Articles Posted in Media Appearances

Recently, CNBC interviewed Jenice Malecki for their white collar crime series, “American Greed”. The episode tonight (Feb 13, 2017), by CNBC correspondent Scott Cohn, is focused on John Bravata, who ran a real estate Ponzi Scheme from 2006 to 2009, through his company BBC Equities LLC. He collected more than $50 million from investors, promising their money would be used to purchase real estate. However, most of it went into financing his lavish lifestyle. Being an experienced securities fraud lawyer and having handled high-profile real estate scams, Ms. Malecki was asked to share her expertise on-camera about real estate investment scams and what to watch out for.

In the video, Ms. Malecki cautions investors about typical real estate scams, who they target, the telltale signs of fraud and resources available for investor protection. This interview has already aired on CNBC and in over 27 NBC affiliated channels. It can also be viewed on http://www.cnbc.com/2017/02/10/the-greed-report-tempted-by-the-real-estate-market-investor-beware.html

hammer-legal-300x123We are pleased to announce that after a six-day long arbitration, our client was awarded his full net out-of-pocket damages of $142,168.00 by a Financial Industry Regulatory Authority (FINRA) Arbitration Panel.  The story was recently reported by InvestmentNews.  The arbitration panel also assessed all forum fees in the amount of $14,400 against the Respondent Garden State Securities, Inc.

The case was brought against Garden State alleging unsuitable investment recommendations, including over-concentration in Chinese stocks, penny stocks and low-priced securities, as well as leveraged exchange traded funds (ETFs). The claims also centered around allegations of churning and excessive trading. In the end, the Panel found Garden State liable.  Ultimately, broker-dealers must be held responsible for the recommendations their brokers make.

Our client’s case exemplifies many of the issues facing senior-aged investors today. Many seniors find themselves in situations where they have saved their entire lives for retirement and are seeking a financial professional to help guide them and preserve their nest egg. There is usually a lot of trust in the financial advisor-client relationship. But that trust can be easily and quickly abused. As they grow older, people generally became more conservative, downsizing and limiting expenses. Yet, all-too-frequently brokers recommend more speculative investments to their aging customers – for the broker’s own purposes (commonly higher commissions and fees). Such a situation is not appropriate nor permissible.

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A recent study by Stanford University psychologists with participation of FINRA and AARP, concluded that financial fraudsters trigger and evoke strong emotions in elderly people to try and get them to hand over money. According to the study, inducing strong emotions in older adults (ages 65-86), whether positive or negative, increased their susceptibility to falsely advertised messages and fraud. The findings suggest that older adults are likely to spend or give away their money based on the emotional state they were experiencing rather than perceived credibility of the messages they are receiving. According to FINRA, this study is a major advance on understanding how elder fraud works and since money and investing is an emotional decision, it is critical to manage emotional states to avoid becoming a victim of fraud.

Malecki Law continues to champion the rights of vulnerable elderly people who have been victimized by financial fraudsters. Last week, Jenice Malecki spoke about elder financial fraud with David Lesch on BronxNet TV’s segment Today’s Verdict. Watch Ms. Malecki speaking about instances of how elder fraud works and can be avoided here: http://www.bronxnet.org/index.php?option=com_hwdvideoshare&task=viewvideo&Itemid=59&video_id=7353

Recently Ms. Malecki was also seen speaking about Elder Financial Exploitation on Wealth Management’s segment Case In Point with Bill Singer http://wealthmanagement.com/estate-planning/elder-financial-exploitation 

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Watch Jenice Malecki’s interview with Bob Singer on Case In Point, a weekly segment in Wealth Management. In this segment, Ms. Malecki speaks about the rise of elder fraud exploitation and responsible steps that financial industry professionals can take to protect seniors. Ms. Malecki, the owner of Malecki Law is known for spreading legal awareness on this topic and championing the rights of elderly investors through the media, speaking engagements, legal articles and community outreach. She is pleased to be on Bob Singer’s show today, known for his contributions to Wealth Management and his own blog BrokeandBroker, sending the message out to his financially astute audiences.

CLICK HERE to watch Ms. Malecki’s video.

Jenice Malecki of Malecki Law will be appearing on Fox Business News at 12pm today, speaking with Dennis Kneale to revisit the $13 billion settlement announced by JP Morgan today.

The focus of the discussion will be the aftermath of the settlement, and what it means for JP Morgan moving forward. The settlement was for conduct that occurred from 2005 to 2008, largely predating the financial crisis and acquisitions of Bear Stearns and Washington Mutual. In fact, according to the Department of Justice, as reported by Fox Business News, JP Morgan regularly represented that the loans it bundled and sold to investors complied with underwriting guidelines, when they actually did not.

It remains to be seen whether this will impact other litigation that JP Morgan continues to defend against private litigation, or in future criminal proceedings arising from the conduct of JP Morgan’s employees. It also remains to be seen whether JP Morgan will provide liquidity for a fire sale, as it did with Bear Stearns during the financial crisis.

Jenice Malecki of Malecki Law will be appearing at 10:45 am on Varney & Co. on Fox Business on Tuesday, October 22, to discuss the proposed $13 billion J.P. Morgan Chase settlement.

Ms. Malecki will be discussing whether J.P. Morgan and others should be surprised that the firm is being subjected to penalties relating to conduct that occurred at Bear Stearns and Washington Mutual, which J.P. Morgan acquired during the recent financial crisis.

Ms. Malecki will speak on central issues at the heart of the present debate such as the role of the government in these two acquisitions, including what promises, if any, were made to J.P. Morgan by government officials, as well as the overall price paid for the two companies relative to their actual value.

Jenice Malecki of Malecki Law will be appearing on Fox Business News at 12pm today, speaking with Dennis Kneale about whether or not banks, such as JP Morgan, should be getting amnesty from regulators.

In the fallout from the financial crisis, banks, such as JP Morgan have seen their legal fees related to defending complaints from both customers and the SEC, along with other regulators, rise substantially. JP Morgan shocked many in the marketplace when it recently revealed that its “litigation reserve” was $23 billion, and that it had paid out roughly $8 billion in recent settlements and judgments.

In light of this revelation, some have called for amnesty to be provided to large banks, in an effort to relieve them of these substantial legal burdens and jumpstart the markets by freeing up large reserves of capital.