Law and legal issues

The barred ex-rep funneled clients’ money into a shell company he falsely called a sub advisor, according to investigators.

This likely means an ex-diversity chief from the firm will no longer be able to testify in a class action lawsuit with similar allegations, according to a legal expert.

The company didn’t look into the incident carefully before firing Amy Cooper the following day, the suit says.

Although they praise certain changes in a rule up for SEC approval, client attorneys and researchers say the process has further flaws.

FINRA arbitrators ordered the wealth manager and closed-end funds manager to pay damages as it resolves outstanding claims stemming from the island’s fiscal crisis.

The advisor, who is Egyptian American, lost most of his client accounts to a white rep who poached them with support from management, a new lawsuit claims.

After Brooklynn Chandler Willy recommended that the clients invest $100,000 into an LLC, its principals were arrested on federal fraud charges, the filing says.

A barred broker’s alleged version of the “infinite banking” strategy recommended that clients liquidate their 401(k)s or IRAs to buy variable annuities.

Potential legislation from a more progressive Congress and pressure from activists groups could mean the end is near for forced arbitration.

The litigation reveals how wealth managers’ deals with product sponsors work and how one with a former Voya unit went awry.

The legislation re-introduced in Congress could give more clients the option of seeking damages through the courts.

Wealthy retail matriarch Beverley Schottenstein will accept less than the $10 million that FINRA ordered her two grandsons, former JPM brokers, to pay her for mismanaging her money.

Former employee alleges financial-wellness guru’s firm selectively enforced “Christian” rules forbidding extramarital sex for staffers.

After a month of failed attempts to recover the cash, a Louisiana woman was arrested on charges of bank fraud, theft and illegal transmission of monetary funds.

Evan Schottenstein, without admitting or denying the findings, agreed to the sanction after FINRA concluded he wasn’t complying with its investigation.

Anthony Diaz began the sentence immediately after a hearing in which a victim said he should “rot in hell” for the felonies.

Impact investment manager Rachel Robasciotti and other advocates say the private proceedings are harmful to victims and helpful to firms protecting serial harassers.

The long-simmering dispute spotlights the sometimes fraught nature of advisor career moves.

The veteran FAs’ one complaint blotted their records for seven years.

Three recent criminal cases raise concerns that wealth managers and regulators aren’t detecting alleged fraud quickly enough or disclosing basic information about crimes and disciplinary problems.