Violating Supervisory and Customer Protection Rules:

The Securities and Exchange Commission recently charged an Irving, Texas-based brokerage firm with violating key customer protection rules after failing to adequately supervise registered representatives who misappropriated customer funds.

South Florida Securities and Investment Fraud, Misrepresentation and Breach of Fiduciary Duty FINRA Arbitration and Litigation Attorney:

Securities and Exchange Commission v. Persaud, Civil Action No. 12-cv-932-Orl-28GJK

District Court Enters Final Judgment Against Defendant Gurudeo Persaud

SEC Charges China Affiliates of Big Four Accounting Firms with Violating U.S. Securities Laws in Refusing to Produce Documents

The Securities and Exchange Commission recently began administrative proceedings against the China affiliates of each of the Big Four accounting firms and another large U.S. accounting firm for refusing to produce audit work papers and other documents related to China-based companies under investigation by the SEC for potential accounting fraud against U.S. investors.

The SEC charged the following firms with violating the Securities Exchange Act and the Sarbanes-Oxley Act, which requires foreign public accounting firms to provide the SEC upon request with audit work papers involving any company trading on U.S. markets:

Theft and Unauthorized Activity FINRA Arbitration and Litigation Attorney, Russell L. Forkey, Esq.

February, 2012:

Maureen Ann Burke (CRD #1323987, Registered Rep., Chelsea, Massachusetts) submitted a Letter of Acceptance, Waiver and Consent in which she was barred from association with any FINRA member in any capacity. Without admitting or denying the findings, Burke consented to the described sanction and to the entry of findings that as a senior claims analyst at her member firm’s affiliate, she was responsible for, among other things, processing surrenders, loans, and dividend withdrawals on non-variable life insurance policies. The findings stated that Burke processed numerous unauthorized surrenders, loans and dividend withdrawals on life insurance policies, totaling approximately $18,208, without the knowledge or permission of her firm’s affiliate.  Her firm’s affiliate owned the policies because the original policy owners abandoned the policies and Burke then caused the funds from the unauthorized transactions to be wire transferred to a bank account over which she had access and control, without the knowledge or permission of her firm’s affiliate. The findings also stated that Burke processed a $240 unauthorized disbursement in a customer’s life insurance policy without the customer’s knowledge or permission, and caused the funds to be wire-transferred to the bank account, which Burke’s relative owned, and to which she had access and control, without the customer’s knowledge or permission. (FINRA Case #2010024265301).

Securities and Investment Fraud, Misrepresentation and Statutory Violation Litigation and FINRA Arbitration Attorney, Russell L. Forkey, Esq.

The Securities and Exchange Commission periodically announces enforcement actions that have recently been filed by it. Periodically, we review these actions and provide selective information concerning what we feel relate to important issues or matters that have a wide alleged impact on investors. Please keep in mind that further review should be undertaken, by the reader, related to those matters in which a final judgment or consent decree has not been referenced.

January, 2012:

January, 2012:

The Securities and Exchange Commission recently charged an Illinois-based investment adviser with offering to sell fictitious securities on LinkedIn.  The SEC’s Division of Enforcement alleges that Anthony Fields of Lyons, Ill. offered more than $500 billion in fictitious securities through various social media websites. For example, he used LinkedIn discussions to promote fictitious “bank guarantees” and “medium-term notes.” The postings resulted in interest from multiple purported potential buyers.

“Fraudsters are quick to adapt to new technologies to exploit them for unlawful purposes,” said Robert B. Kaplan, Co-Chief of the SEC Enforcement Division’s Asset Management Unit. “Social media is no exception, and today’s enforcement action reflects our determination to pursue fraudulent activity on new and evolving platforms.”

Fake Check Scams are alive and well.  The people behind these scams are brazen in all aspects of their fraudulent conduct.  Just to demonstrate how aggressive these people are, I have had these fraudsters attempt to pull the scam on me. 

Here are a few tips for recognizing and avoiding fake check scams.

If someone you don’t know wants to pay you by check but wants you to wire some of the money back, beware! It’s a scam that could cost you thousands of dollars.