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Un cliente del bufete Pearce gana 2,55 millones de dólares contra un asesor de inversiones

This was a sad case of financial abuse by an ex-spouse of another taken to arbitration by Robert Pearce and Adam Kara of The Law Offices of Robert Wayne Pearce, P.A.  (the “Pearce Law Firm”) for one of its clients. The Pearce Law Firm represented Elizabeth Snyder who filed claims against her ex-husband, Barry Snyder, for allegedly mismanaging her investment accounts through highly speculative, excessive and unsuitable trading strategy when he was employed as her stockbroker and later when he acted as her investment adviser at Glenwick Capital Holdings, LLC. In the Spring of 2015, in breach of his fiduciary duties as an investment adviser, Mr. Snyder allegedly misrepresented that Mrs. Snyder needed to transfer almost all of the Snyder Trust to a new investment vehicle, Linkster Holdings, LLC, for estate planning purposes when Mr. Snyder was about to be fired and become unemployable in the securities industry and setting up a “family office” to avoid registration with the regulators.  No one told Mrs. Snyder that he was fired and under investigation for misconduct even though he still continued to manage her accounts with the assistance of other employees at his former employer’s brokerage firm. Shortly after being terminated at that brokerage firm, Mr. Snyder caused Claimants’ accounts to be transferred to Montecito Advisors, Inc. and another brokerage firm where he allegedly crushed Mrs. Snyder financially through the same highly speculative, excessive and unsuitable at those brokerages.  Within a few short months, Mrs. Snyder’s life savings were wiped out. Mrs. Snyder alleged that Mr. Snyder’s actions were in contravention of his “fiduciary duty”  to act in his investment advisory clients’ “best interest” and industry standards of conduct such as FINRA Rules of Conduct 2110, 2111 (f/k/a 2310), and 2120, which state: 2110. Standards of Commercial Honor and Principles of Trade A member, in the conduct of its business, shall observe high standards of commercial honor and just and equitable principles of trade. 2111. Suitability (a) A member or an associated person must have a reasonable basis to believe that a recommended transaction or investment strategy involving a security or securities is suitable for the customer, based on the information obtained through the reasonable diligence of the member or associated person to ascertain the customer’s investment profile.  A customer’s investment profile includes, but is not limited to, the customer’s age, other investments, financial situation and needs, tax status, investment objectives, investment experience, investment time horizon, liquidity needs, risk tolerance, and any other information the customer may disclose to the member or associated person in connection with such recommendation.                                  * * * 2120.      Use of Manipulative, Deceptive or Other Fraudulent Devices No member shall effect any transaction in, or induce the purchase or sale of, any security by means of any manipulative, deceptive or other fraudulent device or contrivance.                                  * * * Mr. Snyder’s recommendations and trading in Mrs. Snyder’s accounts were allegedly breaches of FINRA’s suitability rule, which has long been applied to recommended “investments” and “investment strategies.”  Mr. Snyder allegedly misrepresented the “investments” and “investment strategies” to Mrs. Snyder as safe and suitable.  The over-concentration, over-leverage, and excessive risks taken in the accounts were allegedly not fully disclosed to Mrs. Snyder until it was too late. Mr. Snyder’s acts and omissions not only allegedly violated his fiduciary duties, the FINRA standards of commercial honor and principles of trade, but also included the alleged use of manipulative, deceptive, and fraudulent devices and other FINRA Conduct Rule violations. As we indicated above, Mr. Snyder lost every dollar in Mrs. Snyder’s accounts.  She was forced to sell her home, jewelry, etc. to support herself and children after the suffering the investment losses. No law firm other than the Pearce Law Firm was willing to take the case on a contingency fee basis, and we did so, successfully! The Pearce Law Firm sought an award of over $ 4,093,067 in market adjusted compensatory damages, or alternatively, $3,495,883 in net-out-of-pocket compensatory damages plus pre-judgment interest, attorney fees, expert witness fees, and costs. The arbitration award indicates the Panel was apprised of the amounts of settlements with other Respondents and requested to deduct those amounts from the compensatory damages before the award was entered. The Panel then entered an Award of $2,554,896 in compensatory damages but denied Claimants request for prejudgment interest, attorney fees, expenses, etc. Free Initial Consultation With Securities, Commodities and Investment Dispute Lawyers Serving Investors Nationwide If you have had your accounts mismanaged by Barry Snyder or any other stockbroker, investment adviser and/or trustee, and heard similar misrepresentations, received unsuitable recommendations, please call our office. The Law Offices of Robert Wayne Pearce, P.A. understands what is at stake in securities and commodities law matters and investment disputes, and works tirelessly to secure the best possible result for you and your case.  Mr. Pearce provides a complete case review, identifies the strengths and weaknesses of your case, and fully explains all of your legal options.  The entire law firm works to ensure that you completely understand the ins and outs of the legal process to give you complete peace of mind knowing that you have chosen the best possible representation for your case.

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Inversionistas con línea de crédito y cuentas de margen respaldadas por valores: ¿Cómo recupera sus pérdidas de inversión?

Si está leyendo este artículo, suponemos que tuvo una mala experiencia recientemente en una línea de crédito respaldada por valores ("SBL") o en una cuenta de margen que sufrió llamadas de margen y fue liquidada sin previo aviso, lo que provocó que usted realizara pérdidas. Normalmente, los inversores con llamadas de margen reciben de 3 a 5 días para cumplirlas; y si eso sucediera, el valor de los valores de su cuenta podría haber aumentado en ese período y la empresa podría haber borrado la llamada de margen y podría no haber liquidado su cuenta. Si usted es un inversor que ha experimentado llamadas de margen en el pasado, y esa es su única queja entonces, no siga leyendo porque cuando firmó el acuerdo de cuenta con la firma de corretaje que eligió para hacer negocios, probablemente le dio el derecho de liquidar todos los valores de su cuenta en cualquier momento sin previo aviso. Por otra parte, si usted es un inversor con poca experiencia o uno con una condición financiera modesta al que se le convenció para que abriera una cuenta de línea de crédito respaldada por valores sin que se le informara de la verdadera naturaleza, mecánica y/o riesgos de la apertura de dicha cuenta, ¡entonces debería llamarnos ahora! Alternativamente, si usted es un inversor que necesita retirar dinero para una casa o para pagar sus impuestos o la educación de sus hijos, pero se le convenció para que mantuviera una cartera de acciones y/o bonos basura arriesgada o concentrada en una cuenta de garantía prendaria para una línea de crédito o una cuenta de margen, entonces probablemente también podamos ayudarle a recuperar sus pérdidas de inversión. La clave para una recuperación exitosa de su pérdida de inversión es no centrarse en la liquidación por parte de la empresa de corretaje de los valores de su cuenta sin previo aviso. En lugar de ello, la atención de su caso debe centrarse en lo que se le dijo y en si la recomendación era adecuada para usted antes de que abriera la cuenta y sufriera la liquidación.

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Arbitraje FINRA: Qué esperar y por qué debe elegir nuestro bufete de abogados

Si está leyendo este artículo, probablemente sea un inversor que ha perdido una cantidad sustancial de dinero, buscó en Google "Abogado de Arbitraje FINRA", hizo clic en varios sitios web de abogados, y tal vez incluso habló con un llamado "Abogado de Arbitraje de Valores" que le dijo después de una llamada telefónica de cinco minutos que "tiene un gran caso"; "necesita firmar un acuerdo de retención sobre una base de 'honorarios de contingencia'"; y "necesita actuar ahora porque el estatuto de limitaciones va a correr".

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Introducción de un corredor de bolsa a los exámenes e investigaciones de la FINRA

Los corredores y asesores financieros a menudo no entienden cuáles son sus responsabilidades y obligaciones y lo que puede resultar de un examen o investigación de la Autoridad Reguladora de la Industria Financiera (FINRA). Muchos corredores ni siquiera conocen el papel que desempeña la FINRA dentro de la industria. Esto puede deberse al hecho de que la FINRA, una organización autorreguladora, no es una entidad gubernamental y no puede condenar a los profesionales financieros a la cárcel por la violación de las normas y reglamentos de la industria. No obstante, todos los corredores que hacen negocios con el público deben registrarse en la FINRA. En su calidad de miembros registrados, los corredores de bolsa, y los corredores que trabajan para ellos, han acordado cumplir las normas y reglamentos del sector, que incluyen las normas de la FINRA.

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Cómo presentar una queja contra su asesor financiero

Cuando usted contrata a un asesor financiero, espera que éste actúe en su mejor interés para evitar pérdidas innecesarias. Sin embargo, por desgracia, los asesores financieros no siempre cumplen estas expectativas. En algunos casos, un asesor financiero no sigue las peticiones y directrices de un inversor o incurre en una mala conducta, lo que hace que el inversor sufra pérdidas. Cuando esto ocurre, el inversor puede presentar una queja oficial contra el asesor financiero a través de la Autoridad Reguladora de la Industria Financiera (FINRA). En este artículo aprenderá a presentar una queja contra un asesor financiero para recuperar sus pérdidas.

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Norma 3210 de la FINRA

FINRA Rule 3210 is a newer FINRA rule, approved by the U.S. Securities and Exchange Commission (SEC) in the Spring of 2016. The regulators’ goal in approving this rule was to prevent conflicts of interest by financial advisors and broker dealers. To carry out this goal, the rule governs the ability of registered financial advisors to use investment accounts outside of the accounts offered by their FINRA member firm.  Rule 3210 requires financial advisors to make a request and obtain consent from the FINRA member firm they work for to keep their accounts somewhere else. It also requires a disclosure letter to the outside firm when a securities industry professional opens an account. This disclosure action is sometimes referred to as a FINRA 3210 Letter. Making this disclosure is one important step in preventing conflicts of interest for either firm.  Understanding rules like FINRA Rule 3210 can help you become a well-informed investor. It may also help you know what to look for when selecting a brokerage firm or a registered financial professional. At the Law Offices of Robert Wayne Pearce, P.A., we are committed to helping you enhance your investor education and understand all the FINRA registered broker dealer rules that may impact your decision-making. FINRA Rule 3210 Broker Dealer Overview When an individual works for a brokerage firm, they typically keep their assets at that firm. The firm is therefore able to monitor their trades and can ensure that the financial advisor is not frontrunning their clients in a personal brokerage account. The firm can also monitor the financial advisor’s account for insider trading or other bad activity. But what happens when the financial advisor works for Bank A but wishes to keep their accounts at Bank B? Rule 3210 specifies that the financial advisor must receive written permission from Bank A to open the account at Bank B. Not only may the financial advisor not open the account without permission, but they must also declare any account in which they have a “beneficial interest.” This means that if their spouse has a brokerage account at Bank B, they must disclose that to their employer as well.  These FINRA registered broker dealer rules may seem challenging at first. However, they have been carefully implemented to protect investors from financial advisor conflicts of interest. Your Financial Advisor’s Requirements Under Rule 3210 Rule 3210 is not merely about allowing your financial advisor’s employer to see what is in their account. It is primarily about preventing conflicts of interest. In doing so, the rule requires: Obtaining prior written consent for opening accounts outside of the employer firm; Giving written notification of the financial advisor’s employment at his or her brokerage firm to the brokerage firm opening the new account; and Submitting written copies of brokerage statements or transaction data to the employer firm upon request. An important part of this rule is the written consent part. Everything must be in writing under Rule 3210. Indeed, keeping written records is a requirement under most FINRA registered broker dealer rules. Maintaining a record of requests and consents is important in this case because Rule 3210 pertains to conflicts of interest. FINRA does not have a set form for requests and consents under Rule 3210. Each firm creates their own FINRA Rule 3210 letters. Even more important than consent may be the fact that a financial advisor must submit duplicate brokerage statements to their employer. A financial professional may have their brokerage accounts at an outside firm. However, their employer must have transparency into their account activity just as if the accounts were in the employer’s custody. Rule 3210 is essential in balancing the right of financial professionals to use whichever brokers they choose with an employer’s need for compliance and a client’s need for transparency.  Close Family Members Must Also Comply with FINRA 3210 It may seem hard to believe that a FINRA broker dealer rule might apply to someone who doesn’t work in the financial services industry. But it’s true—FINRA 3210 requires disclosure of accounts from the following people related to a registered financial industry professional: A spouse; A financially dependent child of the registered financial industry professional or a child of the registered financial industry professional’s spouse;  A relative over whose accounts the registered financial industry professional has control; and Any other person over whose accounts the registered financial industry professional exercises control and who they materially financially support.  In the event that both spouses work at FINRA member firms, then each spouse would have to comply with this rule. Both member firms would be notified about the other spouse’s accounts. Protecting Against Conflicts of Interest A primary goal of FINRA Rule 3210 is to prevent FINRA member conflicts of interest. Your financial advisor and your brokerage firm should be working for you, in your best interest. Where an undisclosed conflict is lurking, your broker simply cannot provide you with the advice or level of service you should expect.  An important part of investor education about FINRA broker dealer rules is to allow you to understand the issues behind rules like FINRA 3210. Being well-informed about what these rules are and how they work helps make you a savvy investor. You will be better equipped to ask questions about potential conflicts of interest. You will also know to ask about your brokerage firm’s compliance systems and record retention.  Concerned That a Conflict of Interest Has Led to Investment Loss? If you are concerned that a conflict of interest caused you investment loss, we are here to fight for your rights. When you engage an investment advisor or a brokerage firm, you expect the highest level of service. When these professionals fail to act in your best interest, they should be held accountable. At The Law Offices of Robert Wayne Pearce, P.A., our practice focuses on all manner of investment-related litigation, FINRA arbitration, and dispute resolution. Our team has the expertise and savvy to take on even the most complex disputes. Contact...

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Norma 2165 de la FINRA: Explotación Financiera de Adultos Especificados

Are you curious about how FINRA Rule 2165 can protect you or a loved one who is being financially exploited? FINRA Rule 2165 helps families and brokers who suspect securities fraud in a vulnerable adult’s account. It allows them to take key actions against investment loss.  While their broker may be trustworthy, your parents or other elderly loved ones may reach a point where they are no longer able to make sound investment decisions. A common example of this is when a parent becomes involved in a Ponzi scheme. Another often-seen scenario is when a parent is defrauded into allowing a nefarious third party access to their accounts. Their accounts are quickly drained before an eagle-eyed broker or a caring son or daughter suspects investment fraud. FINRA Rule 2165 is designed with folks like senior citizens in mind. The rule helps a broker look out for their vulnerable clients’ interests. It also enables them to do so before losses become catastrophic.  FINRA Rule 2165: Financial Exploitation Defined FINRA Rule 2165 defines “financial exploitation” as consisting of either of two circumstances. First, Rule 2165 identifies financial exploitation as the wrongful or unauthorized taking or use of a specified adult’s funds or securities. This first definition is very broad and can encompass many types of financial exploitation. Second, Rule 2165 defines financial exploitation as any action or omission, including through a power of attorney or a guardianship, to do any of the following things:  Obtain control over a specified adult’s money, assets, or property through deception, intimidation, or undue influence; or  Steal the specified adult’s money, assets, or property.  FINRA Rule 2165 only protects “specified adults.” These are vulnerable people who may not be able to make their own financial decisions. FINRA Rule 2165 defines a “specified adult” as: A person age 65 or older; or A person age 18 or older who has a mental or physical impairment that impacts their ability to look after their own interests. The financial exploitation definition under FINRA Rule 2165 relates only to actions taken against specified adults. If you do not fit into the category of “specified adult,” you still may have been the victim of securities fraud. If so, it’s important to reach out to an experienced securities fraud attorney as soon as possible.  How FINRA Rule 2165 Protects Vulnerable Adults from Financial Exploitation FINRA Rule 2165 and its sister rule, FINRA Rule 4512, protect vulnerable adults from financial exploitation. These rules work together to allow a vulnerable person’s broker to freeze disbursement of funds from an account suspected of financial exploitation. They also allow a broker to notify a vulnerable person’s important contacts when the broker suspects financial exploitation is taking place. Preventing the Disbursement of Funds When Financial Exploitation Is Suspected A broker is able to place a temporary hold on a disbursement of funds or securities from a specified adult’s brokerage account if/when: A broker has a reasonable belief that financial exploitation has been or will be attempted, has occurred or is occurring; A broker notifies all parties authorized to transact in the account, as well as the account’s trusted contacts, about the temporary hold and the reason for it; and A broker initiates an internal review of why they believe financial exploitation was taking place. The notification to authorized persons on the account can be made orally or in writing (electronic communication is okay) within two business days. Brokers must communicate clearly and quickly about the temporary hold and the reason for the temporary hold. When working with specified adults, a broker needs to maintain a list of trusted contacts. A trusted contact person does not have to be a signatory on the account but can be anyone the broker can share important account information with.  Notification is a very important element of Rule 2165 because placing a hold on client funds is no small matter. However, if the broker suspects that the trusted contact is the person perpetrating the fraud, the broker is no longer under an obligation to notify them.  Rule 2165 Amends Other Protections Against Exploitation The SEC adopted FINRA Rule 2165 in February 2018, which amended FINRA Rule 4512. Previously, Rule 4512 only required brokers to collect and maintain basic personal data about their clients. Now, brokers are required to make reasonable efforts to obtain and maintain the name of a trusted contact person as well.  This revised rule is a great resource for investors and brokers alike. As the investor population ages, trusted contacts can be an excellent resource for brokers to share concerns about unusual client behavior or diminished capacity to make investment decisions. Early communication can lead to better results for investors, caregivers, and brokers. It can even prevent financial exploitation in the first place. Brokers Are Responsible for Compliance  Brokers now must make decisions about whether their clients have the ability to make financial decisions for themselves. This can be difficult and even embarrassing where brokers and clients have worked together for many years. Cognitive abilities of aging people and people with disabilities can change dramatically in short periods of time. Determining if and when a client is at risk of financial exploitation is a very delicate task. The responsibility falls on brokers to understand when transactions are legitimate or not.  Contact a Securities Fraud Attorney If you or a loved one has been financially exploited, you may have a legal right to pursue action against responsible parties. Experience is key in litigating cases like these. We at The Law Offices of Robert Wayne Pearce, P.A., are eager to help you understand your rights. Robert Pearce has many years of experience in the area of securities fraud. He has arbitrated and mediated hundreds of investment-related disputes in his career. Our team of experienced investment loss litigators has recovered over $140 million dollars for well-qualified investors. We help investors nationwide and internationally pursue claims for a variety of investment losses and frauds. Contact us today about a free initial consultation on your...

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Cómo denunciar un esquema de Ponzi

Ponzi-like schemes swindle investors out of millions of dollars every year. A common form of investment fraud, a Ponzi scheme occurs when existing investors receive distributions from funds provided by new investors rather than as a result of profits. Because Ponzi schemes can only function as long as new investors are providing funds, the schemes eventually collapse, resulting in significant losses for new and old investors. While Ponzi schemes are illegal, they nevertheless continue to exist. In fact, some sources have noted that in 2020 Ponzi schemes hit their highest levels in a decade.  If you are a victim of a Ponzi scheme, you may be wondering what recourse you have. Fortunately, there are actions you can take. By reporting a Ponzi scheme, you can help hold these fraudsters accountable and prevent other victims from being taken advantage of as well.  Don’t know where to begin? Contact attorney Robert Wayne Pearce today to learn more about how to report a Ponzi scheme and see what our team can do to help.  What Is a Ponzi Scheme? Financial advisors recommend investment strategies to investors based on their investment profile. In many situations, investors seek investments likely to result in returns based on the profitability of the investment. In a Ponzi scheme, investors do receive “returns.” However, these returns are not from the profits of their investment. Rather, the operator of the Ponzi scheme will issue payments to earlier investors from the new investment funds provided by newer investors. Inevitably, Ponzi schemes will run out of new investors who are willing to invest in the scheme. This results in the inability to issue the fraudulent returns to older investors and causes the entire scheme to crumble. In an ideal world, these types of fraudulent schemes would not exist. Unfortunately, however, there is always some risk that you could fall victim to a Ponzi or Ponzi-like scheme. What’s important is that you know where to turn and what steps you can take moving forward.  If you suspect you invested in a Ponzi scheme, consult with an investment lawyer who can explain the steps you should take next. With over 40 years representing investors, attorney Robert Pearce has the knowledge and experience you need to help you fight for your rights and recovery.  Examples of SEC Enforcement Actions Against Ponzi Schemes In April 2021, the SEC charged Los Angeles-based actor Zachary Horwitz and his company, 1inMM Capital, LLC, in connection with a Ponzi scheme that reportedly raised over $690 million from investors.  Horwitz and his company represented to investors that the investment funds would be used to purchase film rights and that the films would then be sold to Netflix or HBO. Horwitz allegedly claimed to have an extensive track record of selling movie rights to Netflix and HBO, despite the fact that he never maintained a business relationship with either company.  1inMM and Horowitz reportedly promised investors returns in excess of 35%. Instead, Horwitz paid early investors with the funds provided by new investors and misappropriated millions of dollars for himself. In January 2020, the SEC charged California-based husband and wife Jeffrey and Paulette Carpoff with orchestrating a nearly billion-dollar Ponzi scheme involving alternative energy tax credits.  The pair reportedly raised approximately $910 million from 17 investors between 2011 and 2018 by offering securities in the form of investment contracts through two solar generator companies, DC Solar Solutions, Inc., and DC Solar Distributions, Inc. The SEC alleged that the couple used at least $140 million of the investors’ funds to fund their lifestyle and used the remaining funds to issue dividends to earlier investors. If you have fallen victim to a Ponzi scheme, know that you are not alone. Reach out to our investment loss attorneys today to get started on the pathway toward recovery.  Indicators of a Ponzi Scheme Ponzi schemes come in many different shapes and sizes. However, there are certain common indicators of a Ponzi scheme that you should be aware of.  Many red flags associated with Ponzi schemes present themselves prior to and during the investment process. Recognition of these characteristics before making your investment can prevent you from suffering serious losses down the road. Common indicators of a Ponzi scheme include: Promises of high returns with little or no risk; Returns that are overly consistent; The sale of unregistered investments; A lack of transparency regarding the investment strategy; Errors or discrepancies on account statements; and Difficulty receiving or cashing out your payments. The presence of red flags such as these may signal the existence of illegal activity. If you experience any of these issues with your investments, a securities lawyer can help you determine if you invested in a Ponzi scheme.  Reporting a Ponzi Scheme Ponzi schemes can cost investors millions of dollars in losses. In an attempt to curb the operation of the fraudulent schemes, the SEC and FBI provide resources for individuals who suspect Ponzi schemes to report the misconduct. Federal Bureau of Investigation (FBI) The FBI provides an electronic tip form to individuals wishing to report federal law violations. Additionally, for internet-based crimes, the FBI offers another way to submit a tip. Because many Ponzi schemes begin and operate online, this might be the best place to report a Ponzi scheme. Securities and Exchange Commission (SEC) The SEC also provides defrauded investors an avenue to report suspected Ponzi schemes and other fraudulent activities. SEC Ponzi scheme tips can be submitted online directly through the SEC website.  Contact an Investment Loss Attorney Today Losing your valuable and hard-earned money in a fraudulent Ponzi scheme is never easy. If this has happened to you, we want to help. At the Law Offices of Robert Wayne Pearce, P.A., we have decades of experience helping investment loss victims in need. Firm founder and lead attorney Robert Pearce has recovered funds for over 99% of his investor clients and recovered over $100 million in the last 20 years alone through court litigation, arbitration, and settlements.  Want to know more about...

