Posted on Sep 15th, 2015
David Woods Unsworth Jr. of Belvedere, California was recently fined $25,000 and suspended for six months, according to reports from Financial Industry Regulatory Authority, or FINRA.
While chairman, CEO, and majority owner of Legend Merchant Group, Inc. (LMG) from 2008 to 2012, Unsworth (a.k.a. Chip Unsworth) engaged in various unethical activities, including the disregarding of multiple FINRA regulatory requirements. His salient misconduct, however, concerned improper communications with a customer who intended to make an official complaint about a former LMG broker. Unsworth attempted to conceal this complaint from FINRA, in hopes of “avoiding regulatory scrutiny,” and tried to convince his customer to do the same.
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: