|
| Company |
Problem
|
Date |
Fund Police Opinion
|
Rating |
|
|
Canary Capital Partners
|
Scandal at Canary lead to a full-scale investigation of the mutual funds industry and its practices.
|
11/24/2003
|
Canary was one of the motherlode investigations that started the whole truth coming out about the behind closed doors dealings in the fund business.
|
Red Light
|
|
Canary Capital Partners
|
Due to the findings at Canary Capital, the SEC began an industry-wide investigation of fund trading by regulators and fund firms.
|
11/1/2003
|
Canary was one of the motherlode investigations that started the whole truth coming out about the behind closed doors dealings in the fund business.
|
Red Light
|
|
Canary Capital Partners
|
Arranged for illegal mutual fund trading in exchange for large investments in funds managed by Bank of America Corp's Nations Funds, Bank One Corp, Janus Capital Group Inc, and Strong Financial Corp.
|
9/4/2003
|
Canary was one of the motherlode investigations that started the whole truth coming out about the behind closed doors dealings in the fund business.
|
Red Light
|
|
|
Capital Groups
|
Announced it was subpoenaed in the CA investigation about defrauding investors over brokerage compensation deals.
|
11/10/2003
|
Commissioned-based brokers will not provide unbiased advice to investors, with or without compensation by fund companies. FP recommends a fee only advisor. Visit www.napfa.com for more info.
|
Red Light
|
|
Charles Schwab
|
A claim was filed by a retired woman who alleges that Schwab sold her improper investment products, ignoring her needs over their profit margin.
|
2/3/2005
|
Check out more stories about Annuities in our Annuities section. One bad apple on the retail side of Schwab doesn't necessary spoil the bunch. We're keeping this side of company under watch.
|
Yellow Light
|
|
Charles Schwab
|
Schwab setteled with the SEC over charges that it allowed investors to change their trades after the markets closed.
|
9/15/2004
|
No harm, no foul.
|
Yellow Light
|
|
Charles Schwab
|
Late-trading charges against Schwab for allowing customers to alter mutual fund orders after the markets had closed.
|
9/15/2004
|
Very small issue and settlement.
|
Yellow Light
|
|
Charles Schwab
|
Allowed for large clients to rapid trade in its Excelsior funds.
|
8/1/2004
|
This company hasn't entirely soiled its reputation...yet. FP cautions investors to do your homework before investing with Schwab.
|
Yellow Light
|
|
Charles Schwab
|
Excelsior funds were market-timed. Mutual Fund Marketplace had late trading occur.
|
2/1/2004
|
This company hasn't entirely soiled its reputation...yet. FP cautions investors to do your homework before investing with Schwab.
|
Yellow Light
|
|
Charles Schwab
|
Announced to stockholders that the company had found the occurrence of market-timing and late trading at the company and its subsidiaries.
|
11/30/2003
|
This company hasn't entirely soiled its reputation...yet. FP cautions investors to do your homework before investing with Schwab.
|
Yellow Light
|
|
Charles Schwab
|
Market timing and rapid trading charges in Excelsior Funds. Employees involved were caught deleting emails during the company's investigation.
|
11/17/2003
|
This company hasn't entirely soiled its reputation...yet. FP cautions investors to do your homework before investing with Schwab.
|
Yellow Light
|
|
Chase
|
The company failed to report information about their brokers to customers. The information included customer complaints, regulatory actions, criminal charges and convictions.
|
12/2/2004
|
Hiding information from your clients does not make the problem disappear. FP wonders what else are they hiding? FP warns you to steer clear of companies who have “baggage” and are unwilling to come clean.
|
Red Light
|
|
Cigna
|
Elliot Spitzer has requested information from Cigna to obtain documents that describe possible improper payments made to brokers for life insurance sales.
|
10/20/2004
|
While FP is not sure of the depth of involvement, we are sure that insurance companies in general have flawed customer ethics procedures.
|
Red Light
|
|
Cigna
|
Spitzer is investigating the hidden compensation deals between the firms and brokers who sell the insurance.
|
8/1/2004
|
Go Spitzer! Fund Police believes the layers of fat and hidden arrangements are probably the worst with insurance products, such as annuities.
|
Red Light
|
|
Citigroup
|
Two former Citigroup Inc. executives are facing charges of cheating customers out of millions of dollars in savings on mutual-fund shareholder fees.
