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Board Approves 2023 Annual Financial Report, Adds New Members to Advisory Committees, and Discusses Advanced Analytics Strategic Initiative The FINRA Board of Governors convened for their second meeting of the year on May 8-9, 2024. Key decisions and updates included the approval of the 2023 Annual Financial Report, appointment of new Advisory Committee members, and […]
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 […]
Bakhtiari & Harrison is currently investigating brokers nationwide who recommended their clients invest in iCap Equity, LLC. This high-risk Regulation D private placement was unsuitable for many investors. iCap Equity, LLC Private Placement Losses Regulation D private placements, like those from iCap Equity, LLC, are often not suitable for conservative and inexperienced investors. Unfortunately, many […]
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 […]
A recent opinion piece in Investment News raises questions about the valuation practices of Blackstone Real Estate Income Trust Inc. (BREIT). Nontraded REITs often rely on internally determined valuations, leading to opacity and potential discrepancies in value. Despite concerns about the broader commercial real estate market, BREIT’s net asset value (NAV) has remained high, raising […]
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 […]
The world of private real estate REITs (Real Estate Investment Trusts) is enticing for investors seeking diversification and steady returns. However, significant dangers inherent in this investment class can have severe consequences for those who are unprepared. This blog aims to illuminate the critical risks associated with private REITs, particularly in due diligence, financial transparency, […]
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 […]
Navigating the complexities of Registered Investment Advisor (RIA) fraud requires a law firm with a deep understanding of the financial and legal intricacies involved. Bakhtiari & Harrison has built a robust reputation for effectively handling cases related to RIA fraud, making them a top choice for clients seeking justice in securities industry disputes. Their approach […]
In the sophisticated arena of investment adviser management, adviser fraud is a serious concern that can undermine trust and cause substantial financial damage to investors. At the forefront of tackling these complex issues is Bakhtiari & Harrison, a law firm known for its focus on securities industry disputes, particularly those involving Investment Adviser fraud. Their […]
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 […]
Ex-NBA agent Charles Briscoe pled guilty to wire fraud conspiracy and admitted to faking an NBA player’s signature on a $1 million loan. Although prosecutors requested an 18-month prison term, Briscoe will avoid prison time. Instead, he was sentenced to spend the first six months of his three-year supervisory period on home detention and will […]
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 […]
Charles Briscoe, an NBA Agent previously involved with multiple NBA players, was arrested on felony charges in Katy, Texas, on Thursday morning. The charges arise from an alleged fraud scheme targeting professional basketball players, particularly focusing on their financial vulnerabilities, which can often be exploited by unscrupulous agents and advisors. Briscoe reportedly misled one player […]
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 […]
Blackstone’s retail real estate fund limited investor withdrawals in January after outsize redemption requests that totaled more than $5 billion. Blackstone Real Estate Income Trust, known as BREIT, posted a statement Wednesday on its website that it filled 25% of investor withdrawal requests during January, in keeping with a policy of limiting monthly redemptions to […]
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 […]
Crypto peaked a year ago — investors have lost more than $2 trillion since. This dramatic decline highlights the volatile nature of the cryptocurrency market, often driven by speculation, regulatory news, and technological developments. Most retail investors using crypto exchange apps have lost money on Bitcoin, a new data study suggested. The fear of missing […]
The Parking REIT, a non-traded REIT formed in December 2017 by the merger of MVP REIT and MVP REIT II, invests primarily in parking lots and garages in the United States. Investors who bought into The Parking REIT may have suffered losses due to illiquidity, lack of transparency in valuation, and substantial conflicts of interest. […]
Blackstone Inc. limited withdrawals from its $69 billion unlisted real estate income trust (REIT) on Thursday following a surge in redemption requests related to BREIT. This decision to halt redemptions comes at a time when investors are increasingly anxious about the stability of real estate investments, particularly in an economic climate marked by rising interest […]
