An irreverent Wall Street Blog
by Bill Singer

The Legitimate Sounding Investment That Was A Fraud

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?. 


REUTERS.COM

YouTube for iPhone/Pad Users
For iPhone/Mobile view visit: http://www.youtube.com/watch?v=cj9ZsSLauBg\

Permalink

Search BrokeAndBroker

Related Topics

Previous Entries

Tag Cloud

Bill Singer BrokeAndBroker FINRA Arbitration AWC SEC Expungement BrokeAndBroker.com BrokerAndBroker Guest Blog Employment Guest Blogger Wells Fargo Street Sweeper Bill SInger Aegis Frumento Jobs OBA U5 Fraud Promissory Note U4 Email Merrill Lynch Morgan Stanley UBS Defamation EFL CRD BrokeAndBroker Elderly Wire Fraud InSecurities Statutory Disqualification OHO Whistleblower NAC PST Suitability Forbes FBI DOJ ALJ Ponzi Supervision Citigroup Rule 3270 BrokerCheck Form U4 Borrowing IRS SDNY OIP Pro Se Expenses Willful Supreme Court Outside Business Activity Bank Felony Securities Industry Commentator Rule 8210 Ameriprise Rule 2010 Rule 2080 WSP Dodd Frank Discretion Wrongful Termination Form U5 Discovery IRA Wachovia RIA Raymond James JP Morgan Mail Fraud Business Expenses Bar Insider Trading Punitive Damages Wife Conversion NASD Bankruptcy Edward Jones CCO TRO Husband Rule 1122 Forgery Margin Stephen Kohn Settlement Checks Rule 3240 Estate Willfulness arbitration Tax LPL Schwab 2Cir Commissions Trump Credit Card Employment Tuesday Wall Street Outside Business Activities NYSE Small Firm Promissory Notes Beneficiary Madoff Frumento FAA Insurance Rule 3040 CFTC Options Corrective Action Statement Private Securities Transaction Annuities Injunction Bank of America Tax Liens Antitrust Impersonation Facebook Rule 3280 Real Estate Goldman Sachs Rule 12206 Power of Attorney Customer Indictment Crypto Due Diligence Exam TD Ameritrade OWB Trust ETF Remand Tax Lien Stay SRO ATM Retaliation Street Legal Misdemeanor Offer of Settlement Test Spouse Mortgage Signature Barclays OTR Discrimination Trustee Explained Decision Securities Fraud Complaint Annuity Away Account Eligibility Rule COVID Solicitation ACQ Case In Point Wire Schapiro Rule 2510 Loan Motion to Dismiss POA NASDAQ Sanctions email VA Jurisdiction Initial Decision ARS Reg SP DCCir Unauthorized Discretion Rule 4511 Blockchain Lien Spouses Appeal Conspiracy Rule 4530 CRS Mandatory Arbitration E*Trade Employee Forgivable Loan NSF Class Action Motion to Vacate T&P 9Cir HFT JPMorgan Burris Liens Money Laundering Rule 12200 Fidelity PCAOB NASAA Reimbursement Unsuitability Retirement Deutsche Bank Compliance Great Recession AML Unfair Competition Failure to Supervise Signatures RBC Cease And Desist Personal Expenses Bonus Flash Crash Willfully Rule 3010 Continuing Education FINRA Board REIT expungement Divorce Manifest Disregard Sexism Fiduciary Dissent LOA Sexist Disgorgement Broker Protocol Chase Scottrade Severance Huffington Post Credit Cards 10Cir Customer Complaint Hacking MSSB Due Process Vacatur Undisclosed Settlement Cryptocurrency Hacker Rule 3050 Internet Lehman Brothers Identity Theft Unauthorized Trading MC-400 Malware Spoofing Board Bharara Social Media Gallagher SDFL RRBDLAW.com BD Bitcoin Disclosure Will brokeandbroker Deceased Registered Rep Magazine IAR Indemnification Rule 3110 Variable Annuity Fees Audit Coronavirus Examination Private Placement employment Wey Stockbrokers Away Accounts Self Regulation Kokesh Rule 12904 Apple Lucia Rule 9552 Forex Wedbush Statute of Limitations Loans Solicited Letter of Authorization Trading