About Doug Cornelius

Author Archive | Doug Cornelius

Compliance Bricks and Mortar for April 17

These are some of the compliance-related stories that recently caught my attention Lions and Tigers and Bears – Certifications, Checklists and Standards by Michael Volkov in Corruption, Crime & Compliance People always look for shortcuts as a weak replacement for efficiency. My concern is that compliance practitioners, vendors, standard setting organizations, and non-profit organizations are […]

Read full story · Comments { 0 }

$250 Could Cost a Firm $6.1 Million

A T. Rowe Price vice president made a $250 contribution to the campaign of Scott Walker for governor of Wisconsin in a recall election. That small donation could have cost T. Rowe Price $6.1 million in fees. The SEC’s Rule 206(4)-5 once again shows it scary side to advisers. Fortunately, the Securities and Exchange Commission […]

Read full story · Comments { 1 }

Pyramid Scheme or Ponzi Scheme

The Securities and Exchange Commission brought charges against James Evans for engaging in a “Ponzi scheme.” The names of his scheme caught my eye: Cash Flow Bot and Dollar Monster. After digging around, I was puzzled as to what to call the scheme. A Ponzi scheme purports to be a real investment opportunity, but payouts […]

Read full story · Comments { 0 }

Invest With Managers Who Eat Their Own Cooking

“It pays to invest with managers who invest in their funds. ” – Russel Kinnel of Morningstar I think this statement will come as no surprise to most investors. Mr. Kinnel did some research on mutual funds to prove the point. It turns out that manager investment is correlated to better performance. Mr. Kinnel was […]

Read full story · Comments { 0 }

So It’s a Security, But Maybe the Private Placement Was Okay?

The tale of Western Financial Planning Corporation and Louis Schooler first caught my eye because the Securities and Exchange Commission brought charges against a real estate company. I stuck with the story because Western Financial tried really hard to structure the investments to avoid being considered securities. Even thought it tried really hard, a court […]

Read full story · Comments { 0 }

Compliance Bricks and Mortar for April 10

These are some of the compliance-related stories that recently caught my attention. An Eerie Silence by David Kirk in McGuireWood’s The Fraud Board There’s an eerie silence in the world of fraud prosecutions in the UK. A Libor trial is about to start, a FCA land banking prosecution is on trial at Southwark, but with […]

Read full story · Comments { 0 }

Sure Fire Way To Spot a Fraud: Look for the SEC Seal

The Securities and Exchange Commission does not “approve” or “endorse” any particular securities, issuers, products, loans, services, professional credentials, firms or individuals. The SEC does not allow private entities to use its government seal. Yes, the staff of the SEC regularly meets with public companies, regulated entities, and others. Some of these investments and entities […]

Read full story · Comments { 0 }

Personal Foul Called on Athlete Lending Firm

A professional athlete’s cash flow can be choppy. As an ex-NFL player, Will Allen knew about the cash flow problems. He also realized that fans could be lured into being lenders to professional athletes. It looks like Allen miscalculated the amount of investor interest against athletes looking for loans. The Securities and Exchange Commission charged […]

Read full story · Comments { 0 }

The Producers Success and Oil Wells

In The Producers, Max Bialystock and Leo Bloom realize they can make more money with a flop than a hit. No one audits a flop and the fraudsters are free to flee with their investors’ money. According to the Securities and Exchange Commission, GC Resources, LLC and Brian J. Polito was trying to run a […]

Read full story · Comments { 0 }

Norman Leventhal

Norman Leventhal, the founder of my firm, passed away this weekend. Norman had a tremendous influence on Boston. His legacy will be with us for generations. He developed or re-develeped some of Greater Boston’s best-known landmarks: Rowes Wharf, Center Plaza, the Hotel Meridien, 75 State Street, and South Station. He formed the Norman B. Leventhal […]

Read full story · Comments { 0 }