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Consejos para contratar al mejor abogado de inversión en productos estructurados

Investment vehicles come in a variety of forms, each with their own benefits and risks. Structured products are one such vehicle. These products can offer a compelling return, but at the cost of increased risk and complexity. If you lost money on a structured product investment, you may be able to file a claim to recover losses with the help of an investment lawyer. What Is a Structured Product? In short, a structured product is a type of security derived from or based on one or more other securities. The defining feature of a structured product, however, is that its return is based on the performance of the underlying asset. Structured products offer a great deal of customization that allows brokers to tailor the risk profile to each individual investor. At the same time, however, they are complicated securities with a level of risk that make them inappropriate for many investors. This complexity makes it more important than ever to make sure you have the best investment lawyer if you lose money on one of these products. Tip #1: Make Sure They Are Familiar with Structured Product Investments As explained above, structured product investments are fairly complex. Your investment lawyer needs to understand that complexity to properly represent you. Even if most investment lawyers are generally familiar with different investment products, a structured product investment lawyer will have additional experience working on cases involving these securities. Tip #2: Make Sure They Understand the Specific Risks of Structured Product Investments As an investor, you’ve no doubt been told many times about the risks involved with particular investments. Your investment lawyer should have the same understanding of those risks. Not only will this allow the lawyer to better understand your particular situation, it also means they will be more familiar with the ways in which a broker may cause you to lose money. For example, making sure your investments are suitable for you is a large part of a broker’s responsibility. Considerations as to the suitability of a structured product generally include: The volatility of the underlying asset; Tax implications based on structured products being considered “contingent payment debt instruments” by the IRS; Limits or caps on the product’s pay-outs; Accurately assessing the price of the product; Lack of an established trading market for structured products; and Loss of principal. Because structured products are so customizable, the specific risks associated with a specific structured product investment may vary. Tip #3: Ask About Their Experience with FINRA Arbitration and Mediation Many brokerage firms require investors to agree to arbitration when they open a brokerage account. While similar to court proceedings, arbitration is somewhat different and requires its own set of skills. At our firm, for example, Robert Wayne Pearce has handled arbitration and mediation before many regulatory authorities, including the Securities and Exchange Commission. In summary, the best investment lawyers will be those with experience in the specific types of proceedings relevant to your case. Tip #4: Ask Them About Their Familiarity with FINRA Rules and Broker Responsibilities The Financial Industry Regulatory Authority (FINRA), administers the set of rules that bind brokers and protect investors. Understanding these rules is just as important for investment lawyers as for brokers. Only with a deep understanding of the FINRA rules can a lawyer provide the most thorough representation to protect your rights. For example, FINRA rules prohibit brokers from “selling away,” a term for selling securities not offered by their brokerage firm. Unfortunately, brokers sometimes offer unapproved securities to their clients. With structured products, the risk can be especially high. Additionally, keep in mind that not all broker violations are obvious. Every investor’s situation is slightly different, and the way in which a broker might harm an investor is highly dependent on the facts of each case. Accordingly, you can’t go wrong by having a lawyer with experience who has handled structured investment loss claims before. Tip #4: Assess Whether You Get Along with Them An often-overlooked part of hiring legal counsel is whether you actually like your lawyer. While there’s nothing wrong with hiring an attorney based on their pedigree, it’s important not to forget that your attorney should also be someone you can work with. As with any other professional service, you shouldn’t have to put up with an attorney you dislike, especially if your case will last a long time. When you’re looking for an investment lawyer, figure out what kind of lawyer you’d like: do you prefer someone who doesn’t bother you unless there’s a major development, or would you rather be kept in the loop with more frequent updates? Do you value a friendly “bedside manner,” or are you ok with stricter professionalism? Tip #5: Ask Them About Previous Experience Handling Similar Cases Structured investment product claims may involve unique or complex issues. An attorney with previous experience handling such claims will be much better equipped to help you recover losses if possible. Tip #6: Find Out Their Track Record of Obtaining Settlements Investment lawyers typically include information about their past settlement awards directly on their website. If they don’t, it’s something you can ask about during your initial consultation. The best structured product investment lawyer will be one with a proven track record of winning cases for clients. Tip #7: Confirm Their Reputation Within the Legal Community As members of a profession with a high ethical standard, a lawyer’s reputation is hugely important. Whatever the size of the firm, it can be useful to vet their reputation like you would with another personal service. State and local bar associations and personal recommendations are a good way to evaluate any attorney. You can also check resources like the Martindale-Hubbell peer rating program, which ranks attorneys based on peer ratings and client reviews. Ready to Hire an Investment Lawyer? The Law Offices of Robert Wayne Pearce, P.A. is a Martindale-Hubbell AV Preeminent rated firm with more than 40 years of experience representing investors and brokers. If you lost money through a structured...

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Regla 3270 de la FINRA: Actividades comerciales externas

