CPAA+

CPAA+ Too often, investors aren’t aware of the inherent risks in their portfolios or finances until well after the damage has been done. CPAA+ can help.

This can lead to devastating financial loss and a contentious relationship between advisor and client.

03/01/2023

Brokerage Firms Caught in GPB Automotive Deception by FINRA

When brokerage firms fail to follow FINRA regulations, the consequences can be devastating to investors' life savings.

Take, for example, FINRA’s recent filing against four brokerage firms.

The Financial Industry Regulatory Authority (FINRA) recently fined four brokerage firms a total of $200,000. It required them to pay back $1.1 million in commissions they received for selling GPB Automotive investments.

FSC Securities, Royal Alliance, Sagepoint Financial, and Woodbury failed to disclose to their investors prior to making recommendations that GPB Automotive had not filed timely audit financial statements with the Securities and Exchange Commission (SEC).

By not disclosing this information to clients, the firms violated federal standards of commercial honor and principles of trade. Read the AWC filing here,

https://drive.google.com/file/d/1tMKN_3-7MZ2jHi8gNRMpuVshSTuYafc-/view?usp=sharing.

If you invested in GPB Automotive, it is recommended that you seek legal advice. You can call PIABA, 1.888.621.7484, or visit piaba.org to find a lawyer in your area.

GPB Automotive ultimately turned out to be a Ponzi scheme, and it is alleged that the brokers who sold it failed to do their due diligence or disclose material facts to investors. If you have any concerns, you can contact CPAA+ and speak with Ronald Heakins at 412-370-8524.

We do not manage investors’ funds; instead, we use our expertise to help keep you from becoming a victim of financial mismanagement. If you would like a free consultation, contact us at 412-370-8524 or sign up for our weekly blog, https://bit.ly/3kzDKOj.








14/11/2022

FINRA Sanction 3 Firms for Failing to reasonably Supervise their Brokers.

Robert W Baird & Co. - Read The AWC, https://drive.google.com/file/d/1AZcKfuvULRmy035pDt72p4TarV3_jhEt/view?usp=share_link
Raymond James and Associates - Read The AWC, https://drive.google.com/file/d/19Jt3a7rWYdE8MmUHRYt7A5e92DV4wVh-/view?usp=share_link
Janney Montgomery Scott LLC - Read The AWC , https://drive.google.com/file/d/1JGsxSxbwKLyYRR5MWIvudY6p9qyMZxN6/view?usp=share_link

FINRA Rule 3110(a) requires a member firm to establish and maintain a system to supervise the activities of each associated person that is reasonably designed to achieve compliance with applicable securities laws and regulations, and with applicable FINRA rules.

Although there were Red Flags of misconduct, the firms failed to act on them.

Compliance with the industry rules and regulations have 2 goals.
To protect customers from harm
To protect the Firms from violating FINRA rules and regulations

Proactive management goes a long way to ensure the investing public that their interests are at the forefront of recommendations made by their brokers.

The best way to protect yourself is to educate yourself about financial matters. Use resources like the FINRA website for Investors. AARP has resources along with most States' Consumer Protect sites.

Hiring a lawyer or accountant to review an investment opportunity is cheaper than having your investment vanish.

Ask your accountant to review your investments, or have your accountant call CPAA+ on your behalf.

We do not manage investors’ funds; instead, we use our expertise to help keep you from becoming a victim of financial mismanagement. If you would like a free consultation, contact us at 412-370-8524 or sign up for our weekly blog, https://bit.ly/3kzDKOj.









06/10/2022

PONZI Schemes Are Alive and Still Harming Investors: Don’t Become A Victim

Kathy Phelps monitors SEC and FBI charges and posts them monthly for the public. Her hope is for more people to read and understand that these crimes against society are affecting the livelihood of so many Americans.

Just in September, there were at least 16 new Ponzi schemes reported.

Glenn Arcaro, 45, of California, was sentenced to 38 months in prison in connection with the BitConnect cryptocurrency scheme. He fraudulently marketed the scheme that defrauded at least 4,500 people and involved $2.4 billion. Arcaro promised guaranteed returns from BitConnect’s “Trading Bot” and “Volatility Software.” BitConnect’s founder, Satish Kumbhani of India, was indicted earlier this year.