FINRA fines Wedbush Securities for misrepresentations regarding payments on certain bonds and for failing to deliver required disclosures to thousands of the firm’s customers. The Los Angeles-based wealth management, brokerage and clearing firm, which has 540 registered individuals in 40 branches nationwide, agreed to pay the fines and be subject to censure without admitting or […]
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 […]
A prudent investment strategy starts with an asset allocation suitable for the portfolio’s objective. The allocation should be built upon reasonable expectations for risk and returns and should use diversified investments to avoid exposure to unnecessary risks. Understanding the fundamentals of asset allocation is crucial for investors. For instance, an investor who allocates a significant […]
An indictment was unsealed today in federal court in Brooklyn charging three individuals affiliated with GPB Capital Holdings, LLC (“GPB”) with securities fraud, wire fraud and conspiracy. Defendants David Gentile, the founder, owner and Chief Executive Officer (“CEO”) of GPB; Jeffry Schneider, the owner and CEO of Ascendant Capital LLC (“Ascendant”); and Jeffrey Lash, a […]
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 […]
On April 16, 2020, the Financial Industry Regulatory Authority (FINRA) issued an alert which stated that “there is no higher priority for FINRA than protecting senior investors from financial exploitation. Thus, every year we bring dozens of enforcement actions against brokers who harm senior investors, either through fraud schemes, conversion, churning of accounts, or otherwise.” […]
Attorneys are providing notice of their investigation of UBS Financial Services, Inc. (“UBS”) for possible sales practice violations, including but not limited to failing to disclose material risks associated with its ETRACS product. ETRACS Exchange Traded Notes are senior, unsecured, unsubordinated debt securities that are designed to track the total return of a specific market […]
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, […]
As the Wall Street Journal noted this morning (‘The Oil Crash is Hitting this Investment Hard’), “the plunge in crude-oil prices is sending shock waves through closed-end funds tracking the energy sector, highlighting how the market turmoil is hitting products popular with ordinary investors seeking to boost returns during the long bull market. Shares of […]
With the recent drop in oil and gas prices, investors who hold structured products (also known as “structured notes”) tied to that sector may be at risk of significant losses. This may include structured notes tied to the following stocks, among others: Western Midstream Partners, LP (WES); Apache Corporation (APA); Targa Resources Corp. (TRGP); Continental […]
Ryan Bakhtiari has been invited to participate as a speaker at the 2019 Practicing Law Institute (PLI) conference program on Tuesday, September 10, 2019. The PLI Securities Arbitration program is held at the PLI New York Center and also online by webcast. The program brings together legal professionals with securities industry regulators to discuss hot […]
GPB Capital describes itself as a “New York-based alternative asset management firm that seeks to acquire income-producing private companies.” GPB raised more than $1.5 billion in capital held in private limited partnerships that invest primarily in auto dealerships and waste management businesses. GPB Capital Investor Claims for Recovery Investments in GPB Capital were sold by […]
On December 7, 2018, the Financial Industry Regulatory Authority (“FINRA”) issued a comprehensive report (“Report on FINRA Examination Findings”) which “focuses on selected observations from recent examinations that FINRA considers worth highlighting because of their potential significance, frequency, and impact on investors and the markets, especially regarding Due Diligence. This report serves as a critical […]
On December 7, 2018, the Financial Industry Regulatory Authority (“FINRA”) issued a comprehensive report (“Report on FINRA Examination Findings”) which “focuses on selected observations from recent examinations that FINRA considers worth highlighting because of their potential significance, frequency, and impact on investors and the markets.” This report serves as an essential resource for both investors […]
On November 26, 2018, in an editorial in the New York Times (“When Blue Chip Companies Pile on Debt, it’s Time to Worry”), it was noted that “fueled by cheap credit, American corporations have been gorging on acquisitions.” This raises important questions about the future of Corporate Debt. The increasing reliance on borrowed capital reflects […]
William Galvin, the Massachusetts secretary of state, has initiated a comprehensive probe into the activities of multiple broker-dealer firms who sold private placements sponsored by GPB Capital Holdings. This investigation comes in light of recently published news reports indicating potential malpractices. The Massachusetts Securities Division has reportedly received credible information regarding questionable sales practices from […]