Americans with Disabilities Act Marks 12th Anniversary

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The Americans with Disabilities Act (ADA), which prohibits discrimination against people with disabilities in employment, transportation, public accommodation, communications, and governmental activities, was first signed into law by President George H.W. Bush on July 26, 1990.

Discrimination is only one obstacle that a disabled person may experience. Highly trained professionals who suffer an unexpected disability through illness or injury are at risk of a significant and sudden drop in income. Even if disability insurance is in effect, the insurance carrier may make it very difficult for the professional to receive the level of monetary benefits to which they are entitled under the disability policy.

Your Legal Rights to Disability Benefits

The disability attorneys at Kahn & Resnik, P.L. are experienced in working with doctors and business professionals who have trouble obtaining expected disability insurance benefits. We understand potential coverage issues, including:

  • Date at which benefits become available (elimination periods)
  • Length of time benefits are received
  • Compensation history on which benefits are calculated
  • Definition of comparable work
  • Full-time versus part-time work
  • Estimates of future earnings
  • Total disability versus residual or partial disability claims

Our attorneys have helped many professionals pursue disability benefits in claims against the country’s leading disability insurance carriers throughout the United States.

Contact a Fort Lauderdale Disability Attorney for Professionals

If you are a highly skilled medical or business professional, contact attorney Howard Kahn, Esq. if your disability insurance benefits are in dispute following an injury or illness. Mr. Kahn works with physicians, internists, specialists, surgeons, podiatrists, dentists, chiropractors, accountants, architects, attorneys, business owners and other professionals in need of assistance with a disability claim.

Peregrine Financial Group Losses Draw Investor Lawsuits

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Peregrine Financial Group (“PFG” or “PFGBest”) is the subject of an increasing number of lawsuits following its bankruptcy filing last week.

The financial derivatives brokerage firm, based in Cedar Falls, Iowa with offices in Chicago, collapsed when founder Russell R. Wasendorf, Sr. was rescued during a suicide attempt. A note he left admits, “Through a scheme of using false bank statements I have been able to embezzle millions of dollars from customer accounts at Peregrine Financial Group, Inc.”

PFG was one of the largest non-clearing U.S. Futures Commission Merchants, with customers, affiliates and brokerage offices in more than 80 countries, according to the firm’s website. For 13 consecutive years, PFGBEST was ranked as one of the nation’s Top 50 Brokers in Futures magazine annual roundup.

A “Futures Commission Merchant” (“FCM”) is defined as an individual or entity that solicits or accepts orders for the purchase or sale of any commodity for future delivery on or subject to the rules of any exchange. FMCs also accept payment from or extend credit to those whose orders are accepted.

Investors are charging that the firm violated a basic broker regulation forbidding the commingling of client funds with other firm monies.

The Commodity Futures Trading Commission, in accordance with the Commodity Exchange Act, requires that customer funds to be segregated and separately accounted for. Specific regulations include:

  • All customer funds shall be separately accounted for and segregated as belonging to commodity or option customers. Such customer funds when deposited with any bank, trust company, clearing organization or another futures commission merchant shall be deposited under an account name which clearly identifies them as such and shows that they are segregated.
  • Each futures commission merchant shall treat and deal with the customer funds of a commodity customer or of an option customer as belonging to such commodity or option customer. All customer funds shall be separately accounted for, and shall not be commingled with the money, securities or property of a futures commission merchant or of any other person, or be used to secure or guarantee the trades, contracts or commodity options, or to secure or extend the credit, of any person other than the one for whom the same are held, with some additional provisions.

The rules of the Chicago Mercantile Exchange (“CME”) similarly prohibit commingling of customer funds with other firm funds.

Approximately $200 million in client funds are allegedly missing.

Fort Lauderdale Securities Litigation Attorney and FINRA Arbitrator

Contact Fort Lauderdale securities litigation attorney Howard N. Kahn, Esq. if you or someone you know has a securities dispute. In addition to being an experienced securities litigation attorney, Mr. Kahn also serves as a FINRA arbitrator for individual investors, brokers, and brokerage firms. You can reach him at 954-321-0176 or online.

Divorce of Tom Cruise and Katie Holmes Shows Benefits of a Prenup

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While a divorce is never easy, the apparent ease with which Tom Cruise and Katie Holmes reached agreement on the dissolution of their marriage demonstrates the benefits of a prenuptial agreement.

Ms. Holmes initiated divorce proceedings on June 29th, and the couple, affectionately known as “TomKat” by fans, reached a divorce agreement just a week later after five years of marriage. Ms. Holmes gains primary custody of the couple’s 6-year old daughter Suri.

According to celebrity news reports, the actress will receive up to $15 million ($3 million for each year of marriage) under the terms of their 2006 prenuptial agreement.

Reaching agreement in advance of a marriage as to how assets, liabilities, and family obligations will be handled makes it easier for the parties to focus on achieving a mutually supportive marital relationship.

A prenuptial agreement, entered into before the marriage date, gives each party the comfort of knowing that their wishes are legally binding.

Common provisions in a prenuptial agreement address key factors such as:

  • Property rights and obligations of each party for property owned by either party
  • Property disposition in the event of divorce, death, or a separation
  • Transfer of assets to children in a blended family
  • Spousal support arrangements
  • Treatment of any death benefits from a life insurance policy
  • Estate planning

Child custody is almost always a highly emotional issue in any divorce. In this case Tom Cruise and Katie Holmes recently issued a joint statement stating, “We are committed to working together as parents to accomplish what is in our daughter Suri’s best interests.” They went on to say, “We want to keep matters affecting our family private and express our respect for each other’s commitment to each of our respective beliefs and support each other’s roles as parents.”

This was the first marriage for Ms. Holmes and the third for Mr. Cruise, who has two children with his second wife Nicole Kidman.

Click on the link to read more about the benefits of a prenuptial agreement.

Contact a Fort Lauderdale Divorce Attorney

If you have questions about a divorce or dissolution of marriage, contact Fort Lauderdale divorce attorney Marcy Resnik. You can contact her online or call her at 954-321-0176.

Investors Warned about Exchange-Traded Notes

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An Investor Alert titled Exchange-Traded Notes—Avoid Unpleasant Surprises was issued today by The Financial Industry Regulatory Authority (FINRA).

Exchange-traded notes (ETNs) are a type of debt security that trade on exchanges and promise a return linked to a market index or other benchmark. However, unlike exchange-traded funds (ETFs), ETNs do not buy or hold assets to replicate or approximate the performance of the underlying index.

Some of the indexes and investment strategies used by ETNs can be quite sophisticated and may not have much performance history. The return on an ETN generally depends on price changes if the ETN is sold prior to maturity (as with stocks or ETFs)—or on the payment, if any, of a distribution if the ETN is held to maturity (as with some other structured products).

As FINRA’s Investor Alert explains, an ETN’s closing indicative value is computed by the issuer and is distinct from an ETN’s market price, which is the price at which an ETN trades in the secondary market. Investors should understand that an ETN’s market price can deviate, sometimes significantly, from its indicative value.  If the ETN is trading at a significant premium to its closing or intraday indicative value, investors might want to consider similar products that are not trading at a premium.

“ETNs are complex products and can carry a raft of risks. Investors considering ETNs should only invest if they are confident the ETN can help them meet their investment objectives and they fully understand and are comfortable with the risks,” said Gerri Walsh, FINRA’s Vice President for Investor Education.

Exchange-Traded Notes describes the specific risks associates with ETNs, including:

  • Credit Risk. ETNs are unsecured debt obligations of the issuer.
  • Market Risk. As an index’s value changes with market forces, so will the value of the ETN in general, which can result in a loss of principal to investors.
  • Liquidity Risk. Although ETNs are exchange-traded, a trading market may not develop.
  • Price-Tracking Risk. Investors should be wary of buying at a price that varies significantly from closing and intraday indicative values.
  • Holding-Period Risk. Some leveraged, inverse and inverse leveraged ETNs, are designed to be short-term trading tools, and the performance of these products over long periods can differ significantly from the stated multiple of the performance (or inverse of the performance) of the underlying index or benchmark during the same period.
  • Call, Early Redemption and Acceleration Risk. Some ETNs are callable at the issuer’s discretion.
  • Conflicts of Interest. The issuer of the notes may engage in trading activities that are at odds with investors who hold the notes (shorting strategies, for instance).

