With Puerto Rico settlement in sight, clients win $4.8M award from UBS
By: Tobias Salinger, Financial Planning (May 2021)
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 that this is common when a broker finds a particular product, and begins suggesting it to every client they have. If that product goes under, they have to answer to each of those clients that lost money under their fiduciary care.
Consultant: West Virginia city was bombarded with opioids
By: Associated Press (May 2021)
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 prescription drugs that these companies are responsible for pumping into Cabell County and Huntington. This inexcusable lack of judgement was reflected in the defendants responses, showing no remorse for their role and failing to fight claims made against them by Dr. McCann.
AG Ferguson wins historic $14.5M after trial on "trust mill" scheme
By: Office of the Attorney General, Washington State (Mar 2021)
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
By: Dawn Giel, Scott Cohn, Scott Zamost, CNBC
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.
What You Won't Learn From One Wall Street Watchdog Report
By: Heather Gillers, The Wall Street Journal (Mar 2017)
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 Qin are the principal authors of the study "Puerto Rico Securities Arbitration Report". Their findings are related to broader reported in the "How Widespread and Predictable is Stock Broker Misconduct?".
Opinion: Borrowing its way out of trouble, Puerto Rico sinks
By: Elliot Blair Smith, Market Watch (Jan 2017)
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
By: Eleanor Laise, Kiplinger (Jan 2017)
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
By: Elisa Martinuzzi, Verson Silver, Donal Griffin, Bloomberg Quint (Dec 2016)
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
By: Ben McClannahan, The Financial Times (Jul 2016)
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.
Spy Novelist Who Claimed Deception by Morgan Stanley Wins $3.6 Million
By: Mason Braswell, AdvisorHub (Jun 2016)
Mason Braswell's "Spy Novelist Who Claimed Deception by Morgan Stanley Wins $3.6 Million" reports on the financial harm an investor incurred when his broker overstated the value of his investments over a three-year period. Dr. O'Neal testified on liability and damages for the Claimant.