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A fund manager allegedly faked his own death after he stole money to pay for plane tickets and karaoke (Reuters)
Moazzam Ifzal “Mark” Malik, a hedge fund manager who allegedly faked his own death in order to conceal his fraud, was convicted on Friday for stealing over $800,000 from investors, reports Jonathan Stempel.
The SEC alleged that Malik created “an employee named ‘Courtney’ who emailed an investor seeking to redeem his money to say there would be a delay because Malik had died of a heart attack.”
New York Attorney General Eric Schneiderman said that Malik “never had more than $90,000 in his brokerage accounts, and spent much of what he raised on hotels, plane tickets, meals, a karaoke bar, and other personal items.”
Last Thursday, Raymond James announced that it would be acquiring the US private wealth business of Deutsche Bank. “But it did a lot more than that, according the firm and industry experts: It gives the firm an additional channel to offer to recruits, one focused on high-net-worth investors who want to work with a boutique,” reports Janet Levaux.
“If Raymond James is successful in retaining the bulk of the 200 Deutsche Bank advisors, they can really position themselves to compete for advisors who want to work at small high-end boutiques,” Mark Elzweig, an executive search consultant, told Think Advisor.
“That’s probably the biggest defeat for Morgan Stanley all year” (InvestmentNews)
Finra arbitrators cut a $2.9 million claim by Morgan Stanley against a broker for allegedly failing to fulfil two promissory notes by $1.2 million, making the final award $1.7 million. This is highly unusual, as brokerages have typically won disputes involving promissory notes, reports Mark Schoeff Jr.
“That’s probably the biggest defeat for Morgan Stanley all year,” said Jeff Riffer, a partner at Elkins Kalt Weintraub Reuben Gartside, who represented the broker.
It’s better to look at art as a collector rather than an investor (Financial Planning)
After the $170.4 million sale of a Modigliani painting at Christie’s in November, art is all of a sudden front and center on clients’ minds. However, they should look at art as collectors, rather than as investors.
“It is risky, and there is a great possibility to get scammed as well. I tell clients, buy what you like for your enjoyment, but few people have the knowledge, resources or ability to know whether an interesting piece of contemporary art will skyrocket,” Deena Katz, chairwoman of Evensky & Katz/Foldes Financial Wealth Management of Coral Gables, Fla. told Financial Planning.
European stocks are looking pretty good right now (Charles Schwab)
“We think that the outlook for European stocks seems favourable, due to a combination of positive growth, low inflation and the ECB’s continued monetary stimulus in 2016. Fiscal spending is likely to get a boost from spending on migrants and defence, while low oil prices, weak currencies and credit growth should also bolster economic expansion,” writes Michelle Gibley.
“We see stocks benefiting as global growth accelerates in 2016, potentially increasing corporate revenues and earnings. Valuations could improve as deflation risks ebb. Now is not the time to give up on Europe: It has displayed evidence it can overcome its challenges,” she added.
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