FINRA’s new Investor Alert also contains a step-by-step checklist to help investors determine if an ETN is right for them. Click on the link to read the full ETN investor alert.

Fort Lauderdale Securities Litigation Attorney and FINRA Arbitrator

Contact Fort Lauderdale securities litigation attorney Howard N. Kahn, Esq. if you or someone you know has a securities dispute. In addition to being an experienced securities litigation attorney, Mr. Kahn also serves as a FINRA arbitrator for individual investors, brokers, and brokerage firms. You can reach him at 954-321-0176 or online.

Beware of Timeshare Resale Fraud

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Telemarketing companies that market their advertising services to timeshare owners interested in selling or renting their timeshare interests are attracting the attention of the Florida Attorney General. Many of these companies charge exorbitant fees and perform very few services, according to the Attorney General’s Office.  

Under Florida law, these companies are called “Resale Service Providers” and are required to provide a written disclosure of the fees and costs relating to advertising, listing, or sale of a timeshare interest, as well as other disclosures. Consumers also should request a contract in writing prior to providing any payment information.

In addition, consumers should be cautious of any business that may request an advance fee prior to performing any services. Furthermore, no government entity will require a consumer to pay money up front in order to assist that consumer in pursuing a fraud claim or prior to making attempts to secure a refund for a consumer. Also, consumers should be aware that the Florida Office of the Attorney General does not contract with any third party companies to assist in obtaining refunds or restitution for individuals. Should any company imply that they are working with the Florida Office of the Attorney General, consumers are encouraged to file a complaint.

Also be suspicious of any business that requests fees be paid by certified bank check, cashier’s check, money order, or wire transfer. These forms of payment leave little recourse for the consumer should there be any difficulty with the business providing their services as contracted.

Consumers who are considering conducting business with a timeshare reseller or recovery company should research the company.

Fort Lauderdale Condominium Litigation Attorney

This update on news affecting South Florida condominium owners is offered as a service of Fort Lauderdale condo attorney Marcy Resnik. Contact her to discuss legal questions you might have in regard to your condominium association or timeshare unit. You can reach Ms. Resnik online or call her at 954-321-0176.

SEC Freezes Assets of Aubrey Lee Price for Florida, Georgia Scam

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A $40 million investment fraud by Aubrey Lee Price targeting Florida and Georgia investors has resulted in a court order freezing the assets of the Georgia-based investment adviser, who has apparently gone into hiding.

The SEC alleges that Aubrey Lee Price raised money from more than 100 investors living primarily in Georgia and Florida by selling shares in an unregistered investment fund (PFG) that he managed. Price purported to invest fund assets in traditional marketable securities, but he also made illiquid investments in South America real estate and a troubled South Georgia bank.

In order to conceal mounting losses of investor funds, Price created bogus account statements with false account balances and returns that were provided to investors and bank regulators.

According to the SEC’s complaint filed in U.S. District Court for the Northern District of Georgia, Price is believed to be a resident of Lowndes County in Georgia after moving from Manatee County, Florida.

The SEC alleges that Price began his scheme in 2008. According to PFG’s private placement memorandum, the investment objective was to achieve “positive total returns with low volatility” by investing in a variety of opportunities, including equity securities traded on the U.S. markets.

A significant portion of PFG investor funds – approximately $36.9 million – was placed in a securities trading account at a broker-dealer. The trading account suffered massive trading losses and money was frequently wire-transferred to PFG’s operating bank account. Throughout the time during which PFG suffered trading losses, client account statements prepared by Price were made available to investors indicating fictitious amounts of assets and investment returns.

According to the SEC’s complaint, Price has sent a letter to some individuals dated June 2012 and titled “Confidential Confession For Regulators – PFG, LLC and PFGBI, LLC Summary.” In the 22-page letter, Price admits that he “falsified statements with false returns” in order to conceal between $20 million and $23 million in investor losses.

