An irreverent Wall Street Blog
by Bill Singer
Join BrokeAndBroker blog on Facebook  Follow the BrokeAndBroker blog on Twitter  Connect with BrokeAndBroker on LinkedIn  Join Bill Singer on Google+  Subscribe to RSS Feed

The Legitimate Sounding Investment That Was A Fraud
Written: July 19, 2013

Here we go again. Another investment fraud perpetrated upon the pigeons of Wall Street. It sounded like the real deal -- seems to have been the likely refrain of the victims.  At the time, I didn't see any problem about making the check out to the stockbroker personally. Who knew?  Sounded real. Who knew. Now there's a sensible bit of investment due diligence.

For the purpose of proposing a settlement of rule violations alleged by the Financial Industry Regulatory Authority (“FINRA”), without admitting or denying the findings, prior to a regulatory hearing, and without an adjudication of any issue, Bruce M. Harada submitted a Letter of Acceptance, Waiver and Consent (“AWC”), which FINRA accepted. In the Matter of Bruce M. Harada, Respondent (AWC 2012032670901, July 12, 2013).

Harada entered the securities industry in February 1993 and during the relevant time of 2007 through January 3, 2011, he was associated with FINRA member firm ING Financial Advisers, LLC. and, thereafter, until his May 19, 2012, discharge by ING Financial Partners, Inc.  The AWC asserts that Harada had no prior disciplinary history.

The AWC alleges that from January 2008 through April 2012, Harada convinced some of his customers to withdraw funds from their securities accounts in order to fund an investment in a product that he represented was ING Personal Asset Management. His victims then wrote personal checks payable to Harada.  Thereafter, Harada converted the funds to his personal use.  According to the AWC, Harada victimized at least 13 customers to the tune of about $792,612.  FINRA deemed Harada’s conduct to constitute violations of NASD Conduct Rules 2330 and 2110, and FINRA Rules 2150 and 2010.

In September 2012, Harada failed to respond to written requests for information from FINRA in violation of FINRA Rules 8210 and 2010.

In accordance with the terms of the AWC, FINRA imposed upon Harada a Bar from association with any FINRA broker-dealer in any capacity.

Bill Singer’s Comment

Good riddance!  

There is, however, one point that I must make. You know that ING Personal Asset Management product that Harada was selling and his customers were investing in? Guess what: It never existed. Yeah, I know, it sounds real.  Still -- a simple Google search of the "ING Personal Asset Management" wouldn't produce a single hit for any product by that exact name. 

Sadly, the oft-repeated admonition that I make in response to such revelations is that we have a lot of stupid folks out there who are making themselves easy targets for far too many unscrupulous stockbrokers.  Two big errors were made here by investors;

1. Never, ever make out a check payable in the name of your stockbroker for any investment product.  If there is some oddball compelling reason for such idiocy, speak directly to the brokerage firm, get a letter from them in writing confirming their awareness, and then, if I were you, I still wouldn’t do it;
2. At a minimum, go online and search out the name of any proposed investment. If you can’t find a hit for your search, call the company directly, get some confirmation in writing, and then do everything possible to determine whether it’s a safe investment. 

Finally, just because you get someone on the telephone doesn’t mean that the person you are speaking to is who he or she says they are – and it doesn’t mean that the purported organization you have reached in bona fide. It takes only a few dollars these days to get a website, an email address, a telephone number, and an office address. Be paranoid when it comes to your life’s savings.

PLEASE puhleassssssse READ:
SIDE BAR With Bill Singer (Thomson Reuters)

David Sobel, Esq., FINRA’s Small Firm Advisory Board Chair, discusses with Bill Singer, Esq. the struggle of small broker dealers. Can the partnership of regulator and regulated be restored?. 


