Over the past several years, there has be an increasing number of registered investment advisors and financial advisors using omnibus accounts. In short, an omnibus account allows an advisor to trade the same securities on behalf of multiple clients, while typically identifying in advance which trades are intended for which…
New York Securities Lawyer Blog
MASSACHUSETTS SUPERIOR COURT CONFIRMS ADVISORS’ $2.094 MILLION ARBITRATION AWARD AGAINST CREDIT SUISSE, INCLUDING INTEREST AND ATTORNEYS’ FEES, FOR ITS UNLAWFUL WITHHOLDING OF DEFERRED COMPENSATION
On August 31, 2020, the Massachusetts Superior Court confirmed a Financial Industry Regulatory Authority (“FINRA”) Arbitration Award against Credit Suisse for more than $2 million owed to four former Credit Suisse advisors represented by Lax & Neville LLP, including approximately $1.6 million in unlawfully withheld deferred compensation, more than $83,000…
RIK Files $3 Million Claim Related to the UBS Yield Enhancement Strategy (“YES”)
Rich, Intelisano & Katz, LLP (RIK) filed a $3 million FINRA arbitration this month on behalf of clients that invested in UBS Financial Services, Inc.’s Yield Enhancement Strategy (YES). UBS claimed the YES Program had minimal risk, but unbeknownst to its customers, the risks of this options trading strategy significantly…
Merrill Lynch and At Least One of its Top Brokers Face Investigation Over Alleged $200 Million Losses Due To Churning After Paying a Record $40 Million Settlement in a FINRA Arbitration
The New Hampshire Bureau of Securities Regulation is reportedly investigating Merrill Lynch and Charles Kenahan, one of its top-producing brokers, over customer complaints alleging “churning” in their accounts that resulted in damages of approximately $200 million. Churning, or excessive trading, occurs when a broker or financial advisor trades securities in…
Merrill, Ledford and Jerzieski Sentenced By Federal Judge in a $396 Million Investment Fraud Ponzi Scheme
In October 2019, a Maryland District Court judge sentenced Kevin B. Merrill, a salesman, and Jay B. Ledford, a former CPA, to 22 years and 14 years in federal prison, respectively, each followed by three years of supervised release, arising from an investment fraud Ponzi scheme that operated from 2013…
NEW YORK SUPREME COURT CONFIRMS FORMER ADVISERS’ $6.68 MILLION ARBITRATION AWARD, INCLUDING LIQUIDATED DAMAGES, FOR CREDIT SUISSE’S VIOLATION OF THE NEW YORK LABOR LAW WHEN IT WITHHELD DEFERRED COMPENSATION
On July 17, 2020, the Supreme Court of the State of New York (Commercial Division) confirmed a FINRA Arbitration Award against Credit Suisse for approximately $6.68 million, including unlawfully withheld deferred compensation, interest, attorneys’ fees, and liquidated damages pursuant to the New York Labor Law. See Lerner and Winderbaum v.…
Merrill Lynch, RBC and Two Other Investment Advisory Firms to Return $4.72 Million to Investors for Improper Mutual Fund Fee Practices
The Securities and Exchange Commission (“SEC”) announced this month that four investment advisory firms—Merrill Lynch, RBC Capital Markets, Eagle Strategies, and Cozad Asset Management—agreed to pay $4.72 million to settle charges that they recommended and sold mutual share classes to its customers when cheaper shares were available to those investors. …
FINRA Arbitrations During the COVID-19 Pandemic
Arbitration at FINRA has long been known as a quicker, more efficient alternative to court litigation of disputes eligible for submission to FINRA’s Dispute Resolution forum. This continues to be true, to an even greater extent, during the COVID-19 pandemic. Many courts at the federal and state levels, both in…
Cantor Fitzgerald Partnership Award Claims at FINRA
Cantor Fitzgerald has a practice of awarding its FINRA registered employees compensation in the form of partnership units in an associated entity called Cantor Fitzgerald, L.P. (CFLP), which is not a member of FINRA. The employees are often employed by or registered with Cantor Fitzgerald & Co. (CF&Co.), the main…
Beware of Indirection at “Self Directed” Investment Firms
We are increasingly hearing from investors who say that their investment representative at their “self directed” broker dealer—such as T.D. Ameritrade—recommended an outside investment advisor who was not formally affiliated with the firm and incurred investment losses as a result. There could be many reasons why this may happen: the…