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Fraudulent Practices in the Sale of Indexed Annuities
Headline News |
2010/09/22 10:12
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pIf approached by your broker (or financial advisor or insurance agent) to purchase an indexed annuity there are some things an investor should consider.nbsp; First, an indexed annuity (also known as, equity-indexed annuity or fixed indexed annuity) is a fixed annuity, either immediate or deferred, that earns interest or provides benefits that are often linked to an equity or stock market index.nbsp; In 2008, the National Association of Insurance Commissioners (NAIC), an association of state insurance regulatory officials, issued a a href=http://www.insurance.illinois.gov/Life_Annuities/equityindex.asp target=_blankfont style=background-color: #fefceb color=#6a4b39buyers guide to indexed annuities/font/a, which provides educational information on indexed annuties.nbsp; Did your broker provide you with one?nbsp; The Financial Industry Regulatory Authority (FINRA) also published an a href=http://www.finra.org/investors/protectyourself/investoralerts/annuitiesandinsurance/p010614 target=_blankfont style=background-color: #fefceb color=#6a4b39investor alert/font/a on indexed annuities./ppUnscrupulous brokers take advantage of naïve, unsuspecting investors, especially seniors, and heavily pitch purchases into indexed annuities.nbsp; Often they will tout indexed annuities as being better than bank CDs and will convince investors to liquidate their CDs to buy an indexed annuity.nbsp; Investors with variable annuities are often approached by a broker to buy indexed annuities, touting them as being safer than then variable annuity, which has investment choices whose principal can be subject to market volatility.nbsp; Did the broker recommend you to consider moving money into the fixed account of the variable annuity?nbsp; If not, the broker is probably only motivated to earn a commission which can be as high as 5%.nbsp; Another fraudulent tactic is to entice an investor with an “upfront bonus” to buy an indexed annuity but what a devious broker may not tell you is that often you would have to annuitize the annuity in order to take advantage of the bonus benefit – it’s not free money, there’s a cost to every benefit in an annuity.nbsp; Other brokers may convince you that the annuity they sold you earlier is now out-of-date and try to sell you another annuity claiming to have “better and more features.”
a href=http://suemyadvisor.com/blog/investor-alerts/fraudulent-practices-indexed-annuities-61http://suemyadvisor.com/blog/investor-alerts/fraudulent-practices-indexed-annuities-61/a/p |
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American Bar Association Honors Philadelphia Firms
Legal Focuses |
2010/09/22 09:12
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| pThe American Bar Association’s Death Penalty Representation Project will acknowledge Philadelphia law firms Reed Smith LLP and Drinker Biddle amp; Reath LLP’s role in ground-breaking, pro bono litigation of capital punishment appeals with an Exceptional Service Award on Wednesday, Sept.22, 2010 in Houston. nbsp; /pp“There is no greater responsibility for an attorney than to defend a person whose life is at risk,” said ABA President Stephen N. Zack. “These firms are courageous, passionate and skilled advocates who are deeply committed to core principles of justice like due process and fairness, despite the demands of these cases.nbsp; They represent the best of our profession and make us proud.” nbsp; /ppDrinker Biddle amp; Reath partner and death penalty expert Lawrence Fox will accept the award at the 24th Anniversary and Volunteer Recognition Event in Houston, TX.nbsp; Fox is a renowned contributor to systemic defense reform.nbsp; He is recognized for his amicus filings, which were cited by New York University law professor Anthony Amsterdam in his letter nominating the firm for the award; for standards-writing; and as an expert witness. /ppReed Smith attorneys Christopher Walters and David Kochman will accept the award on behalf of their firm.nbsp; Reed Smith was nominated by the Southern Center for Human Rights and Equal Justice Initiative, which cited the firm’s leadership in four death row cases in Alabama in 2008.nbsp; Each of the four men were only weeks away from losing appeal rights due to lack of legal representation; and the death sentence in each case was imposed by a trial judge who overrode the jury’s decision to impose life without parole. /ppWith nearly 400,000 members, the American Bar Association is the largest voluntary professional membership organization in the world.nbsp; As the national voice of the legal profession, the ABA works to improve the administration of justice, promotes programs that assist lawyers and judges in their work, accredits law schools, provides continuing legal education, and works to build public understanding around the world of the importance of the rule of law./ppThis distribution list is a service to the news media from the American Bar Association Division for Media Relations and Communication Services.nbsp; Your e-mail address will only be used within the ABA and its entities.nbsp; We do not sell or rent e-mail addresses to anyone outside the ABA.nbsp; To change your e-mail listing or be removed from our distribution lists, please contact the Media Relations Department at 312/988-6171 or a href=mailto:abanews@abanet.orgabanews@abanet.org/a./ppTo review our privacy statement click here a href=http://www.abanet.org/privacy_statement.htmlhttp://www.abanet.org/privacy_statement.html/a/p |
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Penny Stock Risks – Caveat Emptor
Legal Interview |
2010/09/22 06:11
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The securities industry has tough rules when it comes to brokers soliciting the purchase of “penny stocks.”nbsp; Typically a stock is considered a “penny stock” when it trades for less than $5 a share and it does not trade on a major exchange (e.g., New York Stock Exchange or NASDAQ).nbsp; Penny stocks normally trade on the OTC Bulletin Board (OTCBB) or Pink Sheets.nbsp;
