Indiana Securities Laws
The Indiana securities laws serve two primary purposes; to regulate the raising of capital in the state, and to provide protections for investors.
The Indiana securities laws can be accessed here.
FINRA, Illinois bar David Hackney, former broker with LPL.
On June 23, 2015 the state of Illinois, through its Secretary of State’s Securities Division published a consent order revoking David Hackney’s securities salesperson and investment advisor registrations, and permanently barred him from selling securities in the state of Illinois.
The Securities Divisions’ complaint stems from an investigation into excessive trading in at least three elderly customer accounts while Hackney was a registered representative with LPL Financial.
Thomas Hayes, former broker with Bosc sued by Bernalillo County over bond portfolio losses.
On November 20, 2014 the state of New Mexico’s Securities Division issued an opinion and notice of contemplated action against Thomas Hayes, a former registered representative with Bosc, Inc., as well as Bosc, Inc. for making unsuitable investment recommendations on behalf of the Bernalillo County Treasurer’s office.
The Securities Divisions’ complaint stems from an investigation into portfolio losses suffered by Bernalillo County via its investments in Fannie Mae and Freddie Mac bonds. The investigation found that the portfolio constructed by Hayes exposed the county to significant risk, far outweighing any potential gains expected to be realized. In order to mitigate the risk, the county sold the portfolio and incurred a $16 million loss
John Waszolek charged by Arizona Corporation Commissioner.
On July 8, 2016 the Corporation Commissioner for the state of Arizona, acting through the Securities Division charged John Waszolek, a former registered representative with Morgan Stanley and Raymond James with violations of the Securities Act of Arizona, specifically section 44-1801.
The Securities Divisions’ complaint stems from an underlying FINRA Enforcement proceeding that found that Waszolek took advantage of an elderly client by having the client appoint Waszolek as a successor trustee and beneficiary of a lucrative trust, despite knowing of the client’s declining mental condition and lack of capacity.
Community National Bank IRA Custodian for self directed retirement accounts
The use of self directed IRAs has soared in the past ten years. IRA custodians like Community National Bank allow individuals to make their own investment decisions with their IRA funds. Investors looking for non-traditional investments can roll “qualified” pretax funds from a 401k or a pension plan into a self-directed IRA. Once the funds are in the account the investor “directs” the IRA custodian to purchase an investment, which is usually memorialized by a promissory note, a contract or shares of stock. Once a year the IRA custodian will contact the investment sponsor and ask for a value on the investment, and will report that value to the IRS to ensure that the investor isn’t charged taxes on the investment.
Self-directed IRA custodians like Community National Bank allow investors to purchase investments that aren’t traded on the stock exchange like non traded REITs such as Behringer Harvard, KBS, Inland American, as well as equipment leasing programs such as Cypress, ICON and oil and gas exploration companies. While this gives investors more choices, it also opens the door to being fleeced by unscrupulous investment promoters.
Update on Lawsuit against Kingdom Trust Company
A lawsuit filed in the US District Court for the Southern District of Ohio against Kingdom Trust Company for its role (or lack thereof) in the William Apostelos ponzi scheme has been the subject of intense motion practice between the parties. At issue is Plaintiffs’ claim that Kingdom “materially aided” the ponzi scheme. Kingdom filed a motion to dismiss, arguing that it did nothing more than provide “routine banking” services to investors.
The motion to dismiss, opposition and reply can be found here:
South Carolina Securities Laws
The South Carolina securities laws serve two primary purposes; to regulate the raising of capital in the state, and to provide protections for investors.
The South Carolina securities laws can be accessed here.
Illinois Securities Laws
The Illinois securities laws serve two primary purposes; to regulate the raising of capital in the state, and to provide protections for investors.
The Illinois securities laws can be accessed here.
Idaho Securities Laws
The Idaho securities laws serve two primary purposes; to regulate the raising of capital in the state, and to provide protections for investors.
The Idaho securities laws can be accessed here.
Hawaii Securities Laws
The Hawaii securities laws serve two primary purposes; to regulate the raising of capital in the state, and to provide protections for investors.
The Hawaii securities laws can be accessed here.
Securities Fraud Lawyer Blog