BDC INVESTOR ALERT: Medley Capital Corp Files for Bankruptcy Protection in the Wake of Portfolio Loan Losses Attributed to the COVID Pandemic

BDC INVESTOR ALERT: Medley Capital Corp Files for Bankruptcy Protection in the Wake of Portfolio Loan Losses Attributed to the COVID Pandemic

On March 7, 2021, Medley Capital Corp. (NYSE: MCC), a direct subsidiary of Medley Management Inc. (NYSE: MDLY), filed for Bankruptcy Protection from creditors – mostly investors.  Medley Management Inc., is an “alternative asset management firm offering yield solutions to retail and institutional investors” through two Business Development Companies (“BDCs”), Medley Capital and Sierra Income Corp., a non-traded BDC. Medley Capital Corp and Sierra Income Corp, invested in non-public companies, under the direction and advice of Medley Management’s affiliate SIC Advisors, LLC.  The two BDCs made loans to non-public companies that did not have access to the traditional publicly traded…

LORDSTOWN MOTORS CORP CLASS ACTION ALERT: Securities Law Firm KlaymanToskes Comments on Recent Class Action Lawsuit in Electric Vehicle Truck Manufacturer

LORDSTOWN MOTORS CORP CLASS ACTION ALERT: Securities Law Firm KlaymanToskes Comments on Recent Class Action Lawsuit in Electric Vehicle Truck Manufacturer

Boca Raton, Florida — March 22, 2021 — The Securities Law Firm of KlaymanToskes (“KT”) provides a Lordstown Motors Corp. (NASDAQ:RIDE) Alert to shareholders concerning the Class Action Lawsuit (Case 21-CV-00616) filed March 18, 2021 in the United States District Court of the Northern District of Ohio, Youngstown Division, for the class period from August 3, 2020 and March 17, 2021.   Lordstown Motors Corp. is a nascent company with a limited history of operating as manufacturer of Electric Vehicle (EV) trucks.  According to the class action lawsuit, “Throughout the Class Period, Defendants made materially false and misleading statements regarding the…

FINRA Fines VALIC Financial Advisors $350,000 for Failure to Supervise Variable Annuity Sales Practices

FINRA Fines VALIC Financial Advisors $350,000 for Failure to Supervise Variable Annuity Sales Practices

On January 8, 2021, VALIC Financial Advisors agreed to a Letter of Acceptance, Waiver and Consent (AWC) (Case No. 2018060548501)  which included a Fine of $350,000 by the Financial Industry Financial Authority (FINRA), the securities industry regulator established to protect investors.  According to the agreement with FINRA, VALIC Financial Advisors “consented to the sanctions and to findings that it failed to establish a reasonably designed system and written procedures for the surveillance of rates of variable annuity replacements and for corrective action in the case of inappropriate replacements”.  FINRA also determined. “The procedures also failed to provide guidance as to…

KlaymanToskes Investigates JP Morgan in Light of OCC $250 Million Civil Money Penalty Against JP Morgan Chase Bank, N.A. for Inadequate Supervision of Investment Advisory Business

KlaymanToskes Investigates JP Morgan in Light of OCC $250 Million Civil Money Penalty Against JP Morgan Chase Bank, N.A. for Inadequate Supervision of Investment Advisory Business

On November 24, 2020, the Office of the Comptroller of the Currency (“OCC”) announced it would assess a $250 million civil money penalty against JPMorgan Chase Bank, N.A.  The OCC is responsible for the regulatory oversight of all Commercial Banks, including Bank Holding Companies such as JP Morgan Chase, which has under its umbrella of financial companies, broker dealer JP Morgan.  According to the news release, OCC “intends to initiate civil money penalty proceedings against the Bank pursuant to 12 U.S.C. § 1818(i), through the issuance of a Notice of Assessment of a Civil Money Penalty, for engaging in unsafe…

SEC Charges Broker-Dealers and Investment Advisory Firms for the Sales of Complex Exchange-Traded Products With More than $3 Million Returned to Retail Investors

