Seeking Alpha

Robert W Pearce's  Instablog

Robert W Pearce
Send Message
Mr. Pearce has tried, arbitrated and mediated numerous disputes involving complex securities, commodities, administrative, contract, commercial, business tort and employment law issues for over 30 years. He has represented hundreds of clients in Federal and state courts (trial and appellate) as... More
My company:
The Law Offices of Robert Wayne Pearce, P.A.
My blog:
The Investor's Rights Law Blog
  • STATE SECURITIES REGULATORS COME DOWN HARD ON INVESTMENT ADVISER FIRMS FOR ABUSING SENIOR INVESTORS 0 comments
    Mar 5, 2013 12:13 PM

    The North American Securities Administrators Association (NASAA) has recently reported a major increase in enforcement actions against investment adviser firms last year along with a sharp rise in prison time for securities law violators. According to a NASAA enforcement survey taken every year, the number of enforcement actions involving investment adviser firms nearly doubled to 399 in 2011, which accounted for 15 percent of all enforcement actions handled by state securities regulators. One notable group of investors who faced financial abuses by investment adviser firms was seniors - nearly 600 reported enforcement actions were addressed. Even though state regulators are actively seeking to prevent investment advisers from performing abuses, 6,121 investigations were conducted in 2011, which led to 1,662 years in prison time for convicted violators - up 47 percent from the year before. The report is based on the results of a survey of NASAA members during the spring of 2012.

    State securities regulators also took significant investor protection actions by taking away licenses from corrupt broker and investment advisers. In 2011, nearly 2,800 licenses were withdrawn resulting from state action - up 7.7 percent from the year before. In addition, 774 licenses were denied, revoked, suspended, or conditioned - up 20 percent from the previous year. Fortunately, state enforcement actions resulted in more than $2.2 billion in investor restitution orders in 2011 - Most of the restitution resulted from repurchases of auction rate securities stemming from state-led actions. Fines and penalties against investment advisers totaled $126 million.

    Apart from the state regulators' efforts to protect senior investors from financial abuses, seniors cannot be urged enough to find a financial advisor or broker they can trust. Unfortunately, it can be difficult to tell whether the broker is acting in his or her best interest. That is why senior investors are also encouraged to employ a trustworthy and financially savvy third-party or family member to monitor a broker's recommendations. Senior investors who feel they are victims of financial abuse should seek the advice of an attorney to review their holdings and initiate an action to recover damages if they have suffered significant losses. All these measures will certainly help prevent significant losses well into retirement, which is when investors need to protect their hard earned money the most.

    Do you believe you are a victim of financial abuse because of your status as a senior investor? If so, call Robert Pearce at the Law Offices of Robert Wayne Pearce, P.A. for a free consultation.

    The most important of investors' rights is the right to be informed! This Investors' Rights blog post is by the Law Offices of Robert Wayne Pearce, P.A., located in Boca Raton, Florida. For over 30 years, Attorney Pearce has tried, arbitrated, and mediated hundreds of disputes involving complex securities, commodities and investment law issues. The lawyers at our law firm are devoted to protecting investors' rights throughout the United States and internationally! Please visit our website, www.secatty.com, post a comment, call (800) 732-2889, or email Mr. Pearce at pearce@rwpearce.com for answers to any of your questions about this blog post and/or any related matter.

Back To Robert W Pearce's Instablog HomePage »

Instablogs are blogs which are instantly set up and networked within the Seeking Alpha community. Instablog posts are not selected, edited or screened by Seeking Alpha editors, in contrast to contributors' articles.

Comments (0)
Track new comments
Be the first to comment
Full index of posts »
Latest Followers
Posts by Themes
Instablogs are Seeking Alpha's free blogging platform customized for finance, with instant set up and exposure to millions of readers interested in the financial markets. Publish your own instablog in minutes.