Timothy Lynch Barton, 59, of Texas was charged in connection with an alleged fraudulent scheme run through the real estate development firm, JMJ, and real estate investment firm, Carnegie Development. Barton pitched real estate investment opportunities in Texas to investors in China, promising annual interest payments for two years and a return of principal at the end of the second year. The SEC charged Barton, Stephen Wall, and Michael Wu and sought the appointment of a receivership over hundreds of acres in North Texas.

Tochukwu Abel Edeh, 32, a Nigerian national from Florida, pleaded guilty to charges relating to a purported cryptocurrency trading service called Felsic Global Trading. Edeh is a used car dealer who laundered the proceeds of the scheme and transferred funds to Nigeria. Edeh is also a defendant in a case brought by the CFTC that has been stayed pending resolution of the criminal case.

To read the other cases, visit http://theponzibook.blogspot.com/2022/09/september-2022-ponzi-scheme-roundup.html

The best way to protect yourself is to educate yourself about financial matters. Use resources like the FINRA website for Investors. AARP has resources along with most States Consumer Protect sites.

Hiring a lawyer or accountant to review an investment opportunity is cheaper than having your investment vanish.

Ask your accountant to review your investments, or have your accountant call CPAA+ on your behalf.



We do not manage investors’ funds; instead, we use our expertise to help keep you from becoming a victim of financial mismanagement. If you would like a free consultation, contact us at 412-370-8524 or sign up for our weekly blog, https://bit.ly/3kzDKOj.

29/09/2022

If You Were Sold a Non-Traded REIT, Give Me A Call For A Free Consultation 412-370-8524

A Broker has a Duty to only Recommend an Investment that is Suitable per “FINRA Rule 2111”.

Too often, Brokers Over Concentrate an Investor in Non-traded Reits due to the oversized Commissions they are paid (between 7 and 8%). Non-Traded Reits are often the largest commission they can make on selling an investment product.

Non-Traded REITS are Complex and Illiquid, making them only Suitable for Investors who can understand the business model and are willing to accept the Risk. According to Pat Ralph, regulators weighing new rules for non-traded REITs and changes could tighten limits on individual commercial investors. Read the full article at https://therealdeal.com/2022/08/30/regulators-weighing-new-rules-for-non-traded-reits/.

If you were Sold a Non-Traded REIT give me a call. Hopefully, I can give you some guidance, and the call is Free.

Protect your investments by auditing your portfolio regularly. You can’t always trust the systems in place. Many believe their investments must be safe with a well-known brokerage firm. In reality, your portfolio is only as good as the person managing your account.

Ask your accountant to review your investments, or have your accountant call CPAA+ on your behalf.

We do not manage investors’ funds; instead, we use our expertise to help keep you from becoming a victim of financial mismanagement. If you would like a free consultation, contact us at 412-370-8524 or sign up for our weekly blog, https://bit.ly/3kzDKOj.







30/08/2022

JP Morgan Securities Fined by FINRA

FINRA Fined JP Morgan $200,000 for Failing to Supervise One of Their Brokers

Brokerage Firms are required to have surveillance systems in place to help them supervise their employees. These systems look for activity that could lead to violations of industry rules and regulations.

How investment firms like JP Morgan found themselves in hot water with the regulators is by failing to act on warning signs (RED FLAGS) thus allowing the bad behavior to continue.

The result of failing to act on RED FLAGS is investors being harmed.

In this instance, the client filed an arbitration case against JP Morgan. The case, which had an award in the millions, brought the issue to the attention of the regulators.

Read the AWC here. https://drive.google.com/file/d/1Zm7_T36Vnm3zXpcQl3Y0mZBPThlb1fMa/view?usp=sharing

FINRA determined that JP Morgan failed to protect their client and found they violated NASD rule 3010 and FINRA rules 3110 and 2010.

Protect your investments by auditing your portfolio regularly. You can’t always trust the systems in place. Many believe their investments must be safe if they are with a well-known brokerage firm. In reality, your portfolio is only as good as the person managing your account.