When you engage a registered investment adviser to manage your money, you want to make sure that nothing will interfere with your securities professional’s duty to you. FINRA Rule 3270 gives transparency to potential conflicts of interest your investment adviser may have.  FINRA Rule 3270 requires your investment advisor to disclose their outside business activities. The purpose of FINRA 3270 is to keep FINRA member firms accountable to you, the client. If you are concerned that your securities professional might have violated certain disclosure rules, a knowledgeable investment loss lawyer can help you understand your options. FINRA Rule 3270 Requires Disclosure of Outside Business Activities In plain English, FINRA Rule 3270 means that your investment adviser may not engage in any outside business activities unless they have provided proper disclosure to their employer. FINRA rules about outside business activities are an important tool to protect investors. These help you to understand whether your investment adviser is putting your interests first. What Is a FINRA Outside Business Activity? FINRA outside business activities are broadly defined. FINRA Rule 3270 states that they include any paid work performed outside of a securities professional’s employment. This includes: Working as an employee for another company; Working as an independent contractor for another company; Serving as an officer, director, or partner of any outside board or organization; Receiving payment for any outside services; and Having the reasonable expectation of being paid for any outside business activities. This rule only requires an investment advisor to notify his or her employer of FINRA outside business activities. It does not require the investment advisor to do anything beyond provide a notification. Instead, the FINRA member firm makes a determination about what outside business activities are acceptable to the firm and its clients. The firm decides how or if outside business activities should continue to be carried out. Common Examples of FINRA Outside Business Activities Common examples of outside business activities include: Acting as both a financial advisor and a certified public accountant; Sitting on the board of directors of an outside organization, whether or not this activity is paid work; and Advising a start-up company for free but expecting future compensation once the company begins to turn a profit. Your investment advisor needs to report any of these activities to their employer under FINRA 3270.  The examples above are not exhaustive. An investment adviser also needs to report their wedding photography business or snorkel tour side-gig to their employer under the rules. FINRA rules about outside business activities apply to any paid work. Passive Investments Are Not Outside Business Activities While FINRA Rule 3270 casts a wide net, it allows investment advisers to make passive personal investments. Investing in diversified index funds or private securities transactions is not an outside business activity. Investment advisers may also put their personal funds into a blind trust. Blind trusts do not allow people to direct how their money is invested. Other FINRA rules require some disclosure about personal investments to ensure that your broker is being as transparent as possible about their potential conflicts of interest. FINRA Rule 3280 requires disclosure of private securities transactions. Your securities professional must strictly comply with this rule and its requirements. Your brokerage firm should ensure the investment adviser’s compliance with FINRA Rule 3280.  Responsibility of Brokerage Firms to Clients Once an investment adviser makes an outside business activities disclosure, the FINRA member firm must take important action. Each firm typically has its own form for reporting and its own protocol for review.  How Do Firms Determine Whether an Outside Business Activity Is Acceptable? Once a firm receives a disclosure, it needs to decide whether the outside business activities are acceptable. The FINRA member firm reviews all facts surrounding the disclosure. Then the firm answers two key questions to protect investors like you. First, Rule 3270 asks a FINRA member firm to consider all the circumstances surrounding the outside business activities. The review includes assessing the type of outside business, reviewing the time spent on the business, and confirming the type or amount of compensation received. The firm must decide whether outside business activities will interfere with the securities professional’s responsibilities to their employer and/or the firm’s clients. Second, Rule 3270 asks a FINRA member firm to think about whether outside business activities will be viewed by customers or the public as part of the member’s business. This review assesses whether a client would confuse the investment adviser’s outside business activities with their securities business.  How Do Firms Address Outside Business Activities That Conflict with an Advisor’s Duties? If the firm determines that the investment adviser’s outside business activities interfere with their responsibilities to the firm or its clients, then the firm should limit or prohibit the activity. FINRA Rule 3270 also requires firms to maintain a record of compliance. It is the firm’s responsibility to keep records of all outside business activities disclosures and compliance reviews. Brokerage firms are responsible to their clients to ensure that they are providing appropriate and conflict-free service in managing client assets. FINRA member firms must represent that their investment advisers are not engaging in outside business activities that compromise client interests. If you believe that your brokerage firm has failed to hold investment advisers accountable to FINRA Rule 3270 or otherwise adhere to conflict of interest rules, the firm may be liable for investor losses.  Have You Been Harmed by Your Investment Adviser’s Outside Business Activities? If you are an investor with concerns that your investment professional has failed to disclose important information to you, please call The Law Offices of Robert Wayne Pearce, P.A. Our firm has successfully represented individuals harmed by broker and investment advisor negligence or misconduct for over 40 years. Cases involving violations of FINRA rules are complex. Attorney Pearce has the expertise and experience to help you navigate any kind of securities or investment dispute. Contact our team today to discuss an evaluation of your potential case. Our team has recovered over $140 million...

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Comprender la regla 2111 de la FINRA: la idoneidad

Como inversor, es posible que haya oído hablar de la regla 2111 de la FINRA, también conocida como regla de idoneidad. Pero, ¿qué es exactamente la FINRA 2111? ¿Y cómo le afecta a usted y a sus inversiones? Cuando usted contrata a una empresa de corretaje o a un asesor financiero para que le recomiende una transacción o una estrategia de inversión, espera que lo hagan de manera adecuada para usted y sus circunstancias particulares. Sin embargo, por desgracia, no siempre es así. Si usted ha sufrido pérdidas financieras como resultado de las estrategias de inversión inadecuadas y las recomendaciones de su asesor financiero, póngase en contacto con el abogado de la ley de valores Robert Wayne Pearce hoy. Una visión general de la regla 2111 de la FINRA La idoneidad en la inversión es un concepto general que describe si una inversión individual es adecuada para un cliente después de considerar las características de ese cliente en particular. La regla de idoneidad requiere que los asesores financieros tengan una "base razonable" para creer que una transacción o estrategia de inversión recomendada es adecuada para su cliente. Un asesor financiero determina la idoneidad de una determinada operación o estrategia de inversión mediante el conocimiento del perfil de inversión de su cliente. Los expertos interpretan que la norma 2111 de la FINRA exige a los asesores financieros que hagan recomendaciones que redunden en beneficio de sus clientes. La FINRA describe situaciones en las que los asesores financieros violan la regla de idoneidad al anteponer sus intereses a los de su cliente, entre ellas Asesores financieros que recomiendan a sus clientes que utilicen el margen para comprar un mayor número de valores para aumentar las comisiones; Corredores de bolsa que recomiendan valores inadecuados con altas comisiones debido a la presión de su empresa para vender los valores; o Un corredor de bolsa que recomienda un producto sobre otro con el objetivo de ganar más comisiones. Las recomendaciones de inversión inadecuadas provocan pérdidas de miles de dólares a los inversores cada año, debido a que los asesores financieros recomiendan productos sin liquidez, especulativos y de alto riesgo. Si esto le ha sucedido a usted, póngase en contacto con un abogado experto en pérdidas por inversiones hoy mismo para comenzar con su caso. Obligaciones de idoneidad impuestas por la regla 2111 de la FINRA La regla 2111 consta de tres obligaciones principales: idoneidad de base razonable, idoneidad específica del cliente e idoneidad cuantitativa. Idoneidad de base razonable La idoneidad de base razonable exige que un asesor financiero tenga una base razonable, basada en una diligencia razonable, para creer que una recomendación es adecuada para el público en general. Esta diligencia razonable debe proporcionar al asesor financiero una comprensión básica de los riesgos y beneficios asociados a la transacción o estrategia de inversión recomendada. Un corredor debe comprender los riesgos y recompensas asociados a una inversión concreta. No hacerlo y recomendar la inversión a un cliente de todos modos podría dar lugar a acusaciones de tergiversación de la inversión. Si un corredor no cumple con alguno de estos requisitos, no se cumple la obligación de idoneidad sobre una base razonable. Idoneidad específica para el cliente La idoneidad específica para el cliente implica tener en cuenta detalles concretos sobre un cliente individual para determinar si una operación o estrategia de inversión es adecuada. Las características de un cliente que deben considerarse durante un análisis de idoneidad incluyen: Situación laboral, Edad, Situación financiera, Situación fiscal, Experiencia en inversiones, Objetivos de inversión, Tolerancia al riesgo, Necesidades de liquidez y Horizonte temporal de inversión. El asesor financiero debe evaluar estas características para determinar si la inversión o la estrategia es adecuada para ese cliente en particular. Idoneidad cuantitativa El elemento de idoneidad cuantitativa evalúa el volumen de operaciones realizadas por un asesor financiero. Para un análisis de idoneidad cuantitativa, las operaciones realizadas en la cuenta de inversión de un cliente se consideran en su conjunto. La cuestión es si las inversiones recomendadas constituyen una estrategia adecuada en su conjunto, no si cada operación individual fue adecuada. La obligación de idoneidad cuantitativa pretende evitar que los asesores financieros realicen operaciones excesivas en la cuenta de un cliente con el único fin de generar comisiones. Póngase en contacto con un abogado especializado en pérdidas de inversión hoy Los casos de pérdidas de inversión FINRA 2111 pueden ser particularmente complejos. Es por eso que es importante tener un abogado con experiencia en pérdidas de inversión en su esquina. Desde 1980, los abogados de The Law Offices of Robert Wayne Pearce, P.A., han representado a innumerables inversionistas en su lucha por sus derechos. Si usted es una víctima de la negligencia de los corredores o la mala conducta, queremos ayudar. Hemos recuperado más de 140 millones de dólares para clientes que se lo merecen, y lucharemos para que usted también obtenga los resultados que se merece. Póngase en contacto con nuestro equipo hoy mismo para una evaluación gratuita de su caso, y vea lo que podemos hacer por usted.

