Unsuitable Investment Recommendations

Irving Marvin Burstein – South Florida Broker/Dealer and Account Executive Negligent Supervision FINRA Arbitration, Litigation and Probate Attorney

Published on: February 26, 2014 | By Russell L. Forkey, P.A.

Irving Marvin Burstein – South Florida Broker/Dealer and Account Executive Negligent Supervision FINRA Arbitration, Litigation and Probate Estate 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:

Promissory Notes – South Florida Promissory Note FINRA Arbitration and Litigation Attorney

Published on: February 16, 2014 | By Russell L. Forkey, P.A.

Florida Promissory Note FINRA Arbitration and Litigation 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:

Broker/Dealer Fraud, Misrepresentation, Theft and Breach of Fiduciary Duty FINRA Arbitration and Litigation Attorney

Published on: January 31, 2014 | By Russell L. Forkey, P.A.

Broker/Dealer Investment and Securities Fraud, Misrepresentation, Mismanagement, Theft and Breach of Fiduciary Duty FINRA Arbitration and Litigation Attorney:

Securities and Exchange Commission v. David L. Rothman, et al., Civil Action No. 2:12-cv-05412 (E.D. Pa.)

Court Enters Final Judgment Against Broker in Settlement of Claims Arising from Fraudulent Misrepresentations and the Misappropriation of Funds

Senior, Retirment and Elder Financial Abuse and Exploitation – South Florida Investment and Financial Abuse and Exploitation FINRA Arbitration, Litigation and Probate Estate Attorney

Published on: January 23, 2014 | By Russell L. Forkey, P.A.

Elder, Senior and Financial Abuse and Exploitation FINRA Arbitration, Litigation and Probate Estate Attorney, Russell L. Forkey, Esq.

Extent of Elder Abuse Victimization:

We have been focusing recently or our website, www.forkeylaw.com and on this blog about various issues relating to elder, senior and retirement financial abuse and exploitation. This post is designed to provide some statistics which reflect the growing problems in this area of senior life.

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

Published on: January 23, 2014 | By Russell L. Forkey, P.A.

Hybrid Senior, Elder and Retirement Financial Abuse and Exploitation Arbitration, Litigation and Probate Estate Attorney, Russell L. Forkey, Esq.

Hybrid financial exploitation.

It has been determined that a relatively unrecognized situation, referred to as hybrid financial exploitation, arises when financial exploitation co-occurs with physical abuse and/or neglect. These cases typically involve financially dependent family members, particularly adult offspring, who have been cared for by the elderly person for years , if not decades. The abuse suffered by these elderly victims is frequently longstanding. Over time, however, as the elderly person’s health declines and the elderly person becomes more socially isolated, often as the result of the death of a spouse, the elderly person increasingly becomes more dependent on another family member for care, resulting in a mutual dependency, albeit with each member of the dyad experiencing a different type of dependency. Although sharing some features in common with physical abuse and neglect, hybrid financial exploitation cases are unique in many ways and tend to result in worse outcomes for elderly victims than result from other forms of elder maltreatment. These outcomes may be attributable to the additional stress associated with the financial loss that is experienced.

Mutual Fund Switching – South Florida Mutual Fund Fraud and Breach of Fiduciary Duty FINRA Arbitration and Litigation Attorney

Published on: January 4, 2014 | By Russell L. Forkey, P.A.

Unsuitable and Inappropriate Mutual Fund Switching – Stuart, Hope Sound, Jupiter, West Palm Beach, Lantana, Delray Beach, Lake Worth and Boca Raton, Florida FINRA Arbitration, Mediation and Litigation Attorney:

Mutual Fund Switching:

Mutual fund switching is the moving of assets from one mutual fund to another, either within the same fund family or between different fund families. There is no charge for switching within a no-load family of mutual funds. A sales charge might have to be paid when switching from on load fund to another even within the same family of 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.

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.

Margin Account – Florida Margin Account Abuse FINRA Arbitration and Litigation Attorney

Published on: December 7, 2013 | By Russell L. Forkey, P.A.

Margin Abuse – South Florida FINRA Arbitration and Litigation Attorney, Russell L. Forkey, Esq.

A margin account is a type of brokerage account that allows customers to buy securities with money borrowed from their brokerage firm. Margin accounts are governed by Regulation T, adopted by the Federal Reserve, by various rules adopted by the Financial Industry Regulatory Authority and by the individual brokerage account terms that are set forth in the Margin Agreement. Many brokerage firm margin agreements allow the firm to change margin rules, without prior notice, at their election. Margin requirements can be met with cash or with eligible securities.

The use of margin, especially by the unsophisticated investor, may result in substantial losses to the investor. This is especially true if the investor is buying or selling options, short selling or using some type of other exotic trading strategy.

Financial Elder Abuse – Financial Elder Exploitation – Florida Litigation and FINRA Arbitration Attorney

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

Financial Elder Abuse and Elder Exploitation – Boca Raton, Delray Beach, West Palm Beach and Fort Lauderdale, Florida Litigation and Arbitration Attorney:

Florida Statute Section 415.1111 grants to vulnerable (elder) adults a cause of action as a result of financial and other types of abuse. It provides that a vulnerable adult who has been abused, neglected, or exploited as specified in the law has a cause of action against any perpetrator and may recover actual and punitive damages for such abuse, neglect, or exploitation. The action may be brought by the vulnerable adult, or that person’s guardian, by a person or organization acting on behalf of the vulnerable adult with the consent of that person or that person’s guardian, or by the personal representative of the estate of a deceased victim without regard to whether the cause of death resulted from the abuse, neglect, or exploitation. The action may be brought in any court of competent jurisdiction to enforce such action and to recover actual and punitive damages for any deprivation of or infringement on the rights of a vulnerable adult. A party who prevails in any such action may be entitled to recover reasonable attorney’s fees, costs of the action, and damages. The remedies provided in this section are in addition to and cumulative with other legal and administrative remedies available to a vulnerable adult.

As the elder population in Florida has increased, incidents of financial elder abuse has accelerated at an alarming rate. An area of financial elder abuse that has recently exploded is the twisting (unnecessary sale and purchase of annuities) of variable and fixed annuities.