Archive for the ‘Firms’ Category

New Hires

Tuesday, June 16th, 2009

In a great article by Susan Antilla on, a new broker dealer hiring trend is highlighted.  Through her witty banter, Antilla discusses Wayne Chrebet, formerly of the New York Jets, and now a new hire for Morgan Stanley.  In an 11-page press release, the company touted Chrebet’s NFL accomplishments, his charitable work, his degree in sociology, and his awards. But they failed to mention his ability to handle an investor’s money and his stockbroker licensing requirements.  (more…)

What the UBS Case Should Mean to You

Wednesday, March 4th, 2009

As you have likely read already, the U.S. Securities and Exchange Commission has fined world-wide financial giant UBS $200 million for acting as an unregistered broker-dealer and investment adviser.  UBS?  Are you kidding me?  How could a firm that big, that well-known, not have followed the most basic of securities regulations?  The answer is in the SEC’s litigation release.  “The U.S. cross-border business provided UBS with revenues of $120 to $140 million per year.” (more…)

SEC Tags Seven with Stupidity Tax

Friday, September 26th, 2008

In the wake of the continuing financial disaster another reminder that a big-name is no guarantee of integrity is probably unnecessary.  We have been warning the investing public of that fact for the past year.  But, a recent enforcement action by the U.S. Securities and Exchange Commission (”SEC”), gives us more evidence to support the conclusion.  The SEC has settled insider trading charges against seven individuals, including two who were professionals working for UBS and Morgan Stanley.  Read more about the case here. (more…)

SEC Charges Former A.G. Edwards Broker with Theft of $1.3 Million

Thursday, August 7th, 2008

The name on the door should give you absolutely no comfort.  Stockbrokers at big brokerage firms are just as likely to take advantage of you as stockbrokers at no-name firms.  A recent case from the SEC illustrates the point.  According to the SEC’s press release: (more…)

Big Name Brokerage Firms Hurting Baby Boomers

Tuesday, July 8th, 2008

Mara Der Hovanesian has written a story that all baby boomers should read.  In this week’s BusinessWeek, Hovanesian covers the story that Investor’s Watchblog has been following since our launch and that too few reporters cover.  There is a tidal wave of investment fraud breaking over American baby boomers.  Their nest eggs are disappearing not only into the hands of con artists, but also into the hands of overeager and commission-hungry stockbrokers at America’s largest and best known brokerage houses.  (more…)

Indictments in Bear Stearns Hedge Fund Fiasco

Thursday, June 19th, 2008

Look out for stories today about indictments of Bear Stearns employees in connection with the two BS hedge funds that collapsed last year.  Investor’s Watchblog will follow the story and provide analysis once the indictments are made public.

Former A.G. Edwards Branch Manager Accused of Stealing from Alzheimer’s Patient

Monday, June 16th, 2008

The SEC has charged Frederick J. Barton, formerly a vice-president and branch manager of A.G. Edwards in Atlanta, with securities fraud.  The SEC’s complaint details a number of categories of alleged misconduct, the common denominator of which is Barton’s alleged misappropriation of other peoples’ money to fund his lavish lifestyle. (more…)

Big Names No Protection

Friday, April 18th, 2008

ABC News is reporting that Wachovia Bank processed over $140 million in transactions for corporate clients who were engaged in telemarketing fraud. 

Wachovia is said to have collected millions of dollars in fees, and despite numerous warnings from inside and outside of the bank, apparently never looked into the sources of the fraudulent transactions. (more…)

Tell Me Again Why ‘It Could Never Happen to You’

Saturday, March 29th, 2008

According to the Wall Street Journal, Lehman Brothers may have been defrauded in a $250 million swindle worthy of The Sting or The Spanish Prisoner.  At the center of the swindle are loans that Lehman made to a fund run by a medical consulting company owned by LTT Bio-Pharma Co.-a Japanese bio-tech company.  As security for those loans, Lehman believed that it received certificates from Marubeni Corp., one of Japan’s biggest trading companies.  Marubeni says otherwise.   (more…)

Stockbrokers Cheat on Tests

Saturday, March 15th, 2008

Like attorneys, doctors, and accountants, stockbrokers are required to take continuing education courses.  For stockbrokers, the course comes in two parts-a regulatory part and a firm part.  The firm part is an on-line course followed by an on-line test that the brokers can take from their own computers.  They receive a user name and password to log into the course and the test and must score 80% or better to pass the test.  (more…)