Laws related to investments and securities must be complied with to protect the investors and to keep the brokers honest. When the laws aren't followed, the brokers may face criminal action and the investors are left to try to pick up the financial pieces.
As savvy investors know, before investing, potential investors should review the investment for viability and suitability. But how can investors trust the information regarding the investment? One way to verify legitimacy is to see if the securities are registered with Kentucky's Securities Division in accordance with Blue Sky laws.
You count on an investment broker to not only safeguard your investments but to grow them into a comfortable nest egg for your retirement or other monetary goals. Partnering with a well-known brokerage firm with an excellent reputation seems like a great way to leverage your savings into something more substantial.
Carlos Benavidez, Jr. (CRD #5013554, Louisville, Kentucky) submitted an AWC in which he was fined $10,000 and suspended from association with any FINRA member in any capacity for two months. Without admitting or denying the findings, Benavidez consented to the sanctions and to the entry of findings that he exercised discretion in effecting hundreds of securities transactions in customers' accounts without obtaining the customers' prior written authorization or his firm's prior written approval.
We are investigating claims by investors against former Louisville, Kentucky-based broker Christopher Lee Hibbard, who was fired by Merrill Lynch in February 2018 in the midst of an ongoing investigation over allegations of fraud, theft, and unauthorized trading relating to customer accounts. Hibbard was with former brokerage firm Morgan Keegan (acquired by Raymond James) from 2004 to 2010, before joining Merrill Lynch in July 2010.
Can you imagine suffering from investment fraud, going through the motions to pursue a successful securities arbitration claim against the brokerage firm that defrauded you and then never getting paid after receiving a favorable arbitration award?
Shareholders in Kentucky and throughout the country who own stock in Tesla, Inc. were intrigued and more than a little concerned when its chief executive officer, Elon Musk, took to Twitter. On Aug. 7, he posted this cryptic tweet: "Am considering taking Tesla private at $420. Funding Secured."
Making investments isn't for the weak-hearted. There are some instances in which you can lose massive sums of money. You might hope for the best, but the market is unpredictable. While it is often tolerable to lose money due to factors like a dip in the market or a sudden drop in the price of a stock, you should never have to worry about a loss due to your financial adviser acting in an unethical manner.