Giarrusso Law Group LLC

The legislation, if enacted into law, would direct the SEC to establish an examination whereby successful participants could be certified as accredited investors.

House Passes Bill Expanding Pool of Accredited Investors — Securities Lawyers. Nationwide. | Giarrusso Law Group LLC The bill directs the SEC to establish an examination whereby successful participants could be certified as accredited investors.

Alliance Bernstein's well-regarded options overlay program may have been misrepresented to investors.

Alliance Bernstein Option Advantage Program May Have Been Misrepresented to Investors — Securities Lawyers. Nationwide. | Giarrusso Law Group LLC When markets become volatile, such options strategies can lead to significant losses for uninformed retail investors.

The NASAA's Annual List is based on a survey of state, provincial, and territorial securities regulators who were asked to name the most critical products and practices in 2023. The top three concerns were digital asset fraud, “pig-butchering” schemes, and social media and internet schemes.

NASAA’s Annual List Identifies Top Investor Threats for 2023 — Securities Lawyers. Nationwide. | Giarrusso Law Group LLC The top three concerns were digital asset fraud, “pig-butchering” schemes, and social media and internet schemes.

Hartman, a publicly registered non-traded REIT, recently advised securities regulators that the ability to continue as a going concern is in doubt.

Hartman vREIT and Silver Star Properties REIT Investors May Have FINRA Claims to Recover Losses — Securities Lawyers. Nationwide. | Giarrusso Law Group LLC Hartman, a publicly registered non-traded REIT, recently advised securities regulators that the ability to continue as a going concern is in doubt

Prospect BDC’s financial challenges underscore the inherently risky nature of the Company’s business model and, consequently, the risky and unsuitable nature of non-traded BDCs for many retail investors.

Prospect BDC Investors May Have FINRA Arbitration Claims to Recover Losses — Securities Lawyers. Nationwide. | Giarrusso Law Group LLC Prospect BDC’s financial challenges underscore the inherently risky nature of the Company’s business model and, consequently, the risky and unsuitable nature of non-traded BDCs for many retail investors.

Of particular importance is FINRA’s continued emphasis on ensuring broker-dealer compliance with Regulation Best Interest and communications issues.

FINRA’s 2023 Risk Monitoring Report Emphasizes Reg BI Compliance and Communications Issues — Securities Lawyers. Nationwide. | Giarrusso Law Group LLC Of particular importance is FINRA’s continued emphasis on ensuring broker-dealer compliance with Regulation Best Interest and communications issues as they relate to, among other things, mobile apps, cryptocurrency assets, private placements, and variable annuities.

Unfortunately for GWG’s L Bond retail investors, the Company has encountered recent regulatory and financial headwinds. This is especially problematic for investors who were nearing or in retirement and seeking income, safety, and liquidity.

GWG L Bond Investors May Have FINRA Arbitration Claims To Recover Their Losses — Securities Lawyers. Nationwide. | Giarrusso Law Group LLC Unfortunately for GWG’s L Bond retail investors, the Company has encountered recent regulatory and financial headwinds. This is especially problematic for investors who were nearing or in retirement and seeking income, safety, and liquidity.

Giarrusso Law Group LLC continues its investigation into inappropriate recommendations by certain financial advisors to invest in GWG L Bonds.

Investor Alert — Texas Broker Subject of Complaint over GWG L Bonds — Securities Lawyers. Nationwide. | Giarrusso Law Group LLC Giarrusso Law Group LLC continues its investigation into inappropriate recommendations by certain financial advisors to invest in GWG L Bonds.

Investors in KBS may face substantial losses if a recently announced plan for the company’s liquidation and dissolution is approved.

Investors Face Substantial Losses on Potential Liquidation of KBS Growth & Income REIT — Securities Lawyers. Nationwide. | Giarrusso Law Group LLC Investors in KBS may face substantial losses if a recently announced plan for the company’s liquidation and dissolution is approved.

The SEC alleges that Bankman-Fried engaged in a scheme to defraud FTX equity investors – including U.S. equity investors – out of more than $1.8 billion.

Crypto Industry Alert – Samuel Bankman-Fried Charged with Defrauding FTX Investors — Securities Lawyers. Nationwide. | Giarrusso Law Group LLC The SEC alleges that Bankman-Fried engaged in a scheme to defraud FTX equity investors – including U.S. equity investors – out of more than $1.8 billion.

The REIT recently warned that its portfolio is under significant duress.

Investors in KBS Growth & Income REIT May Have FINRA Arbitration Claims — Securities Lawyers. Nationwide. | Giarrusso Law Group LLC KBS cited Covid-19, civil unrest, and a drop in oil prices as all negatively impacting its property portfolio in Houston, Portland, and Chicago.

The SEC has charged a former Chicago-area financial advisor with stealing more than $1.2 million from an elderly client who currently suffers from dementia and using the funds for personal and business expenses.

SEC Charges Former LPL Advisor Bradley Goodbred with Defrauding Elderly Client of $1.2 Million — Securities Lawyers. Nationwide. | Giarrusso Law Group LLC The SEC has charged a former Chicago-area financial advisor with stealing more than $1.2 million from an elderly client who currently suffers from dementia and using the funds for personal and business expenses.

The Final Rule, which provides the SEC with additional flexibility to pay whistleblower awards, becomes effective on October 3, 2022.

SEC Releases Final Rule Enhancing Potential Whistleblower Program Awards — Securities Lawyers. Nationwide. | Giarrusso Law Group LLC The Final Rule, which provides the SEC with additional flexibility to pay whistleblower awards, becomes effective on October 3, 2022.

The SEC has charged a former Georgia-based financial advisor with misappropriating at least $1.7 million from clients for personal expenses.

SEC Charges Former LPL Advisor Eric Hollifield With Misappropriating $1.7 Million — Securities Lawyers. Nationwide. | Giarrusso Law Group LLC The SEC has charged a former Georgia-based financial advisor with misappropriating at least $1.7 million from clients for personal expenses.

The SEC recently informed lawmakers that it may pursue additional enforcement actions related to Regulation Best Interest or "Reg BI" which establishes an enhanced standard of conduct for broker-dealers and associated persons.

SEC Considering Additional Reg BI Enforcement Actions — Securities Lawyers. Nationwide. | Giarrusso Law Group LLC The SEC recently informed lawmakers that it may pursue additional enforcement actions related to Regulation Best Interest or "Reg BI" which establishes an enhanced standard of conduct for broker-dealers and associated persons.

https://www.gialawgroup.com/blog/062822-investors-in-infinity-q-diversified-alpha-fund-may-have-finra-arbitration-claims-to-recover-losses Infinity Q’s investment holdings and strategy entailed what amounted to bets on exotic investment products known as derivatives, because such products are derived from other securities. Giarrusso Law Group LLC

Investors in Infinity Q Diversified Alpha Fund May Have FINRA Arbitration Claims to Recover Losses — Securities Lawyers. Nationwide. | Giarrusso Law Group LLC Infinity Q’s investment holdings and strategy entailed what amounted to bets on exotic investment products known as derivatives, because such products are derived from other securities.

https://www.gialawgroup.com/blog/062222-sec-complaint-alleges-western-international-and-five-of-its-brokers-violated-reg-bi-on-l-bond-sales The L Bonds as offered by GWG were, in fact, high-risk and illiquid, and moreover, only suitable for investors with substantial financial resources

The Advisory provides practical tips for investors facing reassignment of their investment accounts to another stockbroker or investment adviser in the case of an existing ’s or ’s departure.

Investor Alert — North American Securities Organization Issues Guidance Regarding Account Reassignment — Securities Lawyers. Nationwide. | Giarrusso Law Group LLC The Advisory provides practical tips for investors facing reassignment of their investment accounts to another stockbroker or investment adviser in the case of an existing broker’s or adviser’s departure.

The Proposal, if enacted, would allow the SEC to pay whistleblower awards related to actions brought by other regulatory or enforcement entities. The Proposal would also affirm the Commission’s authority to consider a potential award’s dollar amount for the limited purpose of increasing – but not decreasing – the award.

SEC Proposes Whistleblower Program Amendments Enhancing Potential Awards — Securities Lawyers. Nationwide. | Giarrusso Law Group LLC The Proposal, if enacted, would allow the SEC to pay whistleblower awards related to actions brought by other regulatory or enforcement entities. The Proposal would also affirm the Commission’s authority to consider a potential award’s dollar amount for the limited purpose of increasing – but ...

The SEC's proposal would shorten the standard settlement cycle for most broker-dealer securities transactions from two business days after the trade date (T+2) to one business day after the trade date (T+1).



https://www.gialawgroup.com/blog/033122-investor-alert-sec-proposes-to-shorten-trade-settlement-cycle

Investor Alert — SEC Proposes to Shorten Trade Settlement Cycle — Securities Lawyers. Nationwide. | Giarrusso Law Group LLC The proposal would shorten the standard settlement cycle for most broker-dealer securities transactions from two business days after the trade date (T+2) to one business day after the trade date (T+1).

