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A Word of Advice A Word of Advice

A Word of Advice - PowerPoint Presentation

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Uploaded On 2015-10-12

A Word of Advice - PPT Presentation

Mark E Maddox Maddox Hargett amp Caruso PC Securities Law Investor Losses Family members also can steal from each other Spouses siblings caregivers anyone can be victimized by securities fraud ID: 158930

investments securities firms investment securities investments investment firms losses finra information fraud claim review evaluate members market arbitration whistleblower

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Slide1

A Word of Advice

Mark E. Maddox

Maddox

Hargett

& Caruso, P.C.

Securities LawSlide2

Investor LossesFamily members also can steal from each otherSpouses, siblings, caregivers, anyone can be victimized by securities fraudExample of investor loosing nest eggAnyone who manages your money can commit securities fraud or negligenceSlide3

Securities Fraud, Who is at Risk?Anyone with moneyYoung, old, sophisticated, noviceElderly are increasingly vulnerableCaregivers, adult children

Family members stealing from each other

Spouses

and siblingsSlide4

Staying Above BoardUnderstand all investments you sellDon’t be pushed to sell the company’s “hot product”Evaluate if the investment is right for your client’s age and sophistication levelMake your commissions transparent

Disclose, disclose, disclose! Never fib, not even a little

Report unethical behavior of your colleaguesSlide5

Fiduciary Duty, Due DiligenceActing in the best interests of the clientRecommend suitable investmentsReview client’s monthly statementsThoroughly understand risk, volatility of investments

Don’t blame losses on “economy” or “market downturn”Slide6

Whistleblower Support, Are you Protected?SEC Whistleblower Program, effective July 2010In 2013, the program paid out more than $14 millionYou are not required to be an employee to submit informationAn eligible whistleblower is:

A person or persons, not a company or organization

Someone who voluntarily provides original information

A person who acts on information that is either ongoing or about to occurSlide7

FINRA: Self-Regulatory (SRO), Financial Industry Regulatory AuthorityThe largest non-governmental regulator for securities firmsMission is to protect investors and promote market integrity

Oversees brokerage firms, their branch offices and registered securities representatives

All brokerage firms must become members

FINRA touches every aspect of the industry:

Educating investors

Examining securities firms

Administering dispute resolution decisionsSlide8

The FINRA Arbitration ProcessBrokerage firms require investors to sign documents, stating all disputes will go through arbitrationThe occurrence must be less than six years oldProcess, start to finish, is about two yearsAverage filing fee is $1,300, depending on the claim

Documents help substantiate the claim

Arbitration awards are final, binding and hard to appealSlide9

Evaluating Investment LossesHow do we evaluate a claim?Calculated investment lossesAnalyzed market conditionsAnalyze suitability of investmentsReview of commissions and fees

Evaluate pattern of trading and activity

Review a Claimant’s investment experienceSlide10

What Makes a Good Case?Is the firm or stockbroker FINRA registered?What did the broker say about the investments?What transpired with the investments and why?What were the investor’s goals?

What was the investor’s previous investment experience?Slide11

The Wolf of Wall StreetJordan Belfort- Stratton OakmontOur firm represented more victims of Stratton Oakmont than any other securities law firm