Aside from the requirements, among others, that soliciting brokers have to supply investors with a document disclosing the risks associated with penny stocks and wait, in some cases, 2 days after providing the disclosure document before placing your first order (i.e., “speed bump”), there are actual disclosure ratings assigned to each penny stock.nbsp;
A market center called a href=http://www.otcmarkets.com/ target=_blankfont style=background-color: #fefceb color=#6a4b39OTC Markets/font/a places penny stocks into different a href=http://www.otcmarkets.com/otcguide/investors_market_tiers.jsp target=_blankfont style=background-color: #fefceb color=#6a4b39disclosure categories/font/a based on things from whether or not the company is current on its financial reporting to whether the stock is the subject of fraud or stock promotion.nbsp; Your broker and his brokerage firm and clearing firm have access to this information and so do you.nbsp; There are over 13,000 stocks having either the label of “Caveat Emptor,” “Grey Market,” or “Pink Sheets No Information.”nbsp; Have you bought a penny stock recommended by a stock broker that has one of those labels?nbsp; Did your broker disclose that to you? |
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Man who tried to fake death pleads guilty to fraud
Law Firm News |
2010/09/16 02:52
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pAn Indiana money manager who once led a high-flying lifestyle pleaded guilty to five securities fraud counts on Wednesday, nearly two years after he tried to fake his death in a Florida plane crash to escape the crush of financial and personal problems./ppMarcus Schrenker, 39, admitted the charges in a plea agreement under which he agreed to a 10-year prison sentence and prosecutors dropped four other charges. He also agreed to pay more than $600,000 in restitution. Prosecutors say he bilked friends, family members and other investors of more than $1 million./ppHe will remain in jail until his Oct. 7 sentencing, when Hamilton Superior Court Judge Steven Nation is expected to rule whether Schrenker serves the sentence at the same time as a federal sentence or afterward./ppSchrenker, shackled at his wrists and ankles and wearing an orange jail T-shirt emblazoned with Inmate 453 on its back in large black letters, told Nation he has been diagnosed with bipolar disorder and has taken medication for it since 1992./ppHis attorney, P. Chadwick Hill, said afterward that Schrenker didn't blame the disorder for his actions.
/p |
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Rigrodsky Long, P.A. Announces Class Action Lawsuit
Legal Focuses |
2010/09/16 02:51
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| pRigrodsky amp; Long, P.A. announces that a class action lawsuit has been filed in the United States District Court for the Central District of California on behalf of all persons or entities who purchased or otherwise acquired the common stock of SearchMedia Holdings Limited between April 1, 2009 and August 20, 2010, inclusive (the Class Period), seeking to pursue remedies under the Securities Exchange Act of 1934 (the Complaint). /ppThe Complaint names SearchMedia and certain of the Company's current and former executive officers and directors as defendants. Ideation was a blank check company organized under the laws of the State of Delaware on June 1, 2007, and formed for the purpose of acquiring, through a merger, capital stock exchange, asset acquisition or other similar business combination, one or more businesses. On April 1, 2009, the Company announced an agreement to purchase SearchMedia International Limited (SMIL), a purported nationwide multi-platform media company in China. On October 30, 2009, Ideation completed the acquisition of SMIL (the Merger) and changed its name to SearchMedia. /ppThe Complaint alleges that during the Class Period, defendants made materially false and misleading statements, and/or omitted material facts, in the joint proxy statement and prospectus (the Joint Proxy/Prospectus) disseminated regarding the Merger, as well as in other public statements issued during the Class Period related to the Merger and SMIL. Additionally, the Complaint alleges that throughout the Class Period, defendants failed to disclose material adverse facts about SearchMedia's business, operations, and prospects. Specifically, defendants made materially false and misleading statements and/or failed to disclose that: (1) SMIL was improperly recognizing revenue; (2) certain of SMIL's accounts receivable related to sales generated primarily in the in-elevator business were uncollectible, (3) SMIL's financial results during the Class Period were materially overstated; (4) SMIL's financial results were not prepared in accordance with Generally Accepted Accounting Principles (GAAP); (5) SMIL lacked adequate internal and financial controls; and (6) as a result of the above, SMIL's financial statements were materially false and misleading at all relevant times. /p |
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Judge calls for clarity in Michigan's medical marijuana law
Headline News |
2010/09/15 08:53
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pA Michigan Court of Appeals judge urged lawmakers Wednesday to clarify the state's medical marijuana law, saying the inartfully drafted measure has resulted in confusion and arrests. /ppJudge Peter O'Connell issued his call Wednesday in a 30-page opinion on an Oakland County case in which the court upheld marijuana possession charges against two Madison Heights residents. The judge said the law is so confusing that users who proceed without due caution could lose both their property and their liberty. /pp
The appeals court decision comes as Metro Detroit leaders struggle to interpret the law, which was intended to allow marijuana prescriptions for medical purposes. But O'Connell argued in his separate, concurring opinion that sections of the law contradict Public Health Codes that make possession and manufacture of the drug illegal. /ppRaids last month on clinics in Ferndale and Waterford Township resulted in arrests and the seizure of marijuana and medical records. A week later, Lapeer County Sheriff's deputies searched a medical marijuana dispensary in Dryden, confiscating marijuana and cash. /p |
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