Investment Fraud Lawyer Blog

On July 30, 2010, Judge Michael D. Johnson of the Superior Court of Fulton County, Georgia, confirmed and upheld a December 2009 award issued by an Atlanta-based Financial Industry Regulatory Authority (FINRA) arbitration panel ordering SunTrust Robinson Humphrey, Inc. (SunTrust) to pay over $4.1 million in damages (including punitive damages, attorneys’ fees and costs) to a former registered representative based on a claim of wrongful termination and malicious defamation in annotating the claimant’s Form U-5 (a regulatory filing) to indicate that he had been “permitted to resign” for “failure to follow firm sales practice policy.”

After the award was issued, SunTrust filed a motion to vacate (i.e., throw out) the award, which Judge Johnson denied at the same time that he confirmed the award.

Continue reading "Georgia Court Upholds $4.1 Million Damage Award Against SunTrust Robinson Humphrey for Terminating and Defaming a Broker who Sold Auction Rate Securities" »

Buried in the 2,300 pages of the new Dodd-Frank Financial Reform Act is a provision called Section 922 that provides for substantial financial rewards for any person who provides “original information” to the SEC that leads to a successful enforcement action relating to the violation of federal securities laws. The whistleblower may be an investor, an employee or other industry insider, or any other member of the public not employed by a law enforcement or regulatory agency. If the whistleblower’s tip leads to a monetary sanction of over $1 million, the whistleblower will be entitled to between 10% and 30% of the amount recovered by the SEC. The new law also provides whistleblowers with legal protection from retaliation, giving them the right to sue for damages if they lose their jobs or are blackballed by the industry. Together, these new provisions provide a powerful incentive for investors and financial professionals to report misconduct in the securities industry, which will hopefully have the long-term effect of deterring fraud and other abuses.

Continue reading "New Law Provides Big Rewards for Securities Fraud Whistleblowers" »

Retention bonuses and other perks are not enough to quiet brokers’ yearning to leave their wirehouse firms for advisory firms or non-wirehouse brokerage firms, according to a recent InvestmentNews article by Hilary Johnson titled “Exodus of brokers still a big threat for wirehouses.” Just 29% of brokers who did not receive a “lock-in” bonus (usually because they do not generate big commissions) said they are “satisfied” with their firm. Tip: As an investor, you should consider it a plus if your broker is not a “big producer.”

Continue reading "Brokers Continue to Leave Major Wall Street Firms" »

One hundred twenty Morgan Stanley offices are expected to be closed throughout the United States, according to a recent article by Michael J. Moore in Bloomberg.com, “Morgan Stanley Smith Barney to Close 120 ‘Overlap’ U.S. Offices.” The firm is reportedly seeking to eliminate “overlap” created by the merger of Morgan Stanley and Smith Barney.

Continue reading "Morgan Stanley Smith Barney Plans to Close 120 Offices - Impact on Current Employees Unknown" »

There have been various developments over the past several weeks which investors may consider relevant in allocating their resources or evaluating alternatives that are available to them. Some of the more significant developments include, but are not limited to, the following:

• The Dow Jones Industrial Average opened the week at 10,067 and, on Monday jumped 118 points.

• On Tuesday, the Dow Jones Industrial Average rose 111 points.

• On Wednesday, the Dow Jones Industrial Average dropped 26 points.

• On Thursday, the Dow Jones Industrial Average plunged 268 points.

• On Friday, the Dow Jones Industrial Average rose 10 points and closed the week at 10,012.

Continue reading "Page Perry's Market Monitor - February 5, 2010" »

There have been various developments over the past several weeks which investors may consider relevant in allocating their resources or evaluating alternatives that are available to them. Some of the more significant developments include, but are not limited to, the following:

• The Dow Jones Industrial Average opened the week at 10,173 and, on Monday rose 24 points.

• On Tuesday, the Dow Jones Industrial Average fell 3 points.

• On Wednesday, the Dow Jones Industrial Average jumped 42 points.

• On Thursday, the Dow Jones Industrial Average plunged 116 points.

• On Friday, the Dow Jones Industrial Average fell 53 points and closed the week at 10,067.

Continue reading "Page Perry's Market Monitor - January 29, 2010" »

There have been various developments over the past several weeks which investors may consider relevant in allocating their resources or evaluating alternatives that are available to them. Some of the more significant developments include, but are not limited to, the following:

• The markets were closed on Monday for Martin Luther King Day.

