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Checklist to Prevent Oil and Gas Securities Fraud

Posted by jeremy

American consumers are getting duped into making bad investments in highly speculative oil and gas drilling projects. Not only are these investments risky, but many are examples of oil and gas securities fraud. Unscrupulous salespeople are skilled at fraudulently misrepresenting oil and gas investments to make them appear safe and secure when in fact, they are not. The more inexperienced an investor is, the more likely he or she will fall prey to one of […]

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Unit Investment Trust (UIT)

Posted by robyn

A unit investment trust (UIT) is a company that sells unit shares of itself to investors. Essentially, when an investor buys a unit share of an UIT, he or she is buying into a basket of securities. This contains a mix of bonds, stocks or other kinds of investments. Since UITs are “redeemable,” the investor can liquidate units at any time. Depending on the market value of the UITs, the investor could suffer gains or […]

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Unit Investment Trust FAQ: Here’s What You Need to Know

Posted by jeremy

Conservative investors and retirees need to be cautious when it comes to unit investment trusts (UITs). This is because some are much riskier than others. The problem is, investment advisors often “gloss over” these risks when selling UITs to customers. This causes significant and unnecessary UIT investment losses. When an FINRA-registered broker recommends and sells any kind of investment without fully educating the customer about the risks associated with the investment, it could be a violation of […]

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FINRA Suspends Broker for Unit Investment Trust Fraud

Posted by jeremy

The Financial Industry Regulatory Authority (FINRA) has identified the third investment representative from Huntington National Bank since last December who aggressively recommended the sale of unit investment trusts to the bank’s brokerage customers. In the latest scandal, FINRA alleged that Huntington stockbroker Richard Graham of Lafayette, Indiana, made unsuitable investment recommendations that customers buy unit investment trusts. As punishment, Graham received a two-month suspension along with $10,000 in fines. FINRA also ordered him to pay […]

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Overconcentration Into Oil, Gas and Energy Securities is Unlawful

Posted by jeremy

Everyone knows the phrase, “Don’t put all your eggs in one basket,” but this theory doesn’t always get put into practice — especially when it appears that the basket is secure, well-padded, and guaranteed to offer absolute protection. Unfortunately, when it comes to oil, gas, and energy securities, time has proven that the energy sector “basket” was not as safe as investors were led to believe. Investors who lost big on oil, gas, and energy […]

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