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Jan 6, 2012 · He used to be known as the charming, affable “Uncle Stan” of Brookstreet Securities Inc., the independent broker-dealer he built. Now, he's facing charges of securities fraud.
- Death by CMO
- What's A CMO?
- Who Will Get Spanked?
- The “Genius” Behind Brookstreet's CMO Biz
Brookstreet's sudden change of fortune started on June 14 when an unknown number of institutional and individual customer accounts got hit with margin calls from Brookstreet's clearing firm, National Financial Services, a unit of Fidelity Investments. The calls were related to investments in collateralized mortgage obligations, many of them in high...
A CMO is a security made up of pools of home mortgages backed by U.S. government-sponsored agencies like Freddie Mac and Ginnie Mae. Each pool generates two streams of income: one from the aggregate of the interest payments, the other from the aggregate of the principal payments made on the mortgages. These income streams are divided into “tranches...
Whether the brokers who sold retail clients risky CMOs violated suitability requirements or misrepresented the investments, or whether inappropriate amounts of leverage were used will come out as regulators and plaintiffs' lawyers begin to present their cases. Sam Edwards, a Houston attorney with Shephard Smith & Edwards, says his firm is represent...
The man who builtBrookstreet's CMO business, managed the portfolios and basked in the glory of being Brookstreet's top producer was Cliff Popper, a Boca Raton-based broker with a rather active U4. It shows 13 firms in the 15 years prior to joining Brookstreet in 2004. According to an old boss of Popper's who spoke on the condition of anonymity, the...
Mar 19, 2012 · The SEC litigated the case beginning in December 2009, when the agency charged Stanley C. Brooks and Brookstreet with fraud for systematically selling risky mortgage-backed securities to customers with conservative investment goals.
Mar 5, 2012 · A federal judge in Los Angeles has ordered Stanley C. Brooks, the former CEO of Brookstreet Securities Corp., to pay the maximum civil penalty of $10 million in a securities fraud case that goes back to the financial crisis, the Securities and Exchange Commission (SEC) announced on March 2.
Mar 6, 2012 · In December of 2009, the U.S. Securities and Exchange Commission filed a civil injunctive action against Brookstreet Securities Corp. and Stanley C. Brooks, charging them with fraud for systematically selling risky mortgage-backed securities to customers with conservative investment goals.
May 29, 2009 · The Securities and Exchange Commission said in the lawsuit filed Tuesday that Brookstreet Securities Corp. and ex-CEO Stanley C. Brooks cost many investors their homes or retirement savings.
Mar 16, 2012 · In December of 2009, the U.S. Securities and Exchange Commission filed a civil injunctive action against Brookstreet Securities Corp. and Stanley C. Brooks, charging them with fraud for systematically selling risky mortgage-backed securities to customers with conservative investment goals.
