Posted on Nov 10th, 2016
The bad news for Investors Capital Corp., an independent brokerage firm, just keeps coming. Recently one of its financial advisors, Cyrus Lamont Hancock of Marietta, Georgia, agreed to be permanently barred from the securities industry.
What did Mr. Hancock do? According to a settlement agreement Mr. Hancock signed with the Financial Industry Regulatory Authority (FINRA), Mr. Hancock took $11,000 worth of customer funds and deposited it in his own bank account. The customers did not approve!
Perhaps Mr. Hancock’s actions should not have been such a big surprise to Investors Capital. He pled guilty to felony theft in 1998. He disclosed a $62,000 tax lien a few years ago. Perhaps the better question is, why did Investors Capital ever hire Mr. Hancock in the first place?
Posted on Oct 4th, 2016
If you’re reading this article, there is a good chance you invested in or through an entity that is now in receivership, and you probably have a lot of questions! The purpose of this article is to give you a general overview of how receiverships work so you know what to expect. Every receivership is different, but every receivership goes through four overlapping stages: 1) stabilization; 2) investigation; 3) litigation; and 4) distribution.
These four stages all support the overarching goal of every receivership—the orderly winding down of a business in a manner that maximizes value for investors.
We will come back to these four stages in a minute, but first it is important to understand the background context that gives rise to a receivership.
Posted on Jun 23rd, 2015
Financial advisors love to sell variable annuities. The reason is simple—commissions of up to 8%. If a financial advisor can sell you a $200,000 variable annuity, that means commissions of up to $16,000. Not bad for a day’s work!
Unfortunately, commissions are just about the only thing that is simple about variable annuities.
The one reason why variable annuities are almost always a bad idea is that they are too complicated for ordinary investors (and normal people in general) to understand. Seriously, have you ever tried to read a variable annuity policy? Here is just one example from an actual policy. Try to stay awake through this, because there is a lot more you urgently need to know about variable annuities: