Navigating The Mutual Fund Maze, Part 5: Board Of Directors
The overall operations of a mutual fund are under the supervision and authority of a board of...
Investment Fraud
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Navigating The Mutual Fund Maze, Part 3: The Prospectus
Information describing the mutual fund is disclosed to investors in a legal document known as a...
Navigating The Mutual Fund Maze, Part 2: Fees And Expenses
Mutual Fund Fees and Expenses Just as important as the information on investment objective,...
Navigating The Mutual Fund Maze, Part 1: What Is A Mutual Fund?
For many investors, the mutual fund is a mainstay of their investment portfolios, whether it be in...
FINRA Arbitration Suffers Reputational Setback in Suit That Highlights Unfair Expungement System
Lawyers who represent victims of investment fraud frequently criticize the FINRA arbitration process as being tilted in favor of stockbrokers. Biased arbitrators, cherry-picked by the industry and beholden to their interests, is a common complaint. A recent filing by the Alabama Securities Commission against a FINRA arbitrator for numerous violations has added credence to the claims of unfairness. According to…
The Case of the Clicks: The Rise of Digital Ad Fraud
The advertising industry has undergone rapid changes in the past few decades. The growth of the internet has meant that businesses have pivoted to digital advertising options. This has come with its own set of challenges. While the two main stakeholders remain the same – companies that sell ad space, and companies that want to buy ad space – how…
The Various Places Where Excessive Fees May Be Hidden in Your 401(k) Plan
So-called defined contribution plans—such as 401(k) plans—have become “the primary private savings vehicle for most Americans’ retirement.”[1] The assets held by 401(k) plans have more than doubled over the past decade, and as of 2019, these plans held a whopping $6.4 trillion in retirement savings.[2] With trillions at issue and the retirement security of millions of American workers at stake, it is…
Should Your 401(k) Plan Invest in Private Equity?
The U.S. Department of Labor (“DOL”) recently issued a guidance document explaining that 401(k) plans are permitted to invest in private equity funds, albeit only indirectly.[1] The DOL touts its new guidance as a policy that “level[s] the playing field for ordinary investors” and helps “ensure that ordinary people investing for retirement have the opportunities they need for a secure retirement.”[2] However,…
401(k) Participants Can Be Prime Targets of Cross-Selling Efforts
Participants in their company’s 401(k) plan have come to expect that their employer will protect their personal information from disclosure outside the plan. However, plan participants of Shell Oil’s 401(k) have filed a case in federal court in Galveston, Texas – Harmon v. Shell Oil Company – alleging Shell took no action to stop the plan’s recordkeeper, Fidelity, from using participants’ personal…
Understanding 401(K) Documents: The Annual Fee Disclosure
401(k) documents are notoriously mystifying—and notoriously ignored. “I must say,” admitted Justice Ruth Bader Ginsburg at recent oral argument of the United States Supreme Court, “I don’t read all the mailings that I get about my investments.” For about 72 million American workers, 401(k)s are “nest eggs.” Employees expect their 401(k) investments, along with social security, to provide them with a steady income during…