No Free Lunch

September 11, 2007

S.J. Caplan

It shouldn't come as any surprise that there's no such thing as a free lunch. Still, the fancy invitations that arrive from investment firms requesting on'es attendance at a posh function, promising both a lovely lunch and financial success, can prove alluring. Read More >>

An advocate for the individual investor

September 24, 2007

Georges Yared

Early in my career I worked for Dean Witter Reynolds, now Morgan Stanley (NYSE: MS), and had the opportunity to get to know Brian Biggins. Brian was a broker, an office branch manager and a compliance director in his 10-year stint with Dean Witter, until he went through a major career change. He put himself through law school at the tender age of 31 and became an advocate for the aggrieved individual investor.

Biggins opened his own law practice in Cleveland, Ohio, but has represented investors in nearly all 50 states. He works on behalf of investors who have been defrauded by unscrupulous brokers. He has handled, and won, hundreds of cases ranging from $10,000 to multi-million dollar losses. He has taken on almost every big Wall Street firm and insurance companies. Many of these firms know to sit down at the settlement table rather than go to arbitration against Mr. Biggins. What makes him so successful in helping investors who have been ripped off, defrauded or just plainly mismanaged by their brokers?

Biggins was in the securities industries for over a decade. He knows exactly how big firms operate and where the bones are buried. He can interrogate a broker or the other firm's counsel like no one else because Biggins was "one of them." Firms know that they cannot throw a fast ball past him because of his vast knowledge and experience in the industry. A true advocate for the individual investor.

Stock market and other investments carry a degree of risk. Many times however, the risks are not properly explained or divulged to the individual investor. Understanding a client's suitability is a critical component before any investment should be recommended. Biggins understands that point as he managed client assets worth many millions of dollars before changing careers.

I ran into Biggins this past week and we caught up on old times. When I asked him how his practice was going, he just shook his head and said, "Still too many bad guys out there hurting innocent investors." Biggins has explained many times to clients and potential clients that it is vital that they ask as many questions as they can before investing in any security. Responsibility is a two-way street. But where he draws the line is when he sees clients wholly taken advantage of and invested in unsuitable securities. He is especially vigilant when it comes to the abuses of elderly investors and their retirement assets.

Biggins recently won a case for a newly-widowed young woman with three children who lost $300,000. She was taken advantage of by a horrible broker who fled the country for awhile. Brian worked with the FBI in securing his return and in a happy turn of events was able to recover the widow's money.

Most broker/advisers are good, hard working honest people who do a great job for their clients. But for the bad apples out there, beware of Brian Biggins...

Broker Glantz charged with fraud in Innotrac stock scheme

September 05, 2007

Damian G. Guevara
Plain Dealer Reporter

A securities broker faces criminal charges that he helped an investment fund manager steal $28 million from investors.

Stephen J. Glantz, 54, of Chagrin Falls, was indicted Tuesday in U.S. District Court in Cleveland on charges accusing him of securities fraud and making false statements to investigators.

Federal prosecutors say Glantz helped David Dadante, the founder and manager of the IPOF Fund, in a scheme that put $50 million in the hands of Dadante, who passed himself off as a financial wizard.

Glantz could not be reached Tuesday to comment on the charges.

Dadante used millions to pay for gambling trips, a Gates Mills house and other luxuries. Dadante, 53, pleaded guilty last month to securities fraud. A federal judge will sentence him in November.

The scheme involved manipulating the stock price of Innotrac, a small Georgia-based company. Glantz handled Dadante's accounts and used a variety of prohibited techniques to inflate the stock's value, according to the indictment.

Dadante, with Glantz's help, secretly amassed most of Innotrac's stock, the indictment said. Dadante in turn employed a Ponzi scheme to defraud his investors and kept them in the dark by supplying them with fake account documents. Agents arrested Dadante in March.

FBI agents and other federal investigators twice interviewed Glantz in 2006. He denied doing anything illegal, according to the indictment.

Look Before You Leave: Don't Be Misled By Early Retirement Investment Pitches That Promise Too Much

September 14, 2006

Early retirement is an alluring prospect. When faced with a pitch that promises that you can cash in your company retirement savings in your 50s, reinvest the money, and live comfortably off the proceeds for the rest of your life, many simply can't say no. But usually they should. NASD is issuing this Investor Alert because we are aware of instances in which employees who had built up sizeable retirement savings have been misled, and financially harmed, by flawed, even fraudulent, early-retirement investment schemes. Click here to read more...