Articles Tagged with suitable

Stoltmann Law Offices is interested in speaking to those investors who may have invested with Merrill Lynch in the fund MLCXX6LSER Index (MLC Index). Craig Kinard, a Merrill Lynch adviser, was accused of making MLC Index recommendations and sales. MLC Index is allegedly one of the most complex investment products that could be sold to a retail investor, and, therefore, is suitable to few investors. The Index involved extreme leverage, commodities, derivatives, options and swaps risk. The MLC Index proved to be too great of a challenge for brokers and customers to understand, and many customers lost money. Also, the Index was subject to enormous costs and fees. Merrill Lynch advertised the Index as having “Low Volatility” and producing “Consistent Returns” to investors and that it provided back testing data showing that the fund would have an annualized return of 6.77% and that from 2002 until 2011 the fund did not have a single negative return year. Merrill Lynch failed to properly explain and disclose the main risks to arbitrage funds in that the hedging strategy, or the correlation assumptions, will not prove accurate. The Fund was volatile. If you lost money with the MLC Fund and Merrill Lynch, please call our securities law firm today to speak to an attorney about your options. The call is free with no obligation. We may be able to help you recover your losses.

According to a recent InvestmentNews article, Brian S. Block, former Chief Financial Officer at American Realty Capital Properties Inc., now known as Vereit, was charged with overstating financial performances at the company. The Department of Justice and the Securities Exchange Commission (SEC) also charged him with overstating the financial performance of the company by purposefully inflating a key metric used by analysts and investors to assess the company. Allegedly, Block and another chief accounting officer, Lisa McAlister devised the scam to manipulate the calculation of the real estate investment trust (REIT’s) adjusted funds from operations. Mr. Block was arrested Thursday morning on conspiracy, securities fraud, and other charges. Ms. McAlister pled guilty to one count of conspiracy to commit securities fraud, one count of securities fraud, and one count of making false statements.

REITs tend to be very risky and illiquid investments that are not suitable for all investors. If you were recommended and sold the Vereit non-traded REIT, and lost funds, you may be able to recover them in the Financial Industry Regulatory Authority (FINRA) by suing your brokerage firm on a contingency fee basis. The call to us to discuss your options with an attorney is free, so please call today. 312-332-4200.

Stoltmann Law Offices is investigating Craig Hayward, a broker with Mid Atlantic Capital Corp in Lafayette, Colorado. Hayward allegedly made unsuitable investment recommendations and misrepresentations among other claims. Many of the claims involve direct participation products (DPPs) and private placements in oil and gas partnerships and non-traded real estate investment trusts, (REITs) and other alternative investments. These investments tend to be risky and illiquid investments that are not suitable for every customer. A broker must take into account a customer’s net worth, age, investment objectives and sophistication, among other factors, before recommending or selling these investments. If he does not do his due diligence, his brokerage firm may be responsible for investment losses because of its failure to properly supervise the broker. Call us today at 312-332-4200 to discuss your options of suing Mid Atlantic Capital Corp in the Financial Industry Regulatory Authority (FINRA) arbitration forum. Hayward was registered with London Pacific Securities in Sacramento, California from June 1994 until May 2004 and is currently registered with Mid Atlantic Capital Corp in Lafayette, Colorado since May 2004. He has six customer disputes against him, two of which are currently pending.

Stoltmann Law Offices is interested in speaking to those individuals who may have invested money with Richard Poston, a former H. Beck registered broker. Beck was being investigated by the Financial Industry Regulatory Authority (FINRA), alleging violations of FINRA rules including standards of commercial honor and equitable principles of trade, improper use of customers’ securities or funds, and the borrowing or lending money from or to any customer without written approval. Most recently, a complaint against him alleged that Poston, from October 2007 until September 2015 made unsuitable concentrated and illiquid investments in non-traded real estate investment trusts (REITs). This claim is currently pending. REITs typically are risky and illiquid investments that are not suitable for all customers. A broker must take into account a customer’s age, net worth, investment sophistication and investment objectives, and, if he does not, his brokerage firm can be held responsible for those losses.