The SEC’s complaint charged Price and his related companies, PFG, LLC; PFGBI, LLC; Montgomery Asset Management, LLC (Florida); and Montgomery Asset Management, LLC (Georgia) with violations of Section 10(b) and of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder, and further charged Price and Montgomery Asset Management, LLC (Florida) with violations of Sections 206(1), (2) and (4) of the Investment Advisers Act of 1940 and Rule 206(4)-8 thereunder.

The Honorable Timothy C. Batten, Sr. granted the SEC’s request for a temporary restraining order and entered an asset freeze for the benefit of investors against Price, PFG, and his affiliated entities. Judge Batten has scheduled a court hearing on July 13, 2012 for the SEC’s motion for a preliminary injunction.

Anyone with information about Price’s whereabouts should contact the Atlanta office of the Federal Bureau of Investigation at 404-679-9000 or the Lowndes County Sheriff’s Office at 229-671-2985. [SEC v. Aubrey Lee Price, et al. Case No. 1:12-CV-2296 (N.D. Ga.)] (LR-22409)

Fort Lauderdale Securities Litigation Attorney and FINRA Arbitrator

Contact Fort Lauderdale securities litigation attorney Howard N. Kahn, Esq. if you or someone you know has a securities dispute. In addition to being an experienced securities litigation attorney, Mr. Kahn also serves as a FINRA arbitrator for individual investors, brokers, and brokerage firms. You can reach him at 954-321-0176 or online.

Florida Condos Face Flood Insurance Rate Hikes

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The National Flood Insurance Program (NFIP) was extended through September of 2013 as part of recent legislation passed by Congress and signed into law by President Obama on June 29, 2012. South Florida condo associations are among many flood insurance policyholders who are likely to see higher premiums.

The federal flood program, which was set to expire at the end of July 2012, is $18 billion in debt. Several rate increases are authorized in the new law in an effort to restore solvency, including:

  • Annual allowable premiums may jump from 10 percent to 20 percent a year. Under the maximum allowable annual increase, flood insurance rates could conceivably double in as little as four years.
  • Owners of currently subsidized homes considered to be high risk, such as vacation homes or homes with repeated claims, may see required annual rate increases of 25 percent. South Florida coastal areas are particularly at risk.
  • Deductibles will be set at a minimum of $1,000 or $2,000, depending on the property.

Florida homeowners and condominium owners make up a disproportionate share of the NFIP program. More than a third of the flood insurance program’s 5.6 million policies are in Florida, according to the Sun-Sentinel, including about 930,000 policies in Broward, Palm Beach and Miami-Dade counties.

Statewide, 80 percent of Florida’s 15 million residents live or work near the coast, according to the Federal Emergency Management Association (FEMA). Many others live near the state’s rivers or other inland floodplains. That means most Florida residents face the dangers of flooding, according to state and federal officials.

Fort Lauderdale Condominium Litigation Attorney

This update on news affecting South Florida condominium owners is offered as a service of Fort Lauderdale condo attorney Marcy Resnik. Contact her to discuss legal questions you might have in regard to your condominium association. You can reach Ms. Resnik online or call her at 954-321-0176.

FINRA Launches Large Arbitration Case Pilot Program

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Large arbitration cases involving claims of $10 million or more are the focus of a new pilot program recently launched by the Financial Industry Regulatory Authority (FINRA).

The program enables parties to customize the administrative process to better suit special needs of a larger case and allows them to bypass certain FINRA arbitration rules. Participation in the pilot program, which begins today, is voluntary and open to all cases. In order to be eligible, however, all parties will be required to pay for any additional costs of the program and must be represented by counsel.

Linda Fienberg, President of FINRA Dispute Resolution, said, “In response to the increasing number of very large cases, we wanted to introduce a more formal approach to give parties greater flexibility and more control over the administration of their case.”

Examples of how parties may customize the process include having the option to:

  • Have additional control over the method of arbitrator appointment and the qualifications of arbitrators;
  • Hire non-FINRA arbitrators for their case;
  • Develop their own procedures for exchanging information prior to the hearing;
  • Have expanded discovery options such as depositions and interrogatories; and
  • Choose from a wider selection of facilities.

