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
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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