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).

August 2015

31-Aug-2015

CFP Board Disciplines Wisconsin Lawmaker Convicted Of Sexual Assault

$12M Oil And Gas Drilling Fraud Charged By SEC

Ex-JPMorgan Analyst Implicated in Insider Trading Scheme

California Sports Drink Company Founder Is Barred From Financial Industry

SEC: Retired Advisor Illegally Solicited Nearly $13 Million From Investors

Real Estate Financier Defrauds Chinese Investors In $125 Million Scheme

SEC Accuses Investment Manager Of $65 Million Fraud

Ex-JPMorgan Banker To Plead Guilty In Embezzlement Case Hearing

3 Charged With Operating Phony Pension Advance Operation

San Diego Investment Advisor Fined $2.6 Million For Misleading Clients

Founder Of Pet Memorial Company Charged With Fraud By SECCiti Affiliates Pay $180M To Settle Hedge Fund Case

Edward Jones To Pay $20 Million For Overpricing New Munis

Ex-Fund Manager Mark Bloom Gets Three Years In Fraud Case

ITG Pays Record Settlement For Misusing Confidential Client Info

Broker Who Stole $4.4M From His Mother, Alzheimer's Patient Banned By SEC

Texas Businessman Takes Investors For $114M Ride, SEC Says

Texas Attorney General Paxton Indicted For Securities Fraud

July 2015

31-Jul-2015

CFP Board Disciplines Advisors

Pair Charged With $8M Fraud By SEC

Pump-And-Dump Scheme Used Global E-Mails, SEC says

A Wisconsin Man Gets Prison For Fraudulent Credit Card Scheme

Pennsylvania Attorney Charged With Insider Trading On Insurance Merger

Insider Trading Middleman Ate Evidence, SEC Says

Advisor, Race-Car Driver Guilty Of Swindling Millions From NHL Stars

Oil And Gas CEO Charged In $68 Million Ponzi Scheme

Florida Man Promised Investors A Gold Mine, SEC Says

Former Pa. Broker Bought Condos With Stolen Client Money, SEC Says

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

Avoid being ripped off with these 5 simple steps

Be aware that commissions = conflict of interest. There are so many no-load (non-commission) mutual funds and index funds available; it doesn’t make sense to pay commissions for funds anymore. Variable annuities and equity indexed annuities often have high commissions too.
Never invest in a hedge fund. They are not transparent, they are very expensive, and they’re at the center of many scandals.
Don’t be fooled by extraordinary promises. There’s no such thing as a low-risk, high-return investment. If it sounds too good to be true, it probably is.
Don’t invest with a broker or advisor who takes custody of your assets. Writing an investment check out to “Joe Advisor Investment Company” is just asking for trouble. Make sure your broker or advisor uses a trusted and established custodian like Charles Schwab, TD Ameritrade, or Fidelity.
Always check out the background of your broker or advisor and their firm. Here are three resources below:

BrokerCheck: Allows investors to check the background of registered brokers and brokerage firms.
Learn More

Investment Advisor Public Disclosure: Allows investors to check the background of investment advisors and investment advisory firms.
Learn More

CFP® Professional Search: Allows investors to check who has been publically disciplined by the CFP Board.
Learn More