Archive for the ‘Legal Rights and Options’ Category
Thursday, September 9th, 2010
Montana’s Commissioner of Securities announced that it filed a Notice of Proposed Agency Disciplinary Action, Case No. SEC-2010-48, against Securities America in connection with its sales of Medical Capital Notes. According to the Notice, Securities America “withheld material information regarding heightened risks” from its registered representatives and their clients concerning Medical Capital Notes. Montana’s Commissioner of Securities also alleges that Securities America “concealed these risks” from its brokers and their clients. Altogether, Medical Capital issued $2.2 billion in notes through numerous independent broker-dealers. Securities America, however, was the largest seller of Medical Capital Notes. Specifically, according to Montana’s action, Securities America was responsible for the sale of 37% of the total Medical Capital Notes nationwide since 2003, totaling $697 million.
In 2009, the Massachusetts Securities Division filed an Administrative Complaint against Securities America in connection with its sales of Medical Capital Notes. Massachusetts alleged that Securities America ignored their own due diligence analysts and sold Medical Capital Notes to unsophisticated investors without telling them about the risks involved.
Presently, Klayman & Toskes is prosecuting numerous arbitration claims on behalf of aggrieved investors, to recover losses sustained in Medical Capital Notes. While class action lawsuits regarding Medical Capital Notes have been filed, Klayman & Toskes reminds investors of the benefits of filing an individual securities arbitration claim, as opposed to participating in a class action lawsuit. By participating in a class action lawsuit, an investor may only recover a nominal amount. However, if one has experienced significant losses in Medical Capital Notes, it may be more beneficial for them to file an individual securities arbitration claim. In 2003, Klayman & Toskes conducted a detailed study of securities arbitration versus class action. The study concluded that investors who file a securities arbitration claim traditionally obtain an overall higher rate of recovery as opposed to participating in a class action lawsuit. To view the full results of the comparison, please click here: http://www.nasd-law.com/documents/classvr.pdf
Posted in Arbitration, Class Action Opt-Out, Enforcement, FINRA, Fraud, Legal Rights and Options, Medical Capital, Private Placements, Securities America | No Comments »
Wednesday, April 7th, 2010
The Securities Law Firm of Klayman & Toskes, P.A. announced today that the SEC and FINRA have charged Morgan Keegan in connection with the Regions Morgan Keegan (“RMK”) Bond Funds. Morgan Keegan is owned by Regions Financial Corp. (NYSE: RF). The SEC specifically alleged that Morgan Keegan perpetrated a “fraudulent scheme”, and “failed to employ reasonable procedures to price the Funds’ portfolio securities and, as a result of that failure, did not calculate accurate NAVs for the Funds.” The SEC goes on to state that “despite these failures, Morgan Keegan recklessly published daily NAVs of the Funds which it could not know were accurate and, as distributor of the Funds’ shares, sold shares to investors based on those NAVs.”
According to FINRA, Morgan Keegan “market[ed] and [sold the RMK Bond Funds] to investors using false and misleading sales materials – costing investors well over $1 billion.” FINRA’s Complaint alleges that “the misleading sales materials, combined with the firm’s misleading and deficient internal guidance and failure to train its brokers about the risks, led Morgan Keegan’s brokers to make material misrepresentations to investors.” FINRA further states that “Morgan Keegan failed to establish, maintain and enforce an adequate supervisory system, including written supervisory procedures, reasonably designed to achieve compliance with the federal securities laws and FINRA rules.”
Presently, K&T is prosecuting numerous arbitration claims against Morgan Keegan on behalf of investors of the RMK Bond Funds before FINRA Dispute Resolution. Retail and institutional investors who have sustained investment losses in the RMK Bond Funds can contact K&T to explore their legal rights and options. If you wish to discuss this announcement or have investment losses of $100,000 or more in the RMK Bond Funds, please contact our law firm.
Posted in Arbitration, Enforcement, FINRA, Failure to Supervise, Fraud, General, Legal Rights and Options, Misrepresentation, Morgan Keegan, RMK Bond Funds, SEC | No Comments »
Wednesday, March 3rd, 2010
The Washington State Department of Financial Institutions (”WSDFI”) has reported that it has been receiving calls and complaints from customers of Rhonda Breard who have learned their brokerage firm or insurance company has no record of brokerage accounts or annuities they thought they had purchased through Rhonda Breard and Breard & Associates Wealth Management. Customers have told the WSDFI stories similar to the following:
- The customer made an investment or rolled over an investment by writing a check or endorsing a check to Breard & Associates rather than to the broker-dealer or insurance company that is supposed to provide the investment.
- The broker-dealer or insurance company has no record of the customer’s investment.
- It appears that the customer’s money was not transmitted to the broker-dealer or insurance company.
Breard was a licensed broker in Arizona, Michigan, Nevada, New Mexico, North Carolina, Oregon, Washington, West Virginia, and Wyoming, and accordingly the alleged fraud committed by Breard may have widespread implications. If you or someone you know is a victim of Rhonda Breard, it is important to contact qualified, experienced counsel to learn your legal rights and options. Victims of Rhonda Breard have reported that ING has requested from them various documents and information. It is important, however, that former customers of Breard contact counsel before speaking with ING or submitting any documents or information. In our experience, aggrieved investors should contact counsel before agreeing to speak with the brokerage firm. If litigation against ING ensues, ING may attempt to use the materials submitted by former customers of Breard against them as to why they are not entitled to recover their money. Before you file any written complaint with ING or a securities regulator, please contact our law office to discuss your legal rights and options.
Posted in Arbitration, FINRA, Fraud, General, ING Financial Partners, Legal Rights and Options, Ponzi Scheme, Rhonda Breard | No Comments »
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