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Norma FINRA 2010: Normas de Honor Comercial y Principios de Comercio

La regla 2010 de la FINRA establece que los miembros de la FINRA deben observar "altos estándares de honorabilidad comercial y principios justos y equitativos de comercio" en la conducción de sus negocios. Si esta regla le parece amplia, es porque lo es. Y, por desgracia, los miembros de la FINRA no siempre están a la altura de estas elevadas normas prescritas en la Regla 2010 de la FINRA. Entonces, ¿qué hacer si su corredor o asesor financiero no ha cumplido con sus obligaciones bajo la FINRA 2010? La mala conducta de los corredores cuesta a los inversores millones de dólares en pérdidas de inversión cada año. Dichas pérdidas son a menudo el resultado de un fraude, una tergiversación o una supervisión negligente de su cuenta. Aunque esta mala conducta puede tener graves consecuencias financieras para usted, afortunadamente existen vías para exigir responsabilidades a estos infractores. Si usted ha sufrido pérdidas que usted cree que son el resultado de su corredor de no mantener los altos estándares de honor comercial y los principios equitativos de comercio, póngase en contacto con The Law Offices of Robert Wayne Pearce, P.A. Discutir su caso con un abogado de pérdida de la inversión con experiencia tan pronto como sea posible para ver cómo usted puede ser capaz de recuperar. Resumen de otras reglas notables de la FINRA Normalmente, las reglas de la FINRA describen la conducta específica prohibida por la propia regla. Por ejemplo: La Regla 1122 de la FINRA prohíbe a los miembros de la FINRA y a otras personas presentar información de membresía o de registro en la FINRA que contenga información incompleta o inexacta; la Regla 2111 de la FINRA requiere que los corredores sólo recomienden inversiones o estrategias de inversión que sean adecuadas para el cliente; y la Regla 5270 de la FINRA prohíbe la ejecución frontal de transacciones en bloque. Entonces, ¿dónde entra en juego la norma FINRA 2010? A menudo, los inversores utilizan la Regla 2010 para hacer frente a una mala conducta no descrita en otras reglas de la FINRA. La Regla 2010 funciona como una disposición general para proteger a los inversores de la negligencia financiera y otras prácticas poco éticas por parte de los asesores e instituciones financieras. ¿Qué prohíbe la Regla 2010? La Regla 2010 sanciona a los corredores por mala fe o por una conducta poco ética "relacionada con el negocio". Recibir una sanción en virtud de la Regla 2010 no significa necesariamente que el corredor haya violado la ley, aunque una violación de la ley de valores por sí misma apoya la conclusión de que un corredor ha violado la Regla 2010. Las conductas consideradas poco éticas o inmorales, aunque no necesariamente prohibidas por la ley, autorizan la aplicación de medidas disciplinarias en virtud de la regla. Requisito relacionado con el negocio La Regla 2010 de FINRA ordena que la supuesta mala conducta esté relacionada con el negocio para calificar para la disciplina bajo esta regla. En una acción disciplinaria de la FINRA de 2019, un Panel de Audiencia de la FINRA explicó que la relación entre las acciones poco éticas del miembro de la FINRA y la conducta de su negocio de valores no tiene que estar estrechamente conectada. Más bien, el Panel dio a entender que la Regla 2010 se extiende a cualquier mala conducta que "se refleje en la capacidad de la persona asociada para cumplir con los requisitos reglamentarios del negocio de valores y para cumplir con [sus] deberes fiduciarios en el manejo del dinero de otras personas". Ejemplos de violaciones de la Regla 2010 de la FINRA En última instancia, cada caso en el que se alega una violación de la Regla 2010 requiere un análisis individual para determinar si la mala conducta equivale a una violación de la regla. Para determinar si la regla fue violada, se requiere la evaluación tanto de la totalidad de las circunstancias como del contexto de la mala conducta. Recuerde que una infracción de la Norma 2010 se produce incluso en circunstancias en las que el corredor no comete una infracción de la ley estatal o federal. Las acciones que se consideran una violación de la Regla 2010 incluyen Apropiación indebida de fondos de clientes o de un empleador; Compartir la información confidencial de los clientes sin aprobación; Falsificar firmas; Hacer alteraciones en documentos financieros importantes; Solicitar donaciones para beneficio personal u otros usos no autorizados; Tergiversar la información financiera a los clientes; y Negarse a pagar los honorarios de los abogados y otros gastos después de iniciar un litigio contra un cliente. Las acusaciones de la Regla 2010 surgen con frecuencia en conjunto con las acusaciones de que un corredor violó otra Regla de la FINRA. Póngase en contacto con un abogado de pérdidas de inversión para responder a sus preguntas sobre la Regla 2010 Podría decirse que el núcleo de la regulación de valores es la FINRA 2010. Sin esta regla, los miembros de la FINRA no tendrían la obligación general de llevar a cabo sus negocios con tan altos estándares de honor e integridad. Por supuesto, incluso con la Norma 2010 en vigor, los miembros de la FINRA inevitablemente no cumplirán con estas normas. Con más de 40 años de experiencia en la representación de los inversores y la celebración de sus corredores y asesores financieros responsables de la mala conducta, usted puede estar seguro de que nuestro equipo tiene el conocimiento y los recursos necesarios para luchar por usted. El abogado Robert Pearce tiene un sólido historial de éxitos, recuperando fondos para más del 99% de sus clientes inversores. Para discutir su caso y comenzar el proceso hacia la compensación, póngase en contacto con nosotros hoy para una evaluación gratuita del caso.

