Stockbroker and Investment Fraud Blog

tag:blogger.com,1999:blog-1753449334118309082009-06-04T14:38:41.262-04:00Stockbroker and Investment Fraud BlogThe Stockbroker and Investment Fraud Blog discusses news regarding stockbroker and investment fraud, with an emphasis on news on the latest investment scams, and abuses by Wall Street brokerage firms, investment banks, stockbrokers, registered investment advisors and financial advisors.Sonn & Erezhttp://www.blogger.com/profile/18034619181628419321noreply@blogger.comBlogger17125tag:blogger.com,1999:blog-175344933411830908.post-59919209814551184632009-06-04T14:24:00.002-04:002009-06-04T14:38:41.273-04:00MORGAN KEEGAN FINED BY STATE OF ILLINOIS REGARDING RMK FUNDS

The state of Illinois found that Morgan Keegan had failed to implement adequate training, compliance, or marketing procedures in the sale of their proprietary RMK high yield bond funds, specifically failing to tell customers that they could not take these funds with them if they left the firm. See State of Illinois vs. Morgan Keegan, file#00500619 (June 4, 2007). "In my opinion, this was just the

Sonn & Erezhttp://www.blogger.com/profile/18034619181628419321noreply@blogger.com0tag:blogger.com,1999:blog-175344933411830908.post-73025345265129767402009-06-04T14:15:00.000-04:002009-06-04T14:16:40.991-04:00MORGAN KEEGAN BEING INVESTIGATED BY THE SEC

Morgan Keegan & Co. Inc., a subsidiary of Regions Financial (RF), disclosed this week in RF’s Form 10-Q filing with the SEC that the SEC staff issued it a Wells Notice in March indicating that it intends to recommend enforcement action to the Commission. According to RF,In March 2009, Morgan Keegan & Company, Inc. (”Morgan Keegan”), a wholly-owned subsidiary of Regions, received a Wells Notice

Sonn & Erezhttp://www.blogger.com/profile/18034619181628419321noreply@blogger.com0tag:blogger.com,1999:blog-175344933411830908.post-61461252386948678102009-06-04T14:14:00.000-04:002009-06-04T14:15:39.529-04:00MORGAN KEEGAN LOSES ARBITRATION CASES IN MISSISIPPI AND ARKANSAS

FORT LAUDERDALE, Fla., May 25, 2009 (GLOBE NEWSWIRE) -- Regions Financial Corp.'s (NYSE: RF) Morgan Keegan unit was recently hit with more bad verdicts in FINRA arbitration cases, including an award of $285,000 to a Jackson, Mississippi Vietnam Veteran for losses relating to RMK Select Intermediate Bond Fund (MKIBX), and $75,000 to a doctor in Little Rock, Arkansas, $950,000 for an NFL star and

Sonn & Erezhttp://www.blogger.com/profile/18034619181628419321noreply@blogger.com0tag:blogger.com,1999:blog-175344933411830908.post-56157930078237469672009-06-04T14:13:00.001-04:002009-06-04T14:13:56.212-04:00MORGAN KEEGAN LOSING ARBITRATION CASES

Regions Financial Corp.'s Morgan Keegan Loses Yet Another Arbitration Case Relating to Proprietary RMK High Yield Funds That Bought Toxic Waste Assets, Says Sonn & Erez PLC -- RF FORT LAUDERDALE, Fla., June 4, 2009 (GLOBE NEWSWIRE) -- Regions Financial Corp.'s (NYSE:RF) Morgan Keegan unit was again hit with yet another arbitration award relating to the sale of its proprietary high yield bond

Sonn & Erezhttp://www.blogger.com/profile/18034619181628419321noreply@blogger.com0tag:blogger.com,1999:blog-175344933411830908.post-86608555693490565062008-08-18T13:58:00.002-04:002008-08-18T15:09:01.066-04:00High Yield Bond Fund Suits on the Rise

Last year, many muni-bond funds took a hit as a "perfect storm" struck the markets, flattening the yield curve between long term munis and short term munis. Many bond funds took a hit. Now, investors are hitting back.Investors are beginning to file suit over the poor recommendations by their brokers to invest in certain High Yield Muni Bond Funds. Muni bond funds invest in debt issued by cities