• On Tuesday, the Dow Jones Industrial Average opened at 10,610 and soared 116 points.

• On Wednesday, the Dow Jones Industrial Average dropped 122 points.

• On Thursday, the Dow Jones Industrial Average fell 213 points.

• On Friday, the Dow Jones Industrial Average plunged 216 points and closed the week at 10,173.

Continue reading "Page Perry's Market Monitor - January 22, 2010" »

An Illinois-based pension fund has brought a shareholder’s derivative action seeking to recover billions of dollars in executive compensation paid by Goldman Sachs. This could be the first of many such suits, reported James Armstrong of Law360, “Goldman Pay Suit Could Signal New Wave of Litigation,” Jan. 8, 2010.

Continue reading "Institutional Investors Are Fed Up With Wall Street Pay Excesses Too" »

How short their memories. Wall Street firms on the brink of failure until rescued by a controversial taxpayer bailout continue to show their unabashed greed by claiming entitlement to massive amounts of money earned on funds "invested" by American taxpayers. Without those bailouts, most, if not all the Wall Street firms would be bankrupt or teetering on failure. Nevertheless, undeterred by the rising anger on Main Street and the populist backlash in Washington D.C., and flush with record revenues of $449.6 billion, Wall Street firms are on track to pay over $145 billion in bonuses for 2009, according to the Wall Street Journal.

Continue reading "Wall Street Firms "Thumb Their Noses" at Taxpayers and Washington Politicians - Award Obscene Bonuses Anyway" »

There have been various developments over the past several weeks which investors may consider relevant in allocating their resources or evaluating alternatives that are available to them. Some of the more significant developments include, but are not limited to, the following:

• The Dow Jones Industrial Average opened the year at 10,428 and, on Monday, the market soared 156 points.

• On Tuesday, the Dow Jones Industrial Average dropped 12 points.

• On Wednesday, the Dow Jones Industrial Average gained 2 points.

• On Thursday, the Dow Jones Industrial Average rose 33 points.

• On Friday, the Dow Jones Industrial Average moved up 11 more points and closed the week at 10,618.

Continue reading "Page Perry's Market Monitor - January 8, 2010" »

Independent financial advisers are gaining on Wall Street brokers in the competition to manage more than $5 trillion in Americans' savings, according to E. S. Browning in his recent Wall Street Journal article, “More Brokers Flee Big Firms, Taking Investors With Them.”

Continue reading "Yes, Wall Street can be Replaced - Independent Brokerage Firms and Investment Advisers are Gaining on Big Wall Street Firms" »

An Atlanta-based Financial Industry Regulatory Authority (FINRA) arbitration panel has ordered SunTrust Robinson Humphrey, Inc. (SunTrust) to pay over $4.1 million in damages (including punitive damages, attorneys’ fees and costs) to a former registered representative based on a claim of wrongful termination and malicious defamation in annotating the claimant’s Form U-5 (a regulatory filing) to indicate that he had been “permitted to resign” for “failure to follow firm sales practice policy.” The claim arose out of the sale of Trapeza V, LLC Auction Rate Preferred Securities. The claimant was a 19-year veteran of SunTrust. The case is Lance R. Beck v. SunTrust Robinson Humphrey, Inc., FINRA Case No. 08-02482.

Continue reading "SunTrust Hit with $4.1 Million Damage Award for Terminating and Defaming a Broker who Sold Auction Rate Securities " »

There have been various developments over the past several weeks which investors may consider relevant in allocating their resources or evaluating alternatives that are available to them. Some of the more significant developments include, but are not limited to, the following:

• The Dow Jones Industrial Average opened the week at 10,520 and, on Monday, the market rose 27 points.

• On Tuesday, the Dow Jones Industrial Average dropped 2 points.

• On Wednesday, the Dow Jones Industrial Average gained 3 points.

• On Thursday, the Dow Jones Industrial Average fell 120 points and closed the year at 10,428.

• On Friday, the markets were closed for New Years Day.

Continue reading "Page Perry's Market Monitor - January 1, 2010" »

There have been various developments over the past several weeks which investors may consider relevant in allocating their resources or evaluating alternatives that are available to them. Some of the more significant developments include, but are not limited to, the following:

• The Dow Jones Industrial Average opened the week at 10,329 and, on Monday, the market rose 85 points.

