Saturday, 11 August 2018

Securities Fraud Lawyer

As a Utah Securities lawyer, I’ve seen how investors work with a financial adviser or stockbroker because they feel their finances are in good hands. But many advisers abuse their position as fiduciaries to increase their own profits at their clients’ expense.

Securities Fraud Lawyer

With your investments and savings on the line, you should choose a securities arbitration attorney with the requisite experience and securities industry knowledge needed to combat the brokerage firm’s “hired gun” lawyers.

Lawyers for Security Fraud Cases

Securities regulations revolve around the “fiduciary duty” that advisers and brokerage firms owe their clients. This duty arises out of financial professionals’ superior financial knowledge compared to the average investor, and the resulting potential for abuse. A fiduciary duty requires advisers to act in their client’s best interests.

Investors may not know it, but in most cases they sign away their right to a trial by jury when they open an account for a securities firm’s brokerage services. Instead, securities firms will typically require their customers to agree to arbitrate any issues before the Financial Industry Regulatory Authority (FINRA).

FINRA is a self-regulatory organization responsible for promoting securities market integrity and resolving disputes between public investors, member firms, and firm employees. At the end of an arbitration proceeding, an arbitration panel issues a binding decision, which may include a monetary award to the investor as compensation for any investment losses resulting from broker misconduct. Arbitration awards are difficult to appeal, providing aggrieved investors comfort from the long, protracted process often present in typical court proceedings. The Utah Department of Consumer Protection as well as the Utah Securities Division of the State are agencies we work with as well as securities law firms

FINRA arbitration usually takes a little over one year from the time the claim is filed until a decision is reached. Importantly, FINRA requires a claim to be filed within 6 years from the time the alleged misconduct occurred, and oftentimes even sooner.

Common Types of Investment Fraud

Some investment schemes are outright scams.

I’m telling you this because I’ve seen all sorts of scams because I’m a securities lawyer in Salt Lake City Utah. If you did this enough, you’d see it too. I wish I was kidding. I’m not. Other investments are legitimate but present risks that may not be appropriate for all investors, or are not explained fully to the investor at the time of purchase. Under no circumstances may an adviser sell investments that are not offered by the brokerage firm they work for. Adviser conflicts-of-interest should also be disclosed.

Utah Attorneys at Ascent Law help investors recoup financial losses from fraudulent investment schemes involving many types of products, including:

  • Structured Products
  • Variable Annuities
  • Oil and Gas Limited Partnerships
  • Hedge Funds
  • Precious Metals Fraud
  • Private Placements
  • Junk Bonds
  • Ponzi Schemes

FAILURE TO SUPERVISE

The Financial Industry Regulatory Authority (FINRA) requires that securities firms adequately supervise their brokers to prevent securities law violations.

Investors who lose money as a result of broker misconduct may be able to file a claim for investment losses against the brokerage firm for failure to supervise.

BROKERAGE FIRM SUPERVISORY REQUIREMENTS

FINRA has three rules addressing brokerage firm supervision. These rules generally require firms to perform:

  • Pre-hire broker screening
  • Broker training
  • Broker-investor transaction oversight

At the time a broker is hired, the brokerage firm should look into the agent’s background for any red flags, such as prior misconduct or disciplinary history.

In 2017, FINRA announced that it would emphasize firms’ hiring and monitoring of high-risk and recidivist brokers. Firms may be required to employ extra vigilance when supervising brokers with a spotty track record—and could be held to a higher supervisory standard if a high-risk/recidivist broker engages in misconduct. Research shows that almost half of advisers who are fired for misconduct are reemployed in finance within a year.

Firms must also ensure that new hires are licensed to sell securities and are current on training, including sales and product training and education in administrative procedures and federal securities compliance regulations. Training should include continuing education in FINRA rules compliance.

In addition, broker-client communications and transactions should be monitored. Firms, for example, should identify and investigate suspicious activity such as:

  • Unsuitable investments
  • Overconcentration
  • Selling away
  • Not providing accurate information to an investor
  • Failure to report securities transactions

FIRMS MUST ADEQUATELY ENFORCE SUPERVISORY POLICIES

It is not enough for firms to simply put in place procedures that can detect broker improprieties. Firms also must have an adequate system for implementing and enforcing their supervisory policies.

