|
| Company |
Problem
|
Date |
Fund Police Opinion
|
Rating |
|
|
Fremont
|
Made market-timing arrangements and allowed for late trading to occur.
|
2/1/2005
|
We echo Morningstar's sentiments by warning you not to invest with this company.
|
Red Light
|
|
Fremont
|
Charged by the SEC for improper trading. Fremont allowed favored investors to rapid trade some of its funds. Late trading charges were also settled.
|
11/5/2004
|
This ones seems to be finsihed for now. FP suggests you seek other fund choices outside of Freemont.
|
Red Light
|
|
Fremont
|
Company admitted to market-timing arrangements. Market-timing deals also could have lead to late-trading but the company says it didn't knowingly allow for any.
|
7/26/2004
|
Here we go again with not wanting to disclose what you are hiding.
|
Red Light
|
|
|
Fremont
|
Company announced that the SEC will charge them with late-trading. One employee will also be charged with aiding and abetting the late-trading deal.
|
7/9/2004
|
Ouch! "aiding and abetting" is not good.
|
Red Light
|
|
Fremont
|
Company is being investigated by the SEC after the company has found market-timing arrangements with select clients in 2002.
|
1/13/2004
|
Too long of a delay to decide to "fully cooperate"
|
Red Light
|
|
Fremont
|
Rapid trading and market-timing.
|
11/30/2003
|
We don't like two things: 1) "manager left for unrelated reasons" B.S and 2) Freemont fails to inform investors about the issue.
|
Red Light
|
|
FSC Securities Corp.
|
Involved in connection with receiving directed brokerage in exchange for preferential treatment from a number of mutual fund companies.
|
6/8/2005
|
HUGE conflicts of interest exist at many large brokerage firms. FP suggests you steer clear and seek advice from a FEE-ONLY planner. Visit www.napfa.com.
|
Red Light
|
|
Gabelli Asset Management
|
SEC has subpoenaed Gabelli for allowing a client to market time in one of its mutual funds. Gabelli disclosed the information to the New York Attorney General in October 2003.
|
10/11/2004
|
Gabelli, FP loves you. You admitted that you did something wrong. Since you have no other problems, GREEN LIGHT BABY. The other pompous fund company giants could learn some positive ethics from Gabelli.
|
Green Light
|
|
Goldman Sachs
|
Recently required by the SEC to admit if it had made any financial deals with investors without sending them the prospectus related to their stock or bond offering.
|
11/16/2004
|
You simply cannot trust most stock brokerage firms. Work with a fee only advisor.
|
Red Light
|
|
Goldman Sachs
|
Charged with overcharging investors for the purchase of corporate bonds and underpaid them when the bonds were sold. One price discrepancy was 30%. Also charged with a lack of supervisory control or acknowledgement.
|
7/28/2004
|
Investors have a failed belief that trading bonds is cleaner and cheaper that trading mutual funds and/or stocks. Bonds operate in the murky world of bid/ask spreads and lack real time pricing. The SEC is working hard to bring bond trading into the 21st
|
Red Light
|
|
H&R Block
|
The company is being sued for allegedly selling IRAs that earned less money than what the customers paid in fees. The complaint accuses the company of not adequately disclosing their fees in their Express IRAs.
|
3/16/2006
|
Hiding information from your clients does not make the problem disappear. FP wonders what else are they hiding? FP warns you to steer clear of companies who have “baggage” and are unwilling to come clean.
|
Red Light
|
|
H&R Block
|
The company knowingly allowed for market timing in its funds. They hired people who would allow favored investors to market time funds in exchange for higher fees on those accounts.
|
12/22/2004
|
See ya! Use a FEE-ONLY advisor and consider lower cost ETFs.
|
Red Light
|
|
Hartford
|
Preferred by A.G. Edwards, Hartford was paying kickbacks to brokers to sell their funds.
|
4/14/2005
|
Bite the hand that feeds you if the food is bad!
|
Red Light
|
|
Hartford
|
The company is will be charged with improper trading in Variable Annuities funds.
|
1/28/2005
|
The people getting hosed don't have any room for fraud in their retirement savings. Companies that take advantage of these people are ethically challenged.
|
Red Light
|
|
Hartford
|
Hartford made secret payments to Edward Jones brokers to favor their funds when selling to clients.
|
12/23/2004
|
RED, RED, RED. Stay far away from both firms.