• On Tuesday, the Dow Jones Industrial Average jumped 51 points.

• On Wednesday, the Dow Jones Industrial Average drifted up 2 points.

• On Thursday, the Dow Jones Industrial Average increased 54 points and closed the week at 10,520.

• On Friday, the markets were closed for Christmas.

Continue reading "Page Perry's Market Monitor - December 25, 2009" »

There have been various developments over the past several weeks which investors may consider relevant in allocating their resources or evaluating alternatives that are available to them. Some of the more significant developments include, but are not limited to, the following:

• The Dow Jones Industrial Average opened the week at 10,471 and, on Monday, the market rose 30 points.

• On Tuesday, the Dow Jones Industrial Average fell 49 points.

• On Wednesday, the Dow Jones Industrial Average sunk 11 points.

• On Thursday, the Dow Jones Industrial Average dropped 133 points.

• On Friday, the Dow Jones Industrial Average rose 21 points and closed the week at 10,329.

Continue reading "Page Perry's Market Monitor - December 18, 2009" »

There have been various developments over the past several weeks which investors may consider relevant in allocating their resources or evaluating alternatives that are available to them. Some of the more significant developments include, but are not limited to, the following:

• The Dow Jones Industrial Average opened the week at 10,389 and, on Monday, the market rose 1 point.

• On Tuesday, the Dow Jones Industrial Average fell 104 points.

• On Wednesday, the Dow Jones Industrial Average rebounded up 51 points.

• On Thursday, the Dow Jones Industrial Average jumped 69 points.

• On Friday, the Dow Jones Industrial Average rose 66 points and closed the week at 10,472.

Continue reading "Page Perry's Market Monitor - December 11, 2009" »

There have been various developments over the past several weeks which investors may consider relevant in allocating their resources or evaluating alternatives that are available to them. Some of the more significant developments include, but are not limited to, the following:

• The Dow Jones Industrial Average opened the week at 10,310 and, on Monday, the market jumped 35 points.

• On Tuesday, the Dow Jones Industrial Average surged 127 points.

• On Wednesday, the Dow Jones Industrial Average dropped 19 points.

• On Thursday, the Dow Jones Industrial Average tumbled 87 points.

• On Friday, the Dow Jones Industrial Average rose 23 points and closed the week at 10,389.

Continue reading "Page Perry's Market Monitor - December 3, 2009" »

Huge recruiting bonuses for brokers may bode ill for customers. Large brokerage firms like Merrill Lynch and Morgan Stanley Smith Barney are offering some of the highest recruitment bonuses ever offered – up to 330% of their previous year's fees and commissions – to entice reps who rank among the top fifth of their firms' producers to come to work for them, reported Bruce Kelly in his November 15 InvestmentNews article, “Warring wirehouses add fuel to hiring fire.”

Continue reading "Wall Street Recruiting Packages Put Customers At Risk" »

There have been various developments over the past several weeks which investors may consider relevant in allocating their resources or evaluating alternatives that are available to them. Some of the more significant developments include, but are not limited to, the following:

• The Dow Jones Industrial Average opened the week at 10,318 and, on Monday, the market soared 133 points.

• On Tuesday, the Dow Jones Industrial Average fell 17 points.

• On Wednesday, the Dow Jones Industrial Average rebounded 31 points.

• On Thursday, the markets were closed for Thanksgiving..

• On Friday, the Dow Jones Industrial Average dropped 154 points and closed the week at 10,309.

Continue reading "Page Perry's Market Monitor - November 27, 2009" »

There have been various developments over the past several weeks which investors may consider relevant in allocating their resources or evaluating alternatives that are available to them. Some of the more significant developments include, but are not limited to, the following:

• The Dow Jones Industrial Average opened the week at 10,270 and, on Monday, the market soared 136 points.

• On Tuesday, the Dow Jones Industrial Average rose 30 points.

• On Wednesday, the Dow Jones Industrial Average fell 11 points.

• On Thursday, the Dow Jones Industrial Average tumbled 94 points.

• On Friday, the Dow Jones Industrial Average dropped 14 points and closed the week at 10,318.

Continue reading "Page Perry's Market Monitor - November 20, 2009" »