Platform LIBOR Website Elder Abuse Widow Stifel 4Cir Annual Compliance Questionnaire Emails Variable Annuities Commission FINRA Arbitration Zipper Gensler PNC Bonds PIABA Rule 2150 jobs 3Cir Prison WSPs Crowdfunding Postponement Brummer Charles Schwab Confidential Information Lehman Arbitraiton Hedge Fund Second Circuit 2nd Circuit FINOP Public Interest Exhaustion of Administrative Remedies Private Securities Transactions BOP Rule 12805 Rule 2111 Dakota Securities Net Capital BrokeAndBroker Bill Singer Breach of Contract Waiver Credit Suisse RMBS Registration OIG Unsolicited 9/11 Sanction Guidelines Newman guest blog MetLife Mother CE guest blogger bill singer Debit Card Board of Governors RRBDlaw.com SunTrust Racism Telephone Time And Price Rule 13200 Marijuana aegis frumento Judgments Series 7 TOD Motion to Confirm insecurities Robinhood Cheating Morgan Keegan China RR JPM Plea Diversity BrokeAndBroker.com Blog IC3 ADA Hilton Weiner BrokeandBroker Bureau of Prisons Non-Solicitation NYAG Suspension CMA Whistleblowing FOREX Unjust Enrichment IPO Unsuitable Bear Stearns Margin Call Imposter Concentration Enforcement Sexual Harassment Obstruction of Justice DOL Oppenheimer Reg S-P CPA Rule 2081 Protocol EDNY Raiding WB-APP Rationale Testimony Non Solicitation Knight OSHA Botkin Lawyer Membership Continuance JOBS Act Confirm Whistleblowers Rakoff Covid Auction Rate Securities TCR Private Placements Statutory Disqualification Committee Embezzlement Restitution FNMA Tortious Interference Check Kiting Rule 4513 Churning Charge CNBC Leggett Small Firm Governor Employment Agreement Piwowar Absolute Immunity Mutual Funds Puts 11Cir 1Cir Broke And Broker Elder Fraud Stifel Nicolaus Puerto Rico Restaurant Compensation Rule 2210 Gold Regulation SP Joshua Brown NoCA Finra NDCA Counterclaim Bandimere SAC Confidential MF Global Customer Information Appointments Clause TSSB Lawyers Deferred Compensation Federal Reserve Cannabis Trade Secrets VIX CEO Securities America EIA securities industry commentator Preliminary Injunction Saad Rule 13805 Affinity Fraud Pennystock Circuit Court Robert Cook Conflict Shah Gilani Reg D Bank Fraud Affiliate Biden Irreparable Harm AAA Customers ING Hurry Article V Written Supervisory Procedures Johnny Burris Banc of America Form ADV Research Aleynikov Bloomberg Termination Sarbanes Oxley Woody Allen Rule 12504 Leveraged ETF Funds 10b-5 PN Stanford Check Testing USERRA Rosenthal Recruiting Khuzami Test Center Wine Wire Transfer Ketchum Standing HSBC Charity Corruption money laundering Taxes Excessive Trading Unregistered TheBlot Pennystocks Phishing Executor Feigenbaum Michael King Immunity fraud Information DNJ Service Confidentiality Sales Assistant Michael King Associates Inability to Pay supervision Dementia Morgan Stanely Day Trading Medicare Passcode High Frequency Trading 10b-10 Laptop NRF Hearing signature Rule 2430 Star Wars Rule 12212 Superior Court Hester Peirce Bid Rigging Probate Stipulated Award Medical Condition 6Cir BrokeAndBroke Chief Compliance Officer CGMI Congress FMLA Extraordinary Circumstances Chase Investment Services Obstruction Conflict of Interest Rule 9554 Rule 21F Eligibility Parking OCIE Vault Rule 3310 Moon Rule 3030 Failure To Supervise Disability Kon Ethereum Beneficiaries Casino Constitution Self Regulatory Organization PAQ Lincoln Financial Over Concentration AXA 6th Circuit Morgan Stanley Smith Barney Amazon Sharemaster Commodities Fraud Sexual Discrimination DMD Google Spoliation