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Robert Cornish’s Answers

2,213 total


  • Can we get our money back from a bad investment, potentially a scam, made about 3 years ago?

    We made an investment with an acquaintance about 3 years ago. After getting the run around and excuse after excuse, I am starting to think the whole thing was a scam. We invested a large amount of money. Is there anything we can do to get our mone...

    Robert’s Answer

    Speak to counsel immediately. You may also wish to pursue reporting what happened to the SEC and the Maryland securities regulators. They likely won't get your money back unless they take a very intense interest in your transaction. However, the SEC offers a "bounty" to those who report violations in certain instances.

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  • Given my "Details," may I pursue such an endeavor without securing any licenses or registering with the SEC or Texas?

    I am an experienced investor (non-professional), that wishes to publish a monthly newsletter on the markets, economics, etc. I wish to eventually charge a fee for the newsletter, and to make space available on the newsletter for advertising. I wi...

    Robert’s Answer

    There are plenty of "newsletter" publishers who have ended up in the cross-hairs of the SEC and other regulators. This is due mostly to "pay to play" types of arrangements, particularly from the penny stock and OTCBB world. I agree with the other commentators on consulting counsel on the RIA aspects, but you will have to be frank and upfront about what you are really doing for someone to advise you properly.

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  • Can I issue equity to investors, convert that equity to debt at a stepped up rate, and then refinance the newly resulting debt?

    I am purchasing a profitable operating business. I wish to include a few friends & family in the investment to reduce my financial exposure. However, I've made clear to them that I wish to own 100% of the business in the long run. Can I do the...

    Robert’s Answer

    There is likely a more simple solution to this issue than the duct-tape corporate finance model presented here. There's nothing to prevent you from forming a corporate structure (LLC, business trust, etc) that your "funders" own to provide the profit sharing but preserve your ownership and voting rights. You need to discuss with counsel before you go down a long and not necessarily productive road.

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  • Want to resign without my license being in jeopardy was instructed that it could be if leave before a decision is made

    work for a large bank in New York brokers asst. Was instructed to fill out forms by superiors have been on suspension for 10 weeks being paid. I have since found a new job and want to resign.

    Robert’s Answer

    You're going to have to lawyer-up and have counsel negotiate your departure. The threat of a license "black mark" is arguably a form of malicious prosecution, and the mark itself could be defamatory assuming that none of what is being thrown around is true. If there are issues, you need to discuss them with counsel so that appropriate U5 language can be negotiated so satisfy your needs and their reporting requirements. Be aware that firms are concerned about other firms suing them for not disclosing things if a hire does what they did at the last shop or worse.

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  • I heard the EB-5 program expires 9/30/16. Does that mean the direct investment is going away too or only for regional centers?

    I heard the EB-5 program is expiring 9/30/16. Does that mean the direct investment is going away too or only for regional centers? thanks

    Robert’s Answer

    While the program is up for renewal, there has been much discussion about changes to its provisions. Namely, the $500,000 investment may be increased to $800,000 or more. If you want to be sure that the $500,000 minimum is still available to you, consider investment before the 9/30/16 deadline.

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  • How do I deal with an AZCC investigation for possible violations of the Securities Act or Investment Management Act of Arizona?

    How do I deal with an AZCC investigation?

    Robert’s Answer

    Assuming you're the person charged, you will need an attorney to review the charges against you, likely prepare for an on-the-record interview and then negotiate with the state, unless of course you have the resources and stamina to fight. Whatever you do, you need to hire counsel to help you preserve privilege and prevent this matter from being escalated.

    If you are being interviewed by the state as a witness, having counsel with you and preparing you for an on-the-record interview is advisable, as you do not want to be intertwined in the matter further.

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  • How do I report a fraudulent investment loss (not Ponzi-type scheme) on 2015 tax return?

    I invested on a CD account with a brokerage company online in 2015, but later found out it was a fraud in Feb. 2016. Federal law enforcement's investigation concluded that the crime was committed by individual(s) living overseas and the money was...

    Robert’s Answer

    You should speak with an accountant as to how this could be deducted as a theft loss or a bad debt. In either case, you're likely going to need to get a judgment against the bad guys (even if it's a default) from a court action.

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  • Investing with financial advisor

    Hi, I know a financial advisor, who offers his clients to invest (say $x) and in return he gives ($x+y) within a timeperiod (6-12 months). He doesn't provide any legal documents and provides the terms of the agreement on a piece of paper with h...

    Robert’s Answer

    If you have the paperwork for this investment, you should likely bring it to the attention of the broker's firm immediately to ascertain whether this product has been approved by his firm for sale. As the other commentators have stated, this appears to be a classic "selling away" scheme that will only line the pockets of the broker.

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  • If I quit my job as an advisor, will my employment history stay publicly posted on Finra's site or could I have it removed?

    I am about to get fired as a financial adviser and my employment history is unstable and don't want it posted. I heard finra will remove it if I request and am no longer in the financial advice industry.

    Robert’s Answer

    I think your question is the same as the one posted from the person from Los Angeles. Work history is not something you can expunge.

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  • If you surrender your 6&63 license,will finra remove your information (especially employment) from their website?

    I don't want my unstable work information online for past employers to view.

    Robert’s Answer

    If you mean work history, no shot at having that taken down. You may be able to have certain matters expunged from your record, but you will have to discuss that with an attorney one-on-one given how fact specific the process may be.

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