SEC Charges Broker-Dealers and Investment Advisory Firms for the Sales of Complex Exchange-Traded Products With More than $3 Million Returned to Retail Investors

The securities industry watchdog, the Securities and Exchange Commission (“SC”) filed settled actions against three investment advisory firms and two dually-registered broker-dealer and advisory firms for violations that related to unsuitable sales of complex exchange-traded products (“ETFs”) to retail investors for the period between January 2016 and April 2020. According to SEC, “The actions were filed against American Portfolios Financial Services/American Portfolios Advisors Inc., Benjamin F. Edwards & Company Inc., Royal Alliance Associates Inc., Securities America Advisors Inc., and Summit Financial Group Inc. – will result in the return of over $3 million to harmed investors’.  According to a news release by the SEC on…

Department of Labor Fiduciary 60-Day Rule Delays Financial Industry Crunch Time

Department of Labor Fiduciary 60-Day Rule Delays Financial Industry Crunch Time

The new Department of Labor (DOL) Fiduciary Rule that was enacted and scheduled to begin this month on April 10th has been postponed 60 days to June 9th.  Brokerage Firms and Financial Advisors are responsible for compliance with the rules as they are now written.  Keeping in mind that the requirements may be modified or eliminated based on the what happens during the 60-day delay. Klayman & Toskes, P.A. is monitoring the developments and will keep investors posted and provide further updates as they become available. Best Interest Contract (BIC) Brokerage firms and financial advisors who recommend investment of retirement funds…

NOTICE TO MORGAN STANLEY CLIENTS: Klayman & Toskes, P.A. Announces Investigation of Morgan Stanley Following $8 Million in SEC Fines for Exchange Traded Fund Violations

NOTICE TO MORGAN STANLEY CLIENTS: Klayman & Toskes, P.A. Announces Investigation of Morgan Stanley Following $8 Million in SEC Fines for Exchange Traded Fund Violations

New York, NY — February 21, 2017 – The Securities Arbitration Law Firm of Klayman & Toskes, P.A.,(K&T) www.klaymantoskes.com, announces an investigation into sales practice violations by Morgan Stanley (NYSE:MS) following $8 million in fines levied by the Securities Exchange Commission (SEC) related to Exchange Traded Funds (ETFs). On February 14, 2017, the SEC imposed a Cease and Desist Order and Remedial Actions against Morgan Stanley for sales practice violations related to recommended investments in single-inverse ETFs for advisory clients in non-discretionary accounts.  According to Morgan Stanley compliance procedures, recommended investments in single-inverse ETFS had two requirements: Advisory clients were…

FINRA Fines Broker $219,000 for Private Placement Violations

FINRA Fines Broker $219,000 for Private Placement Violations

Thomas Edward Brenner Jr. (CRD #1489233, Orrville, Ohio) submitted an AWC in which he was assessed a deferred fine of $30,000, suspended from association with any FINRA member in any capacity for 16 months, and ordered to pay deferred disgorgement of commissions of $189,000, plus interest. Without admitting or denying the findings, Brenner consented to the sanctions and to the entry of findings that he engaged in two separate private placements which were rife with supervisory and substantive violations.  The findings stated that in soliciting customers to purchase a private placement offering, Brenner provided customers with a private placement memorandum…

NOTICE TO WELLS FARGO AND MORGAN STANLEY CLIENTS – Klayman & Toskes, P.A. Investigates Cross Selling Incentive Programs Following FINRA Targeted Examination Letter to Brokerage Industry

NOTICE TO WELLS FARGO AND MORGAN STANLEY CLIENTS – Klayman & Toskes, P.A. Investigates Cross Selling Incentive Programs Following FINRA Targeted Examination Letter to Brokerage Industry

