Gavin Fleming is proud to announce that he has been asked to join the Oakland County Bar Foundation.  This professional honor is by invitation only, and it is limited to not more than 5% of the total active membership of the State Bar of Michigan who practice in Oakland County.

Beals Hubbard, PLC advises and represents brokers who have been terminated or discharged by their employers.  The Broker's Corner is a weekly post on issues arising from stockbroker employment and separation.

This flagship post revolves around the thorny issue of Promissory Notes.  Generally, brokers sign a Promissory Note at the outset of employment and or in connection to a "retention bonus."  While employers call these payments bonuses, they are actually forgivable loans that must be repaid under certain circumstances.  While the loan is forgiven over time-each day you work, more of the debt is wiped out-it is standard practice in the industry to tie termination or resignation to the recipient's obligation to repay.  Thus, in the event of termination or resignation, the unforgiven portion of the Note becomes immediately due and owing.

In the event of involuntary termination, the broker/dealer may add insult to injury by filing a claim before the Financial Industry Regulatory Authority ("FINRA") for the entire balance due and owing as of the date of termination, plus interest, and attorney fees incurred in order to collect the amount due.  These actions are so common that FINRA now has a special Promissory Note procedure, appointing one arbitrator only-the norm is three-in cases where the balance on the Promissory Note does not exceed $100,000.00.  Unfortunately, these actions are also selective, targeting employees who may have left on difficult or unfavorable terms.

If you receive a letter from your former employer demanding re-payment of a portion of a retention bonus, do not panic.  There are numerous defenses to these actions.  First, there are the affirmative claims you may have such that you can sue your former employer in FINRA.  For example, if you were wrongly terminated or discharged or your employer interfered with the relationship you have with your clients, you likely have a cause of action.  Second, there are specific defenses to contractual agreements involving retention bonuses, especially if you received money as a trainee.  Finally, even if there are no claims and no solid contractual defenses, there is always the defense that the employer received the benefit of its bargain by retaining a portion of your book of business.  Thus, if you had $50,000,000.00 worth of assets under management and you only retained $15,000,000.00, you can assert that your employer got what it paid for.

Make no mistake, Promissory Note cases are difficult.  However, with experienced counsel standing shoulder to shoulder with you, you can drastically reduce your liability, prosecute any claims you may have, and ensure that your assets and livelihood are protected.

http://michigansecutirieslawyer.blogspot.com/

Florida, like most states, has been deluged with residential real estate foreclosures.  When the bank's documents are found to be fraudulent, the home owner may be entitled to more than a mere dismissal of the foreclosure action. The Florida Supreme Court is taking up this precise issue regarding a Palm County foreclosure.  Please contact Mark Snitchler for more information.

http://www.palmbeachpost.com/money/foreclosures/florida-supreme-court-will-rule-on-palm-beach-2021463.html

The Next Bubble?
After the wholesale failure of the housing market and near destruction of the United States economy, Wall Street has predictably doubled its efforts to ensure that the Obama Administration does not unduly shackle its attempts to continue to make money first while placing customers interests second.  Make no mistake, Wall Street is seeking to blow bubbles again.  Thus, investors must be keenly aware of the risks associated with certain investments.  Unfortunately, there is no substitute for expert advice prior to purchasing securities.

Based on our work, we believe the following investments are especially volatile:

- structured products: despite the major fall out from the sale of the Lehman Structured Products, UBS and other large institutions continue to sell these products to customers; and

- real estate investment trusts--the market for commercial real estate is in decline and REITS which are complicated securities that are built on a foundation of debt, are complicated and risky;

If your broker recommends these products to you make sure you ask the following questions: 1) what am I really buying? 2) what is the risk that I will not be able to access my money when I need it? 3) why is this product suitable for me.  If you own structured products or REITS, take some time to understand what you own.  The best way to get objective, unbiased answers is to  contact an experienced securities lawyer before it is too late.

Beals Hubbard, PLC is a business law firm in Farmington Hills, Michigan, which has significant experience in assisting investors in recouping lost investments.  If you have questions and want objective answers, call 248-932-1101 to make an appointment

http://michigansecutirieslawyer.blogspot.com/

Attorney Brandon J. Booth recently authored an article discussing several easy steps that contractors can take to mitigate project risk.

Beals Hubbard, PLC recently added a new Family Law Practice Group.  Headed by experienced business and securities law litigator, Gavin Fleming, the group will represent the firm's clients and referrals in divorce, child custody, and other matrimonial disputes with a special focus on assisting business owners or their spouses in resolution of complex asset cases.  We also assist our clients in crafting both pre-nuptual and anti-nuptual agreements.

Can I Get a Mentor?

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