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“Jeffrey Knutsen, the owner of Bellwether Wealth Management, was barred in 2005 from working with clients because he had embezzled from a client’s account. But that didn’t stop him,” writes Lisa Cowan.
Knutsen continued to set up accounts for his clients (allowing him full access to their funds), and issued over 200 checks worth $US255,000 without the 26 elderly clients’ knowledge.
He was convicted and sentenced to 51 months in prison. Federal judge James Robart called the actions a crime of “pure unadulterated greed.”
Investors Are Worried About The Near-Term Market (Charles Schwab)
Investors are worried. The Yale one-year confidence chart shows that individual investors have a very low confidence level about the near-term future of the stock market, writes Liz Ann Sonders.
Generally, during the late stages of a bull market, investors are optimistic and even euphoric.
But “what’s remarkable about this bull market is that sentiment has not been more ebullient,” writes Sonders. “There is really none of the euphoria that one might expect given the near-245% appreciation in the S&P 500 on a total return basis since March 2009 bottom.”
A UBS Team With $US500 Million In Assets Is Heading To HighTower (Financial Planning)
HighTower Advisors has signed a team managing $US500 million in client assets, which will be led by J. Emmett Towey and J. Michael Cantore III. This is the third time the duo is collaborating, following stints at Citigroup Smith Barney and UBS, reports Maddy Perskins.
“When we assessed the future of our team and the optimal environment to grow our business — and compete by delivering superior investment solutions to our clients — there was really only one choice,” Cantore said in the statement. “HighTower’s genuine dedication to clients and its unique open source platform proved a perfect fit for our next chapter.”
Sallie Krawcheck: The Bear Market Is Closer (Think Advisor)
The former head of Bank of America Corp’s wealth management division, Sallie Krawcheck, spoke with Bloomberg’s Betty Liu and stated that the bear market is closer.
“And we’re closer to a bear market than we were last year. We don’t know when it will be there. Every year we think we are closer, and, well, by definition we’re closer, but whether one happens or not,” she told Liu.
SEC approved a Finra proposal that requires brokerages to strengthen the background reviews they conduct on new hires, reports Mark Schoeff Jr.
Now, firms will have to adopt written procedures to verify the accuracy and completeness of a broker’s registration information.
The new rule will be implemented July 1.
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