FINRA allows some discretion when it comes to supervisory policies and controls, but firms are required to have:

  • Written supervisory procedures
  • Internal inspections
  • Reviews of internal firm communications, customer complaints, and securities transactions
  • Annual compliance reports

Free Consultation with a Utah Securities Attorney

If you are here, you probably have a securities law issue you need help with, call Ascent Law for your free consultation (801) 676-5506. We want to help you.

Michael R. Anderson, JD

Ascent Law LLC
8833 S. Redwood Road, Suite C
West Jordan, Utah
84088 United States
Telephone: (801) 676-5506
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Friday, 10 August 2018

Factors of an Invalid Prenup

As a Prenup Lawyer in Salt Lake City, we’ve discussed how important a prenup is and although U.S. divorce rates have been in decline in the new millennium, many people still find it advisable or beneficial to create prenuptial agreements that protect their interests and assets in case a divorce happens. It’s true that prenups can be useful agreements to protect people from the harmful fallout of a divorce. However, certain elements of a prenup could lead to the agreement being invalidated by the courts.

The following are a few of the factors that could lead to an invalidated prenup:

Factors of an Invalid Prenup

Fraud will Invalidate a Prenup

All legal contracts have an implied “good faith” requirement, and both sides must honestly represent their positions when entering the agreement. With a prenup, this means a full, honest disclosure of all assets owned upon entering the marriage.

Negotiation of a prenup includes determining what happens to all current and future assets and earnings. A failure to accurately disclose current assets or the values of these assets could be considered fraud. This could lead to a judge invalidating the entire agreement.

Coercion will Invalidate a Prenup

A court will invalidate any prenuptial agreement entered because there was undue pressure on one or more of the parties who signed it. Coercion can be difficult to prove, especially if it comes down to one person’s word against another. But when proven, it invalidates the contract because it was not a reflection of the intent of at least one of the parties.

Unconscionable actions will Invalidate a Prenup

In some cases, courts will invalidate prenups based on gross inequality or the contract lacking basic fairness. This is the most difficult argument to make when seeking the invalidation of a prenup. The agreement being more favorable to one of the parties is not enough reason for it to be invalidated. That inequality must be so large that the court considers it “unconscionable.”

Questions the court will consider include whether each spouse had his or her own attorney to examine the agreement, if all disclosures were made in good faith and if there were any clauses that could not withstand a legal challenge.

Advantages and Disadvantages of Prenuptial Agreements

If you are considering adding a prenuptial agreement to your marriage, it is important to first consider the benefits and disadvantages that such an agreement could have for you. The following are some of the key advantages that come with a prenup:

  • They allow you to protect your property that you had before the marriage
  • They add support to your existing estate plan
  • They clearly define what property will be considered marital property
  • They reduce the possibility of conflict and will save you money should you divorce
  • They establish ground rules and set procedures for deciding all future property-related matters

Although people tend to believe that prenuptial agreements can lead to conflict in a relationship, having communications and expectations in place before the marriage could actually strengthen your relationship, as you are being open and upfront about some important issues right at the outset of your marriage.

However, there are certainly some downsides to these arrangements. Consider the following potential disadvantages:

  • They are not particularly romantic and may add a feeling that your marriage is tarnished
  • The time to agree about certain elements of a prenup may not be right, particularly in the early stages of your relationship and marriage
  • You may actually have certain protections through state law that you would also have through a prenup, making the prenup somewhat redundant and unnecessary

Free Initial Consultation with a Prenup Lawyer

If you need a prenup, have one and are considering divorce, call Ascent Law for your free consultation (801) 676-5506. We want to help you.

