New York Securities Fraud Lawyers BlogGrayscale led the fight at the Securities and Exchange Commission (“SEC”) for approval of spot bitcoin-exchange traded funds (“ETFs”). The battle began in 2022 after the SEC rejected Grayscale’s application to convert its bitcoin trust into a spot bitcoin exchange-traded fund because spot markets are unregulated and susceptible to fraud and market manipulation. Any Crypto-based […]
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Crypto ETFs In Your Traditional Brokerage Account… What Could Go Wrong?
On January 10, 2024, the Securities and Exchange Commission (“SEC”) released a statement announcing the approval of the listing and trading of spot bitcoin exchange-traded product shares on national securities exchanges. This move by the SEC comes after years of heated debate between financial professionals, regulators, members of Congress, and the general public over the […]
“Sophisticated” Investor Represented by Malecki Law Awarded over $200,000 in a 2X Non-Traditional ETF Product Case against Network 1 Financial Securities and its 2X Twin Brothers
Last week, a New York City panel of arbitrators with the Financial Industry Regulatory Authority (FINRA) unanimously awarded an investor represented by Malecki Law over $200,000 in damages, plus attorneys’ fees of $67,000 and 5% interest dating back to May 2018. The panel’s award found the New Jersey-based brokerage firm Network 1 Financial Securities Inc. […]
What Are ETFs, Exchange-Traded Funds, and How Do They Work? Are ETFs Safe or Risky? Not All ETFs Are Created Equal
In recent years, exchange-traded products, “ETFs,” have become increasingly more popular on Wall Street and in the investor community. Institutional investors and retail investors alike have invested in exchange-traded products. Astoundingly, exchange-traded funds are a trillion-dollar market that continues to grow in value with passing time. While some ETFs are like mutual funds, others are […]
BROKER REPORT: FINRA Files Case Against Financial Advisor Richard William Martin for Recommending Non-Traditional ETFs
The securities fraud attorneys at Malecki Law are interested in hearing from investors who have complaints against stockbroker Richard William Martin. Mr. Martin was most recently employed and registered from July 2009 to July 2015 with G.F. Investment Services, LLC from an office in Penang, Malaysia, according to his publicly available BrokerCheck, as maintained by […]
Leveraged ETFs Remain a Risky Investment, Not Suitable for Most Individual Investors
Investors who have been watching the recent financial news know that securities markets have become very volatile over the past month. Increased volatility in the markets makes leveraged products like Exchange Traded Funds (EFTs) and Exchange Traded Notes particularly risky for most individuals investors, as noted in a recent Wall Street Journal article published on […]
Broker Dealer Financial Services Corp. Fined By FINRA Over Nontraditional ETF Sales and Improper Supervision
Broker Dealer Financial Services Corp. (BDFS) based out of West Des Moines, Iowa just learned the hard way that nontraditional Exchange Traded Funds (ETFs) are risky, speculative investments and are not appropriate for all investors. The Financial Industry Regulatory Authority (FINRA) recently fined BDFS $75,000 for 1. failing to properly supervise the sale of leveraged […]
Citigroup Fined for ETF Prospectus Failures
Citigroup, Inc. has reportedly agreed to pay a $3 million fine for failing to properly deliver prospectuses to some customers. Specifically, according to the Financial Industry Regulatory Authority (FINRA), Citigroup failed to deliver prospectuses to customers who bought shares in one or more of 160 exchange traded funds (ETFs) in late 2010. It has also […]
Berthel Fisher and PNC Fined In Connection With The Sale Of ETFs
Just yesterday, FINRA announced that it has fined Iowa-based broker-dealer Berthel Fisher $775,000 for failures to adequately train and supervise brokers selling alternative investments, such as real estate investment trusts (“REITs”), and non-traditional exchange traded funds (“ETFs”), including leveraged and inverse ETFs. In addition to REITs and ETFs, Berthel brokers also reportedly sold managed futures, […]
Leveraged and Inverse ETFs Can Spell Trouble for Investors Who Buy Them and Brokerage Firms Who Sell Them
Just this past week, two brokerages units of Stifel Financial were ordered by the Financial Industry Regulatory Authority (“FINRA”) to pay more than $1 million related to the sale of leveraged and inverse exchange-traded funds (“ETFs”). Of the more than $1 million to be paid, $550,000 comes in the form of a fine to be […]