AMW LAW PLLC BLOG

NEWS & ANALYSIS

Welcome to AMW Law PLLC’s legal blog, where we break down the complexities of securities laws, rules and regulations for investors and financial professionals alike.

Our posts are organized into four focused categories: Smart Investor Insights offers practical guidance on fraud risks, recovery options, and protecting your investments; Broker Compliance Center provides financial professionals with updates and strategies for staying compliant and defending against regulatory actions; Securities Law Updates highlights key developments from FINRA, the SEC, and the courts that shape the legal landscape; and Our Legal Services gives an inside look at how we help clients pursue and defend securities-related claims.

Whether you're safeguarding your portfolio or your professional standing, our goal is to keep you informed, prepared, and empowered.

FINRA Closed End Fund Case Highlights Regulation Best Interest and Supervisory Risks

FINRA Closed End Fund Case Highlights Regulation Best Interest and Supervisory Risks FINRA's September 2026 enforcement action against Colorado Financial Service Corporation is an important reminder that a familiar investment-company structure can present substantial risks when the underlying assets are speculative, leverage magnifies volatility, and a customer's portfolio becomes concentrated in the product. According to the Letter of Acceptance, Waiver, and Consent, which t

Artur M. Wlazlo

FINRA’s Reid & Rudiger Case Highlights the Risks of Excessive Trading Under Regulation Best Interest

FINRA’s Reid & Rudiger Case Highlights the Risks of Excessive Trading Under Regulation Best Interest FINRA’s June 2026 enforcement action against Reid & Rudiger LLC and several of its principals is a stark reminder that excessive trading remains a major regulatory priority, particularly when high-cost recommendations are made to retail customers under Regulation Best Interest. According to FINRA’s order, Reid & Rudiger operated a retail brokerage business that recommended a

Artur M. Wlazlo

Variable Annuity Risks and FINRA Enforcement: What Investors and Advisors Should Know

Variable Annuity Risks and FINRA Enforcement: What Investors and Advisors Should Know Variable annuities are often sold as a solution to a difficult problem: how to pursue market growth while still preserving some level of protection or future income. In the right circumstances, they can serve a legitimate role in long-term planning. But they are also complex, expensive, and highly sensitive to timing, fees, and contract design. When they are misunderstood, oversold, or poorl

Artur M. Wlazlo

Non-Traditional ETFs: Where Innovation Meets a Higher Compliance Bar & Risks

Non-Traditional ETFs: Where Innovation Meets a Higher Compliance Bar & Risks Exchange-traded funds (ETFs) are often marketed—and understood—as simple: low-cost, diversified, and easy to trade. But a subset of ETFs operates very differently. Leveraged and inverse ETFs, often grouped under the industry label “non-traditional ETFs,” are designed to deliver a multiple of an index’s daily return, the inverse of an index’s daily return, or both—typically over a single trading day

Artur M. Wlazlo

Unit Investment Trusts (UITs): What They Are, How They Work, and What Reg BI Requires When Recommendations Go Sideways

Unit Investment Trusts (UITs): What They Are, How They Work, and What Reg BI Requires When Recommendations Go Sideways Unit investment trusts occupy a strange middle ground in the investment landscape. They’re often marketed as straightforward: a defined portfolio, a defined timeline, and a defined objective—packaged into “units” that investors can buy in one transaction. For the right investor, that structure can be genuinely appealing. But the very features that make UITs e

Artur M. Wlazlo

FINRA’s Spartan Capital Private Placement Case, Part 2: Due Diligence Failures, Conflicts, and Lessons for Investors and Firms

Due Diligence Failures, Conflicts, and Lessons for Investors and Firms This article is Part 2 of a two-part series on FINRA’s enforcement case against Spartan Capital Securities. In Part 1, I explain the Atlas/StraightPath structure, how private placements work, and how Reg BI applies. You can read Part 1 here . In Part 1 of this series, I described FINRA’s complaint against Spartan Capital Securities, LLC, its CEO John Lowry, and its then–interim CCO, Kim Monchik, and walke

Artur M. Wlazlo

FINRA’s Spartan Capital Private Placement Case, Part 1: Private Placements, Reg BI, and the Atlas Funds Structure

Private Placements, Reg BI, and the Atlas Funds Structure This article is Part 1 of a two-part series on FINRA’s enforcement case against Spartan Capital Securities involving private placements and pre-IPO funds. In Part 2, I dig into FINRA’s specific due diligence and supervisory allegations and what they mean for investors and financial professionals. You can read Part 2 here . In November 2025, FINRA’s Department of Enforcement filed a disciplinary complaint against Spar

Artur M. Wlazlo

Reg BI, Options, and Senior Clients: Lessons from FINRA’s Taylor AWC

Reg BI, Options, and Senior Clients: Lessons from FINRA’s Taylor AWC FINRA’s recent Acceptance, Waiver, and Consent (AWC) involving...

