INVESTOR DEFENSE LAW BLOG

Posts in Category: “Wedbush Securities”

Los Angeles based Wedbush Securities Covers Up Supervisory Failure By Falsifying Documents

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.


Wedbush Securities Busted For Failing To Disclose Customer Complaints, Harming The Investing Public

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.


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What does a Receivership Do? An Investor’s Guide to How Receivers Recover Investment Losses While (Hopefully) Avoiding Bankruptcy

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.


Three Signs You Should Sue Your Financial Advisor For Negligence Or Malpractice

Posted on Dec 24th, 2015

Some investor claims are easy to see, such as when money is simply missing from an account or a financial advisor has been arrested for securities fraud. In other cases, a financial advisor has been negligent. The financial advisor did not commit fraud, but he did make mistakes that caused investment losses. These cases are more difficult for an investor to spot. Here are the three things we see in most of the investor claims we file against financial advisors for malpractice or negligence.


The One Reason Why Variable Annuities Are Almost Always A Bad Idea

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:


Can I “Sue” My Financial Advisor?

Posted on May 6th, 2015

If your financial advisor has caused investment losses, you may want to sue your financial advisor. For better or for worse, you may instead be forced out of court and into a FINRA arbitration. This post explains why securities litigation frequently ends up in FINRA arbitration, and what you can expect from the FINRA arbitration process.


How to Report Investment Fraud

Posted on May 5th, 2015

Without an investment fraud lawyer, you can easily spend hour filing investment fraud reports with federal, state, and local agencies. While doing so is often a good idea, the payout can be low.


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