Third Party Vendor Talman Harris Self Directed Accounting Subpoena Cantor Fitzgerald FINRA AWC White Nietzsche Argentina RICO FINRA Small Firm Finder\'s Fee Attorneys Fees Aguilar 401k State Actor ACH Penson Wanger Statement of Corrective Action Administrative Remedies Pruco Side Bar Layering Online Whitman Motion to Compel Outside Account ICO Guitron Honorarium Smith Barney Poteroba Negligence Death McDuff Vietnam Ride the Thunder Mutual Fund Consent Order Marines Joint Account Teleconference Marine Corps Relevant Disciplinary History David Sobel Government Accountability Project Corzine NPR Marketplace Unauthorized Practice of Law Default 5Cir Trader CDO JPMS Yesenia Guitron Privilege Hugh Hewitt IM Fine S&P Offset Copyright Investor Alert ESOP Rule 13504 Stop Loss Florida Money Market BrokeAndbroker GameStop FAP Cold Spring Advisory Group Female Withdrawals SIFMA Do Not Call mail fraud Crime Respondeat Superior LLC Racial Discrimination Falsification FOCUS Rule 2370 Res Judicata Scottsdale Blackbook Risk Commodities Revocation Hospital Stockbroker Investment Adviser Chase Bank Timban Pension EEOC Settling Away Backstage Wall Street Disciplinary History Hotel Newport Coast Securities Obama Chiasson Series 79 11th Circuit Regulation Rory Flynn Extraordinary Cooperation YouTube Conflicts Regulation S-P Peirce NY Life Microcap WBAPP WaMu Fifth Amendment Resignation Reuters Book of Business Outside Accounts Schneiderman Transamerica Elder Law Capital Gains SP Password BrokerAndBroker.com 40 Act Fowler Guest Bloggers OWWP elderly Client Information First Amendment Reform Rule 1031 Libel RRBDlaw UIT Johnson Gamification Financial Professionals Coalition Expert Witness Trading Mistake Attorneys\' Fees Subject Matter Jurisdiction Red Flags Motion Blank Forms Penalty Fiduciary Duty Life Insurance Judgment Jennifer Tarr Reverse Life Insurance Turnover Data wire fraud Title VII Christian Stanley Liquidation BATS Zoom Tesla Moore 401(k) Permanent Bar Netschi Thain Puerto Rico Bonds Daughter Selling Away David Lerner TIC For Cause Dell Taft Correctional Institution Electronic Communications wrongful termination Arbitration EDPA Relevant Tax Fraud CD FCI Acosta Department of Justice Oral Discretion Verbal Discretion Extortion Inmate Equity Indexed Annuities NYG Capital Escrow Kiting Texting Self Reporting Counterfeit Confirmation Interactive Brokers Inside Information Non Solicit Ethics Commissioner Stein Wires FCI Beaumont Meals Civil Rights Slander SD Elles Fee VXX Prudential Fines FCPA Outside Counsel Chevron Rule 9216 Gross 17a-5 Harassment Control Person Scholander WhatsApp Annual Audit Son Arrest securities fraud Stock Promotion Initials Short Sale Compromise EB-5 Dinner Alcoholism Motiion to Acquit Rule 12511 TradeStation Corporate Credit Card Game of Thrones National Securities GME Third Party Beneficiary Led Zeppelin Tippee Beatles Jay Clayton Covid-19 Tipper Merrill Altered Records Promoter Wire Transfers Berthel Fisher finra Texas State Securities Board Merill Lynch Executrix Training Impersonator Jury Instructions Women Burden of Proof Molchatsky Credit Repair Retired Woman With Cane Transfer Summary Judgment Tennis Court Coin Public Arbitrator NFT Kovack Securities SDCA Cybersecurity Checking Jon Corzine Vaccarelli Motion to Exclude Motion to Postpone Flash Drive Howey Discharge Bequest Preet Bharara Rule 13904 Hayden Reg SHO Pershing Section 206 Vungarala Purshe Kaplan Lewis Carroll Constructive Discharge bank Communications Advisor