YouTube for iPhone/Pad Users
For iPhone/Mobile view visit:\

Topics: Harada  ING  Fraud  Check  Bill Singer  BrokeAndBroker  Side Bar  

Previous Entries
April 16, 2014
Here's an interesting cocktail of facts: an IRA, a mother, powers of attorney, and a stockbroker son. Add into that mix questions about whether a $60,... Read On
April 15, 2014
Stockbroker, Compliance, Legal, and Regulatory JobsFor a full listing of current job openings, visit the BrokeAndBroker Employment Page ... Read On
April 14, 2014
Auction Rate Securities are the unwanted gift that keeps on giving. In today's Blog, we report about yet another bit of collateral ... Read On
April 12, 2014
Citicorp Loses Bizarre Motion To Compel Class Action ArbitrationApril 11, 2014As part of the terms of his employment, former Citicorp Credit Services,... Read On
April 11, 2014
As part of the terms of his employment, former Citicorp Credit Services, Inc. employee Keith Russell had agreed to arbitrate “all employment-related d... Read On
April 10, 2014
Citigroup goes after another former employer to recover a balance on a promissory note. Nothing new here. In this case, the former registered person f... Read On Job Search
Related Topics
Tag Cloud
Internet FINRA Bear Stearns Bloomberg SEC NASD NYSE Money Laundering Due Diligence Waiver Forbes China Chepucavage Broy Woody Allen Madoff NAC NPR Marketplace Stanford UBS Ketchum Antitrust NASDAQ RRBDLAW Schapiro Bill Singer BrokerAndBroker USERRA Morgan Keegan Arbitration Khuzami BrokeAndBroker Aleynikov Goldman Sachs brokeandbroker Promissory Note U4 Bill SInger EFL CFTC Huffington Post Flash Crash arbitration RBC Ponzi Affinity Fraud Wachovia Raymond James Expungement Fraud Securities Fraud Outside Business Activity Registered Rep Magazine FOREX FBI Banc of America Pro Se Supreme Court Morgan Stanley Smith Barney E*Trade Margin email Galleon Penson U5 Defamation Protocol Wells Fargo Punitive Damages Citigroup Merrill Lynch ARS Employee Forgivable Loan Street Legal Morgan Stanley AWC Fidelity Bankruptcy Broke And Broker HFT David Sobel Day Trading Ameriprise Commissions Spouse Schwab CRD Kenneth Starr IRS CNBC Complaint ATM Skimming Hacking Phishing Malware Naskovets Poteroba Koval Lincoln Financial Selling Away Outside Business Activities Rakoff 2nd Circuit Second Circuit IRA 401k Forgery Tax Email Netschi Moore Whistleblower Street Sweeper Tran Bharara Facebook Online Severance Bonus Eligibility Rule TD Ameritrade Hedge Fund SAC 1099 Smith Barney Lehman Brothers IC3 Scottrade Lehman JPMorgan Chase Hertz Insider Trading Bank of America Elles Bribe Auction Rate Securities Raiding Spam Edward Jones Medicare Diabetes Dow Schumer Walter Bid Rigging Real Estate Discrimination Wall Street Statutory Disqualification Form U4 Form U5 Indictment Boyland DOJ Corruption bill singer FTC Do Not Call FINRA Arbitration Costa Rica Settlement LIBOR Varney Plea Rule 8210 RRBDlaw Appeal Fowler LPL Johnson US Airways Reg D MSSB Vault Loan SunTrust Discovery Employment Rosenthal Recruiting Lawyer Trading Platform JP Morgan Employment Tuesday Wrongful Termination Bank Guarantee WaMu Solicitation REIT Martin Credit Cards Away Account Credit Repair PN Advisor Placement Group Forex Mortgage Private Placement Moon Merrill Anderson Exam Lee Borrowing Tax Lien Conversion Oppenheimer Wedbush Felony Misdemeanor Expenses ING Lien OTR Estate Jobs Florida Credit Card Elderly Flash Drive Annuity FNMA BrokeAndBroke TIC DWI Promissory Notes Suitability Will POA Power of Attorney Casino NSF MF Global Counterfeit Preet Bharara Corzine Hacker Prison NASAA Aguilar FCPA Identity Theft Gold Dell Bar Injunction Bank Deutsche Bank God HSBC Private Placements Eric Stein Wire Fraud CCO Joshua Brown Backstage Wall Street Obstruction of Justice Retaliation Variable Annuity Outside Account Options Telephone Wine Social Media ADA Pacifico Non-Prosecution Agreement Confirm Tax Fraud Retirement OBA Equity Indexed Annuities EIA MetLife Continuing Education Impersonation Annuities BBVA Business Expenses OIP ETF JOBS Act Mail Fraud Parking Variable Annuities Signatures BitTorrent Wire Transfer Wire Crowdfunding Nasdaq Away Accounts WSP Laptop Dodd Frank Checks PST Solicited Unsolicited Congress SRO Wife Discretion Non-Solicitation Restaurant Commodities Private Securities Transaction Offer of Settlement employment jobs Great Recession Chase Investment Services Barclays Willful Apple Time And Price T&P Husband Letter of Authorization LOA Knight Test Practice Sale Unfair Competition Signature Judgments Undisclosed Settlement Trainee Fee Trust Laser Side Bar Mattera Female Sales Assistant Kennedy Argentina Judgment Bank Fraud TSSB Trustee Frumento 6th Circuit Proctor Beneficiary NYAG Schneiderman Gallagher White Compromise Website Supervision Piwowar signature VA
Email Bill Singer Connect with Bill Singer on Facebook Follow Bill Singer on Twitter Link up with Bill Singer on LinkedIn Join Bill Singer on Google+