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Bakhtiari & Harrison are investigating Theresa Allen (CRD# 2183693) of First Republic Securities Company and RBC Capital Markets in connection with a customer complaint alleging damages due to unsuitable investment recommendations and/or investor concentration in First Republic Bank preferred stock. Written and reviewed by Ryan Bakhtiari, Partner — Bakhtiari & Harrison Admitted: CA | NY […]
It is critical to have an experienced securities attorney review employment related documents. When stockbrokers receive a promissory note or employment forgivable loan proposal from a broker-dealer, it’s crucial to understand that these documents are more than just formalities—they are binding legal contracts with significant financial and professional implications. Signing without a thorough review can […]
There are over 18 million veterans in the United States, making them prime targets for fraud. Fraudsters often target groups with shared backgrounds and interests, making veterans and their families vulnerable to investment scams. Some scammers may even pretend to be veterans themselves. Recognizing Fraudulent Investment Schemes Investment fraud comes in many forms, with scammers […]
The Financial Industry Regulatory Authority (FINRA) has issued an AWC (Acceptance, Waiver, and Consent) against Juan Carlos Sosa (CRD #4059846), barring him from association with any FINRA member in all capacities. This action comes after Sosa was found to have converted over $331,000 from an elderly customer for his personal use. The case highlights a […]
Investing is a significant financial decision, and choosing the financial advisor is paramount to safeguarding your investments. Due Diligence of Financial Advisors Is a Key First Step in the Hiring Process Due diligence is not just recommended; it is essential in today’s complex financial marketplace. The Financial Industry Regulatory Authority (FINRA) provides a vital due […]
David Harrison, a distinguished attorney now affiliated with FINRA securities arbitration firm of Bakhtiari & Harrison, recently secured a significant victory in a FINRA arbitration case involving the expungement of a customer dispute from a registered representative’s BrokerCheck records. This case underscores the importance of robust legal representation in protecting the professional reputations of financial […]
When starting a new position as a stockbroker, it’s crucial to understand the details of your employment agreement. This document outlines the terms and conditions of your employment and can have a significant impact on your career. One way to ensure that your interests are protected is by having a competent securities attorney, who is […]
As a registered representative, your professional reputation is paramount. Unfortunately, frivolous complaints can tarnish your record, affecting your career and client relationships. Understanding your options for removing such complaints is crucial. At Bakhtiari & Harrison, we are here to guide you through this complex process, including navigating FINRA Rule 2080 and recent changes in expungement […]
The U.S. Securities and Exchange Commission (SEC) is a cornerstone of the American financial system, tasked with a critical three-part mission: Protect Investors Maintain Fair, Orderly, and Efficient Markets Facilitate Capital Formation The Genesis of the SEC The SEC was born out of necessity during one of the darkest periods in American economic history. When […]
In today’s digital age, the use of social media and instant messaging apps like WhatsApp has become ubiquitous. Registered representatives, who are responsible for managing client investments and maintaining compliance with financial regulations, face unique challenges when it comes to using these platforms to communicate with customers. While these tools can enhance client engagement and […]
Investing in penny stocks can be alluring, especially with promises of significant returns. However, these investments come with high risks. When a financial advisor recommends venturing into such speculative investments, it’s crucial to proceed with caution. This blog post explores the critical steps you should take to safeguard your financial portfolio when faced with recommendations […]
In today’s financial landscape, understanding the rules and regulations that govern the interactions between brokerage firms and their customers is crucial for both parties. The Financial Industry Regulatory Authority (FINRA) and its Regulation Best Interest (Reg BI) have been pivotal in ensuring that the financial advice and products offered to customers are in their best […]
In the intricate world of investing, the relationship between a stockbroker and their client is built on a foundation of trust, transparency, and adherence to legal and ethical standards. An essential aspect of this professional conduct is the prohibition against stockbrokers borrowing money from their clients. This practice is not only frowned upon but is […]
Real Estate Investment Trusts (REITs), a key player in the real estate sector, offer the investing public shares, either through public stock exchanges or as privately held entities. REITs uniquely manage income-producing real estate and are obligated by law to distribute most of their taxable income as dividends to shareholders annually. This setup makes REITs […]
Understanding Your Legal Rights After GWG Holdings’ Bankruptcy In April 2022, the financial landscape for many investors changed drastically when GWG Holdings filed for bankruptcy. Particularly impacted were those invested in GWG L Bonds, which have since become notably problematic. At Bakhtiari & Harrison, a premier law firm located in Beverly Hills focusing on FINRA […]
Written and reviewed by Ryan Bakhtiari, Partner — Bakhtiari & Harrison Admitted: CA | NY | TX | DC | Multiple Federal Courts · Super Lawyers 2005–2026 · Former PIABA President · Former FINRA NAMC Chairman · First Republic Bank failed in May 2023 and was acquired by JPMorgan Chase — leaving thousands of investors […]
The Financial Industry Regulatory Authority (FINRA) has announced disciplinary action against Matt Ward (CRD #2075525), fining him $5,000 and suspending him from association with any FINRA member in all capacities for 15 business days. This action follows findings that Ward exercised discretion in customer accounts without obtaining the necessary written authorization. Background and Findings Concerning […]
