Posted on Apr 27th, 2015
Wedbush Securities (“Wedbush” or “the firm”), a brokerage firm located in Los Angeles, California, created and gave FINRA falsified documents regarding its review of the firm’s municipal securities transactions, alleges a FINRA complaint.
On April 10, 2012, FINRA requested that Wedbush generate documents evidencing that it conducted supervisory reviews of municipal securities transactions between October 1, 2011 and December 31, 2011 (the “review period”). Because the firm had not performed supervisory reviews of any municipal securities transactions, Wedbush fabricated municipal securities transaction report cards (“MSRB Report Cards”) by whiting-out date information and adding supervisory signatures. This document manipulation offered the false impression that the firm conducted supervisory reviews when the firm had not. In fact, Wedbush failed to even appoint a firm representative to conduct supervisory reviews of the municipal transactions.
Posted on Mar 19th, 2015
Wedbush Securities is in hot water for failing to timely and properly disclose its brokers’ bankruptcies, customer complaints, criminal allegations, and other serious matters. According to FINRA’s National Adjudicatory Council (“NAC”), Wedbush Securities, and Mr. Edward Wedbush in particular, were “reckless” in failing to properly disclose these events.
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: