No Recovery, No Fee

424-835-5733 | 310-525-3516

You may have lost money in your investment portfolio,
due to mismanagement and not even know it.

Troubling focus: barring bad brokers doesn't routinely deter them

To put it in rather blunt terms, some stock brokers who have been identified as egregious wrongdoers and punished by financial regulators are like highly resistant infections.

That is, they just keep coming back.

And that they do perhaps invites some strong criticisms of the individuals and agencies that oversee the securities investment industry and police bad-faith actors.

Here's why: Isn't something wrong when a criminal broker/adviser -- namely, an individual who employs fraud and deceit to steal from innocent third-party investors -- is disbarred from working in the securities industry and yet continues to do so, cavalierly fleecing consumers who rely upon professionally honed artifice to their material peril?

Yet another story with that tired plot line was underscored in recent news accounts chronicling a reported multi-million-dollar swindle that occurred over years and has apparently harmed more than 12,000 investor victims.

The principals -- by no means fully identified; one media report notes that "more arrests are expected" -- engaged in the time-honored tactic of thieves termed "pump and dump," pursuant to which they hyped worthless stock in bogus companies and pawned it off on legions of trusting individuals and families.

Interestingly, several of the fraud authors are disbarred securities traders, who reaped millions in cash from those relying upon them after having been thrown out of their industry by its regulating arm, the Financial Industry Regulatory Authority.

Obviously, that exclusion served more as an irritant than a real impediment to their continued thievery.

Six individuals have pleaded guilty to various criminal charges thus far. Reportedly, their convictions could yield prison terms of as much as 15 years.

No Comments

Leave a comment
Comment Information

Our Office Location

The Law Offices of Marc I. Zussman
433 N. Camden Drive
Suite 730 
Beverly Hills, CA 90210       
Map & Directions

Local: 424-835-5733
Local: 310-525-3516
Toll Free: 866-451-2517
Fax: 310-525-3528