Articles Posted in FINRA Arbitration

Raymond J. Lucia Sr., an investment advisor who hosts a nationally syndicated radio talk show, has been accused of misleading investors with claims that his “Buckets of Money” strategy helps retirees “generate inflation-adjusted income for life.” The Securities and Exchange Commission (“SEC”) accused the San Diego radio personality of misleading investors by misleadingly exaggerating the…

According to a ruling by the U.S. Court of Appeals for the Second Circuit, FINRA cannot enforce disciplinary actions by taking its members to court. The court’s decision comes after a long legal battle against Fiero Brothers, a penny stock brokerage firm, and John J. Fiero, the firm’s owner. In 2001, FINRA ordered Fiero and…

Recent Financial Industry Regulatory Authority (FINRA) securities arbitration resulted in the order for units of Merrill Lynch to pay compensatory damages to Staton Family Investments Inc. totaling $8.1 million for breach of fiduciary duty. Staton Family Investments and Daniel Staton accused Merrill Lynch of securities fraud, negligence, breach of contract and common stock theft. According…

Merrill Lynch & Co. must pay an investor $39.8 million in compensatory damages because of negligence on the part of one a subsidiary broker-dealer, an Albany, New York FINRA arbitration panel has ruled. The FINRA panel issued the award to Trustees of the Masonic Hall & Asylum Fund, which is an endowment for an Utica…

Beginning March 30, 2009 investors claiming losses of up to $100,000 will have the option of proceeding before a single arbitrator rather than a panel of three arbitrators. The SEC has approved the final rule change (see full Notice, accessible immediately below). While any final conclusion concerning whether the rule change will prove beneficial to…