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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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Menzer Hill, P.A. Announces Investigation
Legal Focuses |
2010/09/08 09:26
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strongThe Securities Arbitration Firm of Menzer amp; Hill, P.A. Announces Investigation Into The Sales Practices Of Broker-Dealers That Solicited Purchases of Inverse and Leveraged Exchange-Traded Funds (ETFs)
/strongThe Securities Arbitration Firm of Menzer amp; Hill, P.A. (a href=http://www.suemyadvisor.com/www.suemyadvisor.com/a) announced today that it is investigating the sales practices of brokerage firms that solicited investors to buy leveraged and inversed Exchanged-Traded Funds (“ETFs”). Many brokerage firms, through their financial advisors, are soliciting purchases in these securities as investments, with holding periods longer than one day, while others are recommending option strategies on the underlying ETFs. The Financial Industry Regulatory Authority (“FINRA”), stated in a Regulatory Notice, sent to brokerage firms June 2009, that leveraged and inverse ETFs are “highly complex financial instruments” and “are typically not suitable for retail investors who plan to hold them for more than one trading [day], particularly in volatile markets.” Brokerage firms that failed to adhere to suitability requirements could be held liable to investors that sustained losses in solicited purchases of leveraged and inverse ETFs as a result. pInvestors that have purchased leveraged or inverse ETFs through a brokerage account or managed account offered by Merrill Lynch, a subsidiary of Bank of America (NYSE:BAC), Morgan Stanley Smith Barney (NYSE:MS), Wells Fargo Advisors (NYSE:WFC), Ameriprise Financial (NYSE:AMP), UBS (NYSE:UBS), LPL Financial, Raymond James (NYSE:RJF), Edward Jones, or other brokerage firms and have sustained losses should contact the attorneys at the Securities Arbitration Firm of Menzer amp; Hill, P.A. to determine if they have a claim for a recovery of losses. /ppLeveraged and inverse ETFs can be volatile and investors may have realized or unrealized losses in the following ETFs year to date, including but not limited to: /ptable id=t6420933_1 class=bwtablebottommargin cellspacing=0tbodytrtd id=t6420933_1_0_46200 class=bwcellpaddingleft0 bwverticalaligntop bwtextalignleftDRV down 63% (NYSEArca: DRV); /td/trtrtd id=t6420933_1_1_46200 class=bwcellpaddingleft0 bwverticalaligntop bwtextalignleftTMV down 46% (NYSEArca: TMV); /td/trtrtd id=t6420933_1_2_46200 class=bwcellpaddingleft0 bwverticalaligntop bwtextalignleftVXX down 44% (NYSEArca: VXX); /td/trtrtd id=t6420933_1_3_46200 class=bwcellpaddingleft0 bwverticalaligntop bwtextalignleftSRS down 43% (NYSEArca: SRS); /td/trtrtd id=t6420933_1_4_46200 class=bwcellpaddingleft0 bwverticalaligntop bwtextalignleftZSL down 42% (NYSEArca: ZSL); /td/trtrtd id=t6420933_1_5_46200 class=bwcellpaddingleft0 bwverticalaligntop bwtextalignleftGAZ down 38% (NYSEArca: GAZ); /td/trtrtd id=t6420933_1_6_46200 class=bwcellpaddingleft0 bwverticalaligntop bwtextalignleftTZA down 36% (NYSEArca: TZA); /td/trtrtd id=t6420933_1_7_46200 class=bwcellpaddingleft0 bwverticalaligntop bwtextalignleftUNG down 35% (NYSEArca: UNG); /td/trtrtd id=t6420933_1_8_46200 class=bwcellpaddingleft0 bwverticalaligntop bwtextalignleftTBT down 34% (NYSEArca: TBT); /td/trtrtd id=t6420933_1_9_46200 class=bwcellpaddingleft0 bwverticalaligntop bwtextalignleftFAZ down 29% (NYSEArca: FAZ); and /td/trtrtd id=t6420933_1_10_46200 class=bwcellpaddingleft0 bwverticalaligntop bwtextalignleftUCO down 28% (NYSEArca: UCO). /td/tr/tbody/tablepFor a free case evaluation or to discuss any other investment losses, please contact the Securities Arbitration Firm of Menzer amp; Hill, P.A., at 888-923-9223, or visit us on the web at a href=http://cts.businesswire.com/ct/CT?id=smartlinkamp;url=http%3A%2F%2Fwww.suemyadvisor.comamp;esheet=6420934amp;lan=en-USamp;anchor=www.suemyadvisor.comamp;index=2amp;md5=42f88a77817321b3764807a671c4f30d target=_blankwww.suemyadvisor.com/a. /pdiv id=releaseBottomdiv id=contactsdiv id=contactsBody class=bddiv class=cpMenzer amp; Hill, P.A.
Gary Menzer, 888-923-9223
a href=http://cts.businesswire.com/ct/CT?id=smartlinkamp;url=http%3A%2F%2Fwww.suemyadvisor.comamp;esheet=6420934amp;lan=en-USamp;anchor=www.suemyadvisor.comamp;index=3amp;md5=74419b7bab2fc6896122e36968209bd0 target=_blankwww.suemyadvisor.com/a /p/div/div/div/div |
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Lustful Court residents tire of sinful street name
Headline News |
2010/09/07 09:29
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| Some residents of Lustful Court in a central Georgia community say they're tired of being kidded and want the street's sin-friendly name changed.pBibb County Commissioner Lonzy Edwards brought up a possible name change Tuesday after receiving complaints./ppLustful Court resident Michelle Washington says the name sparks laughter and confusion when she tells people where she lives./ppYoshonda Patterson says she thinks the name gives people the wrong idea about the neighborhood on the east side of Macon./ppAfter listening to residents, commissioners decided they'll consider the change if neighbors start a petition./ppThe street is in a subdivision and no one could recall where the name originated./p |
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