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The BEST LAWYER ANYONE COULD ASK FOR!!! Todd changed our lives! He’s not JUST a lawyer representing us for a case. Todd and his office have become Family. When we entered his office in August of 2022, we entered with such anxiety, uncertainty, and so much stress. Honestly we were very lost. My husband and I felt alone. How could a lawyer who didn’t know us, know our family, know our background represents us, When this could change our lives for the next 5-7years that my husband was facing in Federal jail. By the time our free consultation was over with Todd, we left his office at ease. All our questions were answered and we had a sense of relief.

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NYC Churning Lawyers

Churning is a serious crime. In many instances, churning refers to a broker-dealer representative’s overtrading the client’s account. Although many errors can occur in financial trading, including trade execution, unfilled or improperly filled orders, or commission mistakes, the client’s portfolio turnover ratio and overtrading of the account can ultimately result in serious capital losses and/or higher taxes on short-term trading gains.
Unnecessary and excessive portfolio activity is both unethical and illegal. The financial services firm may tell the client about the trades or execute them on an unsolicited basis. Typically, churning the client’s portfolio is performed to generate higher commissions for the broker. Continue reading this post to learn more about churning crimes.

How Series 7 Licensed and Registered Representatives Are Paid

Some broker representatives are paid on a percentage of commissions. Most don’t receive a salary. It’s always important to ask the broker rep about how Series 7 licensed and registered representatives at the employer are paid:
• In some instances, it may be challenging to identify commissions paid. Some financial products are traded net of commissions.
• Clients should specifically ask the broker rep, “If I decide to enter into the recommended transaction, what’s the markup on the stock [bond, mutual fund, exchange traded fund, etc.]?”
• Always ask the rep about the commission or fee associated with the transaction. Be wary of “trading opportunities” offered by phone. The broker firm may have acquired a large amount of the security being offered and encourage sales reps to market the idea to customers at higher than normal commission rates.
Initial public offerings (IPOs) are always offered by a prospectus. If the registered rep presents a new stock and says “the deal is commission-free,” it’s always important to read the prospectus. The broker rep will get paid by the Syndicate after the client pays for shares. After the shares or other financial product trades in the open market, the rep is paid a commission to sell.

Financial Representatives and Churning

Financial firms must monitor sales personnel. If the registered rep isn’t a Certified Financial Planner (CFP) but his or her card says “Financial Advisor,” it’s important to understand that the rep is dually responsible to protect his or her client’s capital and get paid for providing sound financial advice:
• Clients in search of a new broker-dealer firm should provide clear, concise instructions about their financial goals.
• If the client is risk-averse, it’s important to tell the intake representative this fact. Before signing new account agreement forms, review the financial goals associated with the account.
• A client with conservative financial goals isn’t a candidate for “trading opportunities” and shouldn’t be encouraged to make risky transactions.
If the client has a large portfolio and needs to transacts high volume trades on a regular basis, it’s a good idea to ask the broker-dealer for a discount. Lower commissions on trades may deter a broker or sales trader’s incentive to churn the account.
Other financial and professional services providers can be guilty of churning, too.

Insurance Agents, Twisting and Churning

Insurance agents are frequently paid on transactions and earn compensation based on fees and commissions. When an insurance agent urges his or her client to swap one policy for another—and the client doesn’t book a higher rate of return or book significantly lower premiums and other benefits—the agent may be “twisting” or churning the client’s assets.
Although the policyholder may obtain a bigger death benefit by swapping insurance policies, the act of churning frequently uses some of the policy cash value in the original policy. Losing some or all of the policy’s cash value causes financial harm to the client. In contrast, the agent is paid a commission by the insurer to write “new” business.
Other ethically inappropriate practices, such as offering the client a portion of the agent’s commission to switch policies, may occur with the agent’s pitch. Such an offer is an obvious warning sign. Don’t transact business with this agent.
Clients should proceed with caution with an insurance agent encourages switching out of an existing cash value policy. In some cases, it’s best to consider the purchase of a new policy that adds to the total amount of insurance instead of replacing the existing policy with a substantially identical one.

George FernandezGeorge Fernandez
14:16 30 Apr 24
Excellent 10 out of 10, Helped resolve my case. Jeremy explained everything and made everything easy to understand.
21:33 24 Apr 24
If you are looking for a lawyer that listens, is aggressive where needed, and holds his word above all else, Todd is the best pick. I had hired multiple attorneys prior to hiring the Spodek Group for a white collar case. The first thing that stood out to me was the cost, as anyone going through the process and dealing with the system, money was tight at that time - especially after hiring and firing multiple lawyers. The cost was not as high as others which was definitely a plus. Todd's intake process was also unlike other attorneys. He took the time to actually listen. He cared. He was trying to put himself in my shoes while I was explaining the situation to him and he really took the time to understand the whole situation. Other lawyers will give you 15 mins and send you a retainer agreement. Not Todd, I think he spent almost two hours with me as I was explaining everything.Not only was he great during the onboarding process, he was supportive and very informative through the entire plea process and eventually sentencing. After hiring him, I asked if I should hire a prison consultant, he told me to save my money as he would do everything they would. He was right and held up to his word. Later on I would hear from others that went with the prison consultants that they were a waste of money - I am glad I listened to Todd!When it came time for sentencing, two days prior to sentencing, the prosecutor tried increasing my proposed prison time by almost double - apparently a normal move. Todd and his team worked with me non-stop through the weekend prior to sentencing to ensure that I was not given additional prison time. Again, he took the time to listen and came up with a strategy to explain the case with great detail.Unfortunately, I did plead guilty as that was my best option. Todd and his whole team wrote up nearly 300 pages of a summary of what happened and why I should not be given prison time. If I breakdown the amount I spent with Todd versus the amount of work that I saw being done, I am shocked I was not charged four times as much. The other benefit was, a lot of criminal defense lawyers were just a single attorney with a paralegal or two. Todd had a team of people that I dealt with (5-7 people that I interacted with), but he was ALWAYS accessible. It would never take him more than an hour to reply unless he was in court.I was sentenced to prison and I was emotionally distraught. Todd and his team did whatever they could even after sentencing to make sure I was alright. He personally stayed in touch with my family to ensure I was doing alright and offered support to them. Most lawyers would consider the job complete at sentencing, not Todd.After prison, Todd still spent time with me to make sure I was on the right track and avoiding any potential risks in the future. He has also been giving advice on how to navigate probation etc and has not been looking at the clock for billing.Although I wish I had never been arrested in the first place, I am glad I had Todd and his team in my corner. Without them I likely would have had to spend a lot more time in prison than I did.Thank you, Todd, and the entire Spodek Law team, for helping turn what was a nightmare into a manageable situation!
Yelva Saint-PreuxYelva Saint-Preux
19:26 19 Apr 24
I am immensely grateful to the entire team at Spodek Law Group for their unwavering dedication and exceptional expertise throughout my case. From our initial consultation to the final resolution, their professionalism and tireless advocacy made all the difference. Their strategic approach and attention to detail instilled confidence in me every step of the way.Thanks to their hard work and commitment, we achieved a truly favorable outcome that exceeded my expectations. Not only did they navigate the complexities of my case with precision, but they also provided invaluable support and guidance during what was undoubtedly a challenging time. I cannot recommend Spodek Law Group highly enough, especially attorneys Todd Spodek and Claire Banks; they are beacons of excellence in the legal profession.YSP.
Katherine SunKatherine Sun
18:08 18 Apr 24
my lawyer is Alex Zhik. Efficient, patient and professional
Nun yaNun ya
17:48 18 Apr 24
Todd, Ralph and Alex are amazing. Helped my husband get from a double digit number with multiple charges to a single digit, by the time I blink he will be out. They very professional and help with all your needs. They dealt with my anxiety and worry very well and they understand that your family member needs to get home as soon as possible.
Keisha ParrisKeisha Parris
20:45 15 Mar 24
Believe every single review here about Alex Z!! From our initial consultation, it was evident that Alex possessed a profound understanding of criminal law and a fierce dedication to his clients rights. Throughout the entirety of my case, Alex exhibited unparalleled professionalism and unwavering commitment. What sets Alex apart is not only his legal expertise but also his genuine compassion for his clients. He took the time to thoroughly explain my case, alleviating any concerns I had along the way. His exact words were “I’m not worried about it”. His unwavering support and guidance were invaluable throughout the entire process. I am immensely grateful for Alex's exceptional legal representation and wholeheartedly recommend his services to anyone in need of a skilled criminal defense attorney. Alex Z is not just a lawyer; he is a beacon of hope for those navigating the complexities of the legal system. If you find yourself in need of a dedicated and competent legal advocate, look no further than Alex Z.
Taïko BeautyTaïko Beauty
16:26 15 Mar 24
I don’t know where to start, I can write a novel about this firm, but one thing I will say is that having my best interest was their main priority since the beginning of my case which was back in Winter 2019. Miss Claire Banks, one of the best Attorneys in the firm represented me very well and was very professional, respectful, and truthful. Not once did she leave me in the dark, in fact she presented all options and routes that could possibly be considered for my case and she reinsured me that no matter what I decided to do, her and the team will have my back and that’s exactly what happened. Not only will I be liberated from this case, also, I will enjoy my freedom and continue to be a mother to my first born son and will have no restrictions with accomplishing my goals in life. Now that’s what I call victory!! I thank the Lord, My mother, Claire, and the Spodek team for standing by me and fighting with me. Words can’t describe how grateful I am to have the opportunity to work with this team. I’m very satisfied, very pleased with their performance, their hard work, and their diligence.Thank you team!
K MarK Mar
01:37 25 Jan 24
I recently had Spodek Law Group represent me for a legal matter in NYC and I am thoroughly impressed with their services.Alex Zhik secured the best possible outcome for my case.It was a seamless journey from the initial consultation to the resolution of my legal matter. From the moment I spoke to Todd about my case, his enthusiasm to help was evident, setting a positive tone for the entire experience. The efficiency and professionalism displayed by the team is commendable.A particularly noteworthy aspect of their service is their user-friendly portal to upload your documents/evidence. This not only simplified the process, but showcases their commitment to streamline the client experience.Lastly, in an industry where legal fees can often be a concern, I found their pricing to be very reasonable, making needing legal assistance feel accessible and stress-free.I am grateful for their support and wouldn't hesitate to turn to them again in the future.

Lawyers and Churning

Professional service firms such as law firms and public accounting firms often have revenue goals:
• Over-billing at law firms is another form of churning clients’ accounts.
• If the client has a retained relationship with the law firm, it’s important to read monthly statements with extra care to make sure that the hours billed match with services rendered.
• Some of the world’s most preeminent firms have been legally charged with over-billing their clients. However, it’s important to realize that law firms large and small can and do over-bill their clients.
• Public accounting firms at work on a large project can and do augment staff from external sources to accomplish the job. Clients must monitor costs and ask questions to ensure accurate billing for services.

Churning Consequences

Any client with a financial account, legal representation, or accounting project can suffer from churning. It’s important to ask the provider questions about transaction costs. It’s also important to understand the offer proposed by the representative when a security or insurance product is proposed:
• Ask for a written recap of the representative’s verbal proposal. For instance, if the rep says the client pays nothing to acquire a financial asset, ask how he or she is paid to offer it.
• Check out the securities sales representative at Finra’s BrokerCheck site. If the representative has previously lodged customer complaints against him or her, consider taking your business elsewhere.
• Contact the sales representative’s manager to discuss or file a customer complaint if churning has already occurred at an insurance agency or law firm.
• Contact the state commission of insurance and banking to register a customer complaint against an insurance agent.
Registering a complaint against the offending sales representative, attorney, or CPA is an effective first step. A customer complaint may mean job loss, and a damaged record at Finra or the state insurance board can make it difficult to get a new job. The employer firm and the agent may be responsible for return of capital, fines, fees, and lost interest.

Contact an Experienced Attorney

Hiring an experienced lawyer may be necessary to recover funds lost from churning. Contact us at 1-888-533-5270 for a risk-free consultation now.

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