Michael R. Anderson, JD

Ascent Law LLC
8833 S. Redwood Road, Suite C
West Jordan, Utah
84088 United States
Telephone: (801) 676-5506
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Power of Attorney for Living Wills and Healthcare

Power of Attorney for Living Wills and Healthcare

This article is part of our Estate Planning Series. You know, end-of-life issues can be extremely complex, and many people avoid making decisions about how such issues will be handled because it can be an uncomfortable and difficult subject to address. However, it is crucial that you do spend time thinking about how you want your final days to play out, both for your own personal comfort and for the well-being of your loved ones. At the very least, strongly consider making a living will and determining who you want to grant a durable power of attorney for healthcare decisions.

The Living Will

A living will is a document that sets forth what to do, and what not to do, if you are incapacitated and unable to make those decisions. This could be because you are in a coma, suffered a debilitating injury, or because you have become seriously mentally incapacitated. Here are some of the most basic considerations to account for in your living will:

  • Life-Prolonging Medical Care: Your living will should state whether you want to receive life-prolonging treatments at the end of your life. Typical treatments include blood transfusions, respirators, dialysis, drug treatment and surgery.
  • Do Not Resuscitate (DNR) Directives: In conjunction with directives about whether you want to receive life-prolonging medical care, most living wills will state whether or not you want to be resuscitated (CPR) at the end of your life. It is advisable to let your doctor and local hospital know about your DNR decisions and, if you do not want paramedics to try to resuscitate you, to wear a Medic Alert bracelet, anklet or necklace with those instructions.
  • Life-Prolonging Food and Water: Often, if someone is comatose or seriously injured, they will only be able to survive through the external administration of food and water. When such treatment is stopped, the patient will die naturally of dehydration and medical professionals will typically apply medication to make such a passing comfortable. You should specify whether you want to receive food and water, under what conditions and timelines you would like to receive such treatment and when to stop it.
  • Pain Management: Even if you decide you want to let death occur naturally, without intervening care, it does not mean you have to die with pain. Now commonly called comfort care or palliative care, the goal of such care is to emphasize qualify of life and dignity by keeping the patient comfortable and free of pain until they pass. Specify in your living will if you want doctors to emphasize pain management at the end of your life.

Power of Attorney for Healthcare

It can be extremely helpful to give someone a durable power of attorney for healthcare decisions. This is a part of probate law that many people understand the essential need for. You can give this person as much or as little power as you like, but if you aren’t specific, most states will give them comprehensive power over your end-of-life medical decisions. For example, someone with a durable power of attorney for healthcare decisions will typically have:

  • The power to offer or deny consent for medical treatments so long as it doesn’t disagree with anything in your living will.
  • The power to decide what medical facilities you should go to.
  • The power to decide which doctors and medical personnel you should see.
  • The power to go to court over whether to receive or withhold medical treatment.
  • The power to decide how your body will be handled after death, often including organ donation. If you have specific feelings on these matters, write them into your living will. Living wills always trump the decisions of your power of attorney designee concerning your healthcare.
  • Access to your medical records.
  • Visitation rights.

You can give a person complete authority to make all decisions, or limit them significantly to make only specific decisions. Be careful when greatly limiting such power, however, because the primary reason to have such a person is because your living will cannot cover every possibility. If you want specificity, it is better to do that in your living will, which the person with a durable power of attorney cannot override.

Free Consultation with an Estate Planning Lawyer

If you are here, you probably have an estate issue you need help with, call Ascent Law for your free estate law consultation (801) 676-5506. We want to help you.

Michael R. Anderson, JD

Ascent Law LLC
8833 S. Redwood Road, Suite C
West Jordan, Utah
84088 United States
Telephone: (801) 676-5506
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Thursday, 9 August 2018

401k in Divorce

Retirement plans like 401(k)s are plans companies offer to their employees. This means that a 401(k) is not an asset you and your spouse jointly own — it is instead a benefit offered to one person by his or her employer.

401k in Divorce

A common question in divorce cases is whether you can split the payouts of a retirement account if you do not work for the same employer as your spouse. The answer is yes, but only if you meet the requirements of the federal laws pertaining 401(k)s, known as ERISA (the Employee Retirement Income Security Act of 1974) and the Internal Revenue Code.

Federal law does not allow an employee’s 401(k) to be assigned to another person, even a spouse. This law ensures the benefits will go to the employee upon his or her retirement.

There is, however, an exception for an “alternate payee.” If the proper procedures are followed in compliance with ERISA, the local divorce court may order distributions to the spouse.

How this process works

After the divorce court determines the 401(k) will be split, the court must approve a special order, called a Qualified Domestic Relations Order (QDRO). This is the tool used to transfer assets from the person who owns the 401(k) to his or her former spouse. This is the only means by which an individual can receive nontaxable payouts through his or her former partner’s 401(k).

In most cases, the portion of that 401(k) that goes to the spouse will be transferred to the spouse’s own individual retirement account (IRA) to avoid taxation. A QDRO may also be used to assign part of a 401(k) to a child or a dependent to satisfy child support obligations.

Tips for Summer Visitation for Divorced Parents

During the summer months, your children likely do not have nearly as much routine in their schedules as they do between the months of September and May. As such, you might find it necessary to adjust your custody and visitation schedules so that you can accommodate your children’s needs and your own work schedule.

Below are a few tips for summer visitation for divorced parents:

  • Prepare yourself for longer visitations: If you are the custodial parent, prepare yourself for your child to have longer visitation times with the other parent. This is a normal arrangement for divorced parents — your child might go on a vacation with your former partner, for example. Make sure you know where your child will be and how to contact him or her. Get an itinerary for the vacation and be sure the other parent knows your child’s capabilities for activities such as hiking, swimming and biking.
  • Keep in touch: When your child does go away for longer visitations during the summer, stay in touch. If he or she has a cell phone, you can call a few times per week to check in and make sure everything is going well. Unless you feel your child is in danger, don’t try to stay constantly connected to your child. Doing so could cause unnecessary conflict with your child and/or the other parent.
  • Prepare your child: Depending on your child’s age and how long you have been divorced, he or she might not have spent more than a couple days away from you before. For these longer summer visitations, be sure your child understands he or she will be with their other parent, and that you two will be together again soon. Do not say anything about the separation being difficult for you — focus instead on preparing your child to have fun.

Free Consultation with a Utah Divorce Attorney

If you have a question about divorce law or if you need to start or defend against a divorce case in Utah call Ascent Law at (801) 676-5506. We will help you.

Michael R. Anderson, JD

Ascent Law LLC
8833 S. Redwood Road, Suite C
West Jordan, Utah
84088 United States
Telephone: (801) 676-5506
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Primary Caretaker in Divorce

Primary Caretaker in Divorce

Mothers and fathers who are splitting up may both seek and be awarded physical custody of their child. In an ideal scenario, a mother and father would come to an agreement together, without battling the matter out in court. However, when a family court judge does have to step in and decide which parent to award primary physical custody to, preference is usually given to the one who is the child’s “primary caretaker.”

The “Primary Caretaker” Standard

In custody cases, most states’ family courts allow a preference for the parent who can demonstrate that he or she was a child’s primary caretaker during the course of marriage, or assumed that role in general if the parents are unmarried. The “primary caretaker” factor became important as psychologists began to stress the importance of the bond between a child and his or her primary caretaker. This emotional bond is said to be important to the child’s successful passage through his or her developmental stages, and psychologists strongly encourage the continuation of the “primary caretaker”-child relationship, as being vital to the child’s psychological stability.

How Is the “Primary Caretaker” Decision Made?

When determining which parent has been the primary caretaker of a child for purposes of a custody decision, family courts focus on how parents have divided the key responsibilities for taking care of their child, including such tasks as:

  • Bathing, grooming, and dressing;
  • Meal planning and preparation;
  • Purchasing clothes and laundry responsibilities;
  • Health care arrangements;
  • Fostering participation in extracurricular activities;
  • Teaching of reading, writing, and math skills; helping with homework;
  • Conferencing with teachers; attending open houses; and
  • Planning and participating with leisure activities with the child.

Depending on the state where the custody determination is being made, other factors may be considered as important when determining primary caretaker status. Even such things as exposure to second-hand smoke and volunteerism in the child’s school have been considered in a primary caretaker analysis.