Placement Group Nationwide Expense FINRA Eligibility Rule Production At Will Rule 13212 Hackers Age Discrimination Subway South Park Compliance Questionnaire Rule 21F-17 Kent Exhaustion Doctrine Undertaking ADEA Exception Report Books and Records FDA Motion to Compel Arbitration Khan Wells Fargo Advisors Oilpro No Show Sears Gnomes Altered JAMS Allocation Back Dated false statements NYLIFE Exemption Liu Cherry Picking Fraudulent Inducement DCO Eric Stein Rule 3210 Tysk Income Branch Manager DWI Cybercrime annuities AI Lek Frivolous Schottenstein ACT! Binary Options Section 1332 Non-Solicit Exception Reports Lee Orders Voya Fiero Newbridge Anderson NPI Vacate BitTorrent Rule 13201 Currency whistleblower Prime Bank Daspin Clayton Sharing Agreement BBVA ESG Supervisor Disparate Treatment Pacifico iPhone Theft Non-Prosecution Agreement Powell Guardian Expert God Punitive Rule 1210 SDOH reimbursement Wang DRS 1099 Bank Secrecy Act Gabelli FinCEN Martin In Connection With SLUSA Traders EDVA Collateral Bar SIPC Municipal Advisor NRSRO Investacorp Undercover FNI Media Retroactive Retroactive Bar Baby Boomers Mantar Arbitrator College Trainee Fee Hostile Workplace Laser Koval Skimming In House Counsel Naskovets Fourth Amendment GAP Countrywide Tran Last Known Address ADR Bob Dylan Allstate Examinations Law School Bartko Patriot Act Overtime Espionage Schumer Walter Dow Preliminary Determination Wages Salman Diabetes Form TCR Confidential Customer Information CAT HBO Grievance Ecuador Springsteen Mail defamation McCartney Spam Elon Musk Proctor JP Morgan Securities Books And Records AMC Rule 2330 ALJ Foelak AIG Hertz Clearing Firm Success Fee Series 66 MAP Court of Appeal QuadrigaCX Willfull Fidelity Brokerage Services Practice Sale Bribe William Faulkner Mattera Collateral BIll Singer DAO Stephen A. Kohn Principal PSRO Ten Commandments Brokeandbroker.com ETFs Municipal Bonds Father IBM Janney Montgomery Scott JPMorgan Chase Malice Martoma BrokeandBroker.com Disney Criminal Mary Schapiro Particularity NFA Merger AWC. FINRA Broy Compliance Officer PHC Rule 144 Lorenzo Private Actor Mary Jo White House Financial Services Capitalism State Farm RRBDLAW Apartment Rule 420 Bill Singer BrokeAndBroker SIE Tax Advice Exotic ETF Quasi Governmental Motion To Dismiss Press Release Cryptocurrencies 529 Plan Margin Calls Arbitrability Excel Bezos Statute of Limitation Ineligibility Kennedy Securities and Exchange Commission Murray Kenneth Starr Romer Leveraged ETFs Harris Work Product Dissident Deceased Customer Deferred Prosecution Agreement DPA Dylan Legend Silver Banks Evidence SEC Rules of Practice Witness Tampering ALJ Grimes Solomon Galleon NML Calls 9th Circuit Financial Disclosure Swaps Non Compete Diamonds Sex Sterne Agee Life Settlement Dostoevsky Unauthorized Trades Guardianship Payroll Shotgun Pleading Ronald Filler Lexicon Office of Special Counsel 8210 Investment Advisers Act Panama Fundacion Nicor Nicolas Corcione Stipulation sexism Personal Information expenses Forfeiture Well Managed Portfolio Costa Rica CMO NMS Travel Varney DDC Rule 13206 Hurtado Cellphone Hearsay Turbeville MSPB Fernandez Gifts Rules of Practice Notice Reason for Termination Bank Guarantee Customer Files Nasdaq Kierkegaard MBS Address Goble Transitional Bonus Citibank Twitter US Airways Production Bonus Rule 13104 FINRA Foundation Scam Reverse Merger Rule 12104 Joint Production Bill singer Reasonable FTC Boyland Justice Ruder Task Force Obamacare MDLA Audit Committee DMCA