Posts Tagged ‘ Stock Fraud ’

InSecurities: Securities Fraud Roundup 7.5.11

July 5th, 2011. By LucyC

Top Securities Fraud Stories

By now you know the script. InSecurities takes a look at some of the latest securities fraud happenings—where folks who thought they’d made some secure investments have found those investments, well, a bit insecure due to fraudulent—or alleged fraudulent—activity. So be prepared for those omnipresent words and phrases—like “materially false and misleading statements”. They tend to pop up here with some regularity, as you’ll see…

New Securities Lawsuits Filed

Our first Madoff Meter contender is Deutsche Bank AG. And DB brings us another of those omnipresent securities fraud phrases: “mortgage-backed securities” (you’ve heard that one before, right?)…

 

Company:                                        Deutsche Bank AG

Ticker:                                             DB

Class Period:                                  Jan-3-07 to Jan-16-09

Date Filed:                                      Jun-21-11

Lead Plaintiff Deadline:                  Aug-20-11

Court:                                             Southern District of New York

Madoff Meter:                      

The Allegations:

Not to be left out of the fray, Deutsche Bank (DB) is facing a securities class action brought on behalf of an institutional investor. Details above, and we’re talking big bucks, allegedly lost on ordinary shares during the period between January 3, 2007 and January 16, 2009 (the “Class Period”).

The complaint alleges that during the Class Period, DB issued materially false and misleading Read the rest of this entry »

Tags: Insecurities, Investment Broker, securities, Securities Fraud, Securities lawsuit, securities settlement, Stock Fraud, Stockbroker Fraud
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Insecurities: Securities Fraud Roundup 2.23.11

February 23rd, 2011. By LucyC

Top Securities Fraud Stories

Tired of losing money? WFC (NYSE)—also known as Wells Fargo—was known as Wachovia—is being sued. Hard to believe, I know—especially in these times. But it seems that a retired woman in Florida has had enough of losing money with her IRA investments, and figures the odds of actually recovering her money—never mind making any—are better with seeking a Wells Fargo class action lawsuit. So she’s filed a claim. 

The back story: The plaintiff gave her Wachovia broker a ‘second chance” (why?) to “do a better job” (read ‘make money not lose it’) with her IRA investments—but apparently, that didn’t work out so well. 

In fact, the securities fraud case claims that WFC “breached its duty to make suitable recommendations; mis-marked her investment objective and risk tolerance; and engaged in short term trading and speculating on Latin America and China mutual funds, and on ‘ultra bull’ leveraged exchange traded funds.” That doesn’t exactly read like the manifesto for conservative value investing. 

The WFC broker also stands accused of “excessive trading”: the claim contends that the broker “generated an annual turnover rate of more than 17 times the average monthly equity in Claimant’s IRA.” 

And “Wells Fargo “needed an accurate customer profile to make suitable recommendations in Claimants IRA—including her investment objectives and risk tolerance, time frame, withdrawals, annual income, net worth, investment experience and her employment. Instead, the broker’s key forms included both contradictory and untrue information about Claimant,” the claim alleges. 

And then there’s a raft of securities fraud class actions stemming from unbridled optimism—also known as concealing the facts or ‘failure to disclose’…

Failure to Disclose Club

Where members vie for position on the Madoff meter.

Company:          Bank of America Corporation (BofA)

Ticker:               BAC

Class Period:    Jan-20-10 to Oct-19-10

Court:               Southern District of New York

Madoff Meter Rank:    

Let’s start with BofA (BAC:NYSE), the largest bank in the US. Just how many class actions have they faced in the past 12 months? This latest was filed by an institutional investor on behalf of purchasers of BofA common stock during the period between January 20, 2010 and October Read the rest of this entry »

Tags: Arbitration, Insecurities, Securities Fraud, Stock Fraud
Posted in Emerging Issues, Securities | No Comments »