On February 2, 2023, a FINRA arbitration panel awarded the Claimant, Wells Fargo Advisors, LLC a sum of 15,300,000.00 in Compensatory Damages and over $4,000,000.00 in additional costs and attorney fees. Case Summary: In October 2018, Kent Jackson Rhoades left his job at Wells Fargo Advisors, LLC in Mountain Home, Arkansas to start
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Missouri Legislature Proposes Investment Adviser Disclosure of Social Objectives
On January 8, 2023, Representative O’Donnell introduced a bill to the 102nd General Assembly that adds to the disclosure obligations of Missouri-registered investment advisers. If enacted, Missouri House Bill No. 824 will amend Chapter 409 (Regulation of Securities) of the Missouri Revised Statutes to require these investment advisers and investment adviser representatives to disclose any…
Jury Trials in Missouri Securities Division Administrative Enforcement Actions
The Enforcement Section of the Missouri Secretary of State Securities Division (the “Enforcement Section”) brought 35 administrative enforcement actions between 2020 and 2021 pursuant to Section 409.6-604, RSMo.,[1]which assessed $7.5 million in civil penalties.[2] Some of these administrative actions alleged securities fraud in violations of Section 409.5-501(1), Section 509.5-501(2), and Section 509.501(3).…
ARE YOU A FINANCIAL ADVISOR WITH A WRONGFUL TERMINATION OR DEFAMATION CLAIM?
Advisors terminated by their broker-dealer should immediately retain experienced legal counsel. The broker-dealer has 30 days after termination to file the mandatory U-5. Legal counsel can help you negotiate fair and accurate language for this critical and potentially public disclosure. Moreover, how the U-5 is completed above and beyond the…
ARE YOU A FINANCIAL ADVISOR WITH A WRONGFUL TERMINATION OR DEFAMATION CLAIM?
Advisors terminated by their broker-dealer should immediately retain experienced legal counsel. The broker-dealer has 30 days after termination to file the mandatory U-5. Legal counsel can help you negotiate fair and accurate language for this critical and potentially public disclosure. Moreover, how the U-5 is completed above and beyond the…
Two New Arbitration Cases
April 26, 2022, brought us two new arbitration rulings to sink our teeth into. One ruling was issued by the Supreme Court and the other by the Court of Appeals. I think the court of Appeals decision might get reversed. In Car Credit, Inc v. Pitts, the Supreme…
5th Circuit Strikes Down SEC Administrative Proceedings Framework for Securities Fraud cases
In Jarkesy v. Securities and Exchange Commission, Case No. 3-15255, a panel of the U.S. Court of Appeals for the Fifth Circuit ruled on May 18, 2022, in a 2-1 decision that the U.S. Securities and Exchange Commission (“SEC”) may no longer use its own administrative proceedings framework to enforce…
5th Circuit Strikes Down SEC Administrative Proceedings Framework for Securities Fraud cases
In Jarkesy v. Securities and Exchange Commission, Case No. 3-15255, a panel of the U.S. Court of Appeals for the Fifth Circuit ruled on May 18, 2022, in a 2-1 decision that the U.S. Securities and Exchange Commission (“SEC”) may no longer use its own administrative proceedings framework to enforce…
Self-Directed IRA Custodian Liability under State Securities Acts
It should come as no surprise to anyone that if purchasers of securities or a state’s securities commission bring an enforcement action for the unlawful sale or contract for sale of unregistered securities, then they will seek recourse against anyone involved in the transaction because the proceeds of such sales have often been spent by…
Self-Directed IRA Custodian Liability under State Securities Acts
It should come as no surprise to anyone that if purchasers of securities or a state’s securities commission bring an enforcement action for the unlawful sale or contract for sale of unregistered securities, then they will seek recourse against anyone involved in the transaction because the proceeds of such sales have often been spent by…