Friday, February 19, 2016

$1.45 million Bengoa v UBS of Puerto Rico Award

In February 2016, a FINRA arbitration panel in San Juan, PR ordered UBS Financial Services and UBS Financial Services of Puerto Rico to pay at least $1,450,000 in compensatory damages, interest, attorneys' fees and expert costs. You can read the award here. Dr. McCann testified on liability and damages over UBS Puerto Rico's sale of UBS Puerto Rico municipal bond closed end funds.

Wednesday, February 10, 2016

Ford et al v Royal Alliance - $600,000 non-traded REIT, Annuity Award

In February 2016, a FINRA arbitration panel in San Francisco, CA ordered Royal Alliance Associates to pay $596,695 in compensatory damages, attorneys’ fees and costs. The Claimants were AT&T retirees who took lump sum payouts rather than pensions and invested with Royal Alliance. You can read the award here. Dr. McCann testified on liability and damages over Royal Alliance's sale of non-traded REITs and variable annuities to the Claimants for their retirement portfolio.

Dr. McCann's "Fiduciary Duties and Non-traded REITs" can be downloaded here and SLCG's blog posts on non-traded REITs can be found here.

Tuesday, February 2, 2016

Ohio Division of Securities, In the Matter of Timothy K. Fife – Ohio IA Registration to be Revoked

In February 2016, after evidentiary hearings, the Hearing Examiner recommended that Timothy Fife’s investment adviser representative registration be revoked. The Report and Recommendation is available here. Fife's registration is being revoked because he provided investment advice and initiated securities transactions while not licensed in Ohio and because he recommended the unsuitable purchase and holding for extended periods of time of leveraged and inverse ETFs. Dr. McCann testified on behalf of the Ohio Division of Securities.

SLCG’s peer-reviewed publication on leveraged and inverse ETFS include “Leveraged ETFs, Holding Periods and Investment Shortfalls” published in the Journal of Index Investing and available here, “The Properties of Short Term Investing in Leveraged ETFs published in the Journal of Financial Transformation and available here, and “Crooked Volatility Smiles: Evidence from Leveraged and Inverse ETF Options” published in the Journal of Derivatives & Hedge Funds and available here.