Massachusetts regulators expected to file complaint against Robinhood

REUTERS

Securities regulators in Massachusetts were expected to file a complaint on Wednesday against Robinhood Financial LLC, according to a document reviewed by the Wall Street Journal, the newspaper said on Wednesday.

The administrative complaint reviewed by the Journal from the enforcement arm of the Massachusetts Securities Division said the popular trading platform violated state laws and regulations by failing to protect its customers and their assets.

According to the Journal the state said Robinhood exposed Massachusetts investors to “unnecessary trading risks” by “falling far short of the fiduciary standard” adopted this year that requires broker-dealers to act in their clients’ best interest. read more »

Ponzi schemes, other investment fraud on rise during pandemic, SEC says

CNBC

There has been a significant uptick in consumer complaints involving investment fraud during the Covid pandemic, according to an SEC investor alert issued Monday.

Those frauds include Ponzi schemes, fake certificates of deposit, bogus stock promotions and community-based financial scams.

Investors should be on high alert for Ponzi schemes, fake certificates of deposit, bogus stock promotions and community-based financial scams, the SEC warned in an investor alert. read more »