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Our experts frequently write blog posts about the findings of the research we are conducting.

Displaying 51-60 out of 105 results for "Structured CDs Week".

Hedge Fund "Side Pockets" Explained

(Jul 2012)

Hedge funds can be extremely complicated investments, and one of the features that contributes to their lack of transparency is their so called 'side pocket' accounts. Side pockets have drawn scrutiny from the SEC and have been the subject of high profile investigations (see also) due to their potential for abuse from hedge fund managers eager to hide losses from investors.

Side pockets are essentially separate accounts that a hedge fund may use to separate illiquid or thinly traded assets...

SEC Litigation Releases: Week in Review - July 27th, 2012

(Jul 2012)

SEC Charges Aider and Abettor of Penny Stock Company's Disclosure of Fake Investment
July 25, 2012, (Litigation Release No. 22424)
The SEC lodged a complaint against Ronald Feldstein who allegedly filed a false press release announcing a "fictitious $6 million investment in a penny stock company, Interlink-US Network, Ltd." Feldstein was paid by Interlink's management to play the role of a prospective investor. Feldstein, posing as President of LED Capital Corp., entered into a phony...

Buffered and Capped Closed-End Funds

(Jul 2012)

Last Friday the Wall Street Journal reported on a new product which combines features of both structured notes and closed-end funds. The eUnit 2 Year US Market Participation Trust IIwas first issued by Boston-based investment company Eaton Vance on May 30. This was the second offering by Eaton Vance of such a product: the first trust with identical name debuted on Jan 26.

Inessence, the eUnit Trust is like a structured note with capped upside potential and buffered downside loss. At the end...

SEC Litigation Releases: Week in Review - July 20th, 2012

(Jul 2012)

SEC Obtains Final Judgment in Case Involving Ponzi Scheme and Promotion of China Voice Holding Corp.
July 19, 2012, (Litigation Release No. 22418)
A final judgment was entered against Ilya Drapkin on July 6, 2012, which permanently enjoins him from violating various sections of the Securities Act and ordered Drapkin, along with his companies, MG TK Corp. and SMI Chips, to pay over $5.8 million in disgorgement and penalties. This amount represents "profits gained by Drapkin, MG TK, and SMI...

FDIC Warns Investors about Structured CDs

(Jul 2012)

Earlier this year, the Federal Deposit Insurance Corporation issued a warning about structured certificates of deposit (CDs), which are hybrid investments combining features of both traditional CDs and structured products. FINRA has also recently investigated the market for structured CDs, which has been estimated to be as large as $30 billion.

Structured CDs are essentially bank deposits whose interest payments depend on the value of a reference index instead of a predefined fixed or...

SEC Litigation Releases: Week in Review - July 13th, 2012

(Jul 2012)

Court Issues Final Judgment Enforcing Prior Order of the Commission Against Rodney R. Schoemann
July 12, 2012, (Litigation Release No. 22414)
On July 11, 2012, the District Court ordered Rodney R. Schoemann to pay over $1.3 million in disgorgement and pre-judgment interest. Rodney R. Schoemann had violated "the registration provisions of the federal securities laws in connection with his sales of stock in Stinger Systems, Inc. in November 2004" and had been ordered to pay disgorgement and...

Big Wall Street Firms Pressure Their Salesmen to Favor House-Brands

(Jul 2012)

Financial advisors and brokers are bound by ethical guidelines to analyze and recommend investment products that are suitable and appropriate for their clients' investment objectives and tolerance for risk. In general, they are obliged to put their clients' best interests ahead of their own.

The New York Times reported Monday on the recent admission from a former JPMorgan mutual fund advisor that he sold JPMorgan funds over similar offerings from outside JPMorgan for no other reason than to...

SEC Litigation Releases: Week in Review - July 6th, 2012

(Jul 2012)

SEC Freezes Assets of Missing Georgia-Based Investment Adviser
July 3, 2012, (Litigation Release No. 22409)
According to the complaint (opens to PDF), Aubrey Lee Price has gone into hiding after allegedly "orchestrating a $40 million investment fraud." Price, who started his scam in 2008, not only raised money from more than 100 investors by "selling shares in an unregistered investment fund" but also made illiquid investments in South American real estate and a failing bank. Price then...

SEC Litigation Releases: Week in Review - June 29th, 2012

(Jun 2012)

SEC Shuts Down Mortgage Fund Ponzi-like Scheme
June 28, 2012, (Litigation Release No. 22406)
According to the complaint (opens to PDF), Small Business Capital Corp. ("SB Capital") and Mark Feathers ("Feathers"), its principal, are operating an "alleged Ponzi-like scheme." $42 million have been raised by SB Capital and Feathers through selling securities issued by their mortgage investment funds, Investors Prime Fund, LLC and SBC Portfolio Fund, LLC ("Funds"). The Funds attracted more than 400...

SEC Litigation Releases: Week in Review - June 22nd, 2012

(Jun 2012)

SEC Charges Massachusetts Investment Adviser with Fraud and Obtains Asset Freeze
June 20, 2012, (Litigation Release No. 22396)
Earlier this week, the SEC charged Gary J. Martel with defrauding investors through his companies Martel Financial Group and MFG Funding. According to the complaint), Martel defrauded at least a dozen investors of millions of dollars. Martel allegedly told his clientele (including retirees) that he would invest in fixed-income securities. Martel allegedly composed...

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