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La compra y venta excesiva de valores para generar comisiones se llama "Churning" - ¿Le está pasando a usted?

Muchas personas se preguntan a menudo: ¿es ilegal el churning? La respuesta es sí. Las regulaciones de la SEC y las normas de la FINRA prohíben la práctica de realizar compras o ventas excesivas de valores en cuentas de inversores con el propósito principal de generar comisiones, lo que se conoce como churning. A pesar de la ilegalidad del churning, FINRA presentó 190 acciones de arbitraje para el año 2020 hasta finales de diciembre contra corredores acusados de esta práctica. Si usted sufrió pérdidas en su cuenta de inversión como resultado de la negociación excesiva, póngase en contacto con un abogado de fraude de churning para determinar si tiene derecho a recuperar la compensación. ¿Qué es el churning en las finanzas? El churning, también conocido como trading excesivo, adquiere un nuevo significado en la industria financiera que no tiene nada que ver con la mantequilla. La negociación excesiva se produce cuando un agente de bolsa realiza múltiples operaciones en la cuenta de inversión de un cliente con el objetivo principal de generar altas comisiones. El churning suele provocar pérdidas importantes a los inversores. La Regulación de Mejor Interés de la SEC, o Reg BI, establece una norma de conducta para los corredores de bolsa y sus empleados cuando recomiendan inversiones a clientes minoristas. La Reg BI exige a los corredores que actúen en el mejor interés del cliente y que no antepongan sus propios intereses a los del inversor. El "churning" casi nunca es lo mejor para el inversor, incluso para aquellos que tienen estrategias comerciales agresivas. Señales de que su asesor está haciendo "churning" en su cuenta de inversión El "churning" de las acciones conduce a importantes pérdidas para el inversor, especialmente en situaciones en las que se prolonga durante un largo periodo de tiempo. Muchas veces, los inversores no reconocen los indicadores de que su agente ha cometido el delito de negociación excesiva hasta que es demasiado tarde. Hay una serie de señales de precaución a las que debe prestar atención cuando teme que su asesor financiero esté negociando en exceso en su cuenta. Operaciones no autorizadas Las operaciones no autorizadas se producen cuando un corredor negocia valores en su cuenta de inversión sin recibir autorización previa. Si tiene una cuenta de inversión discrecional, su asesor financiero tiene autorización para realizar operaciones en su cuenta sin pedirle su aprobación para cada transacción; sin embargo, su agente sigue estando obligado a cumplir la norma del mejor interés. Las operaciones excesivas pueden ser más difíciles de detectar con una cuenta discrecional. La aparición de numerosas operaciones no autorizadas en el extracto de su cuenta es motivo de preocupación. Para reconocer estas operaciones, debe revisar el extracto de su cuenta mensualmente y verificar la información proporcionada. Si observa operaciones no autorizadas en el extracto de su cuenta, notifíquelo inmediatamente a su corredor y a su empresa de corretaje. Volumen de operaciones inusualmente alto Un alto volumen de operaciones en un corto periodo de tiempo puede significar que se está produciendo un "churning", especialmente para los inversores que siguen una estrategia de inversión conservadora. Preste especial atención a las transacciones que implican la compra y venta de los mismos valores una y otra vez. El abogado Robert Pearce tiene más de 40 años de experiencia representando a clientes cuya mala conducta de los corredores les causó pérdidas financieras. La amplia experiencia del Sr. Pearce le permite reconocer los indicadores de churning inmediatamente y probar la cantidad de daños que usted sufrió como resultado de la mala conducta de su corredor. Comisiones excesivas Las comisiones inusualmente altas que aparecen en su estado de cuenta es otra indicación de la negociación excesiva. Si las comisiones se disparan significativamente de un mes a otro, o si un segmento de su cartera de inversiones genera sistemáticamente comisiones más altas que cualquier otro segmento, existe la posibilidad de que su corredor esté manipulando su cuenta. Los extractos de cuenta no suelen incluir los importes de las comisiones cobradas por cada transacción individual. Por lo tanto, no dude en ponerse en contacto con su agente de bolsa para pedir una explicación de las comisiones cargadas en su cuenta. Si usted siente que le están cobrando comisiones excesivas en sus cuentas de inversión, póngase en contacto con The Law Offices of Robert Wayne Pearce, P.A., para discutir sus opciones. Póngase en contacto con nuestra oficina hoy para una consulta gratuita Churning en la industria financiera puede resultar en sanciones monetarias e incluso la inhabilitación de la industria financiera en casos extremos. La práctica implica la manipulación y el engaño de los inversores que confían en sus corredores para actuar en su mejor interés, lo que justifica el castigo severo. Robert Wayne Pearce ha manejado docenas de casos de churning y puede proporcionar una revisión completa de sus estados de cuenta para determinar si se produjo el comercio excesivo. Además, las Oficinas Legales de Robert Wayne Pearce, P.A., emplea a expertos que pueden realizar un análisis de la actividad comercial en su cuenta para establecer pruebas concretas de que la práctica se produjo. Tenemos la experiencia, los conocimientos y el compromiso para obtener los daños que usted merece. Póngase en contacto con nuestra oficina hoy para una evaluación gratuita del caso.

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