Innovative Football Technology Boiler Room Scams Seniors

They generated false trade documents to dupe investors into believing they had purchased TDI shares when in fact they had not.

The Securities and Exchange Commission has issued a press release regarding a Florida-based boiler room that was defrauding seniors, pressuring them to purchase stock in a new technology for the National Football League and the Super Bowl.

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Trump University an “Elaborate Bait-and-Switch”

Trump University is said to have promised students hand-picked instructors and top quality seminars, but students were left worse off than before

Donald Trump is under fire for his for-profit investment school, Trump University, engaging in what the New York State Attorney General’s office calls illegal business practices.

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Former Partner of Tommy Tuberville Pleads Guilty to Investment Fraud in Opelika Courtroom

Stroud raised $5.2 million dollars by claiming to be a commodities trader

Opelika-Auburn News has released an article entitled “Tommy Tuberville’s former partner pleads guilty to investment fraud in which John David Strout, 42, of Auburn, Alabama, pled guilty in Judge Jacob A. Walker III’s courtroom to fraud on August 23.

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Two JPMorgan Traders Charged With Overstating Value and Hiding Losses

Their mismarking scheme caused JPMorgan’s reported first quarter income before income tax expense to be overstated by $660 million

According to a press release issued by the Securities & Exchange Commission on August 14, 2013, two JPMorgan traders have been charged with attempting to conceal considerable losses by overvaluing the investments in a portfolio they managed.  Because of the overvalued investments, JPMorgan’s first quarter income before income tax expense was overstated by $660 million. (more…)

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Pump and Dump Scam Makes Over $140 Million From Penny Stocks

“That deal is obviously a pump and dump. We know enough to be subtle.”

According to an article by ABC News entitled “9 Charged In $140 Million Penny Stock Fraud,” authorities have charged 9 people for running an elaborate scheme targeting investors in almost three dozen countries, making more than $140 million by pumping up the price of penny stocks and then dumping them on investors. (more…)

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Options Trading Risk Alert Issued By SEC

These sham close-outs violate the SEC rule, which aims to ensure that trades settle promptly, thereby reducing settlement failures

The Office of Compliance Inspections and Examinations at the SEC has issued an alert on their website for investors.  Examiners found an options trading strategy that was avoiding certain requirements of the short-sale rule, Regulation SHO, and warn investors to look out for it.

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Ex-Marine Targets Veterans In Hedge Fund Scam

Cohn has touted his Marine Corps pedigree in VFEN press releases and encourages veterans to find “a money-manager who is both trustworthy and knows what he is doing.”

The Securities and Exchange Commission this week has issued a press release regarding an emergency order to stop a hedge fund scam in which a former Marine has allegedly been defrauding fellow veterans and other investors.

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Bitcoin Ponzi Scheme Promised No Risk, High Rewards

Bitcoin, and all other virtual currencies, are not above the SEC

The Securities and Exchange Commission recently issued a press release regarding a Texas man and his company who were charged with operating a Ponzi scheme that stemmed from the virtual currency, Bitcoin.

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Insurance Start-Up Company Turns Into Ponzi Scheme

In reality GCA had less than 40 policyholders, with half of them being employees

The Securities and Exchange Commission issued a press release on June 17, 2013, detailing the Complaint that charges two executives with operating a $10 million Ponzi scheme at a Dallas medical insurance company.

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Stealing from the Pensions of Police Officers and Firefighters

The stolen money…would have been able to provide benefits for over 100 retired police officers, firefighters, and surviving spouses and children for a year

The Securities and Exchange Commission issued a press release on June 10 regarding an investment adviser who allegedly stole money from the pension fund of Detroit police and firefighters.

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Early Retirement Scams

All you have to do is cash out your 401(k) plan and put the money in a variety of investments

Imagine being able to stop working and travel around the world on your savings, never having to work again. This is a dream that many of us have, but most of us will never be in a financial position for it to come true. Sometimes this dream is used to manipulate investors into handing over their life savings and putting it into an investment scam, where they could wind up losing everything.

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Cherry-Picking Trades in Chicago

For 17 consecutive quarters, the Dusheks reaped positive returns at the time of allocation while their clients suffered negative returns

The Securities and Exchange Commission issued a press release on May 16 regarding an investment fraud run by a father and son team in Chicago.  According to the release, the two were cherry-picking trades, and ended up making nearly $2 million, which they used to purchase luxury homes, vacations, and vehicles.

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What does a scam artist look like?

The only way you can learn to spot a scam artist is to become educated about financial fraud.

A scam artist is not easy to spot.  Here is another video installment from Page Perry, LLC on how to spot a scam artist.

http://www.pageperry.com/what-a-scam-artist-looks-like-video/

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The Take Away Pitch

Being pressured and manipulated like this makes it hard to keep a clear head, and most people will jump on the chance to invest.

Today we are talking about another video from the Investor’s Watchdog University series brought to you by Page Perry, LLC, called “The Take Away Pitch.”  This is another clever sales tactic used by scam artists to manipulate investors.

http://www.pageperry.com/take-away-pitch-video/

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Pension or Settlement Income Streams

Make sure you assess the risks and find out the tax consequences, the compensation of the salesperson, the reputation of the company, and who is ultimately paying you before going further.

The Securities and Exchange Commission (“SEC”) has just released an investor bulletin entitled “Pension or Settlement Income Streams: What You Need to Know Before Buying or Selling Them” in which they warn investors of the dangers involved in structured settlements and pensions.

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SEC Shuts Down Tankless Water Heater Scam

Stebbins and Jones traded Noble Innovations stock by using 28 accounts in 18 different names with 14 separate brokers to ultimately profit by more than $557,000

The Securities and Exchange Commission has filed a Complaint against two Arizona brokers, charged with diverting at least $1.8 million in investor money for personal use in a tankless water heater development project.  According to the SEC Press Release,

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New York Based Firm Charged with Pushing Investors Into Clean Energy Company

Although commissions and bonuses are standard procedure for investment advisors, an investor deserves to be told how much their advisor is making.

On February 15, the Securities and Exchange Commission announced fraud charges against two brokers and a New York brokerage firm for pushing investors into risky investments in a clean energy company.  The brokers were misleading in order to earn large commissions on the investments.

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Don’t “Test Drive” Investment Opportunities

The Test Drive is a way to trick you into giving money to an investment fraud, even though you may be reluctant to do so.

Today we are bringing you another post from our Investor’s Watchdog University video series, brought to you by Page Perry, LLC.

http://www.pageperry.com/the-test-drive-video/

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CCOs Held Accountable For Regulatory Misconducts

Just like with the CEO and CFO, if the CCO is found to have been negligent, they should be held accountable for their mistakes.

The Journal for Practical Compliance and Risk Management for the Securities Industry (PCRMSI) recently printed an article entitled “The Girl with the SEC/FINRA Tattoo: Disciplinary Actions Taken Against Chief Compliance Officers (November 2010-June 2011)” in which they detailed recent regulatory actions taken against Chief Compliance Officers (CCO) of various firms.

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Financial Fraud Guide For Seniors

Eleanor Blayney of the CFP “It’s essential that elders be protected against financial abuse and be provided the tools to defend themselves against scammers… it’s time to shine a bright light on the shady operators who abuse our senior citizens.”

Seniors staying protected from financial fraud is something we talk a lot about here at Investor’s Watchdog, and a new guide from the CFP Board entitled Financial Self-Defense for Seniors is one of the best resources available for doing just that.  We have taken the red flags from this guide and are discussing each one at length here.  If you have an elderly parent, make sure they know about each and every one of them, so that they can stay protected from fraud.

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