New York, NY – October 31, 2016 — The Securities Arbitration Law Firm of Klayman & Toskes, P.A. (“K&T”), www.klaymantoskes.com, has opened an industry-wide investigation of brokerage firms into potential Financial Industry Regulatory Authority (FINRA) sales practice violations of “cross selling” incentive programs following targeted examination letter to member firms.  According to FINRA, the Targeted Examination Letter sent is designed to review “cross selling programs” used by brokerage firms for FINRA sales practice rules and regulations.  This investigation follows regulatory actions against Wells Fargo (NYSE:WFC) and Morgan Stanley (NYSE:MS) for “cross selling” programs which violated securities industry regulations. The FINRA…

FINRA Submits Rule to SEC to Protect Against Elderly Financial Fraud

FINRA Submits Rule to SEC to Protect Against Elderly Financial Fraud

The Financial Industry Regulatory Authority (FINRA) has submitted new rule changes for the Securities Exchange Commission (SEC) to approve which is designed to help prevent elder financial fraud.  The proposed rule changes will require brokerage firms to “make reasonable efforts” to obtain contact information for “trusted” individuals who are designated by elderly account holders.  The “trusted” individuals, such as close friends and family members, would be contacted by brokerage firms in the event of suspicious activities related to an elderly person’s investment accounts.  In a recent press release, FINRA proposed changes that would allow brokerage firms to place a temporary…

SEC Bars LPL Financial advisor, Paul Lebel for Churning Client Mutual Fund Investments

SEC Bars LPL Financial advisor, Paul Lebel for Churning Client Mutual Fund Investments

On October 18, 2016, the Securities Exchange Commission (SEC) barred LPL Financial advisor, Paul Lebel for churning and excessively trading mutual funds in customer accounts for the sole purpose of his own personal enrichment.   The excessive trading, also known as “churning” occurred during the period from 2008 to 2014, “during his employment with LPL, he defrauded four customers by churning several of their accounts,” according to the SEC administrative proceeding. According to the SEC which imposed Remedial Sanctions and a Cease and Desist Order which was a Paul Lebel. “In particular, Lebel exercised de facto control over these customers’ accounts…

FINRA Sanctions Securities America for Not Offering Certain Clients Mutual Fund Discounts

FINRA Sanctions Securities America for Not Offering Certain Clients Mutual Fund Discounts

In September 2016, the Financial Industry Regulatory Authority (FINRA) sanctioned Securities America for Mutual Fund Sales Practice Violations. Securities America, Inc. (CRD #10205, La Vista, Nebraska) submitted an AWC in which the firm was censured and required to provide FINRA with a remediation plan to remediate eligible customers who qualified for, but did not receive, the applicable mutual fund sales-charge waiver. As part of this settlement, the firm agrees to pay restitution to eligible customers, which is estimated to total $1,541,419 (the amount eligible customers were overcharged, inclusive of interest). Without admitting or denying the findings, the firm consented to…

Wells Fargo Advisors Targeted by Plaintiff Attorneys

Wells Fargo Advisors Targeted by Plaintiff Attorneys

Published by Financial Advisor IQ October 12, 2016 Allegations of improper cross-selling methods at Wells Fargo continue to spread into its advisor business following the retail bank’s settlement with and subsequent grilling by regulators. One law firm has launched an investigation into whether cross-selling practices at Wells Fargo Advisors broke Finra rules. Securities law firm Klayman & Toskes, which represents retail and institutional investors, says it’s looking into possible Finra violations at Wells Fargo Advisors similar to the allegations reported last week in the Charlotte Observer. The Observer was approached by several former clients and a former manager at Wells…

Wells Fargo Brokerage Customer Alert -- The Securities Arbitration Law Firm of Klayman & Toskes, P.A. Opens Investigation into Wells Fargo “Cross-Selling” Efforts for Violations of Securities Industry Regulations

Wells Fargo Brokerage Customer Alert -- The Securities Arbitration Law Firm of Klayman & Toskes, P.A. Opens Investigation into Wells Fargo “Cross-Selling” Efforts for Violations of Securities Industry Regulations

