Articles Posted in Wells Fargo

Chicago-based Stoltmann Law Offices has represented investors who’ve suffered losses from risky municipal bonds. One of the most troubling investments for investors has been bond mutual funds and single municipal bonds issued by Caribbean territories like Puerto Rico. The island was devastated by Hurricane Maria and a debt crisis. The island’s government, which issued billions in municipal bonds, filed for bankruptcy, which forced bondholders to take losses. Like Puerto Rico, the neighboring Virgin Islands may be facing a debt meltdown of its own.

The U.S. Virgin Islands, also severely damaged by two hurricanes in recent years, is also dealing with an ongoing debt crisis. With only about 100,000 inhabitants spanning three Caribbean Islands, the U.S. protectorate had been issuing high-yield municipal bonds in recent years to fund essential government services such as a power utility. The government owes more than $6.5 billion to creditors, which averages some $19,000 per resident. In addition, the islands have billions in unfunded pension and healthcare obligations. That’s one of the highest per-capita debt loads in the Western Hemisphere.

The debt explosion in the Virgin Islands has gone from bad to worse. Three years ago, credit ratings agencies slashed the ratings on government bonds to junk status. While that made the bonds’ yields more attractive (they rose), it also indicated a higher risk of default. As a result, prices on those issues dropped.

Stoltmann Law Offices has brought arbitration claims against dozens of brokerage firms like Ameriprise Financial, Merrill Lynch, Morgan Stanley, Wells Fargo, and JP Morgan Securities involving the unsuitable recommendations for investors to invest in oil and gas related securities.  In 2014 and 2015, we represented dozens of investors against various firms involving Master Limited Partnerships, or MLPs, which are almost always related to the oil and gas industry.  Then, during a big drop in the price of oil, a lot of oil and gas companies went into bankruptcy, dragging a lot of investor money with them.  History is repeating itself.

The price of oil has completely tanked in the last month. Even before the COVID-19 pandemic, the price of oil was being pressured by a price war involving Saudi Arabia, Russia, and OPEC.  Combined with the broad-based ongoing market crash, oil and gas investments – which are inextricably linked to the price of oil – have suffered catastrophic losses.  There are some well-know names on this list:

Goldman Sachs MLP and Energy Renaissance Fund – GER: Year to Date has dropped from 4.37 to 0.68 per share

Think financial crooks are much smarter than you are?  Usually not.  They can be lazy, looking for the simpler ways to make a buck like many of us.  And like home burglars they are seeking the easiest way to loot. The open basement window is a quicker way to get in and come out not empty handed than the dead-bolted front door.

For a Wells Fargo representative, wide-open basement windows were Navajo Indians who were both elderly and didn’t speak English. CNN reported the Navajos sued Wells in 2017, claiming workers from the financial giant stalked basketball games and other community events from 2009 to 2016 to prey on its members by selling them unnecessary accounts.  To settle the claims of fraud, Wells paid the Nation $6.5 million.

In announcing the settlement in a press release, the Nation said Wells had conducted a long campaign of predatory and unlawful practices.  The Nation originally filed a suit against Wells in December 2017.  After a judge in that case dismissed it on the grounds Wells Fargo had settled with U.S. federal authorities in 2016, the Nation filed a separate lawsuit in Navajo Nation District Court during November 2018 reasserting its tribal and common law claims.

AdobeStock_198259345-300x200If so, the investment losses you sustained might be recoverable through the FINRA arbitration claims process.  This week, Wells Fargo was ordered to pay a client of the firm damages, including $100,000 in punitive damages, for securities fraud in the purchase and sale of Quicksilver Resources.  Punitive damages are rare in the FINRA arbitration forum.  This award comes after another arbitration award against Wells Fargo for $75,383 for sales of these same securities.  If you were a Wells Fargo customer and invested in Quicksilver Resources please contact our Chicago based securities fraud law firm. 
CNBC
FOX Business
The Wall Street Journal
Bloomberg
CBS
FOX News Channel
USA Today
abc NEWS
DATELINE
npr
Contact Information