Ask your accountant to review your investments, or have your accountant call CPAA+ on your behalf.

We do not manage investors’ funds; instead, we use our expertise to help keep you from becoming a victim of financial mismanagement. If you would like a free consultation, contact us at 412-370-8524 or sign up for our weekly blog, https://bit.ly/3kzDKOj.









10/08/2022

FINRA Sanctions a Broker so He Sets Up Shop as an Investment Advisor in MI

FINRA Sanctioned Robert David Jr. on April 22, 2022 for 20 months and a $15,000 Fine. So how can he still be giving financial advice and charging for it? FINRA Sanctioned him from associating with a Broker Dealer (FINRA Member) in any capacities. But, RIA firms are not regulated by FINRA.

The previous firm he worked for was Morgan Stanley until MS discharged him on April 2, 2019 due to the fact Mr. David entered false information about clients' net worth and liquid net worth. MS went one step further and filed an arbitration alleging Mr. David made misrepresentations with respect to corporate bond investments.

In addition, Mr. David over-concentrated clients' portfolios in non-investment grade bonds “commonly called Junk Bonds” and exercised discretionary trading without written authorization.

Read the AWC here.

Last week I posted information on how to check out your Broker or Advisor. This is a perfect example of why one would want to do so.

Click here to read last week’s blog, Research Your Investment Professional.

Robert C David Jr.’s BrokerCheck report clearly states:

Without admitting or denying the findings, David consented to the sanctions and to the entry of findings that he falsified his customers’ account profile information. The findings stated that David falsely increased the net worth and liquid net worth of eight customers and changed the risk tolerance of one customer’s account in his member firm’s systems for maintaining account profile information for brokerage accounts. David did this in order to circumvent the firm’s solicitation restrictions and concentration limits for non-investment grade, fixed-income securities. By falsifying this information, David made the customers eligible for purchases of non-investment grade, fixed-income securities, for which they would have otherwise been ineligible under the firm’s procedures. As a result, David caused the firm to maintain inaccurate books and records.

Read more at BrokerCheck report.

Before investing, always double-check to see if your broker has a license and is in good standing. You can also use a third-party like CPAA+ to audit your investments.

We do not manage investors’ funds; instead, we use our expertise to help keep you from becoming a victim of financial mismanagement. If you would like a free consultation, contact us at 412-370-8524 or sign up for our weekly blog, https://bit.ly/3kzDKOj.









03/08/2022

Research Your Investment Professional

Joshua L Rupp of Michigan solicited main Street investors and depleted their retirement savings by using fake credentials and false documents showing extremely high returns. In reality, Rupp was not licensed by any Broker-Dealer or the SEC.

Read the SEC complaint: Case No. 1:21-cv-643, https://drive.google.com/file/d/11VXc60s-pDpUMbEpTyRSgfFcDYwi5v1s/view?usp=sharing

Never invest your money with someone who is not licensed and registered. If you choose to work with an investment professional, start by learning about the investment professional’s background, registration status, and any disciplinary history.

FINRA Broker-Check, https://brokercheck.finra.org/, is a free tool and a Great place to start researching the background and experience of Financial Brokers, Advisers and Firms.

You should also go to the SEC website to look up a Broker or Adviser: adviserinfo.sec.gov.

And be sure to Follow this link to read the SEC Investor Bulletin “How to select an Investment Professional”

https://www.investor.gov/introduction-investing/general-resources/news-alerts/alerts-bulletins/investor-bulletins/investor-0

If you suspect one of your investments might be at risk, call us, CPAA+. We do not manage investors’ funds; instead, we use our expertise to help keep you from becoming a victim of financial mismanagement. If you would like a free consultation, contact us at 412-370-8524 or sign up for our weekly blog, https://bit.ly/3kzDKOj.









27/07/2022

A Broker Churned an Account generating over $134,000 in Commissions

A problem that has plagued the brokerage industry from the beginning is “Excessive Trading,” more commonly known as CHURNING. When a Broker gains the trust of a client and, in effect, gains de facto control of the client’s account, the Broker can take advantage of the client.

