With Puerto Rico settlement in sight, clients win $4.8M award from UBS
Tobias Salinger's With Puerto Rico settlement in sight, clients win $4.8M award from UBS" Financial Planning story reports on a recent recent settlement of $4.8 million in relation to arbitration filings in Puerto Rico. UBS has been accused of unauthorized use of lines of credit and margin, breach of fiduciary duty, breach of contract, unsuitability and negligence by multiple high profile clients following the crash of the Puerto Rico bond market, and SLCG's
Edward O'Neal is quoted saying...
Consultant: West Virginia city was bombarded with opioids
The Washington Times' "Consultant: West Virginia city was bombarded with opioids" story reports on three companies that have been involved in complex litigation for shipping overwhelming amounts of opioids into the state of West Virginia from 2006 to 2014. Dr. McCann testified in this case, and is quoted in the article saying that of the 110 million doses of hydrocodone and oxycodone that were shipped into the state, over 90% were from the defendants. That covers just two of the many...
AG Ferguson wins historic $14.5M after trial on "trust mill" scheme
A press release from the Washington State Attorney General details a historic settlement of $14.5 million after CLA Estate Services, Inc. and CLA USA, Inc. earned millions deceptively selling estate-planning services and annuities to Washington seniors. Quoted from his testimony in the case, Craig McCann states in the article that during his extended time as an expert witness, he has never seen a product in which "there is a zero chance that a fully informed investor would ever purchase".
Merrill to pay $26 million to New Hampshire, former NH Governor to settle churning allegations
CNBC article "Merrill to pay $26 million to New Hampshire, former NH Governor to settle churning allegations" details the conclusion of a FINRA hearing regarding Merrill Lynch being accused of churning the bank accounts of the former Governer of New Hamsphire. The article quotes Craig McCann, saying that this $24.25 million settlement is the second largest in history for an individual claimant. Dr. McCann has published extensive research on the concept of churning.
FINRA arbitration claims surge on Puerto Rico bond losses, worsened by Hurricane Maria
Arbitration claims filed with the Financial Industry Regulatory Authority have surged from customers who lost money in the fiscal crisis that hit Puerto Rico debt over the past half-decade. The increase in part reflects a resumption of FINRA hearings after a hurricane crippled the U.S. island territory's infrastructure and led to a halt in processing cases.
The number of arbitration claims jumped 45 percent in the first quarter, according to FINRA statistics. The total of 1,152 new...
What You Won't Learn From One Wall Street Watchdog Report
Heather Gillers' "What You Won't Learn From One Wall Street Watchdog Report" Wall Street Journal story reports on a problem SLCG identified, illustrated by recent arbitration filings in Puerto Rico. Her article cites SLCG's analysis BrokerCheck records showing settlements and pending cases on individual broker's BrokerCheck reports not listed on the brokerage firm' BrokerCheck reports even though it is typically the firm not the individual broker who is sued. Craig McCann, Mike Yan and Chuan...
Opinion: Borrowing its way out of trouble, Puerto Rico sinks
Market Watch's "Opinion: Borrowing its way out of trouble, Puerto Rico sinks," by Elliot Blair Smith highlights the causes of the Puerto Rico's financial debacle. The Article quotes Craig McCann on UBS's investing of their own investor's assets in pension debt and sales tax bonds that they underwrote.
Beware Pitches for High-Yielding CDs
Kiplinger's "Beware Pitches for High-Yielding CDs" by Eleanor Laise reports on CDs promising high yields or capturing market upside, but many of these safe-sounding investments are loaded with risk. The article quotes Craig McCann on the complexity and limitations of such CDs.
Deutsche Bank May Have Rigged Index in Paschi Deal, Audit Shows
Bloomberg's "Deutsche Bank May Have Rigged Index in Paschi Deal, Audit Shows" reports on a Deutsche Bank internal audit report showing banker abuse of benchmarks, amid accusations of a widespread effort to rig rates for financial gain. The article quotes Craig McCann on the complexity and lack of transparency of these types of products to investors.
Fears grow over Wall St's appetite for securities-based lending
The Financial Times continues to cover the substantial increase in securities-based lending to customers of broker-dealers. Lending has become the primary focus of sales and marketing efforts at retail wirehouses like Merrill Lynch, Morgan Stanley and UBS. Paul Meyer, who has written extensively on the investor protection risks posed by these loans, is quoted today by the Financial Times cautioning about the risks associated SBLs.