Sonn & Erezhttp://www.blogger.com/profile/18034619181628419321noreply@blogger.com1tag:blogger.com,1999:blog-175344933411830908.post-41574877375615177972008-08-11T13:37:00.004-04:002008-08-11T13:51:15.347-04:00SEC CHARGES WEXTRUST, STEVEN BYERS, JOSPEH SHERESHEVSKY, AND OTHERS IN $255 MILLION PONZI SCHEME

Aug. 11, 2008 — The United States Securities and Exchange Commission filed charges against Wextrust Capital, LLC (Wextrust), its principals, and four affiliated Wextrust entities, alleging that defendants conducted a massive Ponzi-type scheme from 2005 or earlier that raised approximately $255 million from approximately 1,200 investors. The targets of the fraudulent offerings are primarily

Sonn & Erezhttp://www.blogger.com/profile/18034619181628419321noreply@blogger.com1tag:blogger.com,1999:blog-175344933411830908.post-3198779443703754742008-07-19T15:52:00.004-04:002008-07-19T16:08:51.108-04:00Mat / ASTA (Citigroup) Hedge Fund Investors Still Have Time To Sue or Settle

Citigroup Alternative Investments announced on July 15, 2008 today that the Company has extended the expiration date of the tender and exchange offers for each Portfolio to August 8, 2008. The deadline was July 15, 2008. "A substantial number of investors have not chosen to settle their claims against Citigroup," said Jeff Sonn, Esq., of Sonn & Erez, a securities attorney representing Mat

Sonn & Erezhttp://www.blogger.com/profile/18034619181628419321noreply@blogger.com0tag:blogger.com,1999:blog-175344933411830908.post-45502506910942038402008-07-19T15:42:00.003-04:002008-07-19T15:50:42.414-04:00WACHOVIA SECURITIES' OFFICES RAIDED BY SECURITIES REGULATORS AMID COMPLAINTS OF ABUSIVE SALES OF AUCTION RATE SECURITIES

Securities regulators from more than five states raided the St. Louis headquarters of Wachovia Securities LLC, seeking documents and records related to the company’s sale of auction rate securities.The regulators, led by officials from the office of Missouri secretary of state Robin Carnahan, executed subpoenas seeking information concerning Wachovia Securities’ sales practices, internal

Sonn & Erezhttp://www.blogger.com/profile/18034619181628419321noreply@blogger.com0tag:blogger.com,1999:blog-175344933411830908.post-1105273542214042832008-07-07T16:28:00.004-04:002008-07-08T11:26:16.596-04:00Condo-Hotel Buyers Sue Under Securities Laws

Condo-Hotel buyers are using the federal securities laws to try to get out of their purchase contracts. Current lawsuits around the country include the Resort at Singer Island, developed by WCI Communities, the Clearwater Cay Club, The Residences at MGM Grand and The Residences, a Condo Hotel by Turnberry. Some buyers' attorneys are now citing violations of the feder0al securitis laws, claiming

Sonn & Erezhttp://www.blogger.com/profile/18034619181628419321noreply@blogger.com0tag:blogger.com,1999:blog-175344933411830908.post-13160518454470492822008-06-17T18:20:00.003-04:002008-06-17T18:30:07.289-04:00SONN & EREZ TO REPRESENT MATT V INVESTORS AS AN ALTERNATIVE TO THE CLASS ACTION CASES

On May 1, 2008, a class action was commenced on behalf of all persons or entities who purchased or otherwise acquired shares of MAT Five LLC (“MAT Five”), marketed by Citigroup.The complaint charges MAT Five, Citigroup Global Markets Inc. (“Citigroup Global”) (the corporate and capital markets arm of Citigroup, Inc.’s (“Citigroup”) (NYSE:C) Corporate and Investment Banking group), Citigroup

Sonn & Erezhttp://www.blogger.com/profile/18034619181628419321noreply@blogger.com0tag:blogger.com,1999:blog-175344933411830908.post-53432095735383814472008-06-17T18:18:00.003-04:002008-06-30T14:22:29.025-04:00North American Clearing of Longwood, Florida Frozen by SEC

NORTH AMERICAN CLEARING CHARGED WITH FRAUD BY THE SEC (CASE nO. 6-08-CV-829-ORL-31-GJK(MD. FLA)The Securities and Exchange Commission (SEC) today announced that it has obtained an asset freeze and other emergency relief to protect investors whose funds were at risk due to fraudulent misconduct at North American Clearing, Inc., a Longwood, Florida based general securities and clearing brokerage

