Articles Tagged with legal

The Blackstone Group (NYSE:BX) agreed to pay $39 million to settle charges that the Securities and Exchange Commission (SEC) brought against them. The SEC charges were related to the disclosure failures by Blackstone’s three private equity fund advisers. $29 million of the total settlement will go to the affected fund investors. Blackstone Management Partners, Blackstone Management Partners III and Blackstone Management Partners IV did not provide investors with enough information regarding the benefits obtained from accelerated monitoring fees and discounts on legal fees. They also failed to disclose adequately the acceleration of monitoring fees paid by fund-owned portfolio companies prior to its sale or initial public offering (IPO). The value of the fund decreased because of the payments to the companies themselves. The companies also failed to implement adequately supervised policies and procedures. Blackstone was in breach of its fiduciary duty.

If you invested money with Blackstone, please call our securities law firm at 312-332-4200 for a free consultation with an attorney. There is no obligation. We take cases on a contingency fee basis.

Alexander Freund, a former clerk with UBS Financial Services in Chicago, is arguing the Financial Industry Regulatory Authority (FINRA) has no jurisdiction over him in a multi-million dollar arbitration action brought against him by the brokerage firm. UBS is claiming he breached his employment contract. Freund was hired by UBS in November 2011 as a part-time clerk. His contract with the firm did not contain any provision for arbitration. Less than three months later, Freund took a job with Wells Fargo. UBS then sough an injunction to prevent Freund from breaching covenants in their agreements. UBS claimed to have cause against Freund for breach of contract, fiduciary duty and duty of loyalty. Freund was then notified by FINRA that he had a two-week hearing with the regulatory body beginning October 26th at their Chicago offices. Freund then sought federal intervention to say he has no obligation to take part in an arbitration with FINRA. He also refused to go along with FINRA’s order to answer discovery because if so, he would “submit to arbitration claims he never agreed to arbitrate.” He then went on to say that his rights would be compromised in the event the arbitration proceeds against him. Freund also is seeking FINRA to pay his legal costs.

the “haze of confusion” investors have when it comes to the compensation of their financial advisers and the legal duties owed to them.  The entire article can be viewed at the link below.

http://www.chicagotribune.com/business/breaking/ct-consumers-financial-advisers-0611-biz-20150611-story.html

Marijuana-related securities have blossomed in the past few years, taking the form of over-the-counter or penny stocks and special funds for accredited investors. This is because marijuana has been legalized at the state level in some states, but the fact remains that it is still not legal at the federal level. The feds still have the right to arrest any business that tries to get in on the selling of the product. In May 2014, the Securities and Exchange Commission (SEC) issued an investor alert about marijuana-related investments, in which it said “marijuana-related companies may be at risk of federal, and perhaps state, criminal prosecution. Nothwithstanding the federal ban, as of the date of this guidance, 20 states and the District of Columbia have legalized certain marijuana-related activity.” This week the Wall Street Journal published an article warning about the risks associated with Marijuana stocks.

Funds that specialize in marijuana-related securities such as the High Times Growth Fund and Marijuana Investment Co., are not public, and are currently open only to accredited investors, although Marijuana Investment Co is planning to file for an initial public offering. Mutual funds and exchange-traded funds will be looking into marijuana-related businesses soon. Says Alan Brochstein, a financial adviser who runs the newsletter “420 Investor,” “I don’t think there will be funds and ETFs in the cannabis sector for at least a couple of years. Liquidity in this space is poor, so mostly you have over-the-counter stocks trading publicly.” Legal sales of marijuana are expected to quintuple to as much as $8 billion in 2019 from $1.6 billion in 2013, according to Marijuana Business Daily.

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