Reg A+ Cyrptocurrency Offering Earns An F

In 2012, Congress passed the Jumpstart our Business Startups or JOBS Act, which was designed to ease capital raising requirements for emerging growth companies which have $1 billion or less in annual revenue. It was a big deal at the time –  a bipartisan effort in Washington to show that the federal government could help …

SEC Files Charges Against Theranos for Alleged $750 Million Fraud

In March, the Securities and Exchange Commission (SEC) announced that it has settled charges filed against Theranos and its founder and CEO Elizabeth Holmes. Charges against the company’s former president, Ramesh Balwani, remain pending. The charges stem from what the SEC called, “an elaborate, years-long fraud,” that resulted in the company taking in approximately $750 …

Proposed Law Would Set Aside Funds to Pay Investors Who Are Unable to Collect After FINRA Arbitration

For investors who have suffered fraudulent losses, one of the primary means of financial recovery is to pursue arbitration before the Financial Industry Regulatory Authority (FINRA). Arbitration provides a more efficient and more cost-effective alternative to litigation; and, since registered brokers are required to arbitrate most investor claims, initiating FINRA arbitration will often be the …

Tech Wreck 2.0

In the year 2000, when the historic “Tech Bubble” popped, millions of investors were left holding the bag after their financial advisors over-concentrated them in unsuitable and risky high technology and internet stocks. What followed was a wave of investment fraud cases against firms like Merrill Lynch, Morgan Stanley and Citigroup, whose research analysts hyped companies …

401k Losses? You May Have a Claim for Financial Fraud

As an employee who is saving for retirement, you are told to expect variations in the value of your 401k over time. The market fluctuates. Unanticipated events impact the value of blue chip stocks. But, in the end, if you save enough for a long enough period of time, you should ultimately have the funds …

Are CLOs The Next CDOs?

We all know that the financial crisis was caused by risky mortgages and excessive leverage deployed by the banks. When the housing market crashed in 2007, the underlying mortgages collapsed in value, ruined the banks’ balance sheets and caused the economy to crater. These risky mortgages were packaged and sliced up into tranches of collateralized …

Alleged Investment Scam Artists Agrees to Repay $81 Million in Investor Funds

In February, the Securities and Exchange Commission (SEC) announced that it has reached a settlement with an alleged investment scam artist who, according to the SEC’s complaint, misused more than $81 million in investor funds. While the claimed businessman reportedly told investors that their money would be used to fund the construction of a ski …

Margin Use Could Wipe Out Retail Investors’ Portfolios

During the past nine years of a rising stock market, investors have juiced their gains by buying on margin.  Buyer beware, those gains could be wiped out in an instant. The amount of money at risk is staggering. Retail and institutional investors have borrowed a record $642.8 billion against their portfolios as they try to …

Challenges Faced by Bitcoin Investors

You have probably heard a lot about Bitcoin by now, and you’ve likely even read some stories about Bitcoin millionaires – some of whom are regular people, and even teenagers, who figured out how to mine Bitcoin or who got into this cryptocurrency investment early when coins cost almost nothing. With all the news about …