Protecting Yourself from Investment Fraud

         Sophisticated con artists build trust as a weapon. That is why you should always verify the credentials of anyone offering investment advice, or engage a qualified professional who can assist you. Never rely solely on charisma or reputation.

 Professional Background

           I am a licensed California attorney with more than 50 years of experience in litigation and arbitration of business and investment disputes.  I have represented individual investors and more than 20 securities brokerage firms before arbitration panels in several forums and in various state and federal courts in hundreds of disputes. (See, e.g., Statement of Decision in Sulek v. BSA.) I have served as the Associate General Counsel and/or Compliance Director of a New York Stock Exchange Member Firm.  I have acted as an arbitrator in business and investment disputes for more than four decades.

 Investigation of Nonprofit Mismanagement

           At the request of a prospective legacy donor, I investigated a prominent IRS §501(c)(3) charity. My findings included: (1) more than 70% of its assets were tied up in high‑risk, illiquid alternative investments; (2) it paid excessive advisory fees and evidence suggested self‑dealing by Board members; (3) the organization refused to provide its investment policy despite claiming transparency in Form 990 filings. These practices raise serious governance and fiduciary concerns.

 Advocacy for Better Corporate Governance

           I Chair the Committee of Concerned Shareholders, dedicated to improving corporate accountability and investment protection. In local government matters, I have consistently advocated stronger internal controls to detect and prevent fraud, waste, and abuse. I have urged municipalities to establish independent whistleblower hotlines managed outside political influence. Sometimes, it is difficult when a city evidences a sense of  impunity. I served as legal counsel to the Ad Hoc Committee for Culver City Residents First during a bitterly contested political campaign.

 Publications and SEC Reform Efforts

           I have written extensively to improve the securities arbitration process, submitting formal comments to the Securities and Exchange Commission, including, Petition for Rulemaking (SEC File No. 4-502), which addresses systemic flaws in FINRA arbitration and regulatory oversight. 

         My petition and related advocacy received national media coverage, including Registered Representative Magazine, "The Real Arbitration Nightmare"; San Diego Union-Tribune, "Stockbroker losses bring no trials, lots of tribulations"; Pittsburgh Post-Gazette, "Systems for resolving disputes may need an overhaul."  Additionally, I have conducted litigation against the SEC under the Freedom of Information Act, the Federal Advisory Committee Act, and the Administrative Procedure Act, securing disclosures of the SEC’s close ties to the securities industry.

          Also, I have written "General Observations on Investing and Financial Statement Analysis" and "How to Choose the Right Investment Advisor."

 Supporting Future Lawyers

          The first year of law school is demanding. To support students, I created a concise, one‑page guide: "Supplemental Law School Study and Stress‑Management Tips." It offers practical strategies for studying effectively, managing stress, and avoiding common pitfalls.

           As a law student, you might feel pressure to pursue only the most prestigious career paths often glorified by others. Remember: true professional fulfillment comes from aligning your work with your values and strengths. Define success on your own terms, and do not be afraid to take an unconventional path if it leads to rewarding and meaningful work.         

           Starting my law practice meant waiting patiently for clients while juggling a side business in real estate, teaching, and navigating ethical challenges. I learned that maintaining integrity and putting principles before quick opportunities is essential for long-term success and reputation.

           Disclaimer: The information presented is for educational purposes only and is not legal or other professional advice. Sending an email does not create an attorney-client relationship. Do not send confidential information. Past outcomes do not guarantee future outcomes.

 Last Revised:  Sepember 13, 2025