Dealing With an Investing Blind Spot

The real tragedy of blind spots is that we’re often totally uncoachable when it comes to handling them.

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The attorneys at Sallah Astarita & Cox have decades of experience representing small business owners. If you need assistance call 212-509-6544 for a free consultation.

How to Manage Increasingly Higher Medical Deductibles

Despite gains in the number of Americans with health insurance, employers are continuing to shift costs to workers in the form of higher deductibles.

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The attorneys at Sallah Astarita & Cox are experienced securities litigators. If you need assistance with an investment issue, call 212-509-6544 for a free consultation.

Simpler, Less Expensive 401(k) Options Emerge for Small Businesses

Most employers with fewer than 100 workers don’t offer 401(k) plans, and when they do, they’re expensive. But the landscape is quickly changing.

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The attorneys at Sallah Astarita & Cox are experienced securities litigators. If you need assistance with an investment issue, call 212-509-6544 for a free consultation.

The Sharing Economy Attracts Older Adults

More older Americans are turning to gigs through services like TaskRabbit to supplement retirement savings and investments.

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The attorneys at Sallah Astarita & Cox are experienced securities litigators. If you need assistance with an investment issue, call 212-509-6544 for a free consultation.

How MacArthur Geniuses Handle Their Money Windfalls

Lump sums of money too often prove ruinous for lottery winners. Do recipients of the MacArthur Foundation fellowship, and the $625,000 that comes with it, fare better?

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The attorneys at Sallah Astarita & Cox are experienced securities litigators. If you need assistance with an investment issue, call 212-509-6544 for a free consultation.

I.R.S. Ruling Makes After-Tax Contributions More Attractive

When you leave a company, you can roll over pretax contributions to a 401(k) into a traditional I.R.A. and after-tax contributions into a Roth I.R.A.

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The attorneys at Sallah Astarita & Cox are experienced securities litigators. If you need assistance with an investment issue, call 212-509-6544 for a free consultation.

SEC News - Manipulated Stocks, Accounting and Disclosure Failures, Fraud

Medical Diagnostics Company Chairman and Two Others Behind Scheme to Manipulate Company Stock
The executive chairman of a Massachusetts-based medical diagnostics company and two others have been charged with conducting a pump-and-dump scheme that was ultimately thwarted when the SEC suspended trading in the company’s securities before the secretly controlled shares could be dumped on unsuspecting investors.

Clearing Firm Officials Charged for Improper Margin Loans, Accounting and Disclosure Failures
Four former clearing firm officials have been charged for their roles in a series of accounting and disclosure failures stemming from decisions to extend credit to certain customers beyond what is allowed under the federal securities laws.

Florida-Based CPA Charged with Fraud for Issuing Bogus Audit Opinions
The SEC has imposed sanctions against a Florida-based certified public accountant for performing deficient and fraudulent audits and quarterly reviews for eight publicly traded companies, and issuing false and misleading audit opinions on the companies’ annual financial statements.

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The attorneys at Sallah Astarita & Cox include veteran securities litigators and former SEC Enforcement Attorneys. We have decades of experience in securities litigation matters, including the defense of enforcement actions. We represent investors, financial professionals and investment firms, nationwide. For more information call 212-509-6544 or send an email.

Ashley Madison And The Financial Consequences Of Infidelity

The recent hacking of Ashley Madison brought into public light a societal taboo that typically stays behind the closed doors of cheap motels and in the records of many a divorce—extramarital affairs.

Ashley Madison And The Financial Consequences Of Infidelity

More Protection for a Nest Egg Has Some Brokers Upset

A rule in development for five years is meant to make sure financial professionals act in a client’s best interest on retirement accounts, which could prevent many abuses.

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The attorneys at Sallah Astarita & Cox are experienced securities litigators. If you need assistance with an investment issue, call 212-509-6544 for a free consultation.

When Is a Lease Not a Lease? When It’s an iPhone

Apple’s new “financing” plan — a lease in all but name — makes available for phones a payment structure that is more familiar in the auto market.

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The attorneys at Sallah Astarita & Cox are experienced securities litigators. If you need assistance with an investment issue, call 212-509-6544 for a free consultation.

SEC News - Stolen Funds, Fraud Charges, Insider Trading

Five Arizona Residents Charged With Stealing Millions From Investors to Fund Travel and Entertainment Sprees

The SEC has charged five Arizona residents with stealing millions of dollars from investors to make car payments, buy clothes, and fund travel and entertainment at luxury resorts, casinos, and strip clubs.

Fraud Charges Announced in Cross-Border Scheme to Secretly Control and Manipulate Stock of Chinese Companies After Reverse Mergers

Fraud charges have been announced against a Wall Street CEO and his company, family members, and business associates accused of secretly obtaining control and manipulating the stock of Chinese companies they were purportedly guiding through the process of raising capital and becoming publicly-traded in the United States.

