Jones Energy Inc (JONE) is an exploration and production company in the U.S. Mid-Continent. Some brokers recommended this investment to their clients and didn’t disclose all the material risks of the investment including its almost exclusively concentration in oil and gas related investments. This is a violation of the rules and regulations that govern financial advisors at brokerage firms in the US. Please contact our investment fraud legal team to learn how these losses might be recoverable in the FINRA arbitration forum.
Were you sold structured notes linked to the US Oil Fund by an LPL broker? Stoltmann Law Offices is investigating the sale of these notes and are interested in speaking to those individuals who may have lost money because of the sale of those notes. You may be able to recover those losses by bringing a claim against LPL in the Financial Industry Regulatory Authority (FINRA) arbitration forum on a contingency fee basis. We help investors recover losses. The structured notes sold by LPL are not suitable for all investors. Firms such as LPL and their brokers can only recommend and sell those investments that are suitable for investors. Notes linked the US Oil Fund tend to be risky and illiquid investments. Since crude prices dropped to an all-time low in 2009, banks have sold a record amount of US structured notes that track an index of oil and gas companies. Because crude costs are still low, many of the stocks have not had the chance to rebound, causing investors to lose money. Production and exploration companies took advantage of low interest rates to fund growth with cheap debt, and falling oil prices put pressure on those companies to cut costs. Credit Suisse AG sold $79.5 million of notes linked to the oil and gas index at the end of December last year. 312-332-4200.
Last week, Paul Burks was found guilty of masterminding one of the largest ponzi schemes in US history. Burks allegedly bilked more than one million investors worldwide out of $800 million. He was convicted on four counts of fraud and conspiracy. He faces up to 65 years in prison and $1 million in fines. His ponzi scheme was one of the largest ever prosecuted by the US Attorney’s office. Attorneys are still trying to recover an additional $225 million from Burks and ZeekRewards. ZeekRewards was an online marketing scheme that generated hundreds of millions of dollars in 2011-2012. Almost nine out of 10 investors in Burks’ scheme lost money. He and his team promised returns of up to 125 percent, manipulated records and exaggerated ZeekRewards’ cash flow to lure a “staggering” amount of investment.
ZeekRewards was started in 2011 to market an online auction site. It offered a share of profits to investors who promoted Burks’ auctions to other online sites or recruited others to take part. Investments were capped at $10,000 but participants could make payments for spouses, children and other relatives. During the first half of 2012, online users of ZeekRewards grew by more than twentyfold. In the end, ZeekRewards paid out more than half the $939 million it generated. Its actual obligations were more than $3.3 billion.
The United States government is making sure regulatory agencies such as the Financial Industry Regulatory Authority (FINRA) and the Securities and Exchange Commission (SEC) are keeping pace with the US Equity markets, which are vastly and quickly changing due to the effects of technological innovation on market structure. Technology changes have always been first and foremost on regulators’ minds. During a senate banking hearing last week, the SEC relayed that it had stepped up its pace considerably in the way of technological innovation. Ever since May 6th, 2010, when trillions of dollars were quickly wiped out because of faulty algorithms, the market has changed significantly in order to rebound from algorithm-driven spoofing. Nowadays, according to numbers compiled by RBC Capital Markets and cited at the banking hearing, today’s fee schedules represent a highly fragmented market structure and many exchange business models are trying to counter some of the trends emphasized in that report.
When it comes to equities, there are many types of liquidity qualities in the stock market, depending on common trade flow metrics, including the needs of clients, the underlying securities and other variables, that when combined, result in the need for an equally high number of diverse trading choices for participants. Along with that, there are nearly 133 different order types across US market venues. These different trading needs of high and low-frequency trading operations brought about the growth of Alternative Trading Systems (ATS) and dark pools, yet got away from traditional systems such as National Market Systems (NMS). The SEC wants to test a ban for six months on eliminating rebates for a number of securities and participants, to study the effect it will have on the market.
During the Senate hearing last Thursday, under the committee on Banking, Housing and Urban Affairs, through its subcommittee on Securities, Insurance and Investments, a meeting titled “Regulatory Reforms to Improve Equity Market Structure” was held. The discussions covered topics such as defining Consolidated Audit Trail (CAT) market maker models, advisor misconduct and other areas of concern. The SEC also proposed a rule that would aim to amend the Securities Exchange Act of 1934, among other things.