From the Securities Arbitration Blawg
In a recent article published on Law.com, Sarah S. Gold and Richard L. Spinogatti conduct a thorough analysis of the issues in In re Merck & Co. Secs. Deriv. & ERISA Litig.., a Third Circuit Court of Appeals case. The Supreme Court granted certiorari in In re Merck to resolve when an investor is on inquiry notice of a potential fraud claim for purposes of determining when the statute of limitaions begins to run..
The authors note …

From the Stockbroker Fraud Blawg
It seems that each day there is another story about allegations that an investment adviser has stolen money from their clients. Yesterday, the SEC filed a complaint alleging that a New York investment adviser had bilked his clients, many of whom were terminally ill or mentally impaired, out of $6 million.
Where do you turn? The New York Times published an interesting article on June 5, 2009, discussing this issue. The Financial Industry Regulatory Authority has a …

From the Consumer Fraud Blawg
In a recent announcement, New York Attorney General Mario Cuomo stated that his office has issued subpoenas to fourteen loan modification companies and filed suit against another company.
During a news conference on June 9, it was reported that Mr. Cuomo referred to the entire loan modification industry as a scam. Mr. Cuomo has taken aggressive action against several industries in recent months, including the financial services industry.
Consumers often fall victim to businesses that use deceptive and …

From the Investment Fraud Blawg
Robert Powell of Marketwatch.com recently posted an article entitled “Inflation hits hard when you can least afford it: Four ways older Americans can deal with higher inflation rates.”
The article offers four tips for retirees and those approaching retirement. Most importantly, the article states that retirees should (1) live within their means, and (2) calculate retirement expenses. This is good advice because retirees are as guilty as many Americans for failing to properly budget and plan. In …

From the Investment Fraud Blawg
The Securities Investor Protection Corporation (SIPC) has announced that it has committed more than $61 million to victims of Bernard L. Madoff Investment Securities LLC. The SIPC has mailed letters to 125 claimants in the SIPA liquidation proceedings. In total, there have been 8,848 customer claims filed.
The SIPC has also announced that it anticipates it will have more than $100 million by Memorial Day. The news release also stated the following recent developments:

Identification and recovery to …

From the Investment Fraud Blawg
According to the Wall Street Journal, the U.S. government has determined that the Social Security system will run out of money sooner than expected.
The government’s estimate is that the Medicare fund will be exhausted in 2017 and the Social Security trust fund will be insolvent in 2037. The article quotes recently appointed HHS Secretary Kathleen Sebelius as stating “It’s a wake-up call for anyone concerned about Medicare and the health of our economy.” Politics aside, this …

From the Investment Fraud Blawg
Jim Rendon of SmartMoney Magazine recently authored an article entitled “10 Things Your Bank Won’t Tell You.”
With all of the turmoil in the banking industry, this article provides insight that consumers should consider. For example, the article reveals that “the average ATM service charge doubled between 1998 and 2007,” and that the federal government found that a significant number of banks failed to disclose information required by law.
To find out what other businesses and professionals aren’t …

From the Investment Fraud Blawg
For the first time, FINRA has publicly stated that it “makes sense” that broker-dealers who provide investment advice should be held to the same fiduciary standard that applies to Registered Investment Advisers.
This is a significant development because broker-dealers and their representatives have relied upon an exemption in the Investment Advisers Act of 1940 to escape these duties. The Investment Advisers Act exempts “any broker or dealer whose performance of such services is solely incidental to the …

From the Investment Fraud Blawg
Darren Barbee of the Fort Worth Star-Telegram has written a good article that outlines various ways investors can reduce the risk of being defrauded by a financial or investment adviser.  
This is a “must read” article that anyone who is dealing with an investment adviser.  In addition, The Kueser Law Firm’s website contains an Investor Resource Center that provides helpful links to several sources that investors can utilize to do a background check on their financial …

From the Investment Fraud Blawg
As reported by multiple sources including CNBC.com, the California Public Employees Retirement System stated publicly that it opposes the reelection of each of the 18 members of Bank of America’s board, including Chairman Ken Lewis.  
This should come as welcome news to Bank of America shareholders following a year in which the company (1) suffered a decline in market value of more than 80%; (2) its questionable purchase of Merrill Lynch; and, (3) possible breaches of …