Articles Tagged with video

AdobeStock_69736117-2-300x200According to a recent Financial Advisor article, a new scam has surfaced where scammers conducting fake online job interviews attempt to steal victims’ money. They may ask to provide personal or financial information, which, in that case, individuals are encouraged to terminate the call immediately. The scammers may also ask you to pay a fee. The scammers also have been requesting documents or files to be downloaded in order for them to capture keystrokes or mouse movements or even for them to take control of your webcam. Other signs may be if the scammer tells you the job is “guaranteed,” or “waiting for you,” and they may pressure you to commit to the job quickly and add poorly written text on the online video platform, or other communications. The scammers pretend to be involved with a range of legitimate organizations, including the Financial Industry Regulatory Authority (FINRA).

The Securities and Exchange Commission (SEC) recently issued a complaint against The Rhode Island Economic Development Corporation (RIEDC) after it allegedly issued $75 million in bonds for the 38 Studios project. The project was intended to spur economic development and increase employment opportunities by loaning bond proceeds to private companies. The SEC alleged that RIEDC loaned only $50 million in bond proceeds to 38 Studios. Remaing proceeds were used to pay related bond offering expenses and establish a reserve fund and a capitalized interest fund. Wells Fargo offered the bonds and the brokerage firm allegedly failed to disclose to investors that 38 Studios had conveyed it needed at least $75 million in funding to produce a video game. Therefore, investors were not fully informed when deciding to purchase the bonds that 38 Studios faced a funding shortfall. Because they were unable to produce more funding, the video game did not materialize and the company defaulted on the loans.

Wells Fargo’s lead banker, Peter M. Cannava, and two RIEDC executives, Keith W. Stokes and James Michael Saul were charged with aiding and abetting the fraud. Stokes and Saul each paid a $25,000 fine. They were prohibited from participating in any future municipal securities offerings. SEC continues litigation against Cannava, Wells Fargo and RIEDC. The SEC complaint also alleged that Wells Fargo and Cannava misled investors in bond offering materials. Investors were not informed that the brokerage firm had a side deal with 38 Studios that enabled the firm to receive nearly double the amount of compensation disclosed in offering documents. Cannava was ultimately responsible for failing to disclose additional fees.

Stoltmann Law Offices is investigating Sara Ng, a former broker with Financial West Group in Oak Brook, Illinois. According to her Financial Industry Regulatory Authority (FINRA) online, public BrokerCheck report, she was registered with IDS Life Insurance Company in Minneapolis, Minnesota from February 1996 until July 1997, American Express Financial Advisors in Minneapolis from February 1996 until July 1997, Dean Witter Reynolds Inc. in Purchase, New York from July 1997 until November 1999, Gruntal & Co. in New York, New York from October 1999 until December 2000, Wachovia Securities in St. Louis, Missouri from December 2000 until November 2002, Berthel, Fisher & Co. Financial Services in Oakbrook, Illinois from November 2002 until March 2014 and Financial West Group in Oak Brook from February 2014 until November 2015. She is currently registered with Axiom Capital Management in Oak Brook and has been since October 2015. She has two customer disputes against her. It is possible that Ng has invested large sums of money for investors in products such as real estate investment trusts (REITs) and oil and gas products. Please call us today if you or someone you know was recommended investments by Ng in Magnum Hunter. We may be able to help you recover your losses in Magnum Hunter investments suffered with Sara Ng. The call to us is free with no obligation. For more information please see video below.

If you had an account at Etrade and didnt get paid the dividend in Calissio Resources Group Inc. (CRGP) Etrade can be sued to recover these funds. Brokerage firms are obligated to pay out the dividends paid by companies. Failure to do so can subject the firm to liability plus other damages that may have been incurred. We are currently representing victims on a contingency fee basis. To learn more, please call our law firm in Chicago, Illinois at 312.332.4200. See video below for more information.

Stoltmann Law Offices continues to investigate Bart J. Ellis, a former registered representative with Ameriprise Financial Services. Ellis was permanently barred from the industry after allegedly making unauthorized trades in customer accounts. One customer alleged that Ellis made unauthorized trades in her account routinely from June 2009 until August 2012. Ellis also allegedly created fake entries in a telephone log to cover up the trades, to make it seem as if he had received authorization from the customer to do so. The customer did not give written authorization to Ellis, nor did she authorize Ellis to exercise discretion in her account. Ellis also allegedly falsified documents in the same customer’s account in October 2010. An Ameriprise representative contacted the customer to inquire as to whether she authorized Ellis to make the trades. When the customer replied that she did not, Ellis then falsified telephone logs, making it seem as if the customer had authorized said trades.

Bart J. Ellis was registered with McLaughlin, Piven, Vogel Securities in Chicago, Illinois from February 2001 until May 2006, Morgan Stanley in Chicago from April 2006 until July 2007, and Ameriprise in Orland Park, Illinois and Chicago from November 2007 until October 2012. He has four customer disputes against him. He is no longer licensed in the industry, and the Financial Industry Regulatory Authority (FINRA) permanently barred him from the industry.

Amerprise Financial, Ellis’ former firm, can be sued in the FINRA arbitration process for failing to supervise him while he was employed there. At Stoltmann Law Offices, we sue brokerage firms such as Ameriprise to recover money for investors. Please call us at 312-332-4200 to speak to an attorney. The call is free.

You can sue Wells Fargo Advisers for investment losses in Good Harbor Financial US Tactical Core and F Squared Investments AlphaSector Allocator Select. Wells Fargo invested clients into this fund, and the bank was sued in June of 2015 for violations of common law fraud, breach of fiduciary duty, negligence and negligent supervision. An arbitration claim has been filed in the Financial Industry Regulatory Authority (FINRA) forum. In an Order filed by the Securities and Exchange Commission (SEC) F Squared, beginning in September 2008, began receiving a signal indicating when to buy or sell an investment. These signals were based on an algorithm, which F Squared,and its President, Howard Present, used to create a portfolio model to track exchange‐traded funds (ETFs). They named the product “AlphaSector” and it quickly became the firm’s largest source of revenue.

Unfortunately, while marketing AlphaSector, the SEC alleged that F Squared falsely advertised the product. They based it on a seven year track record for investment strategy options, but in reality, the product did not even exist for those seven years. The data derived from it was through backtesting, which is the application of a quantitative model to historical market data to generate a hypothetical performance during a prior period. F Squared touted the product as “not backtested” in their marketing materials, which was clearly false. These false statements were made from September 2008 until September 2013.

Wells Fargo and its brokers, have a fiduciary duty to adequately disclose risks involved when recommending products to be sold to clients. They must performdue diligence on an investment to ensure that it is a sound investment and one that is suitable for the investor.  Often, retail clients portfolios were over-concetrated in F Squared related investments.   If they do not make suitable investments, they can be held responsible for investment losses in those products.

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