Boca Raton, Florida (Businesswire) – October 10, 2016 — The Securities Arbitration Law Firm of Klayman & Toskes, P.A. (“K&T”), www.klaymantoskes.com, has opened an investigation into potential Financial Industry Regulatory Authority (FINRA) sales practice violations by Wells Fargo Advisors and its financial advisors for activities similar to those recently reported in The Charlotte Observer.  According to reports, Wells Fargo (NYSE:WFC) used aggressive “cross-selling” tactics with its bank clients in order to open investment accounts through its brokerage firm, Wells Fargo Advisors.  According to a former bank branch manager, new account goals had minimum sales requirements across all product lines which…

Elder Financial Fraud Victims:  The Securities Arbitration Law Firm of Klayman & Toskes, P.A. Expands Practice to Representation of Victims of Elder Financial Fraud

Elder Financial Fraud Victims: The Securities Arbitration Law Firm of Klayman & Toskes, P.A. Expands Practice to Representation of Victims of Elder Financial Fraud

Boca Raton, Florida (GLOBE NEWSWIRE) – September 27, 2015 – The Securities Arbitration Law Firm of Klayman & Toskes, P.A. (“K&T”), www.klaymantoskes.com, expands its practice to include the representation of victims of elder financial fraud.  According to the Department of Justice (“DOJ”), U.S. Attorney’s Office Elder Justice Task Force reports, “Speaking only of the financial impact of elder abuse, it is estimated that elderly Americans lose an estimated $2.6 billion or more annually due to financial abuse or exploitation.”  The DOJ’s Elder Justice Initiative website provides important information for the elderly and their families.  The Elder Justice Task Force is…

UPS EMPLOYEE/SHAREHOLDER ALERT: The Securities Arbitration Law Firm of Klayman & Toskes, P.A. Files $500,000 FINRA Arbitration Claim on Behalf of a UPS Employee for Losses Sustained as a result of Merrill Lynch’s Unsuitable Recommendation to Invest in Rampart Options Management Services Program

UPS EMPLOYEE/SHAREHOLDER ALERT: The Securities Arbitration Law Firm of Klayman & Toskes, P.A. Files $500,000 FINRA Arbitration Claim on Behalf of a UPS Employee for Losses Sustained as a result of Merrill Lynch’s Unsuitable Recommendation to Invest in Rampart Options Management Services Program

NEW YORK August 26, 2016 (GLOBE NEWSWIRE) — The securities arbitration law firm of Klayman & Toskes, P.A. (“K&T”), www.klaymantoskes.com, has filed a $500,000 FINRA arbitration claim [FINRA Case No. 16-01835] on behalf of a United Parcel Service (“UPS”) (NYSE: UPS) employee for losses sustained as a result of Merrill Lynch’s unsuitable recommendation to invest in Rampart Options Management Services Program (“ROMS”).  Merrill Lynch offers the ROMS program on a discretionary basis exclusively to high-net-worth clients holding stock positions exceeding $1 million through Rampart Investment Management Company (RIMCO). According to K&T, the investigation focuses on Merrill Lynch’s sales practices for…

PLATINUM PARTNERS LP INVESTOR ALERT – Notice to Investors Who Purchased Platinum Partners LP Hedge Funds through Financial Advisors and Brokerage Firms: The Securities Arbitration Law Firm of Klayman & Toskes, P.A. Opens Investigation

PLATINUM PARTNERS LP INVESTOR ALERT – Notice to Investors Who Purchased Platinum Partners LP Hedge Funds through Financial Advisors and Brokerage Firms: The Securities Arbitration Law Firm of Klayman & Toskes, P.A. Opens Investigation

