SEC Investor Tips

SEC Issues Guidelines For Standards of Conduct And Care Obligations For Investment Advisors

May 15, 2023 | Silver Law Group

The Securities and Exchange Commission recently released a staff bulletin to offer further guidance to brokers, broker-dealers, and investment advisors. Written in a question-and-answer format, the bulletin is designed to offer information to its target audience for two topics:

The Care Obligation of Regulation Best Interest (“Reg BI”) for broker-dealers
The duty of care enforced under the Investment Advisers Act of 1940, known as the “IA fiduciary standard” for investment advisors

Caution Urged With Digital Asset And Cryptocurrency Investments

October 7, 2021 | Silver Law Group

The Securities And Exchange Commission recently released a bulletin on their investor website warning about frauds that incorporate digital assets and cryptocurrency into their scams.

Investing in cryptocurrency such as Bitcoin, Litecoin, Ethereum, and other so-called “digital assets” are a truly 21^st Century way to invest. For someone who is tech-savvy as well as educated with investing, dipping into crypto may be a next-generation investment that offers returns on an investment. Continue reading ›

SEC Warns Of Investment Fraud Such As Ponzi Schemes And COVID-19 Stocks

January 18, 2021 | Silver Law Group

The Securities and Exchange Commission’s (SEC) Office of Investor Education and Advocacy is urging investors to be on high alert to avoid falling victim to investment fraud.

A December, 2020 press release from the SEC stated that they had experienced a “significant uptick in tips, complaints, and referrals involving investment scams” and warned that turbulent times, such as the COVID-19 pandemic, are prime opportunities for fraudsters to try to victimize investors. Continue reading ›

SEC Publishes Fact Sheet For Identifying Senior Financial Exploitation

June 28, 2019 | Silver Law Group

The SEC has published a fact sheet for identifying and reporting senior financial exploitation for brokers, transfer agents, and financial advisors. We’ve all heard at least one story about an investor who put money into something that was supposed to be the “next best thing,” maybe even with a “guaranteed return.” Unfortunately, that “next big thing” turned out to be fraudulent. As we at Silver Law Group have reported on our many blogs, senior investors have been particular targets of such blatant fraudulence. In some cases, these investors are bankrupted, and their years of lost savings and careful investments have left them dependent on Social Security. Continue reading ›

SEC Halts Trading On Petrotech Oil & Gas, Inc.

February 5, 2019 | Silver Law Group

Petrotech Oil & Gas Inc. (PTOG) is a company based in Bedford, TX, and claims it is involved in petroleum recovery from oil wells that are considered “empty.” Using their own extraction technology with CO2 and N2 called “Gas-Injection EOR” (Enhanced Oil Recovery), Petrotech is able to recover 20% or more than previously thought possible.

The SEC Has Proposed New Regulations for Fiduciaries on silverlaw.com On February 19, 2014, the company announced that it would also be entering the legal cannabis market in Washington and Colorado, causing their stocks to surge. Petrotech’s deal created subsidiary Legalizepot.us Management Group, Inc. (the site is now a blank page.) LP.US Management was intended to manage the growing companies where cannabis became legal, starting with Washington and Colorado.

On March 14, 2014, the SEC suspended trading for the company “because of questions that have been raised about the accuracy and adequacy of publicly disseminated information concerning, among other things, the company’s operations.” Trading resumed on March 28, 2018. The company was in the process of completing a 2-year audit to comply with SEC reporting standards to achieve full reporting status.

Investment Center Broker Accused of Stealing $300K from Elderly Client

September 26, 2018 | Silver Law Group

Leon Vaccarelli allegedly defrauded a total of nine clients out of more than $1 million

In May, former financial advisor Leon Vaccarelli was charged with 12 counts of fraud and money laundering in a federal court in Connecticut. If convicted on all of them, he could receive a maximum penalty of 210 years in prison. After pleading not guilty, Vaccarelli was released on a $100,000 bond.

Vaccarelli is alleged to have stolen money from several clients between 2011 and 2017. During that time, he reportedly informed his clients that their money would be invested in different places, including money market accounts and retirement products. What Vaccarelli actually did, according to investigators, was put the money into his own account and use it to pay his own expenses. In addition, federal prosecutors also say that he also used client money to make interest payments to other investors.

Some of National Securities Corporation’s FINRA-Reported Brokers

September 5, 2018 | Silver Law Group

These four brokers have been accused of numerous infractions

National Securities Corporation has been operating for decades and has offices and brokers all over the U.S. Unfortunately, however, a significant percentage of their brokers have been involved in numerous customer complaints. Here are just a few examples of how National Securities employees have allegedly violated FINRA rules:

James Eichner

The SEC Has Proposed New Regulations for Fiduciaries

August 22, 2018 | Silver Law Group

What the new code of conduct rule entails and how it could affect elderly investors

Up until earlier this year, the Department of Labor had a rule in effect for fiduciaries that specified that they couldn’t earn commissions unless the advice they offered was in the best interests of their clients. In addition, the rule mandated that they could only earn reasonable compensation and must be transparent about this compensation as well as the products they sell.

However, in March, a federal appeals court struck down the DOL’s rule. Recently the SEC proposed their own rule – called Regulation Best Interest or Reg BI – that aims to address three areas:

Securities Arbitration Claims Against National Securities Corp.

August 15, 2018 | Silver Law Group

According to some reports, nearly 1/3 of National Securities brokers have had regulatory issues, legal disputes, or personal financial problems that have been disclosed to investors

National Securities Corporation is one of the oldest financial firms in the U.S., dating back over 70 years. Its the main office is in Seattle, Washington, but the company has licenses to operate in every state in the country, as well as the District of Columbia, Puerto Rico, and the Virgin Islands.

National Securities Corporation is registered with the SEC and three self-regulatory organizations: Nasdaq, Cboe BZX Exchanged, Inc., and the Financial Industry Regulatory Authority (FINRA) – and it is with the latter agency that the company has come under intense scrutiny over the last couple of decades.

Federal Employee Benefit Counselors Targeted Federal Government Employee Retirement Plan Participants With Variable Annuities Scheme.

August 2, 2017 | Silver Law Group

Silver Law Group and The Law Firm of David Chase are reviewing potential claims of fraudulent inducement of federal employees into purchasing high fee paying variable annuity products by LPL Financial LLC (CRD#6413) affiliated brokers Brandon Long (CRD# 5975459) , Christopher S Laws (CRD#4479529) , Johnathan Dax Cooke (CRD#5365691) and Danny Scott Hood (CRD#3236852).

Variable annuities (“VAs”) are highly-complex financial products. According to FINRA, a good way to think of a VA is as a cross between an insurance product and an investment product.

Like other annuities, a VA is a contract between the investor and an insurance company. The investor pays the insurer a single payment or a series of payments called premiums. In exchange for those premiums, the insurer promises to make periodic payments to you either immediately or at some point in the future.