SEC News
- SEC Charges Chicago-Area Father and Son Conducted Cherry-Picking Scheme at Investment Firm May 16, 2013FOR IMMEDIATE RELEASE2013-90 Washington, D.C., May 16, 2013 — The Securities and Exchange Commission today charged a father and son and their Chicago-area investment advisory firm with defrauding clients through a cherry-picking scheme that garnered them nearly $2 million in illicit profits, which they spent on luxury homes, vehicles, and vacations. Addition […]
- SEC Names Keith F. Higgins as Director of Division of Corporation Finance May 15, 2013FOR IMMEDIATE RELEASE2013-89 Washington, D.C., May 15, 2013 — The Securities and Exchange Commission today named Keith F. Higgins as the new director of the agency’s Division of Corporation Finance. Mr. Higgins comes to the SEC from the law firm of Ropes & Gray LLP where he is a partner in its Boston office with 30 years of experience advising public com […]
- SEC Names Lona Nallengara as Chief of Staff May 15, 2013FOR IMMEDIATE RELEASE2013-88 Washington, D.C., May 15, 2013 — The Securities and Exchange Commission today announced that Lona Nallengara has been named the agency’s chief of staff. Mr. Nallengara came to the SEC in March 2011 and served as deputy director for legal and regulatory policy in the Division of Corporation Finance until he was appointed in Decemb […]
- SEC Charges China-Based Executives in Scheme to Overstate Revenues and Divert Money for Personal Use May 15, 2013FOR IMMEDIATE RELEASE2013-87 Washington, D.C., May 15, 2013 — The Securities and Exchange Commission today charged husband-and-wife executives at a China-based company with engaging in a scheme to overstate the company’s revenues and divert proceeds from a securities offering for their personal use. Additional Materials SEC Complaint The SEC alleges that RIN […]
- SEC, FINRA Issue Investor Alert On Pension or Settlement Income Streams May 9, 2013FOR IMMEDIATE RELEASE2013-86 Washington, D.C., May 9, 2013 — The Securities and Exchange Commission and the Financial Industry Regulatory Authority (FINRA) today issued an investor alert entitled Pension or Settlement Income Streams – What You Need to Know Before Buying or Selling Them. The investor alert informs investors about the risks involved when selli […]
TAG | Dunham & Associates Daily Mortgage Fund
25
Retired Pilot Awarded $2.7 million in Flap Over Suitability by FINRA
Comments off · Posted by admin in FINRA
In a March 23, 2011, article in InvestmentNews.com by Liz Skinner, she writes that a retired American Airlines pilot from Maryland won a $2.7 million judgment from a Finra arbitration panel in a dispute over how his savings were invested.
Finra, the Financial Industry Regulatory Authority Inc. panel, after a five day hearing, agreed that Andrew Michalak’s retirement money should not have been concentrated in two non-public mortgage funds.
The Finra panel decided that American Investors Co. and adviser Sewell Frey Sr., should pay $1.32 million in damages, interest and fees. Fund manager Dunham & Associates Investment Counsel, Inc. was told to pay $1.37 million in damages to Mr. Michalak, who was ordered to transfer ownership of his shares with the Dunham & Associates Daily Mortgage Fund back to Dunham.
In the InvestmentNews article it was noted that Mr. Michalak invested more than $2 million — essentially the entirety of his savings after working more than 30 years — in the pair of Dunham mortgage funds on the advise of Mr. Frey.
“I don’t’ think he ever appreciated the difference between public and private funds,” Mr. Costello said. “He woke up one day and didn’t have any access to his money.”
Ms. Skinner writes that the pair of mortgage funds suspended redemptions in early 2009, thus preventing Mr. Michalak from being able to draw from his retirement accounts to pay his and his wife’s daily expenses, Mr. Costello said. Mr. Michalak is in his seventies. Another Dunham entity, along with two officers named in the arbitration, “were completely dismissed and expungement recommendations were made for one of the officers,” said Dunham’s chief sales and marketing officer Salvatore M. Capizzi.
It was noted that calls to American Investors weren’t returned.
Meanwhile, Mr. Costello said the Finra award goes a long way in helping the Michalaks “get back to where they should be.”
If you feel you have also been an alleged victim of Sewell Frey, Sr., American Investors Co., or Dunham & Associates Investment Counsel, Inc., please call a Securities Arbitration Lawyer for a free consultation on how to recover your losses. To speak with an attorney, call 888-760-6552, or visit www.stockmarketlawsuit.com. Soreide Law Group, PLLC., representing investors nationwide before FINRA the Financial Industry Regulatory Authority.
American Investors Co · Andrew Michalak receives Finra award · broker theft from customers · Dunham & Associates Daily Mortgage Fund · Dunham & Associates Investment Counsel Inc. · elder abuse · elder abuse awareness · elder abuse in investments · Financial Industry Regulatory Authority · FINRA · FINRA arbitration · finra lawyer · finra securities arbitration · finra securities arbitration lawyer · fort lauderdale securities fraud lawyer · Ft. Lauderdale securities arbitration lawyer · Ft. Lauderdale Securities Lawyer · investment fraud · Retired pilot gets Finra award · retirement funds depleted by brokers · retirement money misused · securities arbitraton lawyer · securities fraud lawyer · Sewell Frey Sr · Soreide Law Group PLLC · stock broker fraud · Stock fraud lawyer · stockbroker misconduct · targeting elderly investors · unauthorized trades
