Digital and virtual currencies continue to be a growing trend in the financial industry. Investors are demonstrating increased interest and trading activity, and, more and more financial advisers are considering inclusion of cryptocurrencies in investment portfolios. Existing as digital…
58-year-old Arthur Lamar Adams pled guilty on May 9, 2018, to one count of wire fraud for his role in defrauding hundreds of investors in a Ponzi scheme involving more than $100 million, spanning a period of at least…
Three former executives of Endurance International Group Holdings and Constant Contact Inc., acquired by Endurance in 2016, have settled charges with the Securities and Exchange Commission (SEC) for reporting inflated subscription metrics for their web hosting and internet-based marketing…
Failure to properly disclose conflicts of interest and failure to properly discharge a firm’s fiduciary duties -can result in costly penalties. In a one such case, Merrill Lynch, Pierce, Fenner & Smith (“Merrill”) recently agreed to an $8.9 million…
Pay-to-play violations have the potential to affect a firm’s reputation and typically in a “two-year timeout from providing compensatory advisory services directly to a government client.” Contributions of any kind, which include campaign contributions to those seeking elected office,…
In looking at the recent enforcement action by the Securities and Exchange Commission (“SEC”) against Create Your Fate, LLC, let’s first consider these two recent publications by governing bodies concerning the use of testimonials contained in internet or social…
The Bank Secrecy Act (BSA) of 1970 requires U.S. financial institutions to cooperate with the U.S. government to report cases of suspected fraud, money laundering, and a range of other suspicious transactions not involving the outright misappropriation or misuse…
While at times the rigorous regulations imposed upon firms can seem burdensome, they exist for a reason – to help prevent violations of federal securities law. Bad actors, who are a staple of the modern era, are emboldened by the…
While exchange-traded funds (ETFs), a hybrid investment product, have been a staple of modern investing since the early 90s, the Securities and Exchange Commission (SEC) has been slow to create a proper regulatory framework for this $3.4 trillion market….
A recent Wells Fargo Memo raised questions for some of the firm’s brokers about the firm’s commitment to the Protocol for Broker Recruiting (“Broker Protocol”). The Broker Protocol found itself in the news again earlier this year when major…