FINRA's report stresses compliance with Regulation Best Interest, a standard of conduct for brokerage firms and their affiliated registered representatives, issued by the SEC in 2020.

FINRA’s 2022 Risk Monitoring Report Highlights Reg BI and Customer Communications Issues — Securities Lawyers. Nationwide. | Giarrusso Law Group LLC The Report stresses compliance with Regulation Best Interest, a standard of conduct for brokerage firms and their affiliated registered representatives, issued by the SEC in 2020.

The Annual List is based on a survey of regulators who were asked to name the most threatening investment products, practices, and schemes in 2022.

NASAA’s Annual List Identifies Top Investor Threats for 2022 — Securities Lawyers. Nationwide. | Giarrusso Law Group LLC The Annual List is based on a survey of regulators who were asked to name the most threatening investment products, practices, and schemes in 2022.

As a result of a significant decline in stock price, some investors in NYC REIT who acquired their shares prior to the public listing may have incurred outsized unrealized losses, exclusive of dividends or other distributions.

Recent Comrit Letter to NYC REIT Board Highlights Continued Underperformance — Securities Lawyers. Nationwide. | Giarrusso Law Group LLC As a result of a significant decline in stock price, some investors in NYC REIT who acquired their shares prior to the public listing may have incurred outsized unrealized losses, exclusive of dividends or other distributions.

NASAA 2021 Enforcement Report Highlights Investor Threats Impacting Seniors — Securities Lawyers. Nationwide. | Giarrusso Law Group LLC While not rising to levels seen in 2019, state securities regulators achieved considerable results in 2020 notwithstanding the Covid-19 pandemic.

Investors in annuity and insurance products offered by now-bankrupt Northstar Financial Services (Bermuda) Ltd. may have claims to recover investment losses.

Investor Alert – Northstar Financial Investors May Have Claims to Recover their Losses — Securities Lawyers. Nationwide. | Giarrusso Law Group LLC Investors in annuity and insurance products offered by now-bankrupt Northstar Financial Services (Bermuda) Ltd. may have claims to recover investment losses.

The SEC has charged a former New Jersey-based Wells Fargo advisor with misappropriating nearly $3 million from clients to allegedly purchase gold coins and cover credit card debts.

SEC Charges Former Wells Fargo Advisor Kenneth Welsh With Misappropriating Nearly $3 Million — Securities Lawyers. Nationwide. | Giarrusso Law Group LLC The SEC has charged a former New Jersey-based Wells Fargo advisor with misappropriating nearly $3 million from clients to allegedly purchase gold coins and cover credit card debts.

The SEC’s Complaint states that Salamah “chose these three elderly clients because he did not think they would pay too much attention to their brokerage account statements.”

Illinois Advisor Receives Industry Bar Following Nearly $1 Million Theft from Elderly Clients — Securities Lawyers. Nationwide. | Giarrusso Law Group LLC The SEC’s Complaint states that Salamah “chose these three elderly clients because he did not think they would pay too much attention to their brokerage account statements.”

The tender offer has been extended to October 22, 2021. CIM investors who require immediate liquidity through participation in Comrit’s tender offer may suffer considerable losses, excluding any distributions to date.

CIM Tender Offer Extended — Shareholders May Continue to Face Considerable Losses — Securities Lawyers. Nationwide. | Giarrusso Law Group LLC The tender offer has been extended to October 22, 2021. CIM investors who require immediate liquidity through participation in Comrit’s tender offer may suffer considerable losses, excluding any distributions to date.

Shenzhen-based Evergrande is more than $300 billion in debt and, as of Thursday, September 23, 2021, failed to make an $83 million interest payment due on a $2 billion dollar-denominated bond.

Market Alert — Potential Evergrande Default Has Global Investors on Edge — Securities Lawyers. Nationwide. | Giarrusso Law Group LLC Shenzhen-based Evergrande is more than $300 billion in debt and, as of Thursday, September 23, 2021, failed to make an $83 million interest payment due on a $2 billion dollar-denominated bond.

It is critical for broker-dealers to not only establish a supervisory system, but to also exercise and maintain their supervision by, among other things, periodically meeting with individual financial advisors to discuss the products they are selling.

Former SCF Securities Broker, Todd Petersen, Subject of Numerous Customer Complaints — Securities Lawyers. Nationwide. | Giarrusso Law Group LLC It is critical for broker-dealers to not only establish a supervisory system, but to also exercise and maintain their supervision by, among other things, periodically meeting with individual financial advisors to discuss the products they are selling.