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).

June 2015

30-Jun-2015

Layover Leads to Arrest of $300 Million Pump-and-Dump Mastermind

Alabama Advisor Arrested For $2.5 Million Theft

Finra Scrutinizing Mutual Fund Overcharges

Florida Advisor Fined After Targeting Retired Teachers, Cops In Ponzi Scheme

SEC Bars Two Inside Traders

Boston RIA's Clients Allegedly Lost $12M In Client Assets

80-year-old Advisor Steals From Church Nursery School

Broker Tried To Inherit Alzheimer Victim's Money, Finra Charges

Mike Tyson's Former Advisor Charged By SEC

N.J. Fund Manager Charged With Stealing $4 Million For Cars, Jewelry

Day Trader, Friends Charged In $4.4M Insider-Trading Scheme

SEC Closes Case On Former NAPFA Chair Serving 16-Year Prison Term

Investment Scams Prompt SEC Consumer Warning

Merrill Lynch Pays $11 Million To Settle Short-Sale Violations

May 2015

31-May-2015

Stock Promoters Plead Guilty To $17 Million Stock Manipulation Scheme

Former Compliance Officer Allegedly Bilked Investors Of Over $800,000

Lawyer Faces Prison, $4.6 Million Fine In Stock Manipulation Case

U.S. SEC Charges Atlanta Firm Over Public Pension Funds

Brokerage Co-Owner Used Investor Money For Cars, Statues

'Financial Coach,' Radio Host Lost $3 Million Of Clients' Money, Gets Nine Years

Golf Talk Was Ruse For $1.1M Insider Trading Scam, SEC Says

Nationwide Life Fined $8 Million For Manipulating Contract Prices

Radio Show Duo Made $4.3M In Life Settlement Fraud, SEC Charges

SEC Lawsuit Alleges Ponzi Scheme Over North Dakota 'Man Camps'

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