Articles Posted in This Week At Malecki Law

Yesterday, a Financial Industry Regulatory Authority (FINRA) arbitration panel in Boca Raton, Florida awarded Malecki Law attorneys $397,823.00 for principal investment losses against Morgan Stanley & Co., LLC.  Malecki Law brought the case on behalf of an elderly and retired couple with conservative investment objectives on claims that Morgan Stanley failed to supervise their accounts and unsuitably over-concentrated their portfolio in risky oil and gas master limited partnerships (MLPs).  In addition to the compensatory damages, the panel also ordered Morgan Stanley to pay the claimants in this case 9% in interest, $15,000.00 in costs, attorneys’ fees, $11,812.50 in forum fees, and a $20,000.00 penalty for the firm’s late production of relevant documents at and just prior to hearing.

Malecki Law regularly brings claims on behalf of investors against unscrupulous conduct by brokers and brokerage firms, and holds them accountable for mismanaging investor retirement accounts.  Elderly investors such as these find themselves especially at risk from poor investment recommendations made by brokers and securities firms because senior citizens are typically out of the workforce and have much less time and ability to recoup their losses than younger investors.  This is pertinent to yesterday’s win because, in setting the damages figure, the arbitration panel rightfully did not deduct investment income (i.e., dividends), which the claimants earned while they had their accounts open with Morgan Stanley.

This is also a notable win for Malecki Law because the case involved the purchase of MLPs, which is a “hot investment” on Wall Street these days.  MLPs offer high yields, but are generally recognized as risky and volatile investments, typically within the oil and energy sector, and are not suitable for most retirement accounts or conservative investors looking to preserve their capital.  In May of last year, the Securities and Exchange Commission (SEC) issued an investor alert on MLPs to warn investors of the significant risks in these products, including unexpected tax consequences, fluctuations in distributions, and concentration exposure in the energy sector with acute sensitivity to shifts in the prices of oil and gas.

Alliance for Investor Education and the PIABA Foundation is Hosting an Educational Conference about Securing Investors’ Financial Futures


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The National Investor Town Hall Meeting is a day-long series of presentations, free to the public, aimed at educating investors about the risks and rewards of financial investing. It will be held on October 29, 2016 at the Rancho Bernado Inn in San Diego, California. Many respected industry professionals, including Ms. Malecki and federal and state regulators will participate in four sessions to help attendees understand risk tolerance, choose financial advisors and avoid becoming victims of financial fraud.

“Financial fraud costs Americans approximately $50 billion each year. It has been my mission for over a decade to educate and empower investors, lending them a voice and holding big entities accountable for violating their fiduciary and ethical duties,” said Jenice Malecki, the founder of Malecki Law. She further adds, “I am excited to be part of this much needed grass-root investor education drive.”

PLIMs. Malecki was a panelist recently at the Practising Law Institute’s (PLI) Securities Arbitration 2016 all-day seminar, where she spoke about ethical and other issues in securities arbitration. Ms. Malecki has spoken at PLI consistently for many years. Her panel Practicum on Experts and Closings focused on expert witnesses and closing arguments. The panel and the seminar had other distinguished securities industry members from the FINRA Dispute Resolution office, professors of law, litigators, mediators and wealth managers. Ms. Malecki is invited every year to participate in PLI’s securities arbitration seminars.

 

Securities Experts Roundtable (SER) is hosting its 24th Annual Conference and Membership Meeting on July 22 and July 23 at a private and exclusive destination, The Union League Club. Ms. Malecki will participSecuritiesExpertsRoundtableate in two of their panels “The FINRA Resolution Taskforce Report After Seven Months: Where Are We Now and Where Are We Going” and “The Graying of America- Suitability and Supervision for Senior Investors”.

Ms. Malecki frequently meets with the Securities Exchange Commission (SEC), Department of Justice (DOJ) and Financial Industry Regulatory Authority (FINRA) to discuss issues related to investor protection, supervision for elderly investors, and suitability. She also speaks at educational events and conferences.

Other panelists and speakers at the SER comprise of luminaries in securities and investment litigation, law professors, members of FINRA, and FBI white-collar crime experts. The conference provides an in-depth view and presentation on securities litigation. SER has 90+ experienced experts in securities and investment consulting, wealth management, investment banking, litigation and arbitration, and more.

 

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This month, Malecki Law attorneys were awarded full net out-of-pocket damages of $142,168.00 by a Financial Industry Regulatory Authority (FINRA) Arbitration Panel. There has been a series of media reports on this, initially appearing in the  InvestmentNews and followed by the Financial Times site Financial AdvisorIQ, and other websites. The claim was brought against Garden State Securities Inc. by Malecki Law on behalf of an elderly investor Anthony Romano on alleged charges of over-trading, over-concentration, and unsuitable investments.

This was another noteworthy investor case win for Malecki Law, who regularly brings claims against unscrupulous broker-dealers and holds them accountable for mismanaging investor’s accounts.

Elderly investors such as Mr. Romano find themselves specially at risk because once they lose their life’s savings to poor decisions made by brokers and securities firms, they do not have sufficient time to recoup their losses. The FINRA Arbitration panel also assessed that all forum fees in the amount of $14,400 will be paid by the respondent Garden State Securities, Inc.

The experienced Securities attorneys at Malecki Law managed to secure a major win on behalf of one of their international clients. They managed to secure a summary judgment dismissal for a Chinese businessman, a well-known inventor and public figure in China, who was being sued in excess of $30 million for being the controlling shareholder of a company that went out of business. The opposing counsel was Weil, Gotschal & Manges LLP.

Today, Ms. Jenice Malecki is the Chair at a FINRA mock arbitration for St. John’s students. She has actively mentored students over the years from different law schools through lectureships and speaking engagements.

 

Jenice Malecki taped a session on elder financial fraud for Case In Point with Bob Singer , Bob Singer’s weekly segment in Wealth Management. He is a veteran Wall Street lawyer, a weekly contributor to Wealth Management, and known for his own blog BrokeandBroker. Jenice Malecki was a guest on his show this week, where she shared her insights on matters related to diminished capacity, the elderly, and Securities Law. Over the years, Ms. Malecki has been televised widely on Securities industry related topics. Stay tuned for this video on our blog.

Earlier this week, Adam Nicolazzo and Robert Van de Veire visited the Hudson Guild Senior Center to educate their members about Elder Financial Exploitation.

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The Securities Fraud attorneys at Malecki Law today visited the Hudson Guild Senior Center to educate members of their Naturally Occuring Retirement Community (NORC) about Elder Financial Exploitation. Adam Nicolazzo and Robert Van de Veire addressed a group of 15-20 senior members of that community about investment fraud, common red flag signs of fraud, and how to protect their retirement income and nest eggs.

According to FINRA, the elderly lose approximately $ 2.9 billion every year due to fraud. The Malecki Law attorneys try to create awareness within communities of elders about dangers of elder financial exploitation and empower them to take legal recourse if they are victimized. The seniors get educated about regulatory authorities like FINRA and SEC, and tools like BrokerCheck available to them. The Malecki Law team used real life examples of Ponzi and affinity schemers, who are known to have preyed on the elderly, to help senior members understand the realities of financial fraud and that it comes in many forms. They also offer free consultation and case evaluation in these sessions.

Malecki Law continues to work towards positive changes in elder law within the securities industry and Jenice Malecki recently participated in a panel on Dangers of Diminished Capacity at the Public Investors Arbitration Bar Association’s (PIABA) annual conference.

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Ms. Jenice Malecki was a moderator today at Public Investors Arbitration Bar Association’s (PIABA) panel on ‘The Danger of Diminished Capacity, Ethics as a Broker and for the Lawyer.’ The seminar discussed what diminished capacity is, important studies on dealing with clients with diminished capacity as financial advisors and lawyers, and elder financial abuse and privacy law issues. The panel moderated by Ms. Malecki consisted of distinguished members of the financial and legal community including the President of the Investor Trust Protection, a former SEC attorney and an elder lawyer.

According to FINRA’s estimates, the elderly lose approximately $ 2.9 billion every year due to fraud and an average of 10,000 Americans will turn 65 over the next 15 years. Senior investors with diminished capacity are more at risk of falling victim to financial fraud than other investors and the financial industry should fully utilize its power to prevent substantial economic harm to elderly clients.  Ms. Malecki has also co-authored an article for PIABA titled Protecting Clients with Diminished Capacity In The Securities Industry: It’s Tricky.

This panel is part of PIABA’s 24th Annual Meeting held in Florida from Oct 21- 23, 2015.

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Jenice L. Malecki has been once again rated as a Top Attorney by Super Lawyers in 2015. Ms. Malecki, a well-known Securities Attorney and owner of Malecki Law, has had the distinction of being a Super Lawyer rated Top Attorney since 2012. According to Super Lawyers outstanding attorneys from diverse practice areas are selected based on formal nominations by peers. Ms. Malecki also has several other peer rated distinctions to her credit including “AV Preeminent Rated” by Martindale Hubbell and New York’s Women Leaders in the Law in 2014.

Robert M. Van De Veire, a Securities attorney at Malecki Law, has been awarded the distinction of being a Rising Star by Super Lawyers. Mr. Van De Veire’s practice focuses on representing investors and industry professionals in Securities arbitration and litigation.  According to Super Lawyers only “no more than 2.5 percent of lawyers in a state are named to Rising Stars”.

Super Lawyers is a rating service of outstanding lawyers from more than 70 practice areas who have attained a high-degree of peer recognition and professional achievement. The selection process includes independent research, peer nominations and peer evaluations.