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MHC Speaks Out
Read Mark's Column
Mark Maddox writes commentary in the Indiana Business Journal, sharing his opinions on investor-related topics such as common investment scams and choosing a financial advisor. To read archived columns, click on the links below. Be sure to check back for future columns and comment.
- Mournful Tune Keeps Playing For Many Lottery Winners
After having many lottery winners as client, I've noticed it starts out great, but clients were completely unprepared to manage this fortune, and it often ends in disaster. Read
- Save Yourself, and Start Sooner!
To prepare for a worry-free retirement, it is important to start saving early. Maddox provides three commandments in order to become an enlightened saver. Read
- Heed the Warning Signs When Picking Financial Advisor
For many investors, picking a financial advisor is like Forest Gump picking chocolates; you never know what you're going to get. It doesn't need to be this way. Read
- Don't Put Your Money Into 'The Big Lie'
Investors have a tendency to be too trusting and fall for scams. Don't let yourself become prey for con artists. Read
- Voices From the Industry: Investors Need to be Real About Their Stockbrokers
Stockbrokers, above all else, are salesmen looking for a payoff. Read
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Our Work As Advocates
Since 1991, the partners at Maddox, Hargett & Caruso have been integral to the leadership and growth of an investor advocacy group called the Public Investor Arbitration Bar Association (PIABA). The following information about PIABA appears on their web site:
The Public Investors Arbitration Bar Association (“PIABA”), established in 1990, is an international bar association which consists of approximately 500 attorneys. Most are securities arbitration attorneys who represent the public investor in securities disputes. The mission of PIABA is to promote the interests of the public investor in securities and commodities arbitration by protecting public investors from abuses in the arbitration process; making securities and commodities arbitration as just and fair as systematically possible; and creating a level playing field for the public investor in all securities and commodities arbitration forums.
Steven B. Caruso, partner and head of the New York office of Maddox, Hargett & Caruso, served as President of PIABA during 2007. Mr. Maddox served as PIABA President in 1998 and again in 2000; and Mr. Maddox and Mr. Caruso have each held numerous positions on the PIABA Board of Directors and committees.
To learn more about PIABA, you may write, call or find them online:
Public Investors Arbitration Bar Association
2415 A Wilcox Drive
Norman, OK 73069
phone: 405.360.8776
fax: 405.360.2063
toll free: 888.621.7484
website: www.PIABA.org
email: piaba@piaba.org
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Investor News Archive
Maddox Hargett & Caruso, P.C. is frequently quoted in the media. To read news articles in PDF format, click on the "Read" link (requires Adobe Reader). Check back as articles are always being added.
- Hedge Fund Losses Lead to Filing of Arbitration Claims Against Bear Stearns, Ralph Cioffi and Matthew Tannin
A four-law firm legal team, with nationally recognized securities law experience, has filed investor claims against two subsidiaries of Bear Stearns Companies, Inc. (NYSE:BSC) — Bear Stearns & Co., Inc. and Bear Stearns Securities Corp. — and the portfolio managers for the Bear Stearns High Grade Structured Credit Strategies Fund - Ralph R. Cioffi Jr. and Matthew M. Tannin — over the collapse last year of the Bear Stearns hedge fund. Read
- Paulson's Financial Reform Plan Gets Mixed Response
The Federal Reserve's role in monitoring the health of financial institutions would dramatically expand under a plan the Bush administration unveiled Monday to overhaul regulatory oversight. Read
- Mortgage Backed Investments Threaten Nonprofits
When the Indianapolis-based Children's Wish Fund (CWF) received an undisclosed settlement last December from the Morgan Keegan brokerage firm in Memphis, the issue centered on investments that decreased in value because of links to the subprime mortgage market. Read
- Wall Street Might Make Hot Air Look Like Change
It took them long enough, but it looks like U.S. politicians have finally noticed that something is very wrong with the way the financial industry is regulated. Read
- Amid Brokers' Woes, Investor Accounts Are Mostly Protected
Investors with brokerage accounts are asking themselves a simple question: Is my account in jeopardy? The good news is that account holders most brokerages that are under assault can rest assured that their money should — with a few exceptions — be safe. Read
- Fears Causing Fed to Play Favorites?
