Securities Arbitration Lawyers Blog

State Securities Regulators Report High Number of Senior Financial Abuse Cases

October 7, 2015 | Silver Law Group

State Securities Regulators Report High Number of Senior Financial Abuse Cases on silverlaw.com

Securities regulators state that professionals should help seniors avoid being scammed

When it comes to investment scams, seniors are easy targets. According to a recent report from the North American Securities Administrators Association (NASAA), seniors were targeted in one-quarter of the enforcement actions in 2014, in cases where states track victims by age.

“Seniors remain a top target of investment fraud and protecting seniors from investment fraud and abuse is a key priority of NASAA and its members,” said William Beatty, NASAA President and Washington Securities Director. Beatty also noted that since 2008 when NASAA began tracking data collected by state securities agencies, one-third of all enforcement actions involved senior victims.

Hindsight Is 20/20: Famous Ponzi Schemes and Why They Weren’t Obvious

October 2, 2015 | Silver Law Group

Throughout history, promises of high returns and low risk have lured investors to financial peril

If they only used their brilliance for good and not evil, what a better world we all might live in. Unfortunately, the brilliant businessmen behind some of the most famous Ponzi schemes, both in the past and more recently, chose to use their intelligence to prey upon all of society—from the poor elderly to the rich and famous.

The Man Who Started It All: Charles Ponzi

6 Questions You Must Ask Potential Brokers Before Handing Over Your Money

October 1, 2015 | Silver Law Group

It’s time to start looking beyond low commissions

Maybe you’re a new investor. Maybe you’re looking for a new broker after getting burned. Either way, you’re entitled to know a few things about the person you’ll trust to act as the guiding intermediary between you and securities traded on the market. But what questions will really help you vet this person? What answers are just big red flags? While the following questions are absolute musts, don’t be afraid to ask more and dig deeper. The only brokers who fear your inquiries are those with something to hide.

1. Do you owe me a fiduciary duty?

SEC Alleges Broker William Quigley Schemed to Defraud Investors

October 1, 2015 | Silver Law Group

Quigley and his two brothers are accused of running a fraudulent offering scheme

After a 24-year career in the securities industry checkered with allegations of misconduct and unauthorized trading, broker William Quigley has not only been barred permanently by FINRA, he also faces fraud charges brought by the SEC.

According to the SEC administrative proceeding, the SEC “deems it appropriate and in the public interest that public administrative and cease-and-desist proceedings be…instituted” against Quigley. It is alleged that William Quigley, along with his two brothers, Michael Quigley and Brian Quigley misappropriated investor funds from 2003 through 2012.

Samuel Borger Suspended by FINRA for Two Months

September 30, 2015 | Silver Law Group

FINRA did not impose a fine though Borger failed to report outside accounts

After 43 years in the securities industry, Samuel Jacob Borger was hit with a two-month suspension from FINRA on May 29 following allegations that he failed to inform his employing firm of outside accounts over which he had authority, according to FINRA reports.

From November 2003 to April 2014, Borger allegedly failed to disclose his association with several outside accounts to any of his employing firms in that time period. These allegations violate rules under both FINRA and the National Association of Securities Dealers (NASD). He accepted the two-month suspension without admitting or denying the findings, and he submitted a statement regarding his finances and inability to pay a fine, so a fine was not imposed.

Alejandro Torres Barred by FINRA on Conversion Allegations

September 29, 2015 | Silver Law Group

Torres allegedly convinced a client to go into business with him, converted at least $59,600 for his personal use

After five years in the securities industry, Alejandro Ariel Torres has been permanently barred by FINRA on May 11, 2015 following allegations of converting customer money for his personal use. Most recently employed by Global Strategic Investments in Miami, Torres was previously employed by

Wells Fargo, BB&T, Statetrust Investments, Inc., and Edward Jones, all in South Florida.

Oriental Financial Services Fined and Censured by FINRA After Alleged Withholding Information

September 28, 2015 | Silver Law Group

The firm accepted sanctions including $50,000 fine

Oriental Financial Services was recently fined in the conclusion of a FINRA investigation alleging that the corporation withheld documents and information regarding a 2011 customer dispute in FINRA arbitration. Based in Puerto Rico, OFS also works for investors in Florida, Washington, D.C., New Jersey, New York, Texas and Virginia.

In 2011, the firm was involved in a customer dispute claiming a loss of more than $600,000, alleging a conflict of interest, which resulted in OFS being sanctioned by FINRA. The firm neither confirmed nor denied the allegations, but accepted sanctions in the form of a censure and a $50,000 fine.

Elder Fraud on the Rise in South Florida

September 26, 2015 | Silver Law Group

Elder Fraud on the Rise in South Florida on silverlaw.com

The Sunshine State may not be so sunny for seniors—here’s how to protect yourself and your loved ones from the unscrupulous and duplicitous

A running joke in sitcoms, movies, and even real life is that of retirees moving to South Florida to retire. Everyone dreams of sunny skies, beautiful beaches and trees that stay green all year long, right? But for targets of elder financial abuse, that dream can quickly become a nightmare.

According to Investment News, every day 10,000 of our 77 million baby boomers turn 65, officially making them senior citizens. That demographic is not the only thing that’s growing rapidly, however. Elder financial abuse is also on the rise.

FINRA Orders UBS Group AB to Pay Puerto Rico Investors $2.5 Million

September 25, 2015 | Silver Law Group

Good news for other investors who have suffered losses in Puerto Rico investments

For the tens of thousands of ordinary investors who have suffered losses due to the financial crisis in Puerto Rico, there is hope. According to an online article on The Wall Street Journal, Financial Industry Regulatory Authority (FINRA) arbitrators ordered UBS Group AG to pay nearly $2.5 million to a couple from San Juan who bought Puerto Rico bond funds through the bank. This legal win is a sign of hope for investors in Puerto Rico municipal-bond funds seeking to recover financial losses through securities arbitration.

UBS brokers allegedly told many investors that Puerto Rico bond funds were a safe investment, when in fact the funds were actually a risky investment due to their structure and investment strategy. In addition, it is alleged that UBS profited by collecting fees on sales and trades of the funds while at the same time the bank ultimately controlled a large part of the market for the funds.

Will the 2015 Market Break Cause FINRA Claims to Rise?

September 24, 2015 | Silver Law Group

Securities arbitration cases may increase due to margin calls made on behalf of ill-advised investors

According to the Securities Industry and Financial Markets Association (SIFMA) “Dashboard” publication for the week ending August 21, the 52-week range for the Dow was low. This break in the market, as well as the disappearing gains over the last year, drive the question: will investors suffer unnecessary losses due to excessive margin, overconcentration or other stockbroker negligence.

This remains to be seen. However, the practice of buying on margin—in short, borrowing money from a broker to purchase stock—could have a direct impact on brokers and brokerage firms. Many of these investors were encouraged to trade or sell speculative or low-priced securities through margin accounts. We have already received several calls from investors who were encouraged by cold callers to open accounts only to suffer losses.