BDO and Five Partners Charged in Connection With False and Misleading Audit Opinions

National audit firm BDO USA has been charged with dismissing red flags and issuing false and misleading unqualified audit opinions about the financial statements of staffing services company General Employment Enterprises.

Related articles 

• Insider Trading - The Legal and Illegal
• Introduction to the Federal Securities Laws
• Registration and Regulation of Investment Advisers

A View From the Top on Preventing Financial Valleys

Look at your past financial “accident reports” and those of others as a way to avoid future mistakes.

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The attorneys at Sallah Astarita & Cox are experienced securities litigators. If you need assistance with an investment issue, call 212-509-6544 for a free consultation.

Promoters Promise "Indestructible Wealth” Get Sued By SEC

According to the SEC's complaint,  Online videos designed to attract investors to attend investment seminars were posted with such titles as “Finances God’s Way” or “Indestructible Wealth” which encouraged retirees to sell their existing securities holdings and invest in the created by the videos promoters.


The SEC claims that the videos falsely guaranteed promising returns, and that the defendants raised more than $14 million from over 100 investors for their real estate funds.

Having dealt with the SEC for decades, I know the penchant for overstatement and unique views of facts, but in this case there are allegedly videos. On the other hand, the defendants have not settled, which indicates that the SEC's claims may not be as clear as it claims.

The SEC is charging the individuals with  violations of Section 17(a) of the Securities Act of 1933 and the fraud provisions of the Securities Exchange Act of 1934 (Section 10b-5) as well as and Rule 10b-5.  The defendants have also been charged with violating the securities registration provisions of Section 5(a) and 5(c) of the Securities Act, as well as Sections 206(1) and (2) of the Investment Advisers Act of 1940.  The SEC is seeking financial penalties and disgorgement of ill-gotten gains as well as permanent injunctive relief.

The SEC's securities fraud complaint is online, as is their press release.

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Involved in a securities fraud case or SEC investigation? The attorneys at Sallah Astarita & Cox include veteran securities litigators and former SEC Enforcement Attorneys, with decades of experience in securities investigations, arbitrations and litigation. Call 212-509-6544 or send an email to mja@sallahlaw.com.and let us help you.

Related articles

• Tech Company Insider Accused of Tipping Inside Information 
• Honolulu Woman Charged with Fraud Through Social Media 
• SEC Charges RIA For False Statements to Investors and Investigators - Parallel Criminal Charges Filed. 

Special Offer, Time Machine Not Included

One consumer’s attempt to collect a $60 rebate for his new router leads to a maddening odyssey through the fine print into the even finer print.

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When Family Members Run Foundations, Scrutiny Never Ends

The I.R.S. and state attorneys general pay extremely close attention to the compensation of family members who run private charities.

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Health Savings Accounts Growing, Especially Among the Better Paid

An analysis found the number of accounts reached 6.5 million in 2012, with older and higher-income tax filers four times more likely to fund them.

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Simpler, Less Expensive 401(k) Options Emerge for Small Businesses

Most employers with fewer than 100 workers don’t offer 401(k) plans, and when they do, they’re expensive. But the landscape is quickly changing.

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For Widows, Social Security System Can Provide Rude Shocks

There is no simple, universal road map for maximizing benefits because of the complexity of Social Security rules and the variations in individual circumstances, including age and work history.

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Debt Collectors to Pay $61 Million in Consumer Refunds and Amend Their Practices

The Consumer Financial Protection Bureau also ordered the Encore Capital Group and Portfolio Recovery Associates to pay penalites and stop collections on some debt.
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A ‘Price Is Right’ Winner’s Showcase Letdown

An 81-year-old woman sought help after she said she called and emailed CBS’s “The Price Is Right” dozens of times trying to claim the prizes she won.
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Insider Trading Proves Costly for Father and Son and Friend

Trading on inside information can be profitable, might be illegal, and if it is illegal, it is costly.

The SEC has announced charges against a father, son, and friend in Northern California with insider trading in advance of a merger of health care companies based on confidential information the father learned from a close friend working at one of the companies.

The SEC alleges that John McEnery III breached a duty of trust and confidence owed to his friend when he traded and tipped others to trade in the stock of Clarient Inc. upon learning about its impending acquisition by GE Healthcare.  McEnery tipped his son John McEnery IV as well as Michael Rawitser, a longtime friend of McEnery III.

Following the public announcement of the acquisition, Clarient’s stock price rose by 33 percent and the trio profited by a total of more than $50,000.

The McEnerys and Rawitser agreed to pay approximately $170,000 combined to settle the charges, more than triple the amount of their alleged profits.

