|
| Company |
Problem
|
Date |
Fund Police Opinion
|
Rating |
|
|
Conseco
|
Assisted with market-timers to remain anonymous in market-timing funds that did not allow for the practice.
|
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
|
|
Cresap
|
NASD charged Co. with failing to give investors breakpoint discounts.
|
2/1/2004
|
Small outfit.
|
Red Light
|
|
David Lerner
|
NASD charged Co. with failing to give investors breakpoint discounts.
|
2/1/2004
|
Small outfit.
|
Red Light
|
|
|
DebtTraders
|
The company has been expelled from the industry by the NASD for charging excessive markups or markdowns on corporate high-yield bond trades.
|
11/1/2005
|
HUGE conflicts of interest exist at many large brokerage firms. FP suggests you steer clear and seek advice from a FEE-ONLY planner. Visit www.napfa.com.
|
Red Light
|
|
Deephaven Capital
|
The company was fined $5.75 million for using inside information about upcoming stock offerings to short sell the shares in order to cash in on the expected fall in the price of the stocks.
|
5/4/2006
|
We don't even have to explain ourselves for why we're kicking this company to the curb. Throw the bums out!
|
Red Light
|
|
Dodge and Cox
|
Due to Mutual Fund Scandals, Dodge's funds have seen a large increase in investments. Potential for problem.
|
8/5/2004
|
Great long term performance track record and low operating expenses. FundPolice is worried that with the huge influx of new $$ that they may not be able to maintain their historical performance advantage.
|
Red Light
|
|
Dreyfus
|
Preferred by A.G. Edwards, Dreyfus was paying kickbacks to brokers to sell their funds.
|
4/14/2005
|
Bite the hand that feeds you if the food is bad!
|
Red Light
|
|
Dreyfus
|
New Reforms designed to protect investors, enforced by the SEC are still allowing for former bad behaviors to continue.
|
10/27/2004
|
See ya! Read the 12 Deadly Sins on the FP website that talks about how boards are anything but independent.
|
Red Light
|
|
Dreyfus
|
The SEC has requested documents that cover the details of how funds are chosen for 401(K) and other retirement plans to see if there are conflicts of interest. This investigation began as a result of the rampant abuses among mutual funds.
|
7/7/2004
|
FundPolice predicts that the up until this point "hidden and guarded conflicts of interest arrangements" in 401k plans will become the next big investigations from the likes of the NASD, SEC and Elliot Spitzer.
|
Red Light
|
|
Eastern
|
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.
|
Yellow Light
|
|
Edward D. Jones
|
The company was fined $300,000 by the NASD for failing to disclose municipal bond yields on confirmations to customers.
|
9/29/2005
|
HUGE conflicts of interest exist at many large brokerage firms. FP suggests you steer clear and seek advice from a FEE-ONLY planner. Visit www.napfa.com.
|
Red Light
|
|
Edward D. Jones
|
Shares were improperly sold to investors by Jones’ brokers. Brokers sold B shares to clients to increase their commissions when their clients would have been better off buying A shares.
|
4/4/2005
|
We'll error on the side of the investor until this case is settled. It looks like they need to re-vamp their training programs so they work!
|
Red Light
|
|
Edward D. Jones
|
Revenue sharing causes investors to lose so that brokers can make a profit for the company and themselves.
|
1/14/2005
|
Being on a brokerage firms "preferred list" typically means the broker is getting something "extra" to favor one product over another. Beware of commission based stock brokers.
|
Red Light
|
|
Edward D. Jones
|
Edward D. Jones paid $75 million to settle charges for not disclosing to investors payments it recieved for sales of favored funds. The company collected $82.4 million from the revenue sharing arrangements.
|
1/14/2005
|
HUGE conflicts of interest exist at many large brokerage firms. FP suggests you steer clear and seek advice from a FEE-ONLY planner. Visit www.napfa.com.
|
Red Light
|
|
Edward D. Jones
|
Seven fund families, including American Funds, Federated Investors and Putnam Investments (all involved in the mutual fund scandals) are on the firm's preferred list.
|
1/14/2005
|
Being on a brokerage firms "preferred list" typically means the broker is getting something "extra" to favor one product over another. Beware of commission based stock brokers.
