In an order dated December 31, 2019, Judge Loretta C. Biggs ruled that North Carolina’s racist voter identifcation law violates Section 2 of the Voting Rights Act and the Fourteenth and Fifteenth Amendments of the United States Constitution and entered a preliminary injunction against its enforcement. Judge Biggs ruled the plaintiffs had satisfied each element required to support the issuance … Read More
Edward Jones Twice Denied Injunction Requests Against Ex-Brokers
In two cases decided within the last 30 days, Edward Jones was denied requests for injunctions against former brokers it accused of stealing trade secrets and soliciting customers. Edward D. Jones & Co., L.P. v. Michael Peterson, Case No. 2:19-dv-01968-JCM-EJY (D. Nev. December 6, 2019) and FINRA arbitration case 19-03340 (December 3, 2019) On November 8, 2019, broker-dealer Edward D. … Read More
NC is One of Two States Selected to Pilot a Program to Increase Reporting of Elder Financial Exploitation
North Carolina is one of two states that will implement a pilot program to facilitate the reporting of suspected cases of financial abuse of the elderly. A new federal grant has created a secure, unified reporting platform to open lines of communication between the financial industry and government agencies to bring more cases of elder financial abuse to light. Seniors … Read More
Andrew Whiteman Appointed to Grievance Committee
Andrew Whiteman has been appointed to serve on the Grievance Committee of the Tenth Judicial District Bar. The Tenth Judicial District Grievance Committee is made of attorneys and laypeople. This Committee receives referrals from the North Carolina State Bar of complaints made against local lawyers. The Committee holds monthly closed meetings to determine whether probable cause exists to believe that … Read More
U.S. Supreme Court to Decide whether the SEC has the Authority to Order Disgorgement of Illegal Profits
On November 6, 2019, the United States Supreme Court agreed to decide a case that challenged the SEC’s power to seek disgorgement in court as a penalty for securities law violation. In the case of Liu, et al. v. Securities and Exchange Commission, the SEC sued the petitioners, Charles C. Liu and Xin Wang, for violating the federal securities laws. … Read More
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
HHS Office of Civil Rights Settles its First Medical Records Enforcement Case
Earlier this year, the Office for Civil Rights (“OCR”) of the U.S. Department of Health and Human Services (“HHS”) announced that it would vigorously enforce the Federal rights of patients to receive their medical records promptly and without being overcharged. On September 6, 2019, the OCR entered into a settlement agreement with Bayfront Health-St. Petersburg to resolve an enforcement action … Read More