When you are accused of securities fraud, the penalties can be severe, and could include criminal charges. Make sure that you have experienced counsel - Call Sallah Astarita & Cox - 212-509-6544

SEC Charges Father and Son and Friend With Insider Trading

Setting Aside Shame and Blame in Financial Decisions

Not only does shame fail at changing behavior, it can also trigger the mistakes you are trying to avoid.
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JP Morgan Strategist: Market Losses Not Over

Robotic selling by quantitative investment funds tuned to volatility and price trends contributed to last month’s losses in U.S. stocks and is only about halfway completed, according to a JPMorgan Chase & Co. strategist.

Traders employing trend-following strategies in futures and those who use an asset-balancing technique known as risk parity probably have to get rid of another $100 billion in stocks in the next one to three weeks, wrote Marko Kolanovic in a note Thursday to clients. While down from an estimate of $300 million in research published a week ago, the derivatives strategist said investors shouldn’t consider the risk as having passed.

Read More: JP Morgan Strategist: Market Losses Not Over

Where Would You Retire If Not In The United States?

from FA News http://ift.tt/1VJZHVV

For College Students, Choosing a Bank Account Can Be a Minefield

It is important for students to clearly understand the terms of any account they are offered, and to make sure they’re using it in a way that minimizes fees.

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New Widows Have Another Concern: Their Finances

The household income for widows declines 37 percent after a spouse dies. Experts say women need to prepare better financially for those years.

Read the full article

The Many Pitfalls of Private Student Loans

Federal loans for education often offer options to ease onerous repayment terms. Not so with private loans, as some borrowers have learned to their dismay.

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SEC News - Insider Trading, Asset Freeze, FCPA Violations

Former Investment Bank Analyst and Two Others Charged With Insider Trading in Advance of Client Deals
A former investment bank analyst has been charged with illegally tipping his close friend with confidential information about clients involved in impending mergers and acquisitions of technology companies. The SEC also charged his friend and another individual with trading on the inside information.

Asset Freeze Against Alleged EB-5 Fraudster in Seattle Area
An asset freeze has been obtained against a man in Bellevue, Wash., accused of defrauding Chinese investors seeking U.S. residency through the EB-5 Immigrant Investor Pilot Program by investing in his companies.

Citigroup Global Markets Charged for Compliance and Surveillance Failures
Citigroup Global Markets has agreed to settle charges that it failed to enforce policies and procedures to prevent and detect securities transactions that could involve the misuse of material, nonpublic information. The firm also failed to adopt and implement policies and procedures to prevent and detect principal transactions conducted by an affiliate.

BNY Mellon Charged With FCPA Violations
BNY Mellon has agreed to pay $14.8 million to settle charges that it violated the Foreign Corrupt Practices Act (FCPA) by providing valuable student internships to family members of foreign government officials affiliated with a Middle Eastern sovereign wealth fund.

Citigroup Affiliates to Pay $180 Million to Settle Hedge Fund Fraud Charges
Two Citigroup affiliates have agreed to pay nearly $180 million to settle charges that they defrauded investors in two hedge funds by claiming they were safe, low-risk, and suitable for traditional bond investors. The funds later crumbled and eventually collapsed during the financial crisis.

Managing the Costs of Long-Term Care Insurance http://ift.tt/1JznS1G

As insurers seek to curb losses, many states have been approving large increases in premiums for older policies, but there are ways to cope.
http://ift.tt/1JznS1G

Interactive Brokers Margin Meltdown?

Back in 1987 after the crash, the big problem in customer accounts were margin calls. Heavily leveraged accounts were being liquidated with abandon during the week of  October 19, 1987.

We thought everyone learned their lesson - firms and customers alike, since those liquidations caused more problems and litigation than one could imagine. That appeared to be the case, as margin liquidations were an issue during the Tech Wreck in March 2000, the scope and magnitude of the problem was no where near 1987. And again, as the markets tanked during 2008, the scope of margin problems were minimal.

It seems that 6 years of positive results in the market caused some to forget the pain of holding stocks on margin. The 1,000 point swings that we have seen during the past few weeks has whipsawed more than a few margin accounts, causing significant losses to margined accounts.

Customers who were liquidated need to have their accounts reviewed, but we are now looking into claims that Interactive Brokers, liquidated margined positions at inappropriate prices as the market swung .

We are offering free consultations to customers whose accounts were liquidated in the last two weeks over margin calls to determine if those accounts were properly margined, and if the positions were properly liquidated.

Email us, or call 212-509-6544

Related articles

• Investor Alert: Market Risk: What You Don't Know Can Hurt You 

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The attorneys at Sallah Astarita & Cox include veteran securities litigators and former SEC Enforcement Attorneys. We have decades of experience in securities arbitration and litigation matters. . We represent investors, financial professionals and investment firms, nationwide. For more information call 212-509-6544 or send an email to mja@sallahlaw.com.