Posts Tagged ‘investment attorney’

FINRA CEO Says Brokers Must “Push and Pull” for Private Placement Information

June 6th, 2011

Often, investment advisors, stockbrokers and brokerages who unsuitably push Reg. D Private Placements on investors claim that any financial losses investors subsequently experience occur despite their due diligence. However, these private investments pay high fees that can induce some financial professionals to look the other way, focusing on the fifteen percent fee rather than the best interests of their clients in recommending these high-risk investments without the required due diligence having been performed. With the smell of large commissions and enormous fees in the air, it’s probably easy for brokers to rationalize away all of the drawbacks, risks, and any lack of appropriate due diligence for private placement investments.

Luckily for investors the Financial Industry Regulatory Authority (FINRA) has decided to come down hard on the sales of Reg. D Private Placements. At a yearly meeting of the agency, FINRA CEO and Chair Richard Ketchum explained that in the future brokers who promote and sell private placements must “push and pull” for the necessary due diligence information in order to avoid liability and assure that they’re making sound investment recommendations for their clients. That means doing a lot more than reading basic investment documents and attending “canned” meetings if questions needed to be asked.

At Carlson Law we pursue brokerage firms and financial professionals who recommend inappropriate, high-risk private placements to clients. For elderly investors, conservative investors, and those with a net worth of