Category Archives: Failure to Supervise

Grifphon and Sasquatch Hedge Fund Managers Accused of Fraud

On September 21, 2012, the Securities and Exchange Commission accused Yusaf Jawed, Grifphon Asset Management, Robert Custis, Jacques Nichols, Lyman Bruhn, Pearl Asset Management and Sasquatch Capital Management of securities fraud. See  SEC litigation release #22487.

Jawed pled guilty to running a Ponzi scheme in April 2013 and was sentenced to six and a half years in prison and ordered to forfeit $6.4 million raised in the scheme. Jawed’s poor financial condition makes it unlikely that he will be able to repay any of the funds.

In August of 2013, an arbitration panel awarded an investor damages against Raymond James on claims that the investment in the Grifphon Alpha 1 Fund violated state securities laws and was misrepresented. FINRA arbitration No. 12-1905 , Deters IRA, et al vs Raymond James Financial Services, Inc.

Grifphon Funds sold by brokerage firms include:

Grifphon Alpha I Fund
Alpha Qualified Fund
Grifphon Alpha Long Term
Grifphon Iota Fund
Grifphon High Quality Large Cap Fund
Alpha Institutional Fund – See more at: www.whitesecuritieslaw.com/securities-fraud/blog/page/2/#sthash.nxEMYGse.dpuf
Grifphon Alpha I Fund
Alpha Qualified Fund
Grifphon Alpha Long Term
Grifphon Iota Fund
Grifphon High Quality Large Cap Fund
Alpha Institutional Fund
Grifphon Alpha I Fund
Alpha Qualified Fund
Grifphon Alpha Long Term
Grifphon Iota Fund
Grifphon High Quality Large Cap Fund
Alpha Institutional Fund – See more at:
Alpha Qualified Fund

Alpha Institutional Fund
Grifphon Alpha I Fund
Grifphon Alpha Long Term
Grifphon High Quality Large  Cap Fund
Grifphon Iota Fund

If you invested in any of  the Grifphon funds you may have valuable legal rights entitling you to damages. For a no charge consultation with an experienced securities lawyer, please contact our office.

Rex Securities Law , located in Boca Raton, FL, provides representation to  investors  nationwide who are seeking recovery of investment losses due to the negligence or fraud of stockbrokers and broker dealers. If you have questions about how your account has been handled, call to speak with an experienced securities attorney. Most cases handled on a contingent fee basis meaning that you do not pay legal fees unless we are successful.

Rex Securities Law

561 391 1900

 

Top 10 Scams Targeting Seniors- National Council on Aging

According to a recent article from the NCOA (National Council on Aging) financial scams targeting seniors are so prevalent they are considered “the crime of the 21st century”.

The NCOA lists the following potential scams. See the full article here on the NCOA website:

1-Health Care/ Medicare/ Health Insurance Fraud
2-Counterfeit Prescription Drugs
3-Funeral & Cemetary Scams
4-Fraudulent Anti-Aging Products
5-Telemarketing
6-Internet Fraud
7-Investment Schemes
8-Homeowner/Reverse Mortgage Scams
9-Sweepstakes & Lottery Scams
10-The Grandparent Scam

Rex Securities Law , located in Boca Raton, FL, provides representation to  investors  nationwide who are seeking recovery of investment losses due to the negligence or fraud of stockbrokers and broker dealers. If you have questions about how your account has been handled, call to speak with an experienced securities attorney. Most cases handled on a contingent fee basis meaning that you do not pay legal fees unless we are successful.

Rex Securities Law

561 391 1900

 

Five Brokerage Firms Order to Pay Another $10 Million On Non-Traded REIT Sales

As we have previously noted, regulators have already hit broker-dealers for big fines and damages for the sale of non-traded REITs:

  • In May Massachusetts regulators order five firms to pay $6 million for improperly selling non-traded REITs
  • Earlier in 2013 LPL Financial was hit with a $4.8 million order from the Massachusetts securities regulators for failing to train and supervise brokers in connection with the sale of non-traded REITs.

In early September 2013, Massachusetts regulator William Galvin announced a second round of restitution orders, totaling $10.75 million,  against the same five firms: Securities America, Ameriprise Financial, Commonwealth Financial Network, Lincoln Financial and Royal Alliance.

