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New SEC/FINRA alert on Broker-Dealer Branch Inspections and Broker Supervision

By of Shustak Reynolds & Partners, P.C. posted on Wednesday, November 30, 2011.

On November 30, 2011, the Securities Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA) issued a Regulatory Risk Alert outlining effective policies and procedures for broker-dealer branch inspections and broker supervision. The alert serves as a reminder of existing Securities Exchange Act and […] Read More

Don’t Fall Victim To Affinity Fraud; If It Sounds Too Good To Be True, It Probably Is

By George Miller of Shustak Reynolds & Partners, P.C. posted on Wednesday, November 30, 2011.

It’s one of the oldest tricks in the book, and new clients routinely contact our firm after falling victim to it. A member of your community organization, a friend from work or perhaps even your child’s soccer coach recommends a new, “guaranteed” […] Read More

FINRA Sanctions 8 Firms for Due Diligence Failure in Private Placements

By Jonah Toleno of Shustak Reynolds & Partners, P.C. posted on Tuesday, November 29, 2011.

The Financial Industry Regulatory Authority (FINRA), the self-regulated organization responsible for overseeing brokers and broker-dealers, has sanctioned eight firms and ten individuals for recommending private placement investments without a reasonable basis to customers. Among the firms sanctioned are: NEXT Financial Group; Investors […] Read More

Federal Court Decision – Judge Rejects Citi’s Settlement with SEC

By Jonah Toleno of Shustak Reynolds & Partners, P.C. posted on Monday, November 28, 2011.

In a recent court decision, New York Federal Judge Jed Rakoff denied a motion to approve a settlement between Citigroup and the SEC arising out of charges that Citi misled investors about collateralized debt obligations. Judge Rakoff rejected the highly publicized […] Read More

Beware Private Placements; Risky Investments for Most

By of Shustak Reynolds & Partners, P.C. posted on Saturday, November 26, 2011.

November 26, 2011. We see more and more private placements being sold to unsuspecting investors, most of whom have little or no idea of the risks inherent in these investments. With very few exceptions, a private placement is a high risk investment; typically highly illiquid […] Read More

The Effect of California’s Expungement Rules on Registered Representatives and Investment Advisers

By George Miller of Shustak Reynolds & Partners, P.C. posted on Wednesday, November 23, 2011.

Registered representatives, investment advisers and others employed in the securities industry are required to disclose certain prior criminal convictions, including some “expunged” convictions, to the Financial Industry Regulatory Authority (FINRA) or the Securities and Exchange Commission (SEC) in connection with their employment. […] Read More

What Are Up-Front, Forgivable Loans?

By SHUSTAK REYNOLDS & PARTNERS of Shustak Reynolds & Partners, P.C. posted on Tuesday, November 15, 2011.

Up-front, forgivable notes have been used by brokerage firms for many years as a way to entice high producing brokers to join- and, hopefully, remain- at the firm recruiting the talent. Virtually all firms use these notes as a recruiting […] Read More

JP Morgan Chase Clients Sold Unsuitable Investments

By SHUSTAK REYNOLDS & PARTNERS of Shustak Reynolds & Partners, P.C. posted on Tuesday, November 15, 2011.

November 15, 2011. Unsuitable investments continue to be sold to unsuspecting clients of major brokerage firms. On November 15, 2011 FINRA, ordered JP Morgan Chase to reimburse clients $1.9 million for losses those investors sustained when JP Morgan sold them high risk, unsuitable unit […] Read More

SEC in S&P downgrade investigation?

By SHUSTAK REYNOLDS & PARTNERS of Shustak Reynolds & Partners, P.C. posted on Tuesday, September 20, 2011.

The SEC has subpoenaed various financial firms to investigate possible insider trading before US S&P credit rating downgrade” http://money.cnn.com/2011/09/20/news/economy/sec_sp_investigation/index.htm?iid=SF_BN_River Read More

Obama signs patent bill, sees boost for innovators

By SHUSTAK REYNOLDS & PARTNERS of Shustak Reynolds & Partners, P.C. posted on Tuesday, November 15, 2011.

Obama signs new bill to quicken patent application process and curb frivolous patent lawsuits: http://www.reuters.com/article/2011/09/16/us-patent-obama-idUSTRE78F4FY20110916?feedType=RSS&feedName=smallBusinessNews&rpc=43 Read More