Four Professional Basketball Players Defrauded of Over $13 Million Damian Williams, the United States Attorney for the Southern District of New York, and Michael J. Driscoll, the Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced the unsealing of a six-count Indictment charging DARRYL COHEN, BRIAN […]
If you are an investor dealing with losses related to Springhill and seeking guidance or representation, understanding the role and expertise of Bakhtiari & Harrison could be crucial. Many investors have found themselves grappling with significant financial setbacks, and finding the right legal support can make a substantial difference in managing these challenges effectively. Bakhtiari […]
On March 24, 2023, CFP Board Counsel filed a Motion for Interim Suspension Order (Motion) pursuant to Article 2.1.a.1. of CFP Board’s Procedural Rulesrequesting that a Hearing Panel of CFP Board’s Disciplinary and Ethics Commission (DEC) issue an Interim Suspension Order against Mr. Gilder, who was charged with Wire Fraud and Conspiracy to Commit Wire […]
Blackstone Inc recently announced it has blocked investors from cashing out their investments in its $71 billion real estate income trust (BREIT) as the firm struggles with a surge in redemption requests. This decision to restrict withdrawals is significant, particularly considering the current economic climate and the pressures on real estate investments. In February, BREIT […]
An over-concentrated securities account is one where a significant portion of the portfolio is invested in a single security or a small group of securities. This can lead to a number of problems, such as: Increased Risk: Investing a large portion of one’s portfolio in a single security or a small group of securities increases […]
Spring Hills Holdings, LLC Investment Review Spring Hills Holdings, LLC is a health care owner-operator offering a “senior care investment opportunity,” according to the DI Wire. The company filed a Form D to raise capital from investors in 2017, with a total offering amount of $25,000,000, as per SEC filings. Additional offerings followed. Spring Hills […]
On April 20, 2022, GWG Holdings, Inc. filed for Chapter 11 bankruptcy in the United States Bankruptcy Court for the Southern District of Texas. This filing came after the company defaulted in February 2022 on life-settlement backed bonds amounting to $1.6 billion. The default has raised concerns regarding the financial stability of the company and […]
On May 15, 2020, the Financial Industry Regulatory Authority (FINRA) issued a Regulatory Notice (“Oil-Linked Exchange-Traded Products”), which highlighted the fact that Exchange-Traded Products (ETPs), which provide different types of exposure to the oil market through several product structures, might not be understood by investors or investment professionals and that the performance of such products […]
As the Wall Street Journal noted this morning (‘Investors, Fearing Defaults, Rush Out of Junk Bonds’), “the specter of widespread corporate defaults in the coming months has caused a massive selloff in junk bonds around the world, as many debt-laden companies face the prospect of going weeks or months with virtually no revenue.” In fact, […]
Laverty was named a respondent in a FINRA complaint alleging that that during consecutive associations with several member firms, he borrowed $1,350,000 from an elderly married couple in violation of each firm’s policies. The complaint alleges that three of the firms prohibited their representatives from borrowing money from their customers. Although a firm permitted loans […]
An AWC was issued in which the firm was censured and fined $250,000. Without admitting or denying the findings, the firm consented to the sanctions and to the entry of findings that it failed to supervise certain of its registered representatives to ensure their compliance with FINRA rules relating to outside business activities, private securities […]
Beverly Hills based securities lawyers have launched an extensive investigation into the sales practices of LPL Financial, LLC regarding the recommendation of non-traded REITs to their clients. This investigation is critical as it follows a recently filed complaint by the Commonwealth of Massachusetts Securities Division, which delves into similar non-traded REIT sales practices. The Massachusetts […]
InvestmentNews reports a significant development in the financial industry: the Financial Industry Regulatory Authority Inc. (FINRA) has now opened its arbitration system to registered investment advisers (RIAs). This move marks a notable expansion of FINRA’s arbitration services, which have traditionally been utilized for resolving investor or industry complaints involving securities firms and broker-dealers. The announcement […]
Prosecutors are expected to ask a judge today to send a man to prison for 15 years for running a Ponzi scheme that took in about $30 million as well as a scam that preyed on homeowners facing foreclosure. This case highlights the pervasive problem of financial fraud in our society, where individuals like Rangel […]
The hedge fund industry is estimated to be a $875 billion business and growing at about 20% per year, with more than 8,000 active hedge funds. Most hedge funds are highly specialized, relying on the specific expertise of the manager or management team. A hedge fund manager might employ investment strategies, some of which use […]
Putting another nail in the coffin of the troubled High-Grade Structured Credit Strategies hedge fund, lenders at Bear Stearns Cos. have seized most of the fund’s collateral following its failure to meet a recent margin call. Bear’s move, which according to someone close to the situation came after more than a week of waiting for […]
Firm Also Charged by NASD with Falsely Claiming that Millions of Emails in its Possession Had Been Lost in 9-11 Terrorist Attacks NASD announced today that it has charged Morgan Stanley DW, Inc. with routinely failing to provide emails to claimants in arbitration proceedings as well as to regulators – and with falsely claiming that […]