Securities Arbitration Lawyers Blog

Crowdfunding and Securities: What You Need to Know to Stay Protected

August 31, 2016 | Silver Law Group

Crowdfunding and Securities: What You Need to Know to Stay Protected on silverlaw.com

Crowdfunding, like any investment, has both risks and benefits. Before investing, make sure you understand both.

As of May 2016, investors are able to buy stock in early-stage companies through crowdfunding, a system in which companies raise small amounts of money through many people, typically on internet-based platforms.

To many, crowdfunding sounds like an exciting new way to invest, but it’s important to understand the type of business you’re investing in: what it does, how it makes money, and the inherent risks in investing in start-ups and other early stage ventures.

What Keeps a Ponzi Scheme Running?

August 30, 2016 | Silver Law Group

What Keeps a Ponzi Scheme Running? on silverlaw.com

You would think that it would be easy to spot a Ponzi scheme when there are so many victims, but the truth is a lot more complicated

Ponzi schemes are fraudulent investment schemes that involve paying fake investment returns with funds contributed by new investors. Organizers of Ponzi schemes often promise investors incredibly high returns with little to no risk, paying them from funds invested by new victims.

One of the most famous Ponzi schemes in history was run by Bernie Madoff, who made $50 billion during a decades-long scheme. Investigators have found evidence that it began in the 1970s, yet charges weren’t brought against Madoff until his arrest in 2008.

What to Expect from FINRA Dispute Resolution

August 29, 2016 | Silver Law Group

What to Expect from FINRA Dispute Resolution on silverlaw.com

FINRA dispute resolution resolves disputes between customers and stockholders or Wall Street involved in fraudulent or negligent broker activity

If you’re an investor and have a dispute with a securities firm or broker that can’t be settled through a mutual agreement or outside settlement, the case may be arbitrated or mediated in FINRA’s dispute resolution forum.

Will FINRA hear my case?

Minnesota Broker John Heath Allegedly Steals Funds from a Client’s Annuity

August 26, 2016 | Silver Law Group

Minnesota Broker John Heath Allegedly Steals Funds from a Client’s Annuity on silverlaw.com

FINRA issues permanent bar from securities industry after failing to respond to the allegations and two counts of theft while employed at Independent Financial Group

As of July 2016, Minnesota broker John Vernon Health has been barred by FINRA. His history in the financial services industry dates back to 1993 when he was employed by Gardener Financial Services in Minneapolis. He was also employed by Royal Alliance Associates in New York from April 1993 to July 2001 and by QA3 Financial Group in Minnesota from July 2001 to February 2011.

During his most recent position at Independent Financial Group, Heath was suspended by the FINRA for failing to respond to requests for information regarding a complaint from a client for allegedly stealing funds from an annuity. Because he failed to provide the requested information and request a termination of his suspension, Heath was subsequently permanently barred by FINRA and was terminated by Independent Financial Group in March 2016.

Silver Law Group Files FINRA Arbitration Claim Involving Churning Against Two National Broker/Dealers and Financial Advisor Curtis Milakovich

August 26, 2016 | Silver Law Group

The Silver Law Group has filed an arbitration claim before FINRA on behalf of two Florida teachers alleging, among other things, that financial advisor Curtis Milakovich (CRD# 5471527) churned their accounts while two national broker/dealers turned a blind eye.

The claim also alleges that the two national broker/dealers did not follow adequate policies and procedures to address the misconduct and failed to follow up on the red flags that would have alerted them to the misconduct being perpetrated on the clients who lost significant portions of their retirement savings. At times, Milakovich operated as Aspire Wealth Management.

Excessive trading or “churning,” as it is known in the industry, is the act of a broker who excessively and needlessly engages in trading in a client’s account primarily to generate commissions for the broker on each trade without regard for the client’s financial well-being. Churning is an illegal and unethical practice that violates SEC rules and securities laws.

Former Miami, Florida-based Broker Under Investigation for Unsuitable Recommendations

August 26, 2016 | Silver Law Group

Former Dakota Securities International (“Dakota”) broker Christopher R. Mcnamee (CRD# 4271195) is under investigation for recommending unsuitable investments to his customers.

The Financial Industry Regulatory Authority (“FINRA”) arbitration complaint, according to Mcnamee’s FINRA BrokerCheck report, alleges damages in the amount of $1 million. Aside from unsuitable recommendations, the FINRA arbitration complaint alleges the use of excessive margin.

Mcnamee has an additional BrokerCheck report disclosure alleging unsuitable investment recommendations as well. The dispute was settled in March 2015 for $50,000.

How FINRA’s Handling the Problem of Unpaid Securities Arbitration Awards

August 25, 2016 | Silver Law Group

How FINRA’s Handling the Problem of Unpaid Securities Arbitration Awards on silverlaw.com

Millions of dollars in awards go unpaid by defunct brokerage firms, boiler rooms, and unscrupulous brokers—what is FINRA doing to address this growing issue?

A recent report from the Public Investors Arbitration Bar Association (PIABA) says that 75 awards (approximately one third of all money awarded to clients in FINRA arbitration) during the year 2013 went unpaid.

Unlike many other types of business, brokers and financial advisors are not required to carry insurance, meaning there isn’t another source of assets to pay client awards if the firm’s assets dry up. While most large firms pay arbitration awards as quickly as possible in order to maintain their reputation and avoid further legal action, many smaller firms can’t or don’t pay many of their awards.

FINRA’s New Rule Requires Member Firms’ Websites to Link to BrokerCheck Reports

August 24, 2016 | Silver Law Group

FINRA’s New Rule Requires Member Firms’ Websites to Link to BrokerCheck Reports on silverlaw.com

Financial regulatory authority making it even easier for investors to access broker and firm histories

As of June 6th, 2016, FINRA member firms are required to place a link on their website to their BrokerCheck reports. This gives potential clients and investors more information than ever before about the brokers and firms they’re thinking of investing with.

What is BrokerCheck?

How to Prepare for a FINRA Hearing

August 23, 2016 | Silver Law Group

How to Prepare for a FINRA Hearing on silverlaw.com

If you want to succeed, you may want an excellent attorney, the right paperwork, and, perhaps most importantly, a clear goal in mind for what you want out of FINRA’s dispute resolution process.

Whether you’ve decided to file a FINRA arbitration claim or a request for mediation, adequate preparation is essential to if you want to give yourself the best chance of being awarded the funds you’ve lost through broker fraud or other FINRA sales practice violations.

Preparing for an arbitration hearing

Duluth Broker Kenneth Kolquist Permanently Barred by FINRA

August 22, 2016 | Silver Law Group

Duluth Broker Kenneth Kolquist Permanently Barred by FINRA on silverlaw.com

Cetera financial advisor allegedly engaged in gross negligence, breach of fiduciary duty, fraudulent non-discolsure, fraud, and more

Kenneth Kolquist began his career in the financial services industry in 2006 in Duluth, Minnesota. Since his first position with A Plus Financial Group, he has worked for various firms including Securities America, Financial Network, and most recently for Cetera Advisors Networks, where he worked from 2009 to 2015.

While employed by Cetera, Kolquist was accused of: