One of the most useful things an economist can do in litigation consulting is to put abstract numbers into context. Bernie Madoff’s theft of $65 billion dollars is almost mind-boggling. To illustrate the significance of his crime, I compared his theft with other financial crimes most people are familiar with- burglary, theft, pick pocketing and purse snatching. The more »
The media talks of the housing market collapse, the tightening credit market and the stock market collapse. At DSA, we’ve found investors that simultaneously got caught by falling home & securities prices and a tightening credit market. Here are two examples: 1) During the days of easy credit, a man took out a line of credit more »
The number of complaints filed with the Florida Division of Securities hasquadrupled over 2007 levels according to Securities chief Bill Reilly. The Division has added four employees to deal with the increased levels of complaints.
If you gauge suspicious activity by the Financial Crimes Enforcement Network’s (FinCEN) “By the Numbers” report on the Securities & Futures Industries, then yes. By FinCEN’s tally, Nebraska accounted for 7.31% of all SAR-SF filings from January 1, 2003 through June 30, 2008. Three states had higher counts (New York, Massachusetts & California) but Nebraska is more »
FINRA reports that arbitration filings are up 90% through February 2009 over the prior year. There were 1,065 arbitrations filed in just January and February 2009. If these numbers hold steady over the rest of the year, 2009 will witness a level of arbitration filings not seen since 2005. However, I don’t expect the filings to “hold steady” through 2009. more »
One of the positive outcomes of all the Ponzi schemes in the news is that most of the operators have been caught. Granted, they haven’t been convicted and are innocent until proven guilty but it’s interesting that after allegedly stealing millions or billions of dollars, these guys didn’t have a decent get-away plan. Anyone who more »
FINRA added three new securities types: Variable Annuities, Derivative Securities and Auction Rate Securities to the Security Type list in 2008. Derivative Securities and Auction Rate Securities to the Security Type list in 2008. Derivative Securities was the second most frequently cited type of security in its first year on the list. Mutual funds moved ahead of Common more »
FINRA released the final tallies for 2008 arbitration filings. 2008 witnessed marked change in trends regarding the type of controversy. Filings citing “Omission of Facts” increased 337% from 2007 levels. Misrepresentation saw the second largest jump in filings with an increase of 171% over 2007. In 2007, Misrepresentation was the 5th most frequently cited type of controversy and it jumped to more »