|
Red Light
|
|
Edward D. Jones
|
Jones' top executive is leaving the company after it settled with the SEC for $75 million over preferred fund sales. He will pay $3 million and the other partners, $41 million of the settlement.
|
12/28/2004
|
So much for that "small town feel" that ED Jones wants investors to have about them. Run from this firm now!!
|
Red Light
|
|
Edward D. Jones
|
The company steered investors towards funds it recieved compensation from. Millions were given to Edward Jones in exchange for their preferred business. Investors lost millions for purchasing under performing funds.
|
12/21/2004
|
So much for that "small town feel" that ED Jones wants investors to have about them. Run from this firm now!!
|
Red Light
|
|
Edward D. Jones
|
Edward Jones collected $300 million in secret payments from mutual funds for their brokers to favor sales of those funds. California regulators filed a secuities fraud lawsuit against the company for not disclosing shelf space payments.
|
12/21/2004
|
HUGE conflicts of interest exist at many large brokerage firms. FP suggests you steer clear and seek advice from a FEE-ONLY planner. Visit www.napfa.com.
|
Red Light
|
|
Edward D. Jones
|
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
|
They hadn't disclosed shelf space payments either, which paid them $300 million. Compliance should not be a four letter word to a company. Red light!
|
Red Light
|
|
Edward D. Jones
|
Edward D. Jones has been fined three times this fall for failing to supervise its registered representatives properly. One branch manager supervises 106 offices.
|
11/29/2004
|
Lack of supervision leads to brokers bending the rules. FP believes you are better off with a fee-only advisor. ED Jones is still a classic brokerage firm doing business the old fashioned way. Move on from here.
|
Red Light
|
|
Emvest
|
Emvest, Inc. made claims that new money coming into the fund would be used to make and purchase loans secured by real property. Instead, the company used the money to pay returns to existing investors and commissions to a company affiliated with the fund. The fund has about 270 investors and has raised $18 million since 2002.
|
11/18/2004
|
Stay away from with a ten foot pole.
|
Red Light
|
|
Evergreen
|
The company is being scrutinized by the NASD for improperly trading stocks and providing non-cash compensation in the form of invitations to attend off-site training meetings to broker associated with Wachovia.
|
10/21/2005
|
Bite the hand that feeds you if the food is bad!
|
Red Light
|
|
Evergreen
|
Preferred by A.G. Edwards, Evergreen was paying kickbacks to brokers to sell their funds.
|
4/14/2005
|
Bite the hand that feeds you if the food is bad!
|
Red Light
|
|
Evergreen
|
Rapid trading occurred in funds.
|
8/16/2004
|
Like Martha Stewart and Rush Limbaugh, why can't people simply admit it when they have been caught red handed.
|
Red Light
|
|
Evergreen
|
Investors sue Evergreen for using fund money to pay broker commissions for pushing specific funds in the marketplace.
|
8/16/2004
|
Like Martha Stewart and Rush Limbaugh, why can't people simply admit it when they have been caught red handed.
|
Red Light
|
|
Evergreen
|
Announced the SEC will charge the company with rapid-trading. An Evergreen employee allowed for a broker's client to market-time a fund. An employee was also found to be rapid-trading in the funds.
|
8/6/2004
|
Here we go again! Just admit your guilt, pay your fine and move on.
|
Red Light
|
|
Evergreen
|
SEC will charge the company with rapid-trading.
|
8/4/2004
|
Here we go again! Just admit your guilt, pay your fine and move on.
|
Red Light
|
|
Excelsior
|
They allowed four institutions to market time in eight of their funds.
|
2/1/2005
|
Echoing Morninstar's sentiments, do not proceed with this company.
|
Red Light
|
|
Excelsior
|
Eight funds were market-timed by outside institutions.
|
6/1/2004
|
This is the thorn in Schwab's side. FP's advice is to steer clear of this fund.
|
Red Light
|
|
Excelsior
|
Management allowed for market timing in its funds. The company is not releasing info on which funds were affected by market timing
|
2/3/2004
|
This is the thorn in Schwab's side. FP's advice is to steer clear of this fund.
|
Red Light
|
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