Posted On: July 26, 2009

SEC Hits Morgan Keegan With Wells Notice

Morgan Keegan & Co., a unit of Regions Financial, Morgan Asset Management and three employees each received a “Wells” notice from the SEC, the company stated in an SEC filing by Regions on July 9.

A Wells notice states that the SEC intends to bring enforcement actions for possible violations of federal securities laws. The 8-K said the potential actions relate to the SEC’investigation of certain mutual funds formerly managed by Morgan Asset Management. “

The firm is being sued for losses in those bond funds by many former customers of Regions Morgan Keegan. Our law firm represents many investors in claims against Regions Morgan Keegan for losses related to these specific funds.

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Posted On: July 15, 2009


UBS sold approximately $1 Billion of Lehman Structured Notes in the United States. Many of these "Structured Notes" were called "Principal Protected Notes." Many of these "Principal Protected Notes" were sold as safe, conservative investments that provide income. The ugly reality is that these investments were high-risk products secured only by a promise of Lehman Brother Holdings Inc. to repay the principal.

Posted On: July 15, 2009

Blum Law Group Files FINRA Arbitration Against Deutsche Bank Securities for Sale of the Aravali Fund

Blum Law Group is pursuing FINRA arbitration claims against Deutsche Bank Securities on behalf of investors for the sale of the Aravali Fund.

We continue investigating losses in the Aravali Fund and other funds which have suffered devastating losses. The Law Firm has filed claims on behalf of investors with accounts in the West Palm Beach and Miami offices of Deutsche Bank.

The Arbitration Claim alleges the Aravali Fund was sold to investors who were seeking income and safety of principal. The Aravali Fund ultimately plummeted in excess of 90% in value. The Aravali Fund used a very speculative arbitrage scheme and was highly leveraged. One Deutsche Bank advisor has been quoted as saying, "I was told by my firm (Deutsche Bank) and Aravali that this was a conservative, income producing strategy."

Blum Law Group continues to investigate the matter including Deutsche Bank's marketing of the Aravali Fund.If you wish to discuss this announcement or have information relevant to our securities and commodities arbitration claims, please contact Scott L. Silver, Esq. of Blum Law Group, at 1-877-STOCK LAW (1-877-786-2552) or visit us on the web at

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Posted On: July 3, 2009

SEC lawsuit targets Aura

Aura Financial Services and six stock brokers reaped big commissions while fleecing customers through high-pressure tactics, churning and other unethical practices for years, according to a lawsuit filed Friday by the U.S. Securities and Exchange Commission.

The brokers drained customers' funds of $3.5 million from 2005 through April of this year, according to the suit in federal court in Miami.

''Aura and the six brokers treated the accounts of certain customers as their personal gravy train,'' said Katherine Addleman, director of the SEC's regional Atlanta office.

The SEC, which was joined in the lawsuit by the Alabama Securities Commission, is seeking fines and repayment of what it alleges are ill-gotten gains.

Aura declined to comment.

The company is based in Birmingham, Ala., with offices in Miami and Islandia, N.Y., and formerly had an office in Pembroke Pines.

Four of the brokers named in the lawsuit are from South Florida and two from New York.

Blum Law Group represents several investors who have already filed FINRA arbitration claims to recover losses.

Posted On: July 3, 2009


The New Hampshire state securities regulator has accused a unit of UBS AG, of recommending unsuitable investments to customers who put their money into complex securities underwritten by Lehman Brothers Holdings, Inc.

According to the New Hampshire Bureau of Securities Regulation, UBS allegedly represented the securities as “safe” investments to clients, guaranteeing them “principal protection.”

The bureau alleges that state investors lost $2.5 million in various structured products backed by Lehman Brothers, which filed for bankruptcy on Sept. 13, 2008. By not adequately disclosing these risks, UBS engaged in “dishonest and unethical business practices,” the bureau charges.

“UBS presented these notes as simple, safe investments when in fact they are highly volatile and are subject to shifting market conditions,” said Jeff Spill, the bureau’s deputy director for enforcement. “The safety of these products was exaggerated. We believe UBS engaged in unfair and unlawful sales practices when presenting these investments.”

Blum Law Group is currently investigating the sale of these and other products to our clients resulting in losses of over ten million dollars.