October 2015

CFPB Sues To Stop Allegedly Bogus Student Financial Aid Operation
A federal consumer agency filed suit to stop a company that allegedly sent millions of letters to students and their families offering help in getting financial aid---for a fee.

Life Insurers Admit To Offering ‘Kickbacks,’ Says Elizabeth Warren
U.S. Senator Elizabeth Warren launched an investigation into 15 major annuity providers amid concerns about the "kickbacks" they offered to brokers who peddle products to retirees.

Edward Jones, Four Other Firms Settle Over Mutual Fund Overcharges
Edward D. Jones & Co and four other brokerages agreed to reimburse a combined $18.4M...

Massachusetts Charges Fidelity Over Unregistered Advisors
Massachusetts has charged Fidelity Brokerage Services LLC with knowingly allowing unregistered individuals to act as investment advisors for Fidelity customers.

Oregon Investment Manager Paid For Daughter's Wedding With Client's Gold Mine Money
The SEC has charged an Oregon man with spending $3 million that a client thought he was investing in a gold mine and energy technology.

San Diego Advisor Used Client Money For Porn, SEC Says
A San Diego investment advisor used nearly $2 million of clients' funds for himself, SEC says.

12 B-Ds Fined $2.6 Million By Finra
The Financial Industry Regulatory Authority has fined 12 broker-dealers a total of $2.6 million for failing to give breakpoint discounts on sales of unit trusts.

Florida Advisor Admits He Stole From Elderly Clients
The SEC has charged Michael Donnelly in a criminal complaint with stealing from unsophisticated investors.

UBS Firms Fined $17.5 Million For Failing To Disclose Fund Strategy Changes
Two UBS-affiliated firms will pay $17.5 million to settle charges that they failed to disclose a change in investment strategy that cost clients nearly $5 million in estimated losses.

New Hampshire Advisor Cheated Three Elderly Clients, SEC Says
A former advisor for Pruco Securities has been barred from the financial industry by the SEC for allegedly using $1.4 million in clients' money for himself.

Wisconsin Advisor Cherry Picked Profits, SEC Says
Mark P. Wellhouse kept winning investments for himself and assigned losing ones to clients, the SEC says.

N.C. Hedge Fund Manager Charged With Fraud
The SEC has charged Lonny Scott Bernath with defrauding investors of three hedge funds.

PA Advisor Barred For Operating $2 Million Ponzi Scheme
Jason A. Muskey pled guilty to criminal fraud charges in the case.

UBS To Pay $19.5 Million To Settle Structured Note Charges
UBS AG has agreed to pay $19.5 million to settle SEC charges that it misled U.S. investors about the value of structured notes based on a proprietary currency index.

SEC Slams Las Vegas Advisor For S2.5M ‘Make A Lot Of Money’ Scam
The SEC obtained a federal court judgment against a Las Vegas investment advisor’s scheme involving a company Malom, an acronym for ‘Make A Lot Of Money.’

Maryland Investment Advisor Cheated Middle-Class Investors Out Of $27 Million
A Bethesda, Md., man conducted a massive Ponzi Scheme that cheated 130 investors, the SEC says.

Trading Firm 'Spoofs' Stocks, SEC Says
A New York trading company placed false orders to manipulate stock prices, the SEC charges.

Fla. Advisor Charged By SEC In Alleged $500,000 Investment Scheme
A Florida man is facing fraud charges from the SEC after he allegedly lied to his clients about his registration status, his disciplinary history and the quality of their investments to garner more...

Scottrade Says It Was Hacked
The discount broker said it was the victim of a cyber attack from late 2013 to early 2014 that compromised information on 4.6 million customers.

New Jersey Fund Manager Arrested For Cheating Friends
A New Jersey man who called himself a registered investment advisor has been arrested for defrauding friends.