Comments on: BREAKING NEWS: Amerivet Complaint Against FINRA Alleges Madoff Investment

By: Dick Fuld Unaware of Lehman’s ‘Cooking the Books’? STOP IT!! : NO QUARTER

Fri, 12 Mar 2010 22:10:50 +0000

[...] What regulatory authority was charged with overseeing Lehman during this period? The NASD, which then became FINRA in 2007. Recall that FINRA’s oversight (or lack thereof) of Lehman and others is addressed in the Amerivet Securities v FINRA complaint. [...]

By: Mr. Fuld, Raise Your Right Hand and Repeat After Me

Mr. Fuld, Raise Your Right Hand and Repeat After Me — Fri, 12 Mar 2010 15:45:59 +0000

By: Larry Doyle

Larry Doyle — Tue, 01 Sep 2009 16:27:08 +0000

Dennis….BINGO!!! You have hit the nail right on the head!! Thanks for highlighting this phenomena with FINRA.

By: Dennis

Dennis — Tue, 01 Sep 2009 15:57:27 +0000

And by the way, did anyone else pick up on the fact that Herb Perone said he wouldn’t make FINRA’s books available “to the public”, when in fact it was not the public that requested them, it was a FINRA member! You would think the members would have a right to inspect the books of its own organization. The truth is, it is no longer a self-membership organization, but has become an elitist-run bureaucracy. FINRA denies it’s members constitutional due process by claiming that it is a private membership organization yet claims absolute immunity from lawsuits because, when it suits them, they claim they are a quasi-government institution. Interestingly, whenever very deep pockets threaten a court action over this two-sided position the SEC reverses FINRA and the case gets dismissed. Hmm… I suppose if you have deep enough pockets you get justice. Do you think maybe they know they would lose and don’t want to jeopardize their despotism? Well I say that FINRA must either act as a government organization and provide its members constitutional rights, or act as a private membership organization and be subject to lawsuits for their negligence, but no longer can they have it both ways.

By: Larry Doyle

Larry Doyle — Tue, 01 Sep 2009 15:29:47 +0000

Dennis,

I agree with you. This story deserves national coverage and total transparency. Will it receive it?

We shall see.

Please share it with your colleagues and associates.

By: Dennis

Dennis — Tue, 01 Sep 2009 15:27:19 +0000

Why is this story not worthy of national news coverage? Maybe it’s only interesting to those of us who actually know first-hand how corrupt and inept FINRA actually is, or have actually been wronged by FINRA’s self-preservation tactics. I hope I am wrong and that the public might actually care that the cause of the financial crisis may have been caused, at least in part, by FINRA’s ineptness and self-preservation conflicts. Neil Cavuto is one reporter that has the following and support (FOX News) to allow this story gain traction. Major Garret, no doubt, has the courage to ask the tough questions, but I doubt this would be something he would pose to “the puppet Gibbs”. With regard to the lawsuit, I hope I am wrong, but I am afraid that the liberal courts will continue to give FINRA an undeserved pass and the brokerage community and the investing public will have to continue to live with a system defined by ineptitude and a an attitude of arrogant omnipotence.

By: Larry Doyle

Larry Doyle — Wed, 26 Aug 2009 13:43:54 +0000

KD…I actually copied the entire FP story prior to its being taken down. That story in its entirety with quotes from FINRA spokesman Herb Perone is part of this post.

The actual complaint filed by Amerivet v FINRA can be accessed by pointing and clicking on it.

Hope this clarifies.

By: kd

kd — Wed, 26 Aug 2009 13:30:39 +0000

so what is the story? is that part of the complaint? I couldn’t access the link….

By: Bill

Bill — Wed, 26 Aug 2009 03:35:34 +0000

It’s axiomatic that FINRA’s books should be wide open. I have undertaken to explain the FINRA/ARS conundrum to a number of people. Even before I finish explaining what FINRA is, I can see their eyes glazing over and brains shutting down. They don’t comprehend how they as investors can be impacted by having a corrupt regulator administering their claims against corrupt brokerages and brokers. Those having gone through the auction rate mill have a full and complete appreciation.

By: Mark Astarita

Mark Astarita — Wed, 26 Aug 2009 03:29:02 +0000

“upon information and belief” “impossible to verify” “direct or indirect investments with Madoff…”

Doesn’t sound like they have anything to support the Madoff allegation, but that is what discovery is all about. Almost a safe bet, since FINRA invests in private equity and funds, that it had an indirect investment with Madoff. That doesn’t mean they knew about it.

But a very interesting case nevertheless. I am particularly interested in FINRA’s response to the allegation about Shapiro’s 7 million dollar bonus.