San Francisco Securities Law Blog
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Nontraded REIT Fiasco
It used to be that only questionable brokerage firms sold nontraded REITs, which historically have had opaque fee structures, no real liquidity, and where investors lost about ten percent of their principal as soon as they made their nontraded, or private, REIT investment (based on about ten percent of the principal going toward brokerage firm…
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Account Transfer Fraud
The Financial Regulatory Authority (FINRA) came out with new Regulatory Notice 22-21 last week, which advises brokerage firms regarding fraudulent account transfers. FINRA’s Regulatory Notices are meant to alert brokerage firms to potential regulatory and compliance issues and direct them on what their obligations are. The account transfer fraud which FINRA warns member firms about…
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Fraud Is Everywhere
Being a fraudster these days is a good business. There are more ways now to separate you from your money than ever before. It seems like every day we have to fend off phishing attacks, scam callers, and people wanting to sell you a “can’t miss investment” that turns out to be a Ponzi-scheme. We…
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Covered Call Strategies
What if you have held a stock position for a really long time in a great company, and the stock has done spectacularly well? Do you want to sell it, and diversify your investments? Some people will want to do that, but many will want to stick with what has been working and keep their…
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Did your broker have a conflict of interest?
When you started investing, you trusted your broker to make decisions that were in your best interests. That’s what you were paying them for. They had the expertise and you wanted to give them compensation if they would use that expertise to help you earn money on your Investments. But were they actually acting in…
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What is an overconcentration of funds?
As someone who is investing, you want to make sure that your investments are solid. You want to know that your hard-earned money is going to grow and that it has an excellent opportunity to help you get to where you want to be financially. Usually, your investment broker will be cautious and invest across…
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Syndicated Conservation Easements Being Investigated By IRS
The Internal Revenue Service announced a significant increase in enforcement actions for syndicated conservation easement transactions, a priority compliance area for the agency. Syndicated conservation easements are private placements that promise tax deductions worth four to four-and-a-half times a person’s investment. Some syndicated conservation easement deals are representing to investors that they will receive charitable contribution deductions…
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The entertainment-focused Ponzi scheme that raised $690 million
Ponzi schemes, a relatively famous form of investment fraud, are problematic for many different reasons. They undermine the faith of investors by making people constantly worry about fraud. They can also cost individuals, investment funds and businesses millions of dollars when they finally collapse. Named for one of the earliest and most famous examples of…
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Fidelity Brokerage Services, LLC Allegedly Allows Imposter to Hack Into Client’s Account
San Francisco, CA, February 22, 2021 – The Law Offices of Jeffrey A. Feldman has filed a FINRA Arbitration on behalf of a client where it is alleged that Fidelity Brokerage Services, LLC allowed an imposter to hack into the account of Fidelity’s client, liquidate the client’s investments, and send the funds from the client’s…
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What is churning and how can I recognize it?
As an investor, you are more than willing to pay a broker for premium service. You believe in working with the best to maximize your return. Trades cost money in the short term, but you’re in this for the long-term gains, and that’s what you want to see. That said, you don’t want your broker…