Artur M. Wlazlo

Failure to Supervise in Action – Arbitration Case Examples and Evidentiary Proof (Part II)

Failure to Supervise in Action – Arbitration Case Examples and Evidentiary Proof (Part II) In Part I , we explained the supervisory...

Artur M. Wlazlo

Failure to Supervise: Rules, Legal Standards, and Claim Elements (Part I)

Failure to Supervise: Rules, Legal Standards, and Claim Elements (Part I) When a brokerage firm fails to detect or prevent a broker’s...

Artur M. Wlazlo

GWG L Bonds and FINRA Enforcement: A Stark Warning for Investors and Financial Professionals

GWG L Bonds and FINRA Enforcement: A Stark Warning for Investors and Financial Professionals The collapse of GWG Holdings, Inc. and its...

Artur M. Wlazlo

When Annuity Exchanges Go Wrong: FINRA Enforcement Action Highlights Risks of Registered Index-Linked Annuities (RILAs) Recommendations

When Annuity Exchanges Go Wrong: FINRA Enforcement Action Highlights Risks of Registered Index-Linked Annuities (RILAs) Recommendations...

Artur M. Wlazlo

FINRA Sanctions David Lerner Associates and Its Supervisors Over Illiquid Investment Sales: A Cautionary Tale for Investors and Firms Alike

FINRA Sanctions David Lerner Associates and Its Supervisors Over Illiquid Investment Sales: A Cautionary Tale for Investors and Firms...

Artur M. Wlazlo

Understanding High-Yield or “Junk” Bonds: Risks, Regulation, and Legal Remedies

Understanding High-Yield or “Junk” Bonds: Risks, Regulation, and Legal Remedies High-yield bonds, more commonly known as “junk bonds,” are a class of corporate debt securities that offer investors relatively high interest payments in exchange for assuming greater risk. These instruments are typically issued by companies with lower credit ratings or entities that may be highly leveraged, financially distressed, or are otherwise deemed speculative by the major credit rating age

Artur M. Wlazlo

Understanding REIT Investments: What Investors Should Know Before Committing Capital

Understanding REIT Investments: What Investors Should Know Before Committing Capital Real Estate Investment Trusts, or REITs, have become an increasingly popular vehicle for investors seeking exposure to the real estate market without directly purchasing property. Designed to pool investor capital to buy and manage income-generating real estate, REITs promise regular income and potential long-term appreciation. However, beneath this surface appeal lies a complex investment st

Artur M. Wlazlo

Are Variable Annuities Good Investment or Trap: Costs, Risks, and Why Variable Annuities May Not Be Right for You.

Are Variable Annuities Good Investment or Trap: Costs, Risks, and Why Variable Annuities May Not Be Right for You Variable annuities are often marketed as an attractive retirement investment vehicle, combining the potential for market-based growth with tax-deferred benefits. However, these financial products come with complexities and risks that can make them unsuitable for many investors, particularly retirees seeking security and predictability. In this blog, we will outlin

Artur M. Wlazlo

Recognizing Excessive Trading (Churning) in Investment Accounts: Key Legal Standards and Investor Remedies

Recognizing Excessive Trading (Churning) in Investment Accounts: Key Legal Standards and Investor Remedies Excessive trading, often...

Artur M. Wlazlo

Record-Breaking FINRA Arbitration Award: Over $100 Million Awarded to Investors in Structured Notes Arbitration

Record-Breaking FINRA Arbitration Award: Over $100 Million Awarded to Investors in Structured Notes Arbitration In an unprecedented decision, a Financial Industry Regulatory Authority (FINRA) arbitration panel has awarded over $100 million in damages to investors who suffered significant losses after their brokers recommended investments in structured notes. The award included over $26 million in compensatory damages and $79 million in punitive damages. The total award is set

Artur M. Wlazlo

Decoding Volatility-Linked Exchange Traded Products (ETPs): A Deep Dive into Their Hidden Risks and What Investors Need to Know

Volatility-Linked Investments and Their Hidden Risks While no single definition describes what a complex investment product is, it is generally understood that these are financial products and instruments, including leveraged and inverse exchange-traded funds (ETFs) and Notes (ETNs), and other derivative securities (collectively, referred to as exchange-traded products or ETPs), that pose unique and significant risks to investors due to their intricate and difficult-to-unders

Artur M. Wlazlo

Investment & Regulatory Risks in Private Placements: Due Diligence, Investor Fraud and Protections

Private Placement Offerings Private placements are a method of raising capital in which securities are sold directly to a select group of investors, typically institutional or accredited, instead of through a public offering. These transactions are usually exempt from the registration requirements of the Securities Act of 1933, enabling issuers to bypass the extensive disclosures and regulatory challenges associated with public offerings. Private placements are commonly utili

Artur M. Wlazlo