Articles Posted in SEC

Dblaine Capital LLC and David B. Welliver, Dblaine Capital’s owner, have been charged by the Securities and Exchange Commission (SEC) with securities fraud. Welliver and his firm allegedly received loans that amounted to $4 million in a “quid pro quo” deal that was said to be undisclosed, in violation of their responsibilities and improper. Allegedly,…

One of the most prominent ways fraudsters are currently targeting investors is through promissory note scams. According to Pat Huddleston, former Security and Exchange Commission enforcer and author of the book “The Vigilant Investor,” promissory note scams are “exploding” — in no small part due to the nature of the scam, which appears to be…

In August 2008, the Financial Industry Regulatory Authority (FINRA) provided the Securities and Exchange Commission with staff meeting minutes that had been altered, making the documents inaccurate and incomplete. FINRA’s Kansas City office was responsible for the tampering of the documents. FINRA officials know the agency must maintain its integrity in order to be a…

Investor education is an important part of avoiding broker misconduct, so it is critical that investors have a general idea of how trades work. The following is a short summary of what occurs when a stockbroker executes a buy or sell order. Brokers usually have a choice of markets in which they can execute a…

Justin Solomon of Florida has consented to the Security and Exchange Commission’s decision to fine him $275,000 for his part in a federal securities fraud lawsuit. The lawsuit involved a scheme in which overseas investors put money into Texas oil and gas projects that was then misused. Solomon did not confirm that he oversaw the…

Citigroup settled charges brought by the U.S. Securities and Exchange Commission, and has agreed to pay $285 million to do so. According to the SEC, Citigroup defrauded investors by betting a toxic housing-related debt would fail, but selling the CDO to investors anyway. According to an article by Reuters, “The SEC said the bank’s Citigroup…

The North American Securities Administrators Association Inc. and the Securities and Exchange Commission issued an investor alert on September 23, which warned of the risks of self-directed IRAs. According to InvestmentNews.com, this scrutiny by regulators will likely influence the implementation of tougher restrictions on self-directed IRAs by small- to mid-sized broker-dealers. According to Brad Borncamp,…

The investment community has often heard those now-familiar words: “If it seems too good to be true, it probably is” when warning against stock broker fraud. Not only is this phrase only partially true, it’s dangerous. Investors who only watch out for the investments that are “too good to be true” are still vulnerable to…

“Insider trading” is one of the most widely-recognizable terms in the complex financial industry — but it is one that is often misunderstood, as well. Though some insider trading is a form of broker misconduct, it is also frequently committed by firms’ top management. An article published on August 18, 2011, “Insider Trading: CNBC Explains,”…

John A. “Jack” Grant, a former stockbroker, was barred from associating with investment advisers, brokers and dealers in 1988, following an action that accused him of selling unregistered securities and misappropriated funds totaling $5,500,000. Grant, however, did not withdrawal from the securities business and continued advising small business and individuals on their investments and management…