Child Custody and the Best Interests of the Child Standard

If the question “who is the primary caretaker” is not easily answered, as when both parents have equally shared parenting responsibilities, courts will generally look to the “child’s best interest” standard used for determining custody. Some of the factors a court will consider when making a decision in the child’s best interest are:

  • The child’s wishes (if he or she is old enough);
  • The parents’ physical and mental health;
  • The parents’ and child’s religious preference;
  • Need for continuation of stable home environment;
  • Support and opportunity for interaction with members of extended family of either parent;
  • Interaction and interrelationship with other members of household;
  • Adjustment to school and community;
  • Age and sex of child;
  • Parental use of excessive discipline or emotional abuse; and
  • Evidence of parental drug, alcohol, or sex abuse.

If you are the Primary Caretaker Call a Child Custody Attorney

Even in an agreeable separation, one area where there is often a dispute is physical custody. As you can see, where courts are needed to resolve these disputes, they will look to many factors to determine the primary caretaker. An experienced family law attorney understands these factors and can help you make the strongest case possible for custody of your children.

Free Consultation with Divorce Lawyer in Utah

If you have a question about divorce law or if you need to start or defend against a divorce case in Utah call Ascent Law at (801) 676-5506. We will fight for you.

Michael R. Anderson, JD

Ascent Law LLC
8833 S. Redwood Road, Suite C
West Jordan, Utah
84088 United States
Telephone: (801) 676-5506
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Wednesday, 8 August 2018

Why Couples Choose Prenuptial Agreements

Why Couples Choose Prenuptial Agreements

For many, prenuptial agreements may seem like only something that celebrities choose to enter into to protect their wealth. However, prenuptial agreements offer concrete benefits to many couples, regardless of their financial status. The following are several reasons why couples opt to take this route:

  • Gives you control: With a prenuptial agreement in place, you can rest easy knowing exactly how your assets will be divided should you and your spouse divorce. Without this type of contract, property will be subject to negotiations between you and your spouse’s attorney, or be divided by a court according to state law.
  • Avoids arguments: While no one wants to think about divorce when they are about to get married, having a prenuptial agreement gives each spouse realistic expectations about what will be provided in case the relationship dissolves. This can reduce arguments in divorce proceedings because both parties have already agreed to the breakdown of asset ownership.
  • Passes down property: If you have children from a previous marriage, a prenuptial agreement can be used to bestow assets to those children in the case of your death. Should you die without this agreement in place, the majority of property could be divided according to Utah State law and will most likely be passed down to your spouse.
  • Protects against debts: If one spouse is entering into the marriage with considerable debt, a prenuptial agreement can protect the other partner from being liable for those debts should the marriage end. This can be especially beneficial to spouses of business owners who have taken financial risks for the sake of a company.

Property Division Processes in Utah Divorces

In the state of Utah (as in most other states), all marital property is subject to equitable distribution during divorce proceedings. Marital property is defined as any type of property acquired during the marriage, not including any property acquired by gift or inheritance during that time period.

Common examples of marital property include real estate, bank accounts, pensions, businesses interests and professional licenses, as well as more tangible property like cars, boats and other possessions jointly owned by the couple.

The first step of any property division process in Utah is to classify all property owned by the couple as marital or non-marital property. Once all marital property is itemized and then evaluated for worth, the court will begin the process of making an equitable distribution of that property. During that process, the court will consider factors such as:

  • The income of both parties during the marriage and at the time of the separation and divorce filing, as well as the likely future financial situation for each party following the divorce and the tax consequences for each party
  • The duration of the marriage, as well as the age and health of both spouses
  • The need of either custodial parent to occupy or own their marital residents and other items in the household
  • Whether marital property in question is liquid or non-liquid
  • Loss of inheritance or pension rights
  • Any transfers of property that may have occurred below market value in one party’s anticipation of a divorce, as well as any wasteful dissipation of any of the marital assets by either spouse

Free Initial Consultation with a Prenuptial Lawyer in Utah

It’s not a matter of if, it’s a matter of when. Legal problems come to everyone. Whether it’s your son who gets in a car wreck, your uncle who loses his job and needs to file for bankruptcy, your sister’s brother who’s getting divorced, or a grandparent that passes away without a will -all of us have legal issues and questions that arise. So when you have a law question, call Ascent Law for your free consultation (801) 676-5506. We want to help you.

