Blue Water Capital Management
Blue Water Capital Management

  (919) 589-2528

Specializing in retirement planning and personalized investment management.

Lawyers, Guns & Money

Lawyers, Guns, Money

Why is it important to work with a fiduciary?


This section of our site is dedicated to all the low-down, no-good, thieving rascals of the industry. It’s a shame that people were hurt by their actions, but at least we can smile (and maybe even laugh) knowing that they are getting what they deserve.


Each month brings new headlines.  If you are interested in reading more about a particular story, just highlight the headline and right click on "search Google" (or the search engine of your choice).

December 2015

31-Dec-2015

Eleven Financial Advisors Are Disciplined by CFP Board
Eleven advisors are guilty of violating CFP regulations, the board announced Tuesday.

Barclays Fined $3.75M For Unsuitable Transactions
Barclays has been fined $3.75 million and ordered to pay $10 million in restitution for switching clients into unsuitable mutual funds, Finra announced Tuesday.

Jailed Hedge Fund Managers Sanctioned By SEC
Three Connecticut managers are barred from the securities industry for fraud related to a $750 million hedge fund complex that collapsed in the financial crisis.

Ex-Morgan Stanley Advisor Avoids Prison for Client Data Theft
Prosecutors say the advisor called the stolen data on 730,000 clients “the world’s best cold-calling list.”

Morgan Stanley Investment Management to Pay $8 Million
MSIM failed to properly supervise an employee who conducted illegal bond transactions, the SEC says.

Cantor Fitzgerald Fined $7.3 Million For Unregistered Microcap Sales
Cantor Fitzgerald & Co. allegedly sold unregistered microcap stocks without due diligence, leading to a $7.3 million settlement with Finra.

Las Vegas FA Hit With Criminal Charges In Alleged $30 Million 'Pump and Dump' Scheme
A Las Vegas advisor was hit with a Newark, N.J., federal grand jury criminal indictment for allegedly participating in a $30 million “pump and dump” scheme.

Fraudster Plans Scheme While In Prison For Earlier Fraud, SEC Says
Edward Durante used numerous aliases to pull off the $14 million scheme, a U.S. Attorney alleges.

JP Morgan Fined $267 Million For Conflicts of Interest
Two JP Morgan subsidiaries will pay fines for failing to disclose conflicts when investing client assets in proprietary mutual funds.

Finra Fines Fidelity For Failing To Detect Imposter Broker
Finra has fined Fidelity's brokerage arm for failing to detect an imposter broker who stole $1 million from clients.

Wells Fargo Advisors Sued Over Charge Former Broker Stole From Sisters
Wells Fargo Advisors is being sued for more than $500,000 over allegations that a former broker at the firm stole money from two elderly clients.

MIT Professor And Son Get 45 Months In Prison For Hedge Fund Fraud
Two former hedge fund managers were sentenced to 45 months in prison for misleading investors into investing more than $500 million in their fraudulent hedge fund business, said the U.S...

Ex-N.Y. Legislator's Son-In-Law Gets 2 Years In Prison For Fraud
A son-in-law of indicted former New York Assembly Speaker Sheldon Silver was sentenced to two years in prison on Wednesday for running a Ponzi scheme that defrauded investors out of nearly $6...

SEC Sues RIA For Hiding Benefits To Socially Responsible B-D
The SEC filed a suit against a Stamford, Conn., advisor for investing $43 million in customer money in dubious, illiquid bonds without disclosing a conflict of interest.

$100 Million Real Estate Fraud Ends In Penalties
A Utah investment advisor and his company are ordered to pay nearly $70 million in disgorgement and penalties, SEC says.

Promoting Back-Tested Data Lands Arizona RIA In Hot Water
The $737 million RIA is the seventh firm in the last four years that the SEC has charged with not telling clients that results were hypothetical.

New York Advisor Gets 20-Year Sentence For Stealing Clients' Money
Scott Valente was convicted of stealing millions from clients and using some of the money for himself.

November 2015

30-Nov-2015

RIA Admits Wrongdoing In Leaking Govt. Agency Decisions To Hedge Funds
International political intelligence firm Marwood Group Research has admitted wrongdoing in leaking intelligence gathered from government employees.

NFL’s Dwight Freeney Can Pursue BofA, Merrill Fraud Claims
NFL's Dwight Freeney can proceed with his lawsuit alleging that Bank of America was complicit in a fraud scheme that caused him to lose more than $20 million and forced his restaurant to close.

PA Broker Stole Money To Remodel House, SEC Says
A former Pennsylvania broker falsely told clients they were investing in real estate tax lien certificates, the SEC says.

Atlanta Businessman Lied To Investors As He Raised $190 Million, SEC Says
Christopher F. Brogdon defrauded investors who thought they were putting money into senior citizens' housing, SEC alleges.

New York Advisors Fined $1M for Violating Custody Rule -- Again
Brothers Martin and Steven Sands, their firm Sands Brothers Asset Management and the firm's former CCO Christopher Kelly agree to suspensions after allegedly violating the SEC's custody rule.

SEC Sues Over Singer Bob Marley Pump-And-Dump Scheme
The SEC says perpetrators used the name and trademarks of the late reggae singer to reap profits in a $78 million scheme where they hijacked a small coffee company formed by Marley’s son.

Prime Bank Scheme Results In $7.3 Million Penalty
A New Jersey man promised investors astronomical returns with no risk, the SEC says.

Multimillion-Dollar Schemes Lead To SEC Sanctions Against Father And Son
The father-and-son investment management team agreed to be barred from the financial industry after being accused of fraud, the SEC announced.

Indiana Investment Manager Cheated Amish Clients, SEC Says
The assets for the investment manager who took money from members of the Amish community have been frozen.

Elderly Cheated Out Of $4.6 Million In Retirement Money, SEC Says
A Wichita Falls, Texas, insurance agent convinced elderly clients to invest in his business and then spent their money on himself, the complaint says.

MetLife Says Finra Staff Recommends 'Significant Fine' Of Broker
MetLife said Finra’s staff has indicated the agency will seek a “significant fine” from the company’s broker-dealer unit as part of a probe into possible violations tied to variable annuities.

Ex-JPMorgan Broker Admits Stealing $22 Million For Gambling
The broker stole from customer accounts and used the money to gamble on sporting events, pay his bills, and trade stocks online.

SEC Bars Ohio Doctor Involved In $66 Million Ponzi Scheme
The SEC has barred Scott Doak, an emergency medicine physician from Xenia, Ohio, after he admitted to his role in cheating clients.

Still want more scams? Check out www.ponzitracker.com and www.sec.gov/litigation/litreleases.shtml