Sonn & Erezhttp://www.blogger.com/profile/18034619181628419321noreply@blogger.com0tag:blogger.com,1999:blog-175344933411830908.post-9873567902648365982008-05-08T11:01:00.000-04:002008-05-08T11:02:22.954-04:00Sonn & Erez Hired by Investors To Sue Charles Schwab Over Its YieldPlus Funds -- SCHW, SWYSX, SWYPX

May 8, 2008- Sonn & Erez has been retained by investors to sue Charles Schwab over the misrepresentations in marketing their YieldPlus Funds, which have lost as much as 80% in the past year due to reckless investments in mortgage backed securities. Many investors were seeking the safety of CDs or moneymarkets, and were steered into the YildPlus Funds without proper disclosure.A class-action

Sonn & Erezhttp://www.blogger.com/profile/18034619181628419321noreply@blogger.com0tag:blogger.com,1999:blog-175344933411830908.post-83766780063772884742008-05-07T20:12:00.000-04:002008-05-07T20:17:48.703-04:00Sonn & Erez Suing Morgan Keegan For Investors Who Suffered Losses in Morgan Keegan Bond Funds

Many investtors lost large sums of money in the Region Morgan Keegan Select High Income Fund; Regions Morgan Keegan Strategic Income Fund; Regions Morgan Keegan Select Intermediate Bond Fund; Regions Morgan Keegan Multi-Sector High Income Fund; or the Regions Morgan Keegan Advantage Income Fund. The law firm of Sonn & Erez does not believe that these losses were caused solely by market

Sonn & Erezhttp://www.blogger.com/profile/18034619181628419321noreply@blogger.com0tag:blogger.com,1999:blog-175344933411830908.post-26901192247901084352008-05-07T20:11:00.001-04:002008-05-07T20:12:23.640-04:00Lawyer Targets Morgan Keegan

(reprint from the South Florida Business Journal, 2/29/2008) A Fort Lauderdale lawyer is gathering investors and planning a lawsuit against mutual fund operator Morgan Keegan, an affiliate of Regions Financial Corp. (NYSE: RF).The action would involve investors who lost money on funds that invested in some of the mortgage-related products that have gained headlines nationally, including

Sonn & Erezhttp://www.blogger.com/profile/18034619181628419321noreply@blogger.com0tag:blogger.com,1999:blog-175344933411830908.post-11078345578619113462008-05-07T20:03:00.000-04:002008-05-07T20:09:36.325-04:00Morgan Keegan Mutual Funds Manager Replaced

April 21, 2008-Morgan Asset Management will turn over investment management of four funds to Hyperion Brookfield Asset Management Inc. pending shareholder approval in July.An agreement was reached between the two firms Monday and announced after markets closed.The four funds Hyperion will serve as investment adviser to include the RMK Advantage Income Fund Inc. (NYSE: RMA), RMK High Income Fund

Sonn & Erezhttp://www.blogger.com/profile/18034619181628419321noreply@blogger.com0tag:blogger.com,1999:blog-175344933411830908.post-39123499003857230152008-05-05T18:50:00.000-04:002008-05-05T18:56:16.006-04:00Morgan Keegan Bond Fund Fraud Lawsuit Filed

Sonn & Erez Attorneys File Arbitration Claims Against Morgan Keegan for Bond Fund LossesFebruary 21, 2008FORT LAUDERDALE, Fla., Feb. 21, 2008 (PRIME NEWSWIRE) -- Sonn & Erez (http://www.sonnerez.com/) attorneys today announced that it has filed an arbitration action against Morgan Keegan & Company Inc. relating to the sales and management of its proprietary bond mutual funds. Sonn & Erez filed

Sonn & Erezhttp://www.blogger.com/profile/18034619181628419321noreply@blogger.com0tag:blogger.com,1999:blog-175344933411830908.post-68031668132833803732008-05-05T18:13:00.000-04:002008-05-05T18:15:17.707-04:00Auction Rate Securities Fraud

Auction rate securities (ARS) are long-term variable rate bonds tied to short-term interest rates that are reset through a "dutch auction" process which occurs every 7 to 35 days. The holder can participate in the auction and liquidate the auction rate securities to prospective buyers through their broker/dealer. The holder does not have the right to put the security back to the issuer.Auction

Sonn & Erezhttp://www.blogger.com/profile/18034619181628419321noreply@blogger.com