All parties must agree and will be required to pay for any additional costs of the program such as costs for enhanced facilities or additional arbitrator honorariums. FINRA will send a letter to parties in cases involving claims of $10 million or more to solicit participation in the pilot.

Fort Lauderdale Securities Litigation Attorney and FINRA Arbitrator

Contact Fort Lauderdale securities litigation attorney Howard N. Kahn, Esq. if you or someone you know has a securities dispute. In addition to being an experienced securities litigation attorney, Mr. Kahn also serves as a FINRA arbitrator for individual investors, brokers, and brokerage firms. You can reach him at 954-321-0176 or online.

Supreme Court Upholds Health Care Mandate as Tax

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The individual health care mandate was upheld as a tax, while the Medicaid expansion is said to violate the Constitution, according to the Supreme Court’s widely anticipated ruling this morning. Excerpts of the Court opinion appear below.

In 2010, Congress enacted the Patient Protection and Affordable Care Act in order to increase the number of Americans covered by health insurance and decrease the cost of health care. One key provision is the individual mandate, which requires most Americans to maintain“minimum essential” health insurance coverage.

For individuals who are not exempt, and who do not receive health insurance through an employer or government program, the means of satisfying the requirement is to purchase insurance from a private company. Beginning in 2014, those who do not comply with the mandate must make a “[s]hared responsibility payment” to the Federal Government. The Act provides that this “penalty” will be paid to the Internal Revenue Service with an individual’s taxes, and “shall be assessed and collected in the same manner” as tax penalties.

Another key provision of the Act is the Medicaid expansion. The current Medicaid program offers federal funding to States to assist pregnant women, children, needy families, the blind, the elderly, and the disabled in obtaining medical care. The Affordable Care Act expands the scope of the Medicaid program and increases the number of individuals the States must cover.

The most straightforward reading of the individual mandate is that it commands individuals to purchase insurance. But, for reasons explained, the Commerce Clause does not give Congress that power. It is therefore necessary to turn to the Government’s alternative argument: that the mandate may be upheld as within Congress’s power to “lay and collect Taxes.”

The opinion of the Court with respect to Part III–C concludes that the individual mandate may be upheld as within Congress’s power under the Taxing Clause.

The Court rules that the Medicaid expansion violates the Constitution by threatening States with the loss of their existing Medicaid funding if they decline to comply with the expansion.

Read the full Supreme Court Ruling on the Patient Protection and Affordable Care Act.

Fort Lauderdale Litigation Attorneys

The attorneys at Kahn & Resnik, P.L. take a concierge approach to legal services. We serve business owners, professionals, and individuals dealing with commercial contract disputes, a difficult divorce, mortgage foreclosure, or other legal disputes.

We understand that your need for sound legal counsel extends beyond the 9:00 to 5:00 work day, and make ourselves available on your schedule. Contact attorney Howard Kahn, Esq. to discuss a case.

 

Home Preservation Forum, Saturday June 30

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Florida homeowners in danger of default or mortgage foreclosure will have a chance to speak directly with lenders at a “Home Preservation Forum” being sponsored by the Broward Housing and Community Development Task Force and the City of North Lauderdale.

Date and Place:
Saturday, June 30, 2012
10:00 a.m. to 2:00 p.m.
City of North Lauderdale’s Municipal Complex
701 SW 71st Avenue
North Lauderdale, FL 33068
For more information, call 1-877-686-0623

Participating lenders include Bank of America, SunTrust, Chase, Wells Fargo, Fannie Mae, and Freddie Mac. Homeowners should bring current copies of their pay stubs, bank statements, income tax returns, mortgage statement, utility bill, and any hardship letter they might have.

Homeowners will meet with lenders on the spot and decisions will be made that day.

Fort Lauderdale Foreclosure Defense Attorney

If you are at risk of losing your home to mortgage foreclosure, there is action you can take. Contact Fort Lauderdale mortgage foreclosure attorney Marcy Resnik to discuss how you can defend your legal rights in a foreclosure. You can contact Ms. Resnik online or call her at 954-321-0176.