A recent study by Stanford University psychologists with participation of FINRA and AARP, concluded that financial fraudsters trigger and evoke strong emotions in elderly people to try and get them to hand over money. According to the study, inducing strong emotions in older adults (ages 65-86), whether positive or negative,…
Trust Funds are an especially susceptible vehicle for fraud committed by FINRA registered stock brokers and financial advisors. Two of the primary issues in such cases are “conflict of interest” and “breach of fiduciary duty.” Trust funds can be created for a wide variety of reasons. Frequently, though, they are…
New research shows that getting senior-aged investors to exhibit heightened emotions may cause those investors to more easily part with their hard-earned savings and retirement proceeds, according to a New Release published by the Financial Industry Regulatory Authority (FINRA). The research was made possible with funding from the AARP Fraud…
This week, it has been reported that the Department of Labor proposed tougher laws after issuing new regulations requiring financial advisors and brokers managing 401k and retirement accounts to act in the best interest of their clients. These rules were proposed a year ago and after deliberating on it for…
In February 2016, academics Mark Egan, Gregor Matvos and Amit Seru at the University of Minnesota and University of Chicago business schools released a report titled “The Market for Financial Adviser Misconduct” on financial advisers in the United States. The report reveals how rampant securities fraud and broker misconduct is throughout the country. For the…
The Financial Industry Regulatory Authority (FINRA) has announced that it barred broker George E. Johnson from the securities industry for allegedly engaging in manipulation of stock trading, and for committing fraud. FINRA also imposed a 6-month suspension against a second broker, Joseph Mahalick, and a 2 year suspension against a supervisor,…
From Deutsche Bank to Credit Suisse and Barclays, brokers are in transition for a variety of reasons – some voluntary and some obligatory. Either way, for a FINRA registered representative, leaving their broker-dealer can be a nerve-wracking time. Regardless of the reason for leaving, the ultimate goal is always the…
The New York securities and investment fraud attorneys at Malecki Law are interested in hearing from investors in Highland Funds’ series Energy Master Limited Partnerships (MLPs). Highland Funds’ four Energy MLPs have declined by approximately 23% in the year to date, per Morningstar. These funds include: Highland Energy MLP C…
Brokers beware; FINRA is watching your firm, and you. Becoming embroiled in a regulatory inquiry or investigation can become a major and costly headache and impediment to registered representatives’ business. In January 2016, the Financial Industry Regulatory Authority (FINRA) released its annual list of priorities, showing what sorts of sweeps…
United Development Funding (“UDF”) has come under fire in recent months – being accused of operating like a “Ponzi scheme.” It has allegedly disclosed that since April 2014, it has been under SEC investigation. UDF operates several publicly-traded and non-traded Real Estate Investment Trusts (REITs) along with other real estate…