February 16, 2012
Since I seem to make recommendations to help investors but never can seem to find the right person to talk to I figure I would post my ideas here since at least its guaranteed to be at least looked at. First, I feel that most investors don't even know what FINRA or the SEC are. If investors only knew that anytime they bought a stock or mutual fund in the United States that they were waiving their right to court (since most brokerages have arbitration clauses) they would be shocked and would not stand for it. This is one of the best kept secrets in America today.
To help investor education, I feel two rules should be implemented
1) All brokers and investment advisors should be required to have the FINRA Broker check website on the front of their business cards.
2) All FINRA arbitrators should be required to view the Saveandinvest.org Tricks of the Trade Investment Fraud DVD. I just went through a FINRA arbitration for over 2 YEARS of which I was swindled out of $2.4 million dollars by the broker selling private placements yet it seemed like the arbitrators couldn't fathom the idea of a "normal" person being swindled. I feel that until you have been taken you cannot imagine that someone can be so good at fraud. I guess it is the "it can't happen to me" syndrome. Well reality is that successful people are the ones being taken because they are the ones with the money to take. Like one SEC employee told me, "I didn't stand a chance once they targeted me. They have the fraud all planned out and have thought ten steps ahead."