The Bear Stearns bailout is either a rich-get-richer story or a case of calming market jitters so the little guy doesn't get hurt. The answer depends on whom you ask. Read
- Securities Lawyers Brace for Subprime Crisis Fallout
Securities attorney Mark Maddox calls them “come-to-Jesus” moments – the time when an investment adviser realizes he has to tell a client his portfolio's gone to hell. Read
- The Debt Crisis, Where It's Least Expected
Morgan Keegan, a Memphis brokerage firm, made an undisclosed payment to the IN Children's Wish Fund to settle an arbitration claim. Read
- RMK Funds Have Legal Wheels Rolling
Calls are coming in from investors who have lost millions of dollars in the battered funds. Attorneys with the four-firm legal team such as Ryan Bakhtiari expect to file a flurry of lawsuits soon on behalf of investors. Read
- Lawsuits Imminent on Behalf of RMK Investors
Lawyers from four firms across the U.S. are working together to investigate the management and performance of several Regions Morgan Keegan mutual funds. Read
- How the Mortgage Bailout Strains Accounting
Efforts to contain damage from the subprime mortgage meltdown are stretching accounting safeguards put in place after Enron. Read
- Bear Hid Dire State of Funds, Say Investors
Investors in The Bear Stearns Cos.' two collapsed hedge funds have filed arbitration claims against firm, according to Reuters. Read
- White House to Reveal Sub-prime Rescue for Homeowners
President Bush will wade into the sub-prime mortgage crisis with a rescue package freezing interest rates on certain high-risk home. Read
- Bear Stearns Faces New Round of Hedge Fund Claims
The first of a new round of investor claims was filed for its role in managing two mortgage hedge funds that collapsed earlier this year. Read
- Bear Stearns Hedge Fund Losses Lead to Arbitration Claims
A team of four law firms, with nationally recognized securities law experience, has filed claims against subsidiaries of Bear Stearns. Read
- Bear Stearns Emails Suggest Managers Saw Liquidity Crisis on the Horizon
In the latest development surrounding Bear Stearns' conduct relating to two collapsed hedge funds, the Massachusetts Securities Division accused the company of fraud. Read
- Arbitration Clauses Cause Controversy
PIABA and members of Congress want investors to have options rather than only arbitration. Read
- High Court Backs Banks in Antitrust Suit on IPOs
The US Supreme Court blocked an antitrust lawsuit against investment banks, a blow to investors who questioned Wall Street during the tech bubble.
- Wall Street Arbitration Stack Against Investors
Investors seldom win when resolving disputes with Wall Street brokers — critical study reveals.
- One is the Loneliest Number
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Individual investors wronged by their brokers can't sue, they must arbitrate before a panel, which is responsible for writing rules and penalizing brokers. Read
- The New Broker Game
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Big brokerage firms are reinventing themselves as financial advisors, but many are giving questionable advice and bending the rules. Read
- U-5 Case Puts Reps in Hole
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New York State ruled that brokers in New York cannot take action against firms for anything written on their termination documents, aka the Form U5.
- PIABA Calls on Congress
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PIABA called on Congress to halt the existing system which requires mandatory arbitration of securities-related disputes of public investors.
- Goldman Takes 'Private' Equity to a New Level
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Goldman Sachs Group Inc. is creating its own private system to trade the stocks of companies that don't want the scrutiny and burden of going public.
- Behind the News
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The investigation into insider trading in Indianapolis based Galyan's Trading Co. that ensnared star stockbroker David Knall two years ago hasn't faded. Read
- Will Merger Weaken Regulatory Oversight?
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The merger of the two biggest regulators that police the nation's 5100 investment firms is drawing mixed reactions from the securities industry. Read
- Fix Arbitration Now
Twenty years ago the Supreme Court ruled that brokerage clients were forced to arbitrate instead of going to court. Lawyers on both sides of the issue say the system is neither fair, cheap nor swift. Read
- Regulator Says Morgan Stanley Withheld Email in Cases
The NASD accused Morgan Stanley of routinely failing to provide e-mail message to aggrieved customers who had filed arbitration cases against the firm. Read
- Fair Game: When Winning Feels a Lot Like Losing
Winning can feel like losing to some investors. Arbitration fees can take a lot of the winnings away. Read
- Is This Merger a Mad One for Hoosier Investors?