In total, the six firms have agreed to pay up to $21.6 million in restitution and fines of $1.5 million.

According to Galvin, “These investments are popular, but risky. Our investigation showed widespread problems with adherence to the firms’ own policies, as well as the state rule that an investor’s purchase of REITs cannot be more than 10% of that person’s liquid net worth”.

What are non-traded REITs?

Non traded real estate investment trusts (REITS) do not trade on any conventional exchange and were sold with the promise of steady and dependable income, with little warning as to the illiquid nature of the investment and with the hopes of appreciation. Many purchasers believed them to be safe, secure investments similar to bonds. Now many of these investments have ceased making distributions and have plummeted in value. Since they are not traded on any conventional exchange, investors may look only to a secondary market if liquidity is required.

Popular Non-Traded REITs include:

Behringer Harvard (Multifamily, Opportunity I and II)

CNL Lifestyle Properties

Cole Credit Property Trust II and III

Corporate Property Associates 16, 17

Dividend Capital Diversified Property Fund

Healthcare Trust of America

Hines

Inland Diversified

KBS I and II

KBS Strategic

Landmark Apartment Trust

Lightstone Value 

Retail Property of America

TNP Strategic Retail

United Development Fune III and IV

Columbus Property (Wells REIT II)

Wells Timberland

If you believe you were sold a non traded REIT based upon misrepresentations, you may be able to recover damages through FINRA arbitration. Contact us for more information.

Rex Securities Law , with offices in Boca Raton, FL,  and  Austin, TX,   provides representation to  investors  nationwide who are seeking recovery of investment losses due to the negligence or fraud of stockbrokers and broker dealers. If you have questions about how your account has been handled, call to speak with an experienced securities attorney.

Most cases handled on a contingent fee basis meaning that you do not pay legal fees unless we are successful.

Nationwide Representation

Rex Securities Law

TollFree: 877-224-3199

Florida-561 391 1900 

Texas-512-329-2870

CFD Investments, Inc. Broker Craig Morrison Suspended for Cutting/Pasting Customer Signatures

Gainesville, Florida

The Financial Industry Regulatory Authority (FINRA) is the largest independent regulator for all securities firms doing business in the United States. FINRA’s chief role is to protect investors by maintaining the fairness of the U.S. capital markets.

All stockbrokers and broker dealers (brokerage firms) are required to be licensed by and subject to the rules and regulations of FINRA. Each month FINRA publishes disciplinary actions against brokers and broker dealers. Discipline can range from monetary fines and suspensions, or in extreme cases, revocation of licensing and a bar from the securities industry.

See the FINRA website for current and historical disciplinary actions.

AUGUST 2013

Craig Robert Morrison (CRD #4490109, Registered Representative, Gainesville, Florida-not currently registered, ( previously registered with CFD Investments, Inc. 11/2012-12/2012, ING Financial Partners, Inc. 12/2010, ING Financial Advisors 03/1006-12/2010) submitted a Letter of Acceptance, Waiver and Consent in which he was fined $5,000 and suspended from association with any FINRA member in any capacity for three months. The fine must be paid either immediately upon Morrison’s reassociation with a FINRA member firm following his suspension, or prior to the filing of any application or request for relief from any statutory disqualification, whichever is earlier.

Without admitting or denying the findings, Morrison consented to the described sanctions and to the entry of findings that he falsified
customers’ documents by recycling the customers’ signatures from
previously signed documents and pasting their signatures onto new asset allocation change/ fund transfer forms, beneficiary designation forms and a Roth 403(b) salary reduction agreement. The findings stated that Morrison pasted the signatures without authorization, for transactions the customers otherwise had approved.

The suspension is in effect from July 1, 2013, through September 30, 2013. (FINRA Case #2012034371401)
If you have questions about investment losses or the way your brokerage account has been handled, please contact us to discuss your legal rights.

Rex Securities Law , located in Boca Raton, FL, provides representation to  investors  nationwide who are seeking recovery of investment losses due to the negligence or fraud of stockbrokers and broker dealers. If you have questions about how your account has been handled, call to speak with an experienced securities attorney. Most cases handled on a contingent fee basis meaning that you do not pay legal fees unless we are successful.

Rex Securities Law

561 391 1900