financial fraud Tag Archives — Securities Fraud Lawyers Blog

Bad Actors: Tips for Spotting the Financial Industry’s Bad Apples

Published on: June 9, 2017 | by Savage Villoch Law, PLLC

We’ve all seen bad actors in movies and T.V., but did you know that bad actors can be found on Wall Street and other financial industry institutions? The Financial Industry Regulatory Authority (FINRA) recently released a statement outlining the need for checks-and-balances against bad actors.

What are bad actors?

FINRA defines a bad actor as one within the financial industry “who seeks to evade regulatory requirements and harm investors for their own personal gain”. Essentially, they’re con artists; fraudsters.

In Wells Fargo Accounts Fraud Case, the Hits Keep Coming

Published on: May 12, 2017 | by Savage Villoch Law, PLLC

We all remember that nastiness about Wells Fargo, right? You know, that little PR debacle where it turned out that, due to unrealistic sales initiatives, Wells Fargo employees initiated accounts fraud against millions of consumers.

After the story broke, Wells Fargo lost a major vote of consumer confidence. The following weeks saw many customers closing accounts and executives getting raked over the coals, culminating in the resignation of the CEO and a large scale termination of employees who had participated in accounts fraud.

Finally, it seemed the dust had settled. The banking giant was ordered to pay out $190 million in federal fines and reparations to affected consumers. The bank also promised a change to corporate culture and initiatives, announcing an end to aggressive sales goals.

Top 8 Investor Complaints

Published on: April 21, 2017 | by Savage Villoch Law, PLLC

The investment world is pretty cut-and-dry; either you win, or you lose. Not much can be said for losing, after all, it’s part of the game. Usually when you lose out on an investment, it’s due to the fact that you didn’t account for certain risks. However, there are some instances beyond investors’ control that might derail an otherwise sound investment. These instances give rise to understandable investor complaints.

Investor complaints pertain to how a transaction was executed. Whether it’s against a broker, investment advisor, transfer agent, or an entire brokerage firm, investor complaints focus on how an investment transaction is handled.

Below are the most frequently recurring investor complaints as reported by the SEC’s Office of Investor Education and Advocacy (OIEA).

Top 10 Senior Scams to Avoid

Published on: February 17, 2017 | by Savage Villoch Law, PLLC

Senior Scams: Preying on the Nation’s Vulnerable

Senior scams being perpetrated against some the country’s seniors and the elderly has been on the rise over the past few years. Seniors are especially vulnerable to fraud due to health issues or the natural effects of aging.

A USA Today report states that a hotline set-up by the Senate Aging Committee received twice as many calls for senior scams involving claimed tax debts in 2016 than any other complaint. The “tax debt” senior scam also topped the Committee’s annual report comprising reported financial scams for the year.

Wells Fargo Pays Out $190 Million in Financial Fraud Claim

Published on: September 12, 2016 | by Savage Villoch Law, PLLC

Last week, banking giant, Wells Fargo, agreed to a settlement with federal and state prosecutors in a California court to pay $185 million in penalties and $5 million in damages to affected customers following a wide-spread financial fraud scandal.

In May of last year, it was alleged that Wells Fargo had assigned fee-generating savings and credit accounts to customers with out prior knowledge or consent. According to a report from the Consumer Financial Protection Bureau (CFPB), this led to the creation of more than 2 million potentially unauthorized deposit and credit accounts.

The full amount of the $100 million fine charged by the CFPB will constitute the largest such fine the agency has ever imposed since its inception in the wake of the 2008 financial crisis. A $35 million penalty will be paid to the Office of the Comptroller of Currency and $50 million in damages will be paid to the city and county of Los Angeles. The settlement also provides an additional $5 million in customer restitution.

Zika Virus May Carry Threat of Investment Fraud

Published on: September 2, 2016 | by Savage Villoch Law, PLLC

It seems that mosquitoes aren’t the only thing people will have to watch out for on the Zika front. As with any public crisis, the outbreak of the Zika virus has come with the threat of investment fraud in tow. Crooks and scam artists exploit crises like this one by preying on public anxieties. This sort of behavior is not only detrimental to victims of investment scams, but also further clouds public perception of a crisis by circulating false information.

As such, the Securities and Exchange Commission (SEC) has issued an Investor Alert in an effort to prevent anyone falling victim to financial fraud. The SEC’s investor alert covers several tips and warning signs to know if you may be getting involved in an investment scam.

Unregistered investment professionals