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Firm run by former 'Real Housewives' family has been fined for alleged naked short selling

Aug 15, 2015, 00:10 IST

Carlton Gebbia and Lisa Vanderpump at the launch of PUMP Lounge in West Hollywood on Tuesday, May 13, 2014 in West Hollywood, CA.Alexandra Wyman/Invision for PUMP Lounge/AP Images

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Former Real Housewives' family firm has been slapped with an $800,000 fine over naked short selling (Wealth Management)

FINRA levied an $800,000 fine against California-based StockCross Financial Services for engaging in naked short selling. The firm is run by the family of former "Real Housewives of Beverly Hills" star Carlton Gebbia.

"FINRA claims StockCross [...] violated regulations requiring them deliver shares of a security they had sold short, and had inadequate supervisory systems going back at least three years," reports Wealth Management's Megan Leonhardt.

Gebbia, an interior designer and Wiccan, appeared in the fourth season of "The Real Housewives of Beverly Hills" along with her family, according to the report.

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The fall in commodity prices shouldn't be ignored (Charles Schwab)

Many commodity prices have fallen this year by a significant amount - not just oil. Charles Schwab analysts argue that there will not be a turnaround in the near feature due to the fact that there aren't many signs pointing to an acceleration of global growth.

Consequently, "in short-the fall in commodity prices shouldn't be ignored and investors should consider using this opportunity to make adjustments to their portfolio. We don't believe you need to overallocate to already beaten-down groups, as they're unlikely to see a sharp rebound. It's important to stay calm and diversified and take a big-picture view of investing," argues Charles Schwab's Brad Sorensen.

Edward Jones will pay $20 million to settle allegations that the firm overcharged its retail customers (InvestmentNews)

"Edward D. Jones & Co., the broker-dealer subsidiary of the Jones Financial Companies, will pay $20 million to settle allegations from the SEC that the firm overcharged its retail customers on new municipal bond sales," reports InvestmentNews' Mason Braswell.

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Edward Jones allegedly overcharged clients by at least $4.6 million by offering bonds at a higher prices than required by securities laws from 2009 to 2012.

"Their conduct was inconsistent with industry standards for, and written agreements governing, municipal underwriting," the SEC said.

Ex-Hoover financial broker was sentenced for 7 years for running a Ponzi scheme (AL.com)

"Former Hoover financial broker Bryan W. Anderson was sentenced Thursday to seven years and three months in federal prison for his guilty plea to running a Ponzi scheme that bilked a dozen investors out of more than $3 million," reports Kent Faulk.

"Bryan Anderson turned our lives upside down" and "shredded" all of her and her husband's savings, one woman told the judge.

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If Turkey mishandles its role, the potential for instability and war in the region could increase (Advisor Perspectives)

"Turkey is going to be a key nation in the Middle East for the next few decades. If it mishandles this role, the potential for instability and war in the region will increase," writes Bill O'Grady of Confluence Investment Management. Furthermore, "Turkey has ties to Europe as well, and if conditions in Europe deteriorate, Turkey could find itself drawn into conflicts involving Russia, Greece or other Eastern European nations."

"Having sober and talented leaders will be important to Turkey's ability to manage these challenges. At present, the Erdogan government is looking increasingly like it will not be that talent the world needs," concludes O'Grady.

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