March 30, 2008

Head Shaving To Cure Cancer

When I'm not practicing law, you might find me at a Suncoast High School girls' lacrosse game, where I am an assistant coach. Truth be told, I have no special lacrosse talents, but I go there to help, provide some organization and maybe a few tips I've learned over the years as an amateur sports coach.

But, today, I'm writing about one of the players, Kelsey Sheridan. Kelsey is a senior who has been accepted to Northwestern University. Kelsey is the unofficial cheerleader of the team. She also was involved in getting the team started, I understand.

Tomorrow, Kelsey will be getting her head shaved for the St. Baldrick's Foundation. My head is going that way slowly and naturally, so I will stay with what I have. And I have some clients who look like they've already participated.

Ah, to have youth on your side for regrowth.

You can make donations for Kelsey's head shaving here. Kelsey's a great kid and very spunky. If any of my three readers can donate a little bit, that would be great.

That's the view from The Law Planet, Jupiter, Florida.

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Posted In: Items of Interest

March 3, 2008

FINRA, Formerly NASD, Gets Serious About Enforcing Fines

Since just about the beginning of time, FINRA (formerly NASD) fines were viewed as a mere nuisance by out-of-business firms and former registered persons. FINRA has been criticized in the past for not collecting regulatory fines or fees from arbitration proceedings. At least in one case, this seems to have changed.

FINRA filed, and won, an enforcement action against John Fiero and Fiero Brothers, the broker-dealer he controlled, obtaining an award for over $1,000,000 in fines and costs. In the past, this would have been a pyrrhic victory for FINRA as it was well-known that they would not pursue collection if the firm was out of business. Well, it looks like this is no longer the case. FINRA filed a lawsuit in New York state court to collect the award.

FINRA was successful in the lower court and the appellate level. There were various defenses raised by Fiero and his company -- all of which were nice attempts but hard to fathom. Their success, perhaps temporary, came at the Court of Appeals, New York's highest court. For the first time in this matter, it appears, a court addressed the issue of jurisdiction over the action. The Court of Appeals found that Section 27 of the Exchange Act of 1934 specifically provides for "exclusive jurisdiction" in Federal Court. Boom, like that, FINRA was foiled.

Probably not for long. And this will be a lesson for those of us who practice in this area. We can no longer advise clients that, out of the business means that FINRA won't come after you. Maybe it's based on dollar level, but we'll see.

That's the view from The Law Planet -- Jupiter, Florida.

Posted by Admin |

Posted In: Legal Issues , Securities Industry

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