Investor Advocates Call on FINRA to Immediately Stop the Expungement of Customer Complaints

The Public Investor Arbitration Bar Association (known as PIABA) is a nationwide association of attorneys who advocate for investors through litigation and arbitration and regulatory reform. In a report prepared by The PIABA Foundation, titled 2019 Study on FINRA Expungements, A Seriously Flawed Process that Should be Stopped Immediately to Protect the Integrity of the Public Record, PIABA called upon … Read More

Investment Adviser Permanently Barred over Conflicts of Interest, Failure to Disclose, and Violation of Best Execution Rules

I previously wrote about the SEC’s increased emphasis on the enforcement of an investment advisor’s obligation to provide its customers with the “best execution” of recommended securities trades. See SEC Announces Results of Share Class Selection Disclosure Initiative (March 19, 2019). A recent court decision, from the Tenth Circuit Court of Appeals, illustrates the serious consequences that can result from … Read More

Raleigh Investment Adviser Stephen Condon Peters Sentenced to 40 Years In Prison for Operating a Ponzi Sheme

Stephen Condon Peters, a Raleigh investment advisor, was sentenced to 40 years in prison after being found guilty following a jury trial in the United States District Court for the Eastern District of North Carolina. In sentencing Peters, he presiding judge, James C. Dever, III, noted Peters’ lengthy and systematic scheme involving theft of clients’ money, obstructing an investigation by … Read More

State Attorneys General Sue the SEC to Nullify Regulation Best Interest

On September 9, 2019, seven states and the District of Columbia sued the United States Securities and Exchange Commission to invalidate Regulation Best Interest: The Broker-Dealer Standard of Conduct (“Regulation BI”). The Attorneys General of California, New York, Connecticut, Delaware, the District of Columbia, Maine, New Mexico, and Oregon alleged in their complaint that Regulation BI: undermines critical consumer protections … Read More

FINRA Reminds Broker-Dealers and Investment Advisers to Comply with the SEC’s “Best Interest” Requirements

FINRA Reminds Broker-Dealers and Investment Advisers to Comply with the SEC’s “Best Interest” Requirements On June 5, 2019, the United States Securities and Exchange Commission issued Release No. 34-86031, titled Regulation Best Interest: The Broker-Dealer Standard of Conduct (“Regulation BI”), which provides for a best interest standard applicable to broker-dealers. The same day, the SEC issued Release No. IA-5248, titled … Read More

Senators Warner and Kennedy Introduce Bill to Expand SEC Powers to Assist Investors

Wall Street Sign

On March 14, 2019, Senators Mark Warner (D-Va.) and John Kennedy (R-La.), both members of the Senate Banking Committee, introduced the Securities Fraud Enforcement and Investor Compensation Act. This legislation would give the Securities and Exchange Commission power to seek restitution for retail investors harmed by securities fraud scams. In many cases, fraudulent investment schemes are not detected for many years. … Read More