SLCG Research: Modeling Autocallable Structured Products
(Mar 2011)
SLCG released today 'Modeling Autocallable Structured Products'.
A callable structured product is a note that is callable by the issuer. The note is linked to an underlying asset, or 'reference asset.' If the reference asset reaches the call price during the term of the note, the note is called and note holder receives a pre-specified return. If the reference asset never reaches the call price during the term of the note, the note is never called and the note holder simple receives the...
SEC Press Release: Securities Fraud Scheme
(Mar 2011)
SEC Charges Former Officer of Colonial Bank for Role in Securities Fraud Scheme
The U.S. Securities and Exchange Commission (SEC) issued a press release today announcing that it had
"charged a former vice president at Colonial Bank who was the head of its mortgage warehouse lending division with conducting a $1.5 billion securities fraud scheme."
Under Kissick, the former vice president at Colonial Bank and head of the mortgage warehouse lending division, the bank bought...
FINRA Press Release: Improper Marketing
(Jan 2011)
FINRA Orders Schwab to Pay $18 Million to Investors for Improper Marketing of YieldPlus Bond Fund
The Financial Industry Regulatory Authority (FINRA) issued a press release today announcing that
"it has ordered Charles Schwab & Company, Inc., to pay $18 million into a Fair Fund to be established by the Securities and Exchange Commission (SEC) to repay investors in YieldPlus, an ultra short-term bond fund managed by Schwab's affiliate, Charles Schwab Investment Management. The $18...
SEC Press Release: Municipal Bond Fund
(Jan 2011)
SEC Charges Former Portfolio Managers With Defrauding Utah Municipal Bond Fund
The U.S. Securities and Exchange Commission (SEC) issued a press release today announcing that it had
"charged two former portfolio managers with defrauding a mutual fund that invests primarily in municipal bonds issued by the State of Utah and its county and local authorities."
Young and Albright - co-portfolio managers of the Tax Free Fund for Utah at the time - charged municipal bond issuers over...
SLCG Research: Futures-Based Commodity ETFs
(Jan 2011)
SLCG released today a new study about Futures-Based Commodity ETFs. In the past decade the price of commodities has increased substantially and many investors have wanted to diversify their portfolios by including commodities. The most common way to invest in commodities is by buying futures contracts, which requires a good understanding of the pricing of futures contract and specific features of the futures market.
In the past few years we have seen many firms offer Commodity Exchange...
In the News: Auction Rate Securities
(Dec 2010)
Forbes' blogger Bill Singer narrates the story of Grand Circle LLC.
Grand Circle had brokerage accounts at the Royal Bank of Canada (RBC) and Wachovia. Through the recommendation of representatives at RBC and Wachovia, Grand Circle purchased auction rate securities (ARS). For business-related reasons, Grand Circle opened another brokerage account at CCO Investments Services Corp (CCO). Grand Circle's Investment Policy stated that it wanted safe, liquid and AAA rated securities and that...
FINRA Press Release: Excessive Mark-Ups
(Dec 2010)
FINRA Expels APS Financial, Bars Former President and Former Broker for Targeting an Elderly Investor with Fraudulently Excessive Mark-ups
The Financial Industry Regulatory Authority (FINRA) issued a press release today announcing that
"it has expelled APS Financial Corporation, located in Austin, Texas, barred the firm's former President, George Conwill, and barred Peter Aman, a former broker at the firm, in a scheme which overcharged an elderly investor by $1.2 million."
The...
SEC Press Release: Banc of America Bid Rigging
(Dec 2010)
SEC Charges Banc of America Securities With Fraud in Connection With Improper Bidding Practices Involving Investment of Proceeds of Municipal Securities
The U.S. Securities and Exchange Commission (SEC) issued a press release today announcing that it had
charged Banc of America Securities, LLC (BAS) with securities fraud for its part in an effort to rig bids in connection with the investment of proceeds of municipal securities.
"BAS has agreed to pay over $36 million, together with...
FINRA Press Release: Disclosure of Wells Notices
(Nov 2010)
Goldman Sachs to Pay $650,000 for Failing to Disclose Wells Notices
The Financial Industry Regulatory Authority (FINRA) issued a press release today announcing that
"it has fined Goldman, Sachs & Co. $650,000 for failing to disclose that two of its registered representatives, including Fabrice Tourre, had received formal notices from the Securities and Exchange Commission (SEC) that they were the subjects of investigations. Tourre's "Wells Notice" was issued in connection with the...
SEC Press Release: Fraud in Forex Trading
(Oct 2010)
SEC Charges Massachusetts-Based Forex Traders and Their Firm With Fraud
The U.S. Securities and Exchange Commission (SEC) issued a press release today announcing that it had
"charged two foreign currency traders and their Boston-based company with operating a fraudulent scheme in which they sent investors misleading account statements while stealing their funds and incurring major trading losses."
The SEC alleges that Karlis and Akyil raised approximately $40 million from...
