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Category Archives: General

Morgan Keegan Settles Fraud Charges for $200 Million

By McCabe Rabin, P.A. |

The SEC, state regulators, and FINRA have announced today that Morgan Keegan & Co. and an affiliate have agreed to pay $200 million to settle fraud charges related to subprime mortgage-backed securities. Two Morgan Keegan employees also agreed to pay penalties for their misconduct, The SEC’s order settling the charges finds that Morgan Keegan… Read More »

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Group for Colonial Bank and Taylor, Bean & Whitaker Charged for $1.5 Billion Kiting Scheme

By McCabe Rabin, P.A. |

The SEC has charged Teresa Kelly and Catherine Kissick from Colonial Bank and Lee Farkas and Desiree Brown from TBW with fraud for their various roles in a seven and half year kiting scheme between Colonial Bank and Taylor, Bean & Whitaker Mortgage Corporation totaling approximately $1.5 billion. The four persons charged worked together… Read More »

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UBS Under Investigation for Puerto Rico Closed-End Bond Funds

By McCabe Rabin, P.A. |

The SEC has issued a Wells notice to UBS regarding secondary market trading of closed-end funds sold in Puerto Rico in 2008 and 2009. UBS, a former financial adviser to Puerto Rico’s Employees Retirement System that provides pensions for government workers, led the 2008 sale of $2.9 billion in bonds. The sale resulted in… Read More »

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SEC Charges TD Ameritrade for Failure to Supervise Its Brokers

By McCabe Rabin, P.A. |

The SEC has charged TD Ameritrade for failing to supervise its brokers who misled clients who bought shares in the Reserve Yield Plus Fund. Various brokers at the firm violated securities laws when they misrepresented the mutual fund as a money market fund, with the safety of a cash investment and with guaranteed liquidity…. Read More »

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SEC Charges Lawyer with Aiding and Abetting Client’s Fraud

By McCabe Rabin, P.A. |

The SEC charged the former financial advisor Kenneth Ira Starr, Jonathan Star Bristol, with aiding and abetting Starr’s multi-million dollar fraud by allowing Starr to use his attorney trust accounts as conduits for money Starr stole from his clients. The SEC claims that over $25 million of Starr’s clients’ money came through Bristol’s trust… Read More »

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Universal Fiduciary-Duty Standard Could Be Costly

By McCabe Rabin, P.A. |

In an effort to determine the utility of creating a universal fiduciary-duty standard in the retail investment advice industry, a recent study by the Securities Industry and Financial Markets Association shows that a potential universal standard could be costly to investors without adjustments being made for special broker-dealer practices. Broker-dealers, who currently adhere to… Read More »

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International Ponzi Schemer Now Being Investigated in Orlando

By McCabe Rabin, P.A. |

David Smith, accused of perpetrating a $200 million Ponzi scheme, could now face up to 23 criminal counts in Orlando as a result of his scheme. Smith, a Jamaican banker, is also facing criminal charges in the Turks & Caicos. Smith convinced investors to put their money into his various companies, including Olint Corp.,… Read More »

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Citigroup Charged with Misleading Investors About Subprime Mortgages

By McCabe Rabin, P.A. |

The SEC has charged Citigroup Inc. with misleading investors about the company’s exposure in subprime mortgages. Citigroup repeatedly made misleading statements in conference calls relating to earnings and public filings. Citigroup represented that subprime exposure in its investment banking unit was $13 billion or less, when in fact it was more than $50 billion…. Read More »

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SEC Charges Prominent Miami Beach Businessman in $900 Million Ponzi Scheme

By McCabe Rabin, P.A. |

On April 21, 2010, the Securities and Exchange Commission filed an action in the U.S. District Court for the Southern District of Florida, against a prominent Miami Beach-based businessman, Nevin K. Shapiro, alleging that he conducted a $900 million offering fraud and Ponzi scheme targeting more than 60 investors nationwide. The SEC claims that… Read More »

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South Florida Insurance Agent Charged With Scamming Seniors in alleged STOLI Scheme

By McCabe Rabin, P.A. |

On April 22, 2010, Florida authorities arrested insurance agent Steven M. Brasner, who worked with Infinity Financial Group LLC in Davie, Fla., on charges that he falsified information on elderly clients’ life insurance applications to sell the applications on the secondary market. Axa Equitable Life Insurance Co. initially notified Florida’s state regulators of the… Read More »

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