Mary Jo White Nominated for SEC Chair

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President Obama nominated Mary Jo White, a former U.S. Attorney for the Southern District of New York, to serve as Chair of the U.S. Securities and Exchange Commission. White would replace Mary Schapiro, who left the agency in December.

Ms. White is currently Chair of the Litigation practice group at the New York law firm of Debevoise & Plimpton, where she concentrates her practice in white collar criminal defense and securities law. Her biography, as outlined below from the law firm’s website, summarizes her career highlights.

Ms. White served as the United States Attorney for the Southern District of New York from 1993 to 2002. She is the only woman to hold the top position in the more than 200-year history of that office, which has the responsibility of enforcing the federal criminal and civil laws of the nation.

Ms. White also served as the first Chairperson of Attorney General Janet Reno’s Advisory Committee of United States Attorneys from all over the country. Prior to becoming the United States Attorney in the Southern District of New York, Ms. White served as the First Assistant United States Attorney and Acting United States Attorney in the Eastern District of New York from 1990 to 1993.

In addition, Ms. White has served as a Director of The NASDAQ Stock Exchange, and on its Executive, Audit and Policy Committee. She is also a member of the Council on Foreign Relations.

Ms. White’s practice concentrates on internal investigations and defense of companies and individuals accused by the government of involvement in white collar corporate crime or Securities and Exchange Commission (SEC) and civil securities law violations, and on other major business litigation disputes and crises. For her criminal work, she leads a Debevoise team that includes eleven former Assistant U.S. Attorneys with extensive experience in major commercial investigations and prosecutions.

Fort Lauderdale Securities Litigation and Arbitration Attorney

Contact Fort Lauderdale securities litigation and arbitration attorney Howard N. Kahn, Esq. if you or someone you know has a securities or broker dispute. He is an experienced securities litigation and arbitration attorney, and is available to assist individual investors, brokers, and brokerage firms involved in securities matters. You can reach him at 954-321-0176 or online.

How to Recognize an Investment Scam

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Con artists peddling investment scams in Miami, Fort Lauderdale, Boca Raton or other South Florida locations work hard to build a personal relationship with their victims.

Watch this FINRA video to learn some of the techniques that con artists use to build trust with potential investors in order to get you to write a check.

There are many investment schemes that a criminal may employ to get you to part with your hard-earned money. Here are a few of the more common scams identified by FINRA, the Financial Industry Regulatory Authority.

  • The “Phantom Riches” Tactic—dangling the prospect of wealth, enticing you with something you want but can’t have. “These gas wells are guaranteed to produce $6,800 a month in income.”
  • The “Source Credibility” Tactic—trying to build credibility by claiming to be with a reputable firm or to have a special credential or experience. “Believe me, as a senior vice president of XYZ Firm, I would never sell an investment that doesn’t produce.”
  • The “Social Consensus” Tactic—leading you to believe that other savvy investors have already invested. “This is how ___ got his start. I know it’s a lot of money, but I’m investing, so is my mom and half her church—and it’s worth every dime.”
  • The “Reciprocity” Tactic—offering to do a small favor for you in return for a big favor. “I’ll give you a break on my commission if you buy now—half off.”
  • The “Scarcity” Tactic—creating a false sense of urgency by claiming limited supply. “There are only two units left, so I’d sign today if I were you.”

Fort Lauderdale Securities Litigation and Arbitration Attorney

Contact Fort Lauderdale securities litigation and arbitration attorney Howard N. Kahn, Esq. if you or someone you know has a securities or broker dispute. He is an experienced securities litigation and arbitration attorney, and is available to assist individual investors, brokers, and brokerage firms involved in securities matters. You can reach him at 954-321-0176 or online.

SEC Sues BankAtlantic for Alleged Fraud

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BankAtlantic Bancorp and CEO Alan B. Levan are charged with alleged fraudulent activity in a civil lawsuit filed by the Securities and Exchange Commission (SEC) on January 18, 2012 in Miami federal court.

The lawsuit alleges that investors were misled about the loan problems at the bank, according to a recent article in the South Florida Business Journal titled SEC Sues BankAtlantic Bancorp, CEO Levan for Alleged Fraud.

Accounting fraud is also alleged, including the improper recording of loans the bank was trying to sell in 2007. Losses that year were allegedly underestimated as a result of accounting “gimmicks.” Additionally, the SEC claims that the bank and Levan made misleading statements in SEC filings and earnings calls during 2007.

Financial penalties are being sought against the company and Levan.

If you held stock in BankAtlantic during the time period covered in the SEC lawsuit, contact Fort Lauderdale securities litigation attorney Howard N. Kahn, Esq., to discuss your case.

Westor Capital Group of NY Charged with Customer Fund Abuse

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Westor Capital Group, Inc. of Herkimer, NY and President Richard Hans Bach are to immediately stop the further misappropriation and misuse of customer funds and securities under the terms of a Temporary Cease-and-Desist Order (TCDO) filed by the Financial Industry Regulatory Authority (FINRA).

FINRA is seeking the TCDO to prevent further customer harm that would likely continue before a formal disciplinary proceeding against Westor and Bach could be completed.

In addition, FINRA issued a complaint against Westor and Bach, charging them with failing to allow customers to withdraw account balances and deliver securities, misusing customer securities, failing to maintain physical possession or control of securities, and for operating an unapproved self-clearing business.

In one instance, when a customer sought to withdraw $97,000 from his account, Westor refused. FINRA further charges that Westor, acting through Bach, misused 65,000 shares of customers’ fully paid common stock to effect and cover short sales by another customer, without the authority to do so. As a result, Westor and Bach failed to maintain physical possession or control of securities as required by the federal securities laws and rules.

Westor’s primary business is trading in microcap securities through its own accounts held at several different brokerage firms and has ineffective measures to track and reconcile its customers’ stock positions. This makes it possible for Westor and Bach to conceal the improper use of securities, the complaint alleges.

Under FINRA rules, the individuals and firms named in a complaint can file a response and request a hearing before a FINRA disciplinary panel. Possible sanctions include a fine, an order to pay restitution, censure, suspension or bar from the securities industry.

The issuance of a disciplinary complaint represents the initiation of a formal proceeding by FINRA, in which findings as to the allegations in the complaint have not been made, and does not represent a decision as to any of the allegations contained in the complaint.

Fort Lauderdale Securities Litigation and Arbitration Attorney

Contact Fort Lauderdale securities litigation and arbitration attorney Howard N. Kahn, Esq. if you or someone you know has a securities or broker dispute. He is an experienced securities litigation and arbitration attorney, and is available to assist individual investors, brokers, and brokerage firms involved in securities matters. You can reach him at 954-321-0176 or online.

President Obama Sworn In to Second Term

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The 57th Presidential Inauguration took place today in Washington, DC. Watch the President take the oath of office in the video below.

President Obama also gave his second inaugural address at the U.S. Capitol. The President pledged:

“America’s possibilities are limitless,” he said, “for we possess all the qualities that this world without boundaries demands: youth and drive; diversity and openness; an endless capacity for risk and a gift for reinvention. My fellow Americans, we are made for this moment, and we will seize it — so long as we seize it together.”

Click on the link to read the full text of President Obama’s second inaugural address.

The Fort Lauderdale Law Firm of  Kahn & Resnik, P.L.

The Florida lawyers at Kahn & Resnik, P.L. are available to service your legal needs.

Our concierge approach to the practice of law reflects our philosophy of personalized and confidential attention. When you retain an attorney at Kahn & Resnik, P.L., we work efficiently and effectively to help you achieve your business and personal objectives.

We can assist you in legal matters relating to commercial litigation, divorce, disability law, real estate litigation, securities litigation, and corporate transactions.

We serve business owners, professionals and individual clients across Florida, including Miami, Fort Lauderdale, Boca Raton, West Palm Beach, Naples, Orlando, Tampa, Daytona Beach, Jacksonville, Tallahassee, and other cities throughout the state. Contact Howard N. Kahn, Esq. at 954-321-0176 or online.

Citigroup Fined $725,000 by FINRA for Failure to Disclose Conflicts

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Citigroup Global Markets, Inc. failed to disclose certain conflicts of interest in its research reports and research analysts’ public appearances, according to The Financial Industry Regulatory Authority (FINRA). The company was fined $725,000.

Citigroup and/or its affiliates managed or co-managed public securities offerings, received investment banking or other revenue from, made a market in the securities of and/or had a 1 percent or greater beneficial ownership in covered companies, and did not make these required disclosures in certain research reports. In addition, Citigroup research analysts failed to disclose these same potential conflicts of interest in connection with public appearances in which covered companies were mentioned.

Research reports published from January 2007 through March 2010 were identified as lacking the required disclosures, according to a January 18, 2012 FINRA press release.

Contact Fort Lauderdale securities litigation attorney Howard Kahn, Esq., if you relied on Citigroup research report from this time period to make investments. A former Certified Public Accountant, Mr. Kahn also serves as an arbitrator for the Financial Industry Regulatory Authority (FINRA).

Citigroup Loses Appeal on Investor ASTA/MAT Litigation

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Citigroup marketed high risk investments to wealth management clients without fully disclosing the degree of risk, according to a recent New York Times article by Gretchen Morgenson titled “Secrets of a Sales Machine.”

Details came to light in recent court filings, after Citigroup appealed an award of $54 million granted by a securities arbitration panel. Most of the award covered investment losses, but $17 million was for punitive damages and $3 million was allocated for legal fees.

Citigroup clients Gerald D. Hosier and Jerry Murdock Jr., both high net worth individuals, had sued the bank for fraud and breach of fiduciary duty. Even though they were sophisticated investors, they claimed they were misled about complex investments that Citigroup positioned as being safe.

Internal Citigroup documents showed that the bank itself considered the investments to be risky, with a risk rating of 5 on a scale of 1 to 5 where 1 is very safe and 5 is high risk.

Specifically, the investments were municipal arbitrage portfolios known as ASTA/MAT, part of a family of “alternatives.” Sallie Krawcheck, then head of wealth management at Citigroup, was informed internally that these investments always carried a risk rating of 3 to 5. This rating information was not disclosed to investors.

In late December, Judge Christine M. Arguello, in the District of Colorado, ruled against Citigroup and affirmed the award.

If you feel that you were misled in recent investments, contact Fort Lauderdale securities attorney Howard Kahn to discuss your case. He is a certified FINRA arbitrator, and has represented many investors in bank and brokerage disputes.

Two Commercial Jets Collide at Miami International Airport

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Passengers were shaken up but not hurt when two jetliners collided on the ramp at Miami International Airport yesterday evening.

An Aerolineas Argentinas Airbus was heading to the gate with 240 passengers onboard after arriving from Buenos Aires, when it encountered an Air France 777-300 plane preparing to depart for Paris with more than 300 passengers.

One plane suffered wing damage, while the other plane sustained damage to its tail section. The FAA does not have regulatory oversight in this instance, since the accident occurred in a ramp area.

Last month two commercial planes collided at Fort Lauderdale Hollywood International Airport. One of the planes was parked and out of service at the time.

The Fort Lauderdale Law Firm of  Kahn & Resnik, P.L.

The Florida lawyers at Kahn & Resnik, P.L. are available to service your legal needs.

Our concierge approach to the practice of law reflects our philosophy of personalized and confidential attention. When you retain an attorney at Kahn & Resnik, P.L., we work efficiently and effectively to help you achieve your business and personal objectives.

We can assist you in legal matters relating to commercial litigation, divorce, disability law, real estate litigation, securities litigation, and corporate transactions.

We serve business owners, professionals and individual clients across Florida, including Miami, Fort Lauderdale, Boca Raton, West Palm Beach, Naples, Orlando, Tampa, Daytona Beach, Jacksonville, Tallahassee, and other cities throughout the state. Contact Howard N. Kahn, Esq. at 954-321-0176 or online.

 

National Mortgage Settlement Claim Deadline is Friday

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Florida homeowners who lost their home to foreclosure between Jan. 1, 2008 and Dec. 31, 2011 and had their mortgages serviced by Ally/GMAC, Bank of America, Citi, JPMorgan Chase or Wells Fargo may qualify for financial compensation under the $25 billion National Mortgage Settlement. The filing deadline is this Friday, January 18, 2013.

Florida Attorney General Pam Bondi’s office is making outbound calls to reach Florida borrowers who may be eligible for cash payments under the national mortgage settlement.

“We want every borrower who may be eligible for a cash payment under the national settlement to submit a claim. Currently, approximately forty-four percent of the people to whom claim forms have been mailed have submitted their claims,” stated Attorney General Pam Bondi.

The National Mortgage Settlement Administrator mailed Notice Letters and Claim Forms in late September through early October 2012 to those borrowers who lost their home due to foreclosure between January 1, 2008 and December 31, 2011 and whose loans were serviced by one of the five mortgage servicers mentioned above.

Forms must be completed and returned by Jan. 18, 2013, in the envelope provided, or they can be filed online at NationalMortgageSettlement.com. Claims received after January 18th may be considered, but payment to those claimants is not guaranteed.

Payment checks are expected to be mailed in mid-2013. The amount of the payment will be the same for all claimants and depends on the number of eligible claims received. Payments will be a minimum of $840, but higher payments to each eligible consumer are expected.

This $25 billion settlement between the nation’s five largest mortgage servicers and the federal government and 49 states and the District of Columbia, earmarked approximately $1.5 billion in payments for 2 million borrowers nationwide.

In Florida, approximately $170 million is available for cash payments to Florida borrowers. All available funds will be distributed to those who file claims; none of this money will be returned to the banks or used by the states for any other purpose.

More information about eligibility and filing a claim is available at the National Mortgage Settlement website, or via email to administrator@nationalmortgagesettlement.com. You can also call toll-free: 1-866-430-8358 (hearing impaired: 1-866-494-8281). The line is staffed Monday through Friday from (7 a.m. to 7 p.m. Central).

Fort Lauderdale Foreclosure Defense Attorney

Choosing the best approach to protecting yourself and your family from a mortgage foreclosure involves many legal considerations. 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.

Lance Armstrong Admits Doping in Oprah Interview

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Lance Armstrong comes clean in an interview with Oprah Winfrey scheduled for this Thursday and Friday. He has repeatedly denied charges of doping up to this point.

Watch an interview of Oprah Winfrey talking about the upcoming Lance Armstrong interview:

In June of 2012 the U.S. Anti-Doping Agency announced that written notice of allegations of anti-doping rule violations was sent to Mr. Armstrong and five (5) additional individuals all formerly associated with the United States Postal Service (USPS) professional cycling team. These individuals include three (3) team doctors and two (2) team officials. The formal notice letter is the first step in the multi-step legal process for alleged sport anti-doping rule violations.

Mr. Armstrong has been stripped of his Tour de France titles. He also lost most of his sponsorships, and resigned from the Livestrong organization, after being charged with leading a long-running doping scheme.

According to CBS News, the London-based Sunday Times has already filed a $500,000 lawsuit for the return of a settlement it paid in a libel case. SCA Promotions of Dallas is considering a lawsuit seeking to recover more than $7.5 million awarded by an arbitration panel. A South Australia state government plans to seek the repayment of several million dollars in appearance fees paid to Armstrong for competing in the Tour Down Under in 2009, 2010 and 2011.

The Fort Lauderdale Law Firm of  Kahn & Resnik, P.L.

The Florida lawyers at Kahn & Resnik, P.L. are available to service your legal needs.

Our concierge approach to the practice of law reflects our philosophy of personalized and confidential attention. When you retain an attorney at Kahn & Resnik, P.L., we work efficiently and effectively to help you achieve your business and personal objectives.

We can assist you in legal matters relating to commercial litigation, divorce, disability law, real estate litigation, securities litigation, and corporate transactions.

We serve business owners, professionals and individual clients across Florida, including Miami, Fort Lauderdale, Boca Raton, West Palm Beach, Naples, Orlando, Tampa, Daytona Beach, Jacksonville, Tallahassee, and other cities throughout the state. Contact Howard N. Kahn, Esq. at 954-321-0176 or online.