Meyer Wilson Blog

Prosecutors Begin Investigation into Morgan Stanley’s “Dead Presidents” Deal

Following closely on the heels of the SEC’s April investigation into Goldman Sachs, U.S. prosecutors are now looking into whether Morgan Stanley may have misled investors regarding mortgage securities, according to the Wall Street Journal. Prosecutors believe Morgan Stanley may have placed bets against collateralized-debt obligations (CDOs) that it arranged and marketed to its investor… read more

Santa Ana Man Faces Prison Following Ponzi Scheme

An investment fraud scam that cost investors $14.5 million dollars has led to a Santa Ana investment advisor facing more than 10 years in a federal prison. The man was also ordered to pay $14.5 million in restitution for his involvement in what is referred to as a Ponzi scheme. According to reports, in September,… read more

Wall Street Reform Legislation May Include Aiding and Abetting Liability Provision

U.S. Senator Arlen Specter (D-Pa.) has introduced an amendment to the larger Wall Street reform legislation currently working its way through Congress that would create a private cause of action against anyone who “knowingly provides substantial assistance” to a primary violator of the federal securities laws. Senator Specter, joined by several other senators, proposed the… read more

Small, Independent Broker-Dealers Facing Tough Times

AFA Financial Group LLC, based in Calabasas, California, recently became the second independent broker-dealer to close up shop in under two months; GunnAllen Financial was shut down by FINRA in March when it could not meet its net-capital requirements. Now, industry analysts are predicting other small, independent broker-dealers could soon follow suit. Independent broker-dealers are… read more

Five Broker-Dealers Fined by FINRA

Five broker-dealers received fines totaling $385,000 by theFinancial Industry Regulatory Authority (FINRA). The fines are the result of the alleged illegal sale of more than 8 billion shares of penny stock that the broker-dealers sold on behalf of their customers. Fagenson & Co., Inc., of New York, Olympus Securities, LLC, of Montville, NJ, Equity Station,… read more

FINRA Proposed Rule Change Would Expand Arbitrator Selection Lists

The Financial Industry Regulatory Authority (FINRA) recently proposed a change to the way arbitration panels are ranked and selected. The proposal would amend FINRA Rules 12403and 12404 of the Code of Arbitration Procedure for Customer Disputes to increase the number of arbitrators on each list generated by the Neutral List Selection System. Under the current… read more

MLB Players File Lawsuit Against Investment Group

USA Today has reported that former major league All-Stars Cliff Floyd and Rondell White are suing an investment group for fraud. They are pursuing $12.25 million in damages stemming from an alleged multi-million-dollar securities fraud and real estate scam. Supposedly, these players weren’t the only ones who were investment fraud victims, as New York Mets… read more

FINRA Proposes Expansion of Information Publicly Available Through BrokerCheck

The Financial Industry Regulatory Authority (FINRA) has submitted a proposal to the Securities and Exchange Commission (SEC) to amend FINRA Rule 8312 (FINRA BrokerCheck Disclosure) to expand the amount of information, both in terms of scope and time, available throughBrokerCheck. Such an expansion of disclosures will help provide greater protection for investors and those that… read more

Be Wary of High-Pressure Sales Calls from Brokers

Brokers have been known to cold call potential investors to persuade them to invest in securities. Often, these securities are speculative. A broker might allude that immediate action has to be taken to avoid missing out on a limited opportunity or a claim may be made that the broker possesses inside information. You need to… read more

How to Avoid Financial Loss from Unauthorized Trading

In most instances, your stockbroker is required to obtain your permission before making a purchase or sale in your investment account. When your broker does not get your authorization and goes ahead and makes a transaction anyway, you may have an unauthorized trading claim. Unauthorized trading is defined by the Financial Industry Regulatory Authority (FINRA),… read more