Posts belonging to Category Alternative Investments
Posted by Page PerryonNovember 19, 2012
The SEC has settled two mortgage-backed securities actions against J. P. Morgan Chase and Credit Suisse for over $400 million. The enforcement actions arose out more than $1 billion in losses by investors during the financial crisis. Critics say that the settlements are just a cost of doing business and will not deter similar Wall […]
Categories: Alternative Investments, Asset Backed Securities, Brokerage Firms, Common Securities Broker Abuses, Credit Suisse, Fairness/Just & Equitable Conduct, Investigations, Investment Malpractice, Investor Alerts, J. P. Morgan Chase, Misrepresentation/Omission, Mortgage Backed Securities, Mortgage Securities & Collateralized Debt Obligation Problems, Regulatory Developments, Securities, Securities/Commodities Arbitration, Securities/Commodities Litigation
Posted by Page PerryonOctober 22, 2012
There are about 1,500 exchange traded funds on the market today. The recent boom (and bust) of new exchange traded products is mostly in the smaller, exotic and niche end of the spectrum. The problems associated with such products include lack of performance history, illiquidity, volatility, over concentration, and sometimes (for the funds themselves) death.
Categories: Alternative Investments, Brokerage Firms, Exchange-Traded Funds (ETFs), Investigations, Investment Advisers, Investor Alerts, Securities, Securities/Commodities Arbitration, Securities/Commodities Litigation, Smart Investing Tools
Posted by Page PerryonOctober 22, 2012
The SEC has charged a New Jersey-based hedge fund, Yorkville Advisors LLC, and officers with fraudulently overvaluing illiquid investments in order to attract investors to their hedge fund. Attracting more investors increases hedge fund fees, which are based on a percentage of the amount of money the fund manages. The charges are part of a […]
Categories: Alternative Investments, Brokerage Firms, Common Securities Broker Abuses, Fairness/Just & Equitable Conduct, Hedge Funds, Investigations, Investment Advisers, Investment Malpractice, Investor Alerts, Misrepresentation/Omission, Regulatory Developments, Securities, Securities/Commodities Arbitration, Securities/Commodities Litigation
Posted by Page PerryonOctober 18, 2012
The recent actions of errors and omissions insurance carriers should serve as a major red flag to investors. Many of these carriers are refusing to issue coverage for sales of certain alternative investments. In other words, these carriers have determined that the risk of loss associated with the sale of certain alternative investments is too […]
Categories: Alternative Funds, Alternative Investments, Brokerage Firms, CDOs, Closed End Funds, Common Securities Broker Abuses, Derivatives, Early Retirement Scams, Elder Abuses, Exchange Traded Notes (ETNs), Exchange Traded Products (ETPs), Exchange-Traded Funds (ETFs), Fairness/Just & Equitable Conduct, Hedge Funds, High Yield (Junk) Bonds, Insurance Products, Investment Advisers, Investment Malpractice, Investor Alerts, Limited Partnerships, Misrepresentation/Omission, Non-Traded Business Development Companies, Nontraded REITs, Oil & Gas, Private Equity Investments, Private Investments/Reg D, Promissory Notes, Reverse Convertibles, Securities, Securities/Commodities Arbitration, Securities/Commodities Litigation, Smart Investing Tools, Structured Notes, Supervisory Failures, Tenant-in-Common Interests, Unsuitable Recommendations, Variable Annuities and Equity-Indexed Annuities
Posted by Page PerryonOctober 12, 2012
Large numbers of exotic and niche exchange traded products (both funds and notes) have either folded or are on a “death watch.” One such fund, according to John Waggoner of USA Today, has not traded since January (“Some exchange traded funds in ER”).
Categories: Alternative Investments, Brokerage Firms, Derivatives, Exchange Traded Notes (ETNs), Exchange Traded Products (ETPs), Exchange-Traded Funds (ETFs), Investigations, Investment Advisers, Investor Alerts, Securities, Securities/Commodities Arbitration, Securities/Commodities Litigation, Smart Investing Tools
Posted by Page PerryonOctober 9, 2012
Since early 2010, the SEC has filed more than 100 cases against hedge fund managers for misusing investor assets, lying about investment strategy or performance, charging excessive fees, hiding conflicts of interest, and other wrongdoing. These hedge fund frauds have victimized even the most sophisticated investors by falsely promising outsized returns or secured and guaranteed […]
Categories: Alternative Investments, Brokerage Firms, Common Securities Broker Abuses, Early Retirement Scams, Elder Abuses, Fairness/Just & Equitable Conduct, Hedge Funds, Investment Advisers, Investment Malpractice, Investor Alerts, Misrepresentation/Omission, Regulatory Developments, Securities, Securities/Commodities Arbitration, Securities/Commodities Litigation
Posted by Page PerryonOctober 1, 2012
The Federal Reserve’s recent announcement of the new stimulus package has resulted in another stampede by investors into higher-risk high-yield (junk) bonds. Inflows into junk bond funds were the second highest ever and the highest for this year. Even lower grade borrowers are selling junk notes in the U.S. at an “unprecedented pace” (“Junk-Bond Fund […]
Categories: Alternative Investments, Bonds, Brokerage Firms, Exchange-Traded Funds (ETFs), High Yield (Junk) Bonds, Investment Advisers, Investment Malpractice, Investor Alerts, Misrepresentation/Omission, Securities, Securities/Commodities Arbitration, Securities/Commodities Litigation, Smart Investing Tools, Unsuitable Recommendations
Posted by Page PerryonSeptember 21, 2012
Wells Fargo agreed to pay more than $6.5 million to settle SEC charges that it sold commercial paper backed by mortgage securities and collateralized-debt obligations to municipalities, nonprofit institutions and other customers without first understanding the substantial risks of those securities. The securities were unsuitable because the investors had a low risk tolerance. Three of […]
Categories: Alternative Investments, Asset Backed Securities, Brokerage Firms, CDOs, Common Securities Broker Abuses, Derivatives, Investment Advisers, Investment Malpractice, Investor Rights, Mortgage Securities & Collateralized Debt Obligation Problems, Regulatory Developments, Securities, Securities/Commodities Arbitration, Securities/Commodities Litigation, Unsuitable Recommendations, Wells Fargo
Posted by Page PerryonSeptember 17, 2012
Tiny exchange traded funds present significant risks to investors. The problems associated with such funds may include overconcentration, high fees, illiquidity, lack of transparency, and wide trading spreads.
Categories: Alternative Investments, Brokerage Firms, Common Securities Broker Abuses, Exchange-Traded Funds (ETFs), Investment Advisers, Investment Malpractice, Investor Alerts, Misrepresentation/Omission, Securities, Securities/Commodities Arbitration, Securities/Commodities Litigation, Smart Investing Tools, Unsuitable Recommendations
Posted by Page PerryonSeptember 11, 2012
The SEC and the Commodity Futures Trading Commission have filed an emergency enforcement action against Illinois hedge fund manager Nikolai Battoo for allegedly overvaluing the assets under his management and concealing large losses from investors during the 2008 financial crisis.
Categories: Alternative Investments, Brokerage Firms, Common Securities Broker Abuses, Fairness/Just & Equitable Conduct, Hedge Funds, Investigations, Investment Malpractice, Investor Alerts, Misrepresentation/Omission, Regulatory Developments, Securities, Securities/Commodities Arbitration, Securities/Commodities Litigation
