The Beck Law Firm, LLC Blog

Socia Media Used To Investigate Crimes and Violations

A report by InformationWeek Government last week shows that a majority of law enforcement agencies turn to social media sites such as Facebook and Youtube as part of their investigative efforts.  The survey had more than 1,200 law enforcement professionals respond and found that 83% reported using social media in the context of their investigations.  And, according to the report, for those that aren't doing it, nearly 75% reported an intention to start doing so.  

We already know that social media use is highly monitored and scrutinized in certain segments, such as the broker-dealer industry.  There, regulators are very wary, it seems, about social media use and the ability to properly monitor its use and maintain compliance with standards relating to communications with the public.  Further, we've also seen regulatory actions based on tweeting inappropriate information, along other things.  And finally, we know that social media can be a gold mine in certain civil litigation, including family law and divorce matters, among other types of cases.  Given these factors, folks should be aware of the high-level of scrutiny that social media postings and activity could receive, whether from criminal justice agencies in connection with criminal investigations, or by regulators reviewing compliance with civil rules and standards that apply to particular industries.  

For all these reasons, folks should understand, and consider applying, some common sense tips when it comes to social media use:

* First, don't implicate yourself in criminal conduct via social media.  This means don't brag about your latest crime, and don't post videos of it, on facebook, youtube, twitter, or other sites. (Of course an even better step to avoid problem is don't commit crimes in the first place).

*Second, remember the old newspaper front page test.  I think that can still be a good one.  If you wouldn't want your post, tweet, or whatever, appearing on the front page of the paper (yep, some folks still read an actual paper version of the newspaper), think long and hard about whether you want to post it, tweet it ot whatever.

* Finally, understand that in this day and age, things that you think are private, aren't really all that private.  So tread carefully.

 

Broker-Dealer News Flash

FINRA recently released an update from Chairman/CEO Rick Ketchum summarizing recent rulemaking items considered by the FINRA Board at their July 2012 meeting.  A few things here are noteworthy.  Initially what caught my eye is the forthcoming filing with the SEC to expand the MRV plan (minor rule violation) to increase the rules for which a MRV letter is eligible.  The MRV is a disciplinary action that falls somewhere between informal action (such as a cautionary action letter or compliance conference) and a formal action (an AWC or formal complaint).  MRVs impose fines of up to $2500 on a firm or individual for rule violations, but are not considered formal disciplinary actions, and therefore don't have as much disclosure ramifications as formal actions.  In my view, the MRV is a good tool for FINRA to have in its toolbox, but is one that is under-utilized.  According to the update, FINRA will file with the SEC proposed amendments to expand the list of rule violations appropriate for MRV resolution, noting that "The proposed additional rules generally involve non-willful technical violations that do not involve direct customer harm."  I'm curious to see the list once the filing is made.

Another announcement that caught my eye has to do with another proposal to be filed with the SEC, which will seek to amend Rule 8313 to expand the ability of FINRA to release disciplinary information to be more "transparent"  Over the recent several years, there has been a push for more disclosure of disciplinary information on cases and charges made against brokers and firms.  I believe that we can expect to see this type of push continue.

 

 

The College Legal Checklist

As July starts to wind down and look forward to August, parents of recently graduated high schoolers turn their attention to the college checklist.  Sheets and bedding for the dorm room, a small refrigerator, laptop computer, supplies, etc. are a few of the items appearing on the list of things to get ready to go. And these are important, needed things.  But are your college student's legal documents on your list?

At age 18 or older, your college student is an adult.  That means adult responsibilities as well as being treated as an adult in the eyes of the law.  But what does that mean?

College students should make sure that they have set in place some basic legal documents in the event of a tragedy, an extended illness, or incapacitation,etc.  Here are some basic documents that each college student should consider:

* Georgia Advance Directive for Healthcare.  This is essentially Georgia's version of a living will.  Among other things, this document lets the student designate someone to be his or her healthcare agent to make medical decisions for the student if the student is not able to make them for himself or herself.  

* Durable Power of Attorney.  This document appoints someone to be the agent of the student either immediately, or upon the happening of a future incapacitation, so that the agent can act in the place of the student when needed.  This can often be helpful for registration of car tags, payment of taxes, handling of bank accounts, and other items while the student is away at school, but can also be of great importance should the student suffer an extended illness or incapacitation and not be able to manage his or her affairs personally.  

* HIPPA Release.  If a parent needs access to the student's medical records and need to communicate with medical staff treating the student, a HIPPA release form may be necessary so that personal, confidential medical information can be shared.  

* Passwords.  While this is not a legal document, it is a good idea for the student to make sure that he or she has a written list of internet accounts and passwords so that they can be accessed if needed, in a manner agreed upon by the student and parent.  So much of our personal lives and business dealings are online, and knowing how to access online bank and brokerage accounts, insurance contracts, bill pays, facebook, twitter and other social media sites, as well as computer hardware (think laptop password) may be necessary in the event of an emergency.  

This is the basic college student legal checklist that I recommend as a good starting point for all students. The good news is that these documents are simple to complete, and are affordable.  So, it doesn't make sense to skip out and not to the planning.  In some situations, a student may need more legal planning, to include a last will and testament or other document.

If you need more information on legal planning for college students, or wish to schedule an appointment to have your documents prepared, contact The Beck Law Firm, LLC today.

Coming Soon: "You Asked For It"

I hope to do a blog series later this year called, "You Asked For It."  The premise is simple:  Readers of the blog can send me a general, educational question that they'd like addressed on the blog in one of my four practice areas: securities regulation and compliance, small business law, criminal defense, and basic estate planning.  I'll do some posts responding to these general questions and sharing some basic information.

I doubt that I will be able to respond to each one.  But I do hope to be able to respond to several of them.  So, go ahead, and tell me your question.  Let me warn you: I can't give you legal advice to your specific situation through this blog.  But, I can provide information intended for general, educational purposes.  So, don't get bogged down in details, but give me some higher-level type general questions, and I'll do my best to address them here on the blog.  Again, if you need legal advice, consult an attorney, and don't rely on this blog.

You can get your questions to me two ways: 1) post it in a comment to this post (comments are moderated and won't appear unless and until approved), or 2) send me an email to info @ thebeckfirm.com (no spaces), and put "You asked for it" in the subject line.  I'll close down taking questions in a couple of weeks, or earlier.

Thanks, and I hope you continue to read and enjoy the blog.  As always, if I can be of assistance to you, I hope you will call on me.

Joel

The Red Flag Series: Government Investigation/Prosecution Issues

I'm continuing on in the Red Flag blog post series, and today am focusing on red flags in government investigation and prosecution cases (for the introductory post to this series, click here).  In this post, I'll highlight some of the areas that I consider "red flags," meaning that these are areas in which particular attention should be focused by those that are under investigation by law enforcement or another government agency, or who have already been charged with a crime. The loss of freedoms and liberty, the imposition of probation or jail time, fines, and other sentence components handed down by a Judge can have a significant impact on your life and on future opportunities.  To that end, the first red flag is not treating these investigations or charges as serious, because they are.

Second, another red flag is procrastination.  We've all likely heard the saying along the lines of, "why do something today that can be put off until tomorrow?"  That's procrastination at its core.  And procrastination in government investigation/criminal defense matters can hurt you.  The sooner that you hire a lawyer to help you, the better things will likely be.  Over time, memories fade, it can become difficult to track down witnesses, evidence can be destroyed, etc., and other opportunities can be wasted.  Putting off having someone help you in your case is a big red flag that should get your attention, and your response.

Third, operating under mistaken (bad) assumptions or beliefs is a big red flag.  I recall a time I was sitting in court and observed another person in court - without a lawyer - receiving advice from a friend with respecting to resolving a criminal charge. The friend was apparently counseling the person to handle the matter in a certain way, which would, he believed, then allow the person to come back later and get things changed to resolve the case in a more favorable way.  The problem was, both of these folks were seemingly operating under mistaken assumptions or beliefs about how the criminal justice process worked in Georgia.  My point here is this: make sure you're getting accurate information to help you deal with the issues - seek the help of a lawyer. Don't operate under bad or mistaken information.

Finally, the last red flag I'll discuss today is working against your own interest.  If you're under investigation or have been charged by the government, consider exercising your right to remain silent.  Talk to a lawyer first before you talk to the government.  Be careful about what you communicate about the situation to others through phone or email, through facebook, twitter or other social media, or even with in-person conversation.  Things you say can be used against you, and sometimes it is best to just be quiet and get help.  

This isn't a complete list of red flags in this area, but serves as a good starting point for today's discussion.The bottom line is simple: if you've been charged with a crime, or are under investigation by the government, the absolute best thing that you can do is to get a lawyer involved to help you.  

The Red Flag Series: Small Business Issues

I'm continuing in the red flag series today, highlighting red flag issues for small businesses (for an overview of the red flag series, see this introductory post).  Whether you started a corporation or a LLC, formed a partnership with someone else, or even if you operate your business as a sole proprietor, there are some legal red flags of which you should be aware.  Through proper planning and risk management, businesses can work to reduce their exposure to legal liabilities, and can reduce the personal liabilities of the owners.  These are basic steps that an attorney can assist a business owner with, but business owners should also be aware of other red flag issues that might arise from time to time.  This list is not exhaustive or complete, and there are other issues that certainly do arise from time to time.

First, if you are in business with another person or persons, the structure of that business and the contractual relationship between the owners is very important.  A big red flag I often see is where folks have gone into business together but have failed to plan and not have put in place an owners' agreement (often called a shareholders' agreement for corporations, a members' agreement for an LLC, and a partnership agreement for partnerships).  These documents plan for what happens when an owner wants out, when other owners want one owner out, when someone dies or becomes disabled, or when folks effectively stop working for the business. It is easier to put these agreements together and in place early on when everyone likes each other and still gets along.  When something bad happens to fracture the relationship among the owners, it is very difficult to put agreements in place.  In my view, it's not a question of whether these documents will be needed, it's a question of when they'll be needed.

A second red flag is inattention to business record keeping.  If you have formed a corporation or LLC, the organizing documents and applicable law may require annual meetings of owners or members and regular director or manager meetings, etc.  These requirements need to be satisfied, and they need to be documented.  It is important to maintain the separate existence of the business entity and make sure it is not an alter ego of the owner(s), as failing to maintain proper business records may result in the expected limited liability protections not being effective to shield owners from personal liability.

Third, along the lines of business record keeping, business accounting is critical.  Every business should have a relationship with a CPA from whom they can get tax and accounting advice, ensure that the accounting system and internal controls are set up properly, are functioning well for the business and are maintained in good order.  Your CPA can also help with tax returns, payroll issues, and the numerous regulations relating to tax and accounting.

Fourth, business owners should understand the separate existence of their business and the of owners as individuals. To that end, when the business enters contracts, business owners need to understand how to bind the company, and not themselves individually, to the liabilities.  Further, managers and owners who sign agreements and contracts on behalf of the company need to ensure that they have a good understanding of what those documents mean, and have them reviewed by the company's counsel when appropriate.  

Finally, other red flags might be non-compliance with sales tax and other tax issues, business licensing issues, foreign corporation registrations where needed when doing business in other states, etc.  Keep watching for more posts in the Georgia Business Law category for future, related posts in this area.