New York, New York (Globe Newswire) — August 17, 2016 — The Securities Arbitration Law Firm of Klayman & Toskes, P.A. (“K&T”), www.klaymantoskes.com, has opened an investigation into potential Financial Industry Regulatory Authority (FINRA) sales practice violations by financial advisors and brokerage firms related to the Platinum Partners Value Arbitrage Fund and the Partners Credit Opportunities Fund.  This investigation follows a recent letter sent to Platinum Partners investors that the hedge funds would be liquidated and reports that the  Securities and Exchange Commission (SEC) has begun an investigation of Platinum Partners for bribery and fraud. According to K&T founder, Lawrence…

METLIFE VARIABLE ANNUITY ALERT -- Securities Arbitration Law Firm of Klayman & Toskes, P.A. Announces Investigation of MetLife Securities Misconduct in Light of $25 Million in Fines and Restitution Imposed By FINRA

METLIFE VARIABLE ANNUITY ALERT -- Securities Arbitration Law Firm of Klayman & Toskes, P.A. Announces Investigation of MetLife Securities Misconduct in Light of $25 Million in Fines and Restitution Imposed By FINRA

New York, New York (Globe Newswire) — August 12, 2016 — The Securities Arbitration Law Firm of Klayman & Toskes, P.A., www.klaymantoskes.com, announces investigation of MetLife Securities Inc. (“MetLife”)  misconduct in light of $20 million in fines and $5 million in restitution imposed by the Financial Industry Regulatory Authority (FINRA), for violations related to variable annuity replacement transactions. According to the Acceptance, Waiver and Consent, (FINRA No. 2014040870001), the fines and restitutions were due to FINRA’s findings that MetLife had made “negligent material misrepresentations and omissions on variable annuity (“VA”) replacement applications for tens of thousands of customers.” FINRA commented…

BUSINESS DEVELOPMENT COMPANY (BDC) INVESTOR ALERT: The Securities Arbitration Law Firm of Klayman & Toskes, P.A. Opens Investigation into Potential Brokerage Firm Violations Related to Sale of Non-Traded Business Development Companies in Response to FINRA Targeted Examination Letter

BUSINESS DEVELOPMENT COMPANY (BDC) INVESTOR ALERT: The Securities Arbitration Law Firm of Klayman & Toskes, P.A. Opens Investigation into Potential Brokerage Firm Violations Related to Sale of Non-Traded Business Development Companies in Response to FINRA Targeted Examination Letter

New York (Globe Newswire) – August 10, 2016 – The Securities Arbitration Law Firm of Klayman & Toskes, P.A. (“K&T”), www.klaymantoskes.com, has opened an investigation into potential brokerage firm violations related to sale of non-traded Business Development Companies (“BDCs”) in response to the Financial Industry Regulatory Authority (FINRA) Targeted Examination Letter sent to member brokerage firms. The scope of FINRA’s examination includes all information and documents related to non-traded BDCs, including due diligence procedures, for the period from January 1, 2015 through June 30, 2016.  Earlier this year, FINRA published its annual Regulatory and Examination Priorities Letter to highlight risks…

Notice to Clients of Andrew Yocum and Morgan Stanley: The Securities Arbitration Law Firm of Klayman & Toskes, P.A. has Commenced an Investigation in Light of Recent Regulatory Action Barring Andrew Yocum from Acting as a Broker

Notice to Clients of Andrew Yocum and Morgan Stanley: The Securities Arbitration Law Firm of Klayman & Toskes, P.A. has Commenced an Investigation in Light of Recent Regulatory Action Barring Andrew Yocum from Acting as a Broker

New York (Globe Newswire) – August 2, 2016 – The Securities Arbitration Law Firm of Klayman & Toskes¸ P.A. (“K&T”), www.klaymantoskes.com, has commenced an investigation in light of recent regulatory action barring Andrew Yocum (“Yocum”) from acting as a broker or otherwise associating with firms that sell securities to the public. The Financial Industry Regulatory Authority (“FINRA”) recently barred Yocum from the securities industry after he failed to respond to a FINRA investigation.  (FINRA No.  2015048065701).  FINRA sanctioned Yocum after he refused to appear for on-the-record testimony in connection with an investigation into whether he effected unauthorized transactions, exercised discretion…