Fiduciary Expert

Fiduciary Expert Witness Litigation Consulting


Breach of Fiduciary Duty, Trust Litigation, Suitability, Failure to Supervise

Over 30 years of actual, hands-on securities industry management and independent expert experience and advanced fiduciary training.

Global Financial Crisis & Shadow Banking Expert

Securities, Futures, Precious Metals, Derivatives, Hedge Funds, Investment Adviser, Bank, Trust Company, Insurance, Annuities

Incandescent Financial Services & Securities industry insights

Information asymmetry may explain all or part of a claim.  From the 1970’s to today, significant change has occurred in investors including sovereign wealth funds, institutional investors, accredited, high net worth and other individual customers.  Analysis spans all touch points emanating from the media, suitability, trade executions, trade clearing, and settlement, contracts, agreements, authorized or unauthorized trades, commissions, fees, PPM’s, prospectus, compensation (both hard and soft dollar) and other emoluments.

Securities brokers, Bank Trust, Fiduciary Duty, Suitability, Supervision

For decades, no matter type of account or payment by customers of fees or commissions or both, some accounts require securities broker dealers, branch managers, supervisors and series 7 licensed registered representatives to provide a fiduciary duty in addition to a suitability determination. Fiduciary duty requires specific steps not limited to diversification; self directed accounts, for instance at discount brokers, like Charles Schwab, E-Trade, TD Ameritrade, Fidelity, Scottrade may require, depending on facts and circumstances a fiduciary duty and FINRA suitability and supervision compliance requirements.

Introducing brokers, carrying, clearing or prime brokerage relationships increase complexity of compliance with securities industry rules and regulations.

 Breach of Fiduciary Duty-> Liability -> Damages -> Expert Testimony and Reports

Broker Dealers, Discount Brokerage, Banks, Affiliates/ILC’s, Investment Advisers, Hedge Funds, Asset Managers, Consultants, Auditors, TPA’s, Custodians

Trades – best execution, confirmations, commissions, rebates, order flow, order routing, agency, principal, liquidity, dark pools, algorithmic trades, high frequency trading, trade reporting; tax withholding, return of principal, dividend reinvestment

Investments – securities, commodities, futures, options, precious metals, mutual funds, closed-end funds, ETF’s, ETNs, unit trusts, insurance, annuities, derivatives, money market mutual funds, Asset backed Commercial Paper (ABCP), Auction Rate Securities (ARS), mortgage backed and related securities (RMBS, CMO’s, CDOs, CPDOs, CMBS)

Services – financial planning, managed accounts, investment consulting, brokerage, prime broker, stock loan (securities lending), hypothecation / re-hypothecation, Reg T margin accounts, Reg U non-purpose loan accounts, market makers, proprietary trading, leverage, mark to model, mathematical models, internal risk management

Hedge funds, 144, Private placements, Reg D, Sophisticated or Accredited Investors

Domicile – US and offshore; foreign

ERISA, Custody, soft dollars, master trusts, reporting, regulatory requirements, record keepers, third party administrators (TPAs); participants’ communication materials

Account Insurance – FDIC, SIPC, Excess SIPC, (Capco Broker dealer self insurance)

Related areas > Securities, banking, insurance – Compensation, Valuation, Employment – Recruitment, Training, Supervision, Compliance, Wrongful termination, Raiding; Retirement, Forgivable Loans, Retention Awards; Compensation – commissions, overrides, bonus, restricted stock and options – Stock brokers, traders, branch and regional managers, senior management, support personnel.

Uniform Prudent Investor Act applies to all trust accounts, since 1996 in California, although certain aspects were already applicable.

Customer’s accounts subject to Fiduciary Duty include but are not limited to:

Trusts – life insurance, revocable, irrevocable and charitable

IRA and IRA Rollover accounts

ERISA Defined Benefit Pension, Defined Contribution, Profit Sharing, 401k & 403b Plans

Public Employees Pension benefit and Retirement Plans

Union Pension Benefit, Retirement Plans, Taft Hartley plans

Tax exempts, 501(c)3 – Non profits, Charities, Foundations and Endowments (Eleemosynary)

HOAs, Cemetery, Custodial, Minors (UTMA, UGMA, Coogan), Guardian and Conservator accounts

Divorces involving the above accounts, a spouse, financial institution 3rd party may be responsible for poor performing assets or losses. See Divorce Fiduciary Audit(TM)

* Note: Fiduciary Duty, if any, is in addition to, may precede and supersedes Suitability, and may arise at any time, affect any type of account, investment, insurance or asset including Real property, Copyrights, Trademarks, Patents, Intellectual property, Family or Closely held business, LLP’s, LLC’s, FLP’s, general or limited partnerships. See Real Estate Losses page for Investment / Rental Real Estate losses.

For more information or (310) 943 – 6509

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