New York Securities Fraud Lawyers Blog

Wall Street’s Blind-Eye – The Role of Financial Institutions in a Money Laundering & Wire Fraud Elder Financial Exploitation Case of a Widowed Elder Dementia Mother Involving Over $8.4 Million: An RIA, A Brokerage Firm and a Private Client Group

August 18, 2025 | Jenice L. Malecki, Esq.

While JPMorgan and Jamie Diamon celebrate JPMorgan’s new mega-tower headquarters in NYC, Susan Kraus at 85 with growing cognitive issues, who should be enjoying her elder years, seeing theater shows she loves and grandchildren she adores, is in the fight of her life against three financial institutions. JPMorgan Securities LLC (JPMS), Schwab and Francis Financial are all required to face Ms. Kraus in a FINRA arbitration to recover more than $8 million – virtually her entire nest egg – that was stolen by her SEC-barred son, Brett Graham. Malecki Law has taken on a growing number of these cases and encourages you to reach out to its New York Elder Financial Fraud lawyers if you have information about this case or one of your own. Money laundering, wire fraud and elder financial exploitation occurs at financial institutions. We allege that applicable policies and procedures to prevent them either did not exist or were not followed by these institutions that turned a blind-eye, including in the high-net-worth business of JPMorgan where licensed professionals straddle bank and brokerage responsibilities and actually can see it all.

Respondent JPMS is Kept in The FINRA Case it Badly Seeks to Get Out Of

Kraus served a Statement of Claim against three financial institutions in FINRA on October 1, 2024, including JPMS, Schwab and Francis Financial.

An Unfortunate Rise in Elder Financial Fraud

August 4, 2025 | Jacqueline Candella

Elder financial exploitation, or “EFE,” has been on a rise in recent years. According to a June 2024 press release published by the FBI, “[i]n 2023, a total of $3.4 billion losses were reported, and elder fraud complaints increased by 14% from the year prior.” Then, in its 2025 press release, the FBI indicated that “[a]ccording to 2024 data from the FBI’s Internet Crime Complaint Center (IC3), there was a total of $4.885 billion in losses from 147,127 complaints. This is a 46% increase in complaints from 2023, as well as a 43% increase in losses.”

Based on the FBI’s 2024 Internet Crime Report, investment-related EFE was ranked number five for the amount of complaints filed (9,448), but it was ranked number one in overall losses incurred ($1,834,242,515). If you or your elder family member’s investment accounts have declined in value and it may be the subject of an EFE scheme, you need to consult with an EFE law firm like Malecki Law in New York.

EFE can be caused by a random scammer located elsewhere, a stranger that tries to get to know you and eventually obtains your trust through social media (i.e., pig butchering or romance scams), or someone close to you with access to your accounts (i.e., an adult child or caregiver). The last category can also include your trusted financial professionals.

TradeStation Securities Sanctioned For Misleading Customer Communications Related to Crypto Investments

July 28, 2025 | Adam G. Schreck

FINRA recently announced a Letter of Acceptance, Waiver, and Consent settling claims against TradeStation Securities, Inc. (“TradeStation”) for violating FINRA Rules related to communications with the public regarding cryptocurrency investments offered by an affiliated company. FINRA alleged that, between July and September 2022, TradeStation distributed retail communications concerning crypto assets or services which failed to clearly disclose that the products or services were not being offered through a registered broker-dealer. FINRA also alleged that TradeStation failed to provide a fair and balanced presentation of the benefits and risks of the products discussed in its retail communications. For its violations of FINRA Rule 2210 and Rule 2010, TradeStation agreed to pay $85,000 in fines. If you were misled into making investments in volatile investments without full disclosure of the risks involved, you should contact an experienced securities litigation law firm, like Malecki Law in New York City, to review your account and to determine whether your losses are recoverable.

FINRA Rule 2210 relates to communications with the public initiated by a FINRA member firm and requires the member firm to base retail communications on fair dealing and good faith, as well as to avoid misleading, exaggerated, or false statements of material fact. Rule 2210 further requires member firms to prominently disclose the name of the member firm in such communication and to identify the relationship with any non-FINRA members identified in such communication. Similarly, FINRA Rule 2010 requires member firms to observe high standards of commercial honor and just and equitable principles of trade in the conduct of their business. If you were promised a “safe” investment that has experienced considerable losses, you should speak with a seasoned securities attorney, like the attorneys at Malecki Law in New York, to determine whether your financial professional breached duties owed to you.

FINRA flagged numerous communications offered by TradeStation on its website and social media profiles that were in violation of FINRA Rules because of the communications’ propensity to mislead retail investors. FINRA’s investigation was spurred by TradeStation distributing multiple retail communications indicating that it offered crypto products to the public. In reality, the crypto products were being offered by a non-FINRA member affiliate of TradeStation. Worse yet, the crypto affiliate required customers to open TradeStation brokerage accounts to facilitate the transactions, which was never prominently disclosed in the retail communications. FINRA discovered some communications that, in its view, did not offer a complete picture as to the risks associated with the crypto products offered. FINRA determined that the violative conduct ceased because TradeStation’s affiliate stopped offering crypto products and services to the public. If you are a conservative investor whose broker recommended crypto investments, you should consult a securities fraud lawyer, like the lawyers at Malecki Law in downtown Manhattan, to determine whether such recommendations were in your best interests.

Global Political Events Keep Impacting My Investment Portfolio… What Gives?

June 18, 2025 | Adam G. Schreck

Following reports of major airstrikes exchanged between Israel and Iran over the weekend and into this week, oil prices and investments tied to the oil and gas sector have impacted investors by spiking on the theory that the conflict will escalate or impact oil exports from the wider Middle East region. Similarly, since President Trump’s tariffs have gone into and out of (and then back into) effect over the first two quarters of 2025, other investment sectors have experienced wild pricing swings that have also impacted the portfolios of retail investors. Given these seemingly random fluctuations in their portfolios, many investors are left asking, “why are events thousands and thousands of miles away impacting my investment portfolio?” We will help explain.

Now, more than ever, we live in a truly global economy. American companies are deeply intertwined with foreign entities and markets in the same way that foreign entities and markets are inevitably reliant on the United States economy. For example, in the oil and gas sector, although Exxon Mobil produces a considerable amount of crude oil in the United States, the company must still import significant amounts of crude oil from other countries, like Canada, Mexico, and Saudi Arabia, to meet the needs of their operations. If crude oil exports from Saudi Arabia are impacted by the Israel/Iran conflict, one would expect a detrimental impact to Exxon Mobil’s bottom line and stock price due to increased costs from finding new suppliers not impacted by the conflict. If your portfolio has suffered losses due to the recent price swings in crude oil, you should speak with an experienced investment loss attorney, like the ones at Malecki Law in NYC, to determine if your losses are recoverable.

In the context of tariffs, many American companies sell consumer products in the United States but manufacture such products, in whole or in part, in other countries have seen fluctuations in their share prices as the market prices in higher expected future costs due to tariffs. For example, Walmart imports a large portion of consumer goods from foreign countries that it sells domestically in the United States. If tariffs were implemented on the countries from which Walmart imports its goods, Walmart’s financial performance and stock price would be expected to suffer from increased costs. If your portfolio value has decreased on the heels of the recent tariff announcements, your portfolio might be overconcentrated and you should speak with a seasoned securities lawyer, like the ones at Malecki Law in New York.

New York Tax Preparer and Insurance Agent Charged With Operating $90 Million, Three-Decade-Long Ponzi Scheme That Allegedly Defrauded Nearly 1000 Victims

June 11, 2025 | Adam G. Schreck

On June 9, 2025, New York Attorney General Letitia James announced the arrest of Miles Burton Marshall, a New York tax preparer and insurance agent, pursuant to a 49-count indictment related to a Ponzi scheme Marshall reportedly operated for over three decades. Dating back to the 1990s, Marshall allegedly swindled clients into investing in his phony “Eight Percent Fund” that was purportedly used to facilitate real estate investments, collecting over $50 million from nearly 1000 investors. In reality, Marshall apparently kept the funds he collected to use for his own benefit, namely funding his other business ventures and his personal expenses. If you were an investor in Miles Burton Marshall’s “Eight Percent Fund” and lost your investment, you should speak with an experienced Ponzi scheme attorney, like the ones at Malecki Law in New York City, to determine whether your investment can be recovered.

To operate his scheme, Marshall allegedly solicited investments from his tax and insurance clients, as well as others, by promising high, consistent returns through the purchases, refurbishing, and rentals of residential properties. However, Marshall reportedly never actually used investor proceeds to purchase real estate. Instead, Marshall allegedly used the money to cover operating expenses from his tax preparation business, his printing press, and his storage unit businesses. Marshall also allegedly spent hundreds of thousands of dollars of investors’ funds on personal travel and retail expenses. If you have been defrauded through investments offered by your tax preparer or insurance agent, you should consult a knowledgeable securities fraud law firm, like Malecki Law in downtown Manhattan.

To keep his investors at bay, Marshall is said to have paid out early investors with funds received from new investors, the classic hallmark of a Ponzi scheme. Marshall is even alleged to have directed his employees to generate fraudulent account statements that falsely represented increasing account balances and profits to investors to create a sense of financial security. Given the seemingly consistent returns and doctored statements received by investors, investors were left in the dark and Marshall’s scheme was able to persist until Marshall could no longer solicit enough new investors to keep his veil of legitimacy. If your financial professional has given you account statements or other investment documents that appear doctored or too good to be true, you should review your investment documents with a seasoned investment fraud lawyer, like the lawyers at Malecki Law in New York.

Record Damages Awarded to Customers by FINRA Arbitration Panel in Case Involving Structured Notes Recommendations

April 10, 2025 | Adam G. Schreck

In March 2025, Stifel Financial was ordered by a three person FINRA Arbitration Panel to pay a family of customer investors over $132 million related to overwhelming losses caused by misrepresentations surrounding structured note investments. The landmark award included almost $80 million in punitive damages and over $25 million in legal fees. Although the Panel declined to provide a reasoned award, public reporting of the case indicates that the broker at issue did not understand and failed to disclose risks associated with the investments to the customers and also utilized unsupervised, off-channel communications in recommending the investments. If your broker or advisor recommended investments in structured notes without fully disclosing the risks and you experienced unexpected losses, you should consult an experienced securities attorney, like the ones at Malecki Law in New York City. Malecki Law has successfully represented structured note investors in the past.

Structured notes are hybrid securities that come in many different forms but typically include a debt component and derivative component. The debt or bond component represents the larger portion of the investment and provides principal protection, although investors in most structured notes risk losing their entire investment. The derivative portion of the investment is intended to amplify the return of the overall investment. This is usually achieved by allocating a portion of the investment amount to an underlying asset (i.e., stock), a group of assets, or an index. While the derivative portion of the investment is meant to increase returns, this portion can also dramatically increase losses, making structured notes appropriate for only the most sophisticated investors with high-risk tolerances.

Although structured notes can offer investors considerable returns, these investments often come with hidden risks. First and foremost, structured notes are often extremely complex products with highly customizable features. Rarely are they one size fits all. Next, structured notes are typically sold by institutions, so they experience higher rates of default risk compared to traditional bonds or equity. The variability in the terms of structured notes has also made it difficult for secondary markets to develop, meaning structured notes have low liquidity and investors should expect to hold the investments until maturity. If you’ve experienced losses in structured note investments recommended by your advisor or broker, you should speak with Malecki Law, a seasoned investor protection law firm in Downtown Manhattan.

Warren Buffett Is Taking Money Off the Table—Should Your Advisor Have Done the Same?

March 12, 2025 | Malecki Law Team

The stock market has been on a rollercoaster, and many investors—especially retirees—have seen their portfolios endure serious declines. Even Warren Buffett, one of the most respected investors in history, has been selling off stocks and reducing risk exposure. If a legendary investor like Buffett is pulling back, it raises an important question: Should your financial advisor have done the same to protect your retirement savings? If your investment portfolio has endured substantial losses, you should contact a securities law firm, like Malecki Law in New York.

If your portfolio was heavily invested in high-risk stocks, and you suffered major losses, it may be time to question the advice you received. Financial advisors are supposed to guide you through market ups and downs, keeping your retirement savings secure. If your advisor failed to adjust your investments when warning signs appeared, you might have been put at risk unnecessarily. You should have a free consultation with a securities lawyer in New York, like the ones at Malecki Law, to discuss your situation.

Why Did Warren Buffett Reduce His Market Exposure?

Retirement Portfolios and the Market Downturn: Did Your Advisor Prioritize Your Best Interests?

March 10, 2025 | Malecki Law Team

If you’re a retiree or nearing retirement, the latest market downturn may have shaken your confidence in your investments. Watching your portfolio take a hit right before retirement is more than frustrating—it can be devastating. At this stage in life, you don’t have decades to recover from financial losses like younger investors do. That’s why your financial advisor likely should have structured your portfolio with a long-term, conservative strategy designed to weather market swings, rather than chase risky stocks that were popular at the time. If this happened to you, you should reach out to a securities law firm, like Malecki Law in New York.

Regulation Best Interest (Reg BI) requires financial professionals to put their clients’ needs above their own. But what happens when an advisor fails to follow that rule? If your portfolio was built around the high-flying stocks of the moment rather than a balanced strategy designed to protect your retirement savings, you may have been a victim of poor financial advice—or even negligence.

Was Your Portfolio Built for Retirement Stability or Speculation?

Are We Facing a Pro Crypto-Securities Future in the U.S.? – Announcement of the New SEC Chair and the Future of Bill FIT21

December 16, 2024 | Jacqueline Candella

On December 4, President-elect Trump announced that his pick for the next Securities and Exchange Commission (SEC) chair would be Paul Atkins. There seems to be a positive response to the news, as Bitcoin quickly traded over $100,000.

As Malecki Law has previously blogged, the current chair, Gary Gensler, has often been perceived a crypto skeptic. Although crypto fans were seemingly hopeful that Hester Peirce would be appointed, a current commissioner who is also known as “Crypto Mom,” the community does not seem disappointed in the direction of the SEC at all. Malecki Law gets sometimes multiple calls a day from people scammed around crypto based investments. This is likely due to the lack of regulation. If your advisor recommended that you purchase crypto securities against your best interests, and you suffered losses, you may have a claim. You should reach out to a Crypto-Securities law firm in New York, like Malecki Law, to review your situation. If someone in a foreign jurisdiction has your money, you may be out of luck.

Future SEC Chair Atkins’ Background

Interplay of Elder Financial Fraud, Reg BI, and AML – Part 1

November 27, 2024 | Malecki Law Team

Every year, millions of elderly Americans fall victim to financial fraud due to their banks’ and brokerage firms’ failure to implement appropriate supervision over their client’s accounts and by their staff that are largely licensed. In 2023, there was a 14% increase in elder financial fraud complaints, with over $3.4 billion dollars in associated losses. The growing number of elder financial fraud cases calls on banks and other financial institutions to protect their consumers and increase the level of scrutiny on elder accounts.

Elder financial fraud is an act of deceit that specifically targets the funds, assets, and property of older adults. The frauds can take many forms, most commonly in investment scams, tech support scams, business email compromise scams, confidence/romance scams, and government impersonation scams.

Anti-Money Laundering (AML) measures play a vital role in hindering elder financial fraud because it equips financial institutions with the necessary tools to detect and prevent suspicious activities targeting older individuals. Financial Industry Regulatory Authority (FINRA) Rule 3310 requires that members develop and implement “a written anti-money laundering program reasonably designed to achieve and monitor the member’s compliance with the Bank Secrecy Act” and the implementation regulations issued by the Department of the Treasury. The AML programs must be able to reasonably detect and report suspicious transactions, comply with the Bank Secrecy Act, provide ongoing training for appropriate personnel, and include risk-based procedures for conducting customer due diligence. FINRA Rule 3310 establishes a comprehensive framework for brokerage firms to implement and closely manage to reduce older adults falling victim to financial fraud.