Often these unscrupulous trades are unsolicited and involve older clients. Research tells us that the older one becomes, the less you are to question the trading and frequently consent to activity that is not in their best interest. Unfortunately, bad actors know this and may take advantage of older clients.

In the case brought against broker Desir, just think what the outcome would have been if the client had passed away months before the damage was discovered? The broker would have most likely got away with his bad deeds thus harming the clients' heirs. It is for that reason I believe the executor should always review the activity that has taken place in the deceased accounts.

Read the Palmery Robert Desir AWC Case, https://cpaaplus.com/real-world-samples-financial-fraud/a-broker-churned-an-account-generating-over-134000-in-commissions-59.html

AARP has been a big advocate helping to push legislation and educating members. Often investors are just too trusting of their broker or advisor.

Don’t let your guard down; Also talk to your parents. Keep the conversation alive. Financial Fraud is a Risk to All.

If you suspect one of your investments might be at risk, call us, CPAA+. We do not manage investors’ funds; instead, we use our expertise to help keep you from becoming a victim of financial mismanagement. If you would like a free consultation, contact us at 412-370-8524 or sign up for our weekly blog, https://bit.ly/3kzDKOj.

Learn more at https://cpaaplus.com/








A Question Everyone Should Ask Their Broker / AdvisorQ) Do You Have Error and Omission Insurance “E&O”? E&O Insurance is...
13/07/2022

A Question Everyone Should Ask Their Broker / Advisor

Q) Do You Have Error and Omission Insurance “E&O”?

E&O Insurance is a policy every Broker or Adviser should have to protect you, the customer, if their advice goes haywire.

That may seem like something that will never happen to you, but I am here to tell you every investor that saw their retirement nest egg disappear thought the same.

Every Month I see cases brought by the SEC and FINRA for a wide range of issues. I am working on a case against an advisor recommending his clients invest in EquiAlt Fund LLC. EquiAlt ended up being another Ponzi Scheme that affected over 1100 investors in 35 states; most were elderly or retired.

E&O will also be there as a backstop if a Broker enters a wrong trade accidentally and ends up costing a large amount of money to bust the trade. “Oh, believe me, this happens” one extra zero in an option trade can cost Millions to unwind the trade.

Every year investors who are successful in their arbitration cases end up not getting paid because they worked with a broker who did not carry E&O Insurance nor had the assets to pay the award.

PIABA has been fighting with FINRA to come up with a fund or other solutions to help compensate investors who have no chance of getting compensated from brokers who have closed up shop and left their clients hanging out to dry. PIABA even issued a report, FINRA Arbitration's Persistent Unpaid Award Problem, outlining the problem and proposed remedies.

https://piaba.org/piaba-newsroom/piaba-report-finra-arbitrations-persistent-unpaid-award-problem-september-29-2021

Fidelity and Schwab are starting to require Advisors who use their platform and them as custodian for clients to carry E&O Insurance. Hopefully, other custodians will step up to the plate with this requirement.

Don’t let your guard down; Also talk to your parents. Keep the conversation alive. Financial Fraud is a Risk to All.

If you suspect one of your investments might be at risk, call us, CPAA+. We do not manage investors’ funds; instead, we use our expertise to help keep you from becoming a victim of financial mismanagement. If you would like a free consultation, contact us at 412-370-8524 or sign up for our weekly blog, https://bit.ly/3kzDKOj.









13/07/2022

A Question Everyone Should Ask Their Broker / Advisor

Q) Do You Have Error and Omission Insurance “E&O”?

E&O Insurance is a policy every Broker or Adviser should have to protect you, the customer if their advice goes haywire.

That may seem like something that will never happen to you, but I am here to tell you every investor that saw their retirement nest egg disappear thought the same.

Every Month I see cases brought by the SEC and FINRA for a wide range of issues. I am working on a case against an advisor recommending his clients invest in EquiAlt Fund LLC. EquiAlt ended up being another Ponzi Scheme that affected over 1100 investors in 35 states; most were elderly or retired.

E&O will also be there as a backstop if a Broker enters a wrong trade accidentally and ends up costing a large amount of money to bust the trade. “Oh, believe me, this happens” one extra zero in an option trade can cost Millions to unwind the trade.