Is the merging of the NASD and NYSE a bad idea for Hoosiers? Read
- Regulators to Merge on Wall Street
The NTSE and the NASD announced plans to merge their regulatory organizations and eliminate duplicative and inconsistent rules. Read
- NYSE, NASD to Meld Regulatory Operations
The merging to the two companies is the biggest change in the regulatory system since its creation 72 years ago. Read
- State Awareness Initiative Targeting Investment Fraud
Hoosier are bilked by investment fraud scammers $100 million annually. Educating investors could go a long way in helping to solve the problem. Read
- Is This Game Already Over?
When filing an arbitration case against a stockbroker, investors might have the deck stacked against them. Read
- Stifel's $3.5 Million Arbitration Charge Involved Rogue Broker
- Prudential Hit With $261 Million Jury Verdict
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In a case of Main Street extracting a bit of revenge on Wall Street, an Ohio jury ordered Prudential Securities to pay $261 million in damages in a suit that alleged a broker acted without his clients' knowledge.
- Pair Wins Arbitration Over IRA Mismanagement
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Couple wins $514,000 securities arbitration award in securities fraud case.
- Texan Awarded $5.6 Million in Stock Fraud Case
Texas investor wins $5.6 million securities arbitration award.
- Securities Panel Rules in Favor of Hoosier Defunct Firm
Ordered to pay $1.5 million to Valparaiso resident in fraud arbitration case. Securities arbitration panel awards $1.5 million in securities fraud case.
- Maddox Likes Winning Big for Little Guys
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Securities arbitration attorney wins record setting arbitration award.
- Lawyer Found Success Helping Out Consumers
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Man who started firm involved in record case cut his teeth as Indiana's securities chief. Securities arbitration attorney builds a national practice representing victims of securities fraud.
- Stratton Debacle Produces Record Award
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Maddox Koeller Hargett and Caruso wins largest customer securities arbitration award in NASD history.
- Arbiters Award Hoosier $13.1 Million
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Two Indianapolis attorneys win the largest customer securities arbitration award in NASD history.
- On State Street
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Lawyer takes tough stand on damages.
- Glick Wins $2.7 Million as Fraud Case
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An arbitration panel has awarded Indianapolis apartment developer Eugene Glick a record $2.7 million in a fraud case against a Boston stockbroker.
- Cincinnati Man Wins $247,000 in Prudential Securities Case
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Cincinnati based investor wins $247,000 in securities arbitration hearing.
- Prudential Hit with $81,000 Judgement
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Prudential Securities ordered to pay an $81,000 securities arbitration award.
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Critical Decisions
Two occasions when an attorney's experience really matters.
As they seek to recover losses through dispute resolution, harmed investors must make certain judgment calls. One is deciding which legal option to pursue. (See Your Legal Options.) Another comes partway through the process, when many claimants must choose whether or not to accept a settlement offer. (See Mediation and Settlements in Lieu of Arbitration.)
“I agree that all controversies that may arise between us concerning any order or transaction, or the continuation, performance or breach of this or any other agreement between us, shall be determined by arbitration before a panel of arbitrators selected by the Financial Industry Regulatory Authority (FINRA), as I may designate, pursuant to the rules of the organization in existence at the time of the submission to arbitration. I understand that a judgment upon the arbitration award may be entered in any court of competent jurisdiction.”
These can be tough decisions. It is a great help to work with experienced attorneys who authentically represent your interests. At Maddox Hargett & Caruso, we are experienced in all forms of investor dispute resolution. We can give you a clear picture of what it might be like to take your case to arbitration, and a realistic assessment of your chances for recovering money. We can tell you, in detail, what transpires in mediation, jury trials and class action lawsuits. And when a settlement offer is extended, we can help you decide – based on our experience representing more than 1000 investors – whether it's an offer you should accept.
Reality Check
Curb your optimism: Arbitration awards for full damages are few and far between.
The arbitration awards you see in headlines are the record breakers. But be aware: while many claimants in arbitrated disputes recover some of their losses, very few investors receive full compensation in this way. The reasons and rationale for the arbitrators' decisions vary. Patterns and precedent are not consistent in this area of law. Therefore, outcomes cannot be reliably predicted by attorneys for either party. Our attorneys counsel aggrieved investors to manage their expectations about upcoming arbitration. As Mr. Maddox has said, “It's no coincidence that the words arbitrary and arbitration have the same root.”