|
Red Light
|
|
Hartford
|
Spitzer is investigating the hidden compensation deals between the firms and brokers who sell the insurance.
|
6/1/2004
|
Go Spitzer! Fund Police believes the layers of fat and hidden arrangements are probably the worst with insurance products, such as annuities.
|
Red Light
|
|
Hartford Financial Services
|
Participated in the bid-rigging scandal with Marsh and McLennan that Elliot Spitzer has exposed.
|
10/18/2004
|
While FP is not sure of the depth of involvement, we are sure that insurance companies in general have flawed cutomer ethics procedures. The decison to "suspend" the bad practice is like a thief agreeing to let go of the old ladys purse when the cop car pulls up.
|
Red Light
|
|
Hartford Financial Services
|
The insurance industry is being investigated by Elliot Spitzer. Hartford is one of the companies that is being investigated for participating in bid-rigging with Marsh and McLennan.
|
10/18/2004
|
While FP is not sure of the depth of involvement, we are sure that insurance companies in general have flawed cutomer ethics procedures.
|
Red Light
|
|
HD Vest
|
Involved in connection with receiving directed brokerage in exchange for preferential treatment from a number of mutual fund companies.
|
6/8/2005
|
HUGE conflicts of interest exist at many large brokerage firms. FP suggests you steer clear and seek advice from a FEE-ONLY planner. Visit www.napfa.com.
|
Red Light
|
|
HD Vest
|
Fined by the SEC for not giving investors breakpoint discounts.
|
2/1/2004
|
Beware of commission based investment salespeople disguised as unbiased tax preparers and CPA's. Fund Police frowns upon the entry of tax professionals, especially CPA's into the investment advice business. CPA's have long held the position as "most tru
|
Red Light
|
|
Heartland
|
Heartland has been charged with mispricing and insider trading.
|
2/1/2005
|
We echo Morningstar's sentiments to avoid business with this company.
|
Red Light
|
|
Heartland
|
Muni funds were mispriced and insider trading occurred.
|
6/1/2004
|
Heartland was one of the first firms to catch the attention of the SEC when from a Friday to a Monday the prices of their muni bond funds dropped like a lead balloon. This exposed the "stale" pricing problem in the bond business. In regards to trusting
|
Red Light
|
|
Heartland
|
Charged with mispricing and insider trading in muni funds
|
2/1/2004
|
Heartland was one of the first firms to catch the attention of the SEC when from a Friday to a Monday the prices of their muni bond funds dropped like a lead balloon. This exposed the "stale" pricing problem in the bond business. In regards to trusting
|
Red Light
|
|
Heartland
|
SEC charged Heartland with insider trading.
|
12/12/2003
|
Here we go again! Back with the muni bond scandal Heartland denied the allegations of abusive price fixing also. These guys are the absolute worst. Don’t' leave a single dime there.
|
Red Light
|
|
ING
|
The company paid $1.4 million to the NASD for allowing market timing in a number of retirement funds going back to 2001.
|
6/15/2006
|
HUGE conflicts of interest exist at many large brokerage firms. FP suggests you steer clear and seek advice from a FEE-ONLY planner. Visit www.napfa.com.
|
Yellow Light
|
|
ING
|
The company had arrangements to allow improper trading in some of its funds.
|
2/1/2005
|
We like ING Direct Savings but their mutual funds have not enjoyed the same treatment.
|
Yellow Light
|
|
ING
|
Improper trading practices have prompted Morningstar to issue a warning to investors not to place new money in ING mutual funds.
|
10/29/2004
|
FP suggests you seek advice from a FEE-ONLY planner. Visit www.napfa.com.
|
Yellow Light
|
|
ING
|
ING informed the SEC that it had found improper trading practices at the firm.
|
9/10/2004
|
Look at this. A company informing the SEC first. FP commends their effors to "come clean" but we still assign caution to their funds.
|
Yellow Light
|
|
ING
|
Improper trading at ING was comprised of isolated incidents, rather than a widespread occurance.
|
9/9/2004
|
FP likes the word isolated. Unfortunately, they still allowed for improper trading.
|
Yellow Light
|
|
InterSecurities
|
The company failed to report information about their brokers to customers. The information included customer complaints, regulatory actions, criminal charges and convictions.
|
12/2/2004
|
Hiding information from your clients does not make the problem disappear. FP wonders what else are they hiding? FP warns you to steer clear of companies who have “baggage” and are unwilling to come clean.
|
Red Light
|
|
