/PRNewswire/ The investor rights lawyers at Goldman Scarlato & Penny, PC law firm ("GSP") are evaluating potential claims for compensation on behalf of.
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FINRA Enforcement has often been accused (again, admittedly, by me, and not too infrequently) of going after the “low-hanging fruit,” that is, taking the easy case when it presents itself. Putting aside the question whether this observation is accurate or not – for what it’s worth, I think the answer is that it is often, but not always, true – a recent case triggers a better, more nuanced question: does FINRA Enforcement sometimes bring the
wrong case, because it is easier?
Here is what made me think of this: a series of cases concerning a mutual fund called the LJM Preservation & Growth Fund (the “LJM Fund”). You probably recall hearing about it. The LJM Fund was a so-called “alternative” mutual fund. Here is how FINRA defines that:
Why the ‘one bad broker’ rule matters
One bad broker making big bets or selling lousy or misunderstood products can damage or even ruin a firm. Are firms doing enough to keep those brokers and high-risk behaviors in check?
April 7, 2021 4 MINS
Wall Street rewards high-risk behavior in its salespeople, be they deemed brokers, the old-fashioned term, or financial advisers, in the more commonly accepted contemporary tongue.
To illustrate that point, look no further than the widely disparate cases of a hedge fund blowing up and brokers a few years back pumping sales of a risky alternative mutual fund.
On the surface, the recent blow-up of Bill Hwang’s $10 billion Archegos Capital Management hedge fund and three retail broker-dealers reaching settlements over sales of the shuttered LJM Preservation & Growth Fund couldn’t appear any more different one is a hedge fund managing billions of dollars known for Hwang reportedly taking enormous single stoc
Cambridge settles LJM Preservation & Growth Fund case for $3 5M financial-planning.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from financial-planning.com Daily Mail and Mail on Sunday newspapers.