According to his online FINRA BrokerCheck report, Poston was registered with IDS Life Insurance Company in Minneapolis, Minnesota from June 1995 until October 2001, American Express Financial Advisors in Minneapolis, from June 1995 until October 2002, LPL Financial in Plano, Texas from October 2002 until September 2009, Gunnallen Financial in Plano from September 2009 until March 2010 and H. Beck in Plano from March 2010 until December 2015. He is not currently registered with any firm and has four customer disputes against him.

Were you sold structured notes linked to the US Oil Fund by an LPL broker? Stoltmann Law Offices is investigating the sale of these notes and are interested in speaking to those individuals who may have lost money because of the sale of those notes. You may be able to recover those losses by bringing a claim against LPL in the Financial Industry Regulatory Authority (FINRA) arbitration forum on a contingency fee basis. We help investors recover losses. The structured notes sold by LPL are not suitable for all investors. Firms such as LPL and their brokers can only recommend and sell those investments that are suitable for investors. Notes linked the US Oil Fund tend to be risky and illiquid investments. Since crude prices dropped to an all-time low in 2009, banks have sold a record amount of US structured notes that track an index of oil and gas companies. Because crude costs are still low, many of the stocks have not had the chance to rebound, causing investors to lose money. Production and exploration companies took advantage of low interest rates to fund growth with cheap debt, and falling oil prices put pressure on those companies to cut costs. Credit Suisse AG sold $79.5 million of notes linked to the oil and gas index at the end of December last year. 312-332-4200.

Stoltmann Law Offices is investigating Gary Bradshaw, a financial advisor with First Dallas Securities. Bradshaw was accused of concentrating large portions of an elderly customer’s portfolio into risky oil and gas investments. Allegedly, by 2014, Bradshaw had concentrated over 100% of the client’s account into three oil and gas investments: CVR Partners, LP, Kinder Morgan, and Legacy Reserves LP. Due to the losses in oil and gas stocks, the customer suffered over $160,000 in losses to her retirement savings. In all, because of his unsuitable investment recommendations, the client suffered over $250,000 in losses. Advisors such as Bradshaw have a duty to only recommend those securities that are suitable for investors. The broker must take into account the client’s age, net worth, investment objectives, and other things before recommending and selling securities. If he does not, his brokerage firm can be responsible for losses.

Bradshaw was registered with Rauscher Pierce Refsnes in Dallas, Texas from August 1985 until March 1990 and is registered with First Dallas Securities Inc. in Dallas, Texas and has been since February 1990. He has one customer dispute against him. Please call our securities law offices in Chicago at 312-332-4200 to speak to an attorney about your options of suing First Dallas Securities for investment losses on a contingency fee basis in the FINRA arbitration process. The call is free with no obligation.

Stoltmann Law Offices is investigating Mark Beloyan, who recently had a complaint filed against him and his firm, TradeSpot Markets, by the Financial Industry Regulatory Authority (FINRA). Beloyan was the President, Chief Operating Officer, Chief Compliance Officer and owner of TradeSpots. FINRA alleged that Beloyan and another financial advisor at the firm recommended penny stocks to customers without affirming suitability. This misconduct occurred while he and the advisor were trading shares of Mondial Ventures Inc. and STW Resources Holding Corp. Allegedly, Beloyan often entered information on customer suitability forms after the customer had signed it. For these transgressions, TradeSpot agreed to pay a $10,000 fine and will not solicit or recommend the purchase of penny stock for one year. Beloyan was suspended from the securities industry in all capacities for 10 days with an additional 50 days in a principal capacity. Penny stocks are those stocks which are typically exchanged at a relatively low price, and, therefore, highly speculative and high risk because of their lack of liquidity. They are not suitable for all investors.

Beloyan was registered with Rutherford, Brown & Catherwood from February 1986 until October 1988, Escalator Securities from November 1988 until May 1990, Sunpoint Securities in Longview, Texas from May 1990 until January 1992 and Corporate Securities Group in St. Louis from January 1992 until March 1992. He is currently registered with TradeSpot in Davie, Florida, and has been since March 1992, according to his online, public FINRA BrokerCheck report. Please call our securities law offices in Chicago, Illinois today to speak to an attorney about your options of suing Mark Beloyan and TradeSpot Markets in the FINRA arbitration forum on a contingency fee basis to recover your investment losses. The call to us is free with no obligation so please call today. 312-332-4200.