|
4/27/2006
|
We don't even have to explain ourselves for why we're kicking this company to the curb. Throw the bums out!
|
Red Light
|
|
Citigroup
|
Citigroup, Inc. assisted Enron by creating misleading transactions so the energy company could disguise billions of dollars of loans as commodity trades.
|
9/22/2004
|
We hate the fact they refuse to admit they did anything wrong. It is FP philosophy to deny green light status to groups that refuse to admit they wronged investors.
|
Red Light
|
|
Citigroup
|
Charged with overcharging investors for the purchase of corporate bonds and underpaid them when the bonds were sold. Also charged with a lack of supervisory control or acknowledgement.
|
7/28/2004
|
Investors have a failed belief that buying and selling bonds is cleaner and cheaper that trading mutual funds and/or stocks. The buying and selling of bonds operates in the murky world of bid/ask spreads and lack of real time pricing. The SEC is working
|
Red Light
|
|
Citigroup
|
Fired executives for their roles in facilitating market-timed trades.
|
11/1/2003
|
With a number of well run, smaller fund shops, where the manager has long tenure and a bunch of their own money in the fund, why have your $ here?!
|
Red Light
|
|
Citigroup
|
Executives facilitated after-hour trading.
|
11/1/2003
|
With a number of well run, smaller fund shops, where the manager has long tenure and a bunch of their own money in the fund, why have your $ here?!
|
Red Light
|
|
Citizens Investment Services Group
|
The Massachusetts Securities Division has subpoenaed 15 banks and broker/dealers for improperly selling annuities to seniors. Customer complaints drove the investigation into whether seniors were being taken advantage of so brokers could collect large commissions.
|
2/22/2005
|
Visit our annuities section for more info on this type of investment.
|
Red Light
|
|
Citizens Investment Services Group
|
Variable annuities sold to seniors were inappropriate because of the cost of the investments and delayed payouts. Seniors would recieve payouts after their life expectancy had ended.
|
2/14/2005
|
Go to the bank for savings and checkings. See a fee-only advisor for your financial planning. www.napfa.com
|
Red Light
|
|
Columbia
|
The Columbia Young Investor fund has had six different portfolio managers in two years!
|
7/29/2005
|
We advise to walk away and don't look back!
|
Yellow Light
|
|
Columbia
|
The company has been charged for market-timing arrangements in several funds.
|
5/1/2005
|
Again? You know what to do.
|
Yellow Light
|
|
Columbia
|
Parent company to Nations Funds and Columbia Funds, Bank of America finally settled with regulators over charges of abusive trading.
|
3/1/2005
|
Big fines mean big trouble.
|
Yellow Light
|
|
Columbia
|
Improper trading in funds. A portfolio manager approved a sales manager's request to allow favored investors to market time their funds. The CEO knew of the market timing and failed to take action.
|
2/9/2005
|
This company took swift action at the beginning of the scandals' investigation to correct their poor behavior. But the problem was not limited to three executives, there were hundreds of accounts where the timing occured.
|
Yellow Light
|
|
Columbia
|
Several funds were affected by market timing
|
2/1/2005
|
We advise to walk away and don't look back!
|
Yellow Light
|
|
Columbia
|
Charged with allowing market-timing in many of its funds.
|
6/1/2004
|
One of the better attempts by a fund company to reform their situation. We especially like the requirement that fund trustees to own shares in the fund.
|
Yellow Light
|
|
Columbia
|
Allowed market-timing arrangements in three funds.
|
2/1/2004
|
One of the better attempts by a fund company to reform their situation. We especially like the requirement that fund trustees to own shares in the fund.
|
Yellow Light
|
|
Common Wealth Financial Network
|
The company was fined $1.4 million by the NASD for directed-brokerage violations and failing to retain e-mails, which is required by federal securities laws and NASD rules.
|
10/17/2005
|
This is why fee-only advisors serve your best interest. Go to www.NAPFA.com for additional information.
|
Red Light
|
|
Conseco
|
SEC charged firm with market-timing in their funds that decreased the retirement holdings of long-term investors. Firm worked with Van Eck and Fred Alger to market-time funds.
|
8/10/2004
|
This is the latest is a string of bad news for Conseco, who has been on the brink of financial hard times.
|
Red Light
|
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