Every year investors who are successful in their arbitration cases end up not getting paid because they worked with a broker who did not carry E&O Insurance nor had the assets to pay the award.

PIABA has been fighting with FINRA to come up with a fund or other solutions to help compensate investors who have no chance of getting compensated from brokers who have closed up shop and left their clients hanging out to dry. PIABA even issued a report, FINRA Arbitration's Persistent Unpaid Award Problem, outlining the problem and proposed remedies.

https://piaba.org/piaba-newsroom/piaba-report-finra-arbitrations-persistent-unpaid-award-problem-september-29-2021

Fidelity and Schwab are starting to require Advisors who use their platform and them as custodians for clients to carry E&O Insurance. Hopefully, other custodians will step up to the plate with this requirement.

Don’t let your guard down; Also talk to your parents. Keep the conversation alive. Financial Fraud is a Risk to All.

If you suspect one of your investments might be at risk, call us, CPAA+. We do not manage investors’ funds; instead, we use our expertise to help keep you from becoming a victim of financial mismanagement. If you would like a free consultation, contact us at 412-370-8524 or sign up for our weekly blog, https://bit.ly/3kzDKOj.









14/06/2022

Another Ponzi Scheme: This time, it involves “CRYPTO” go figure.

Although Bernie Madoff is long gone, Ponzi Schemes are alive and still destroying the lives of so many.

The DOJ filed a complaint against Eddy Alexandre, the leader of a purported Cryptocurrency platform called EminiFx.

Alexandre promised returns of as much as (5%) weekly from his SECRET PROPRIETARY TRADING PLATFORM. Actually, he invested little to none of the investor's funds, and when he did, he lost it.

Below is a link to Kathy B. Phelps, atty at law Blog “The Ponzi Scheme Blog”. Ms. Phelps captures all the current cases that involve Ponzi Schemes.

http://theponzibook.blogspot.com/2022/05/may-2022-ponzi-scheme-roundup.html

Don’t let your guard down; talk to your parents. Keep the conversation alive. Financial Fraud is a Risk to All.

If you suspect one of your investments might be at risk, call us, CPAA+. We do not manage investors’ funds; instead, we use our expertise to help keep you from becoming a victim of financial mismanagement. If you would like a free consultation, contact us at 412-370-8524 or sign up for our weekly blog, https://bit.ly/3kzDKOj.









25/05/2022

An Often Overlooked Resource For Investors Who Are Victims Of Financial Malfeasance

Law Schools around the country offer their students the opportunity to get hands-on experience by becoming a member of one of their Clinics. I want to bring to your attention the “Investor Rights Clinics”.

Often these Clinics are the only resource that an investor has when faced with losses due to unsuitable recommendations.

Investor rights clinics help you file a claim in arbitration through FINRA. Arbitration claims can be easier and less expensive than going through the courts, but it takes a lot of work on behalf of the attorney and an expert if needed.

So, if you believe you have been harmed but your losses are less than $50,000, most attorneys will not want to represent you. Often these cases can be as much work as a case for $500,000 and the cost to litigate the case might be greater than a favorable settlement.

If you’re concerned that representation from an Investor Rights Clinic will be of poor quality, let me tell you that is the furthest from reality. These students and their supervising professors put in an insurmountable amount of work.

I testified at two hearings in the last year for the Investor Rights Clinic at Fordham University Law School and heard one of the most outstanding closing arguments from one of the students. To be sure, you will get good representation. You can read one of the awards here: https://www.fordham.edu/info/26426/clinic_news

Below is a link to the SEC website that lists the current clinics across the country:

https://www.investor.gov/protect-your-investments/get-help/arbitration-and-mediation-clinics

Help me get the word out by sharing, forwarding, commenting, and tagging this critical information to any and all your friends. You never know when one of them or their parents needs someone to talk to about losses they have sustained from an unsuitable recommendation.

Thank you in Advance.

If you suspect one of your investments might be at risk, call us, CPAA+. We do not manage investors’ funds; instead, we use our expertise to help keep you from becoming a victim of financial mismanagement. If you would like a free consultation, contact us at 412-370-8524 or sign up for our weekly blog, https://bit.ly/3kzDKOj.









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