Stoltmann Law Offices is investigating Bradley Friedmark, a former broker with ProEquities Inc. Mr. Freidmark allegedly held several lunch seminars where investors were sold real estate investment trusts (REITs) in Behringer Harvard and private placements such as Leaf Equipment. A REIT is a type of security that invests in real estate through mortgages or property and trades similar to a stock. REITs tend to be very risky and illiquid investments that are not suitable for all investors. Private placements are securities offerings exempt from registration with the SEC. Private placements are also risky investments. A client should only be sold a REIT or a private placement once a full background check of his age, net worth, investment sophistication and investment objectives are clearly stated and understood. If a broker sells a risky and unsuitable investment to a client, and that client loses money because of it, the broker’s investment firm may be responsible for investment losses because that firm was not reasonably supervising the broker.

Freidmark was registered with Mony Securities Corp in New York, New York from January 1998 until February 1999, The Lincoln National Life Insurance Company in Fort Wayne, Indiana from February 1999 until March 2000, and ProEquities Inc. in Otsego, Minnesota from March 2000 until August 2015. Please call our Chicago-based securities law firm today for a free consultation with one of our attorneys if you feel you may have a claim to bring against Freidmark and ProEquities. We may be able to take your case on a contingency fee basis to recover your investment losses.

Stoltmann Law Offices is investigating Edward Chin, a former Goldman Sachs Group Inc. trader in residential mortgage-backed bonds (RMBS). Chin was recently barred from the securities industry over allegations that he misled customers and caused them to pay higher prices. Chin “generated extra revenue for Goldman by concealing the prices at which the firm had bought various securities,” according to a statement Tuesday from the Securities and Exchange Commission (SEC). He wanted to increase his own compensation. Chin agreed to pay $400,000. RMBS tend to be risky, illiquid investments that are not suitable for all investors. A broker must take into account a customer’s net worth, investment savvy, age and portfolio. If he does not, his brokerage firm may be liable for investment losses.

Edward Chin was registered with Goldman, Sachs & Co. in New York, New York from September 2003 until January 2013. He is not currently registered with any firm and is not licensed within the industry. Please call our Chicago-based securities law firm today to speak to an attorney for free about your options of suing Goldman Sachs if you suffered losses with Edward Chin. We may be able to help you bring a claim against the firm to be tried in the FINRA arbitration forum on a contingency fee basis. 312-332-4200.

David Michael Miller, a former broker with Huntington Investment Company, was ordered to pay back $800,000 in restitution for making unsuitable investment recommendations. Those recommendations cost investors $1 million. Miller was fined by the Financial Industry Regulatory Authority (FINRA) $15,161 which represents the commissions he earned from selling the products. He was also banned by FINRA from working with any company affiliated with the organization. Miller was accused of not doing adequate research on recommendations of 140 purchases of an investment called unit investment trusts (UITs) that totaled more than $5.3 million for 129 accounts, according to an order from the organization. These recommendations were made between August 2012 and May 2013. Some of the UITs were below-investment-grade securities and speculative junk bonds, which made them more risky.

A broker has a duty to only recommend those investments that are suitable. The broker must take into account the customer’s age, net worth, investment objectives and sophistication, and, if he does not, his brokerage firm may be liable for investment losses. On two separate occasions, Miller assured customers that their investment was safe and that if the customer held it for the life of the investment, he would received his premium of $150,000 back along with five percent interest. He also told eight customers that their investments would not lose money. Those customers lost a combined amount of $171,464.

According to his online FINRA BrokerCheck report, David Michael Miller was registered with New England Securities in Columbus, Ohio from February 2008 until July 2008 and The Huntington Investment Company in Columbus from July 2008 until August 2013. He has 10 customer disputes against him. He is not licensed within the industry and FINRA has permanently barred him from acting as a broker or otherwise associating with firms that sell securities to the public.

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