FINRA Investor News
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Investor Alert
Mutual Fund Breakpoints: Are You Owed a Refund? You may be eligible for a refund of a portion of the front-end sales charge that you paid when you purchased Class A shares of a mutual fund from your securities firm. An industry-wide survey indicated that investors did not receive discounts in approximately one out of every five transactions that were eligible for discounts. Are you one of these investors? Ask yourself:
Discounts on front-end sales loads are offered for larger mutual fund investments and usually start at $50,000, but sometimes can be as low as $25,000. If you did not receive a discount to which you were entitled, NASD requires your securities firm to refund the money. Read our Investor Alert to learn whether you are eligible for a refund and what steps you should take to get a refund.
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Tools You Can Use
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News Dispatch
NASD Charges Long Island Firm, its President, and Two Former Managers as a Result of Fraudulent "Boiler Room" Sales Practices NASD has announced that it has filed a complaint charging Yankee Financial Group, Inc. of Melville, N.Y., its President and a former branch manager with engaging in high-pressure, boiler-room type sales practices that defrauded investors of $8 million. NASD also permanently barred 11 other individuals, who worked for Yankee Financial and two other firms, for related fraudulent conduct.
NASD charged that, in the fall of 2001, Richard F. Kresge, Yankee Financial's President and majority owner, opened offices in Brooklyn and Staten Island. Brokers in these offices used high-pressure sales tactics, including misrepresentations, baseless price predictions, and omissions of material facts, to persuade investors to purchase shares of three highly speculative Over-the-Counter Bulletin Board (OTCBB) securities: Silver Star Foods, Inc.; Western Media Group Corp.; and Golden Chief Resources, Inc. In many instances, Yankee Financial brokers targeted sales of these stocks to the elderly and others for whom they were patently unsuitable. Investors can obtain more information and the disciplinary record of any NASD-registered broker or brokerage firm by calling (800) 289-9999.
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