Investment Investigations

            Given that it is unlikely you will encounter a sophisticated con artist who is not capable of winning your trust, it is advisable to verify the credentials of those who ask you to rely upon their investment advice or those to whom you plan to entrust your assets. Alternative, you should engage the services of a qualified professional  who could assist you in that process.

            I am duly licensed as an attorney with approximately 50 years of diversified experience involving litigation/arbitration of business and investment disputes.  I have represented individual investors and more than 20 securities brokerage firms before arbitration panels in several forums and in various state and federal courts in hundreds of disputes. (See, e.g., Statement of Decision in Sulek v. BSA.) I have served as the Associate General Counsel and/or Compliance Director of a New York Stock Exchange Member Firm.  I have served as a business/investment-dispute arbitrator for approximately 45 years.

            I recently completed a thorough investigation of a prominent 501(c)(3) organization on behalf of a prospective legacy donor. My findings indicated that the organization allocated over 70% of its investments to high-risk, hig-cost, illiquid assets of uncertain value. In addition, it paid exorbitant investment advisory fees. There were indications that members of its Board of Directors personally benefited from its investment decisions. Further, the organization refused to provide access to a copy of its investment policy.  

            I serve as a public advocate for better corporate governance as Chairman of the Committee of Concerned Shareholders. Also, I advocate for fiscal responsibility of local government by expressing concerns about lack of effective internal controls to prevent and detect fraud, waste, and abuse. One major concern is establishing an independently managed fraud, waste, and abuse program and associated hotline that inspires confidence. Sometimes, it is difficult when a city evidences a sense of  impunity. I served as legal counsel to the Ad Hoc Committee for Culver City Residents First during a bitterly contested political campaign.

            I have written extensively to improve the securities arbitration process by expressing my concerns in formal comments to the Securities and Exchange Commission, e.g., Petition for Rulemaking (SEC File No. 4-502) (severe problems with FINRA arbitration and questionable SEC oversight).  My Petition for Rulemaking has received favorable media coverage, e.g., 9/1/05, Registered Representative Magazine, "The Real Arbitration Nightmare"; 7/31/05, San Diego Union-Tribune, "Stockbroker losses bring no trials, lots of tribulations"; 7/17/05, Pittsburgh Post-Gazette, "Systems for resolving disputes may need an overhaul."  I have conducted extensive litigation against the SEC, under the Freedom Information Act, Federal Advisory Committee Act and Administrate Procedure Act, that resulted in the SEC disclosing much information concerning its relationship with the securities industry and acting upon the Petition for Rulemaking. 

            Also, I have written "General Observations on Investing and Financial Statement Analysis."