Michael R. Anderson, JD

Ascent Law LLC
8833 S. Redwood Road, Suite C
West Jordan, Utah
84088 United States
Telephone: (801) 676-5506
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How to Negotiate a Contract

Individuals and companies negotiate and enter into contracts fairly frequently in the course of business. Some business agreements may be simple enough for the typical person to draft, and may just be a verbal agreement and a handshake, while others may require the help of a skilled contract attorney. Whatever you decide to do, make sure you have a business lawyer review and/or draft the contract before you sign it.

In either case, the ideal end result is confidence that you have negotiated the best terms for your business and created a well-drafted agreement that will avoid any dispute or potential litigation. Below, you’ll find tips on negotiating and writing a sound business contract.

How to Negotiate a Contract

Strategies for Negotiating a Contract

Certain fundamental strategies will assist you in the day-to-day negotiation that all businesspersons perform, in contracts and other business transactions. Remember, those with whom your business is negotiating also will be working hard to leverage the deal in their favor.

The following are a few suggestions to get you started on the road to effective negotiation tactics:

  • You should always have clear objectives. It helps to make a list of goals before meeting the other party.
  • Build a relationship of trust with the other party.  Trust will aid communication.
  • Establish Rapport with them – talk to them about what they are interested in – for example, if you see a picture of them fishing, talk to them about fishing before you get the nitty gritty of the contract.
  • It is important to go to a negotiation having done your research. Know relevant law, facts, and figures.
  • Consider what you really need to get from the other party, and also decide in what areas you are willing to compromise.
  • Be sure that you get small yeses from them in the beginning – the more they say yes to you the better it is – for example – it’s a nice day, isn’t it?  Yes, it is…
  • You may want to have a first draft of an agreement written before meeting with the other party.
  • Try to keep the discussion ordered when meeting with the other party.  Make a checklist of topics that should be reached during the negotiation.
  • Listen to the other party and their concerns.

Business Torts and Business Law

Intentional acts in which one party unlawfully causes another party some degree of economic loss are referred to as “business torts” (or “economic torts” in the broader sense). These types of torts do not arise from financial losses related to personal injury, emotional distress, or damaged property. Instead, business torts involve an intangible financial loss from some other cause of action, such as a conspiracy to fix prices, interfere with a contract, or otherwise restrain trade. The types of intangible losses that result from business torts include a loss of customers, inability to operate in the market, or damage to your organization’s reputation.

Restraint of trade is not a tort in and of itself, but rather a legal doctrine (based on common law) that relates to a relatively broad and fluid range of torts. For example, tortious interference is a type of business tort in which one party interferes with a contract or business relationship. The party directly impacted by the interference may seek damages limited to the specific transaction by filing a tortious interference claim. However, the plaintiff may also file a restraint of trade claim if they are able to prove that the interference hindered their ability to conduct business in a broader sense. If the interference of a contract damaged the company’s reputation, for instance, then it may give rise to a restraint of trade claim.

Some acts that give rise to a restraint of trade claim may seem entirely legal. For instance, two competing business owners discussing their pricing plans over a round of golf are exercising their freedom of speech. They may not come out and say it, but the subtext of the conversation may be construed as a conspiracy to fix prices if that is ultimately the result of this conversation. Thus, a third competitor who is driven out of business by the resulting price-fixing may file a restraint of trade claim.

What to do Before You Negotiate a Contract

Since contracts are legally binding and don’t always go according to plan, it makes sense to negotiate shrewdly, understand all of the terms in a contract, and make sure you’re prepared should the agreement go south. Consider speaking with a business and commercial law attorney before negotiating or signing a contract.

Free Consultation with a Utah Business Lawyer

If you are here, you probably have a business law issue you need help with, call Ascent Law for your free business law consultation (801) 676-5506. We want to help you.

Michael R. Anderson, JD

Ascent Law LLC
8833 S. Redwood Road, Suite C
West Jordan, Utah
84088 United States
Telephone: (801) 676-5506
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