Meyer Wilson Blog

Senate Passes Financial Reform Bill

Last Thursday night, the U.S. Senate passed The Restore American Financial Stability Act, which seeks to implement financial reforms, curb abusive lending practices, and limit risk-taking by large institutions. Under the current version of the Act, the SEC will be called upon to decide the fate of mandatory securities arbitration. As it now stands, investors… read more

Spongetech Executives Charged with Alleged Securities Fraud

The top executives at Spongetech Delivery Systems Inc., a small company that frequently advertised at various sport venues, including the Yankee Stadium, have been arrested and charged in an alleged investment fraud scheme.According to U.S. Attorney Loretta Lynch, “the defendants in this case – Spongetech’s highest corporate officers – are charged with executing a bold… read more

Woman Admits to Defrauding 400 Investors Out of Millions of Dollars

Patricia Morgen has been sentenced to 15 years and 8 months in prison after admitting to defrauding over 400 investors out of millions of dollars. Supposedly, Ms. Morgen had made false promises of real estate profits. Ms. Morgen was sentenced on Thursday, May 20, 2010, by a federal judge in San Francisco. U.S. District Judge… read more

Federal Prosecutors Stepping up Enforcement on Securities Fraud

Neil MacBride, the United States Attorney for the Eastern District of Virginia, announced today the creation of the Virginia Financial and Securities Fraud Task Force. Investigating and prosecuting securities fraud will be the task force’s top priority, and it is targeting high-profile cases. The new task force is being promoted as an “unprecedented partnership between… read more

Settlement Talks Heat Up Between SEC and Goldman Sachs

A recent decision by the SEC not to officially “serve” Goldman Sachs with a civil securities fraud complaint has legal experts and others familiar with the case believing that both the SEC and Goldman may be actively working toward a settlement, according to FoxBusiness. While Goldman CEO Blankfein has asserted that the SEC’s case is… read more

FINRA Focuses on Unsupervised Brokers Selling Fraudulent Securities

Recent statistics show that FINRA (the Financial Industry Regulatory Authority, Inc.) is keeping a much closer eye on unsupervised stockbrokers who are engaging in the illegal sale of private securities transactions that are not approved by their brokerage firm. This particular type of securities fraud is known as “selling away“, meaning that the broker is… read more

Martin Wegener New England Financial | Michigan Stockbroker Fraud

A Grand Rapids stockbroker is currently under investigation by the Securities and Exchange Commission (SEC) for investment fraud, according to several area news reports. The former stockbroker, Martin T. Wegener, worked for New England Financial, which is owned by insurance giant Metropolitan Life Insurance Company (MetLife). According to the records maintained by the Financial Industry… read more

Bank of New York Mellon Subsidiary, Ivy Asset Management, Sued for Madoff-Related Fraud

The New York attorney general has sued Ivy Asset Management, a subsidiary of Bank of New York Mellon, for fraud related to the Bernard Madoff Ponzi scheme. The lawsuit, filed May 11, alleges that the company’s two senior officials, Lawrence Simon and Howard Wohl, committed breaches of fiduciary duty when giving advice to investors regarding… read more

FINRA Proposes Eliminating “Inability-to-Pay” Defense

The Financial Industry Regulatory Authority (FINRA) recently proposed a change to FINRA Rule 9554 which would eliminate the “inability-to-pay” defense in customer arbitration cases. The “inability-to-pay” defense frustrates a customer’s efforts to collect on an arbitration award in their favor. The purpose of the rule change is to increase the probability that customers will be… read more

Proposed Bill Would Include Criminal Penalties for Broker-Dealers Who Violate Fiduciary Standards

Currently pending before the U.S. Senate is a proposed amendment, Specter Amendment SA 3806, to the Wall Street reform legislation to extend punishment to broker-dealers who violate the standard of care to retail and institutional clients to include incarceration. The duty imposed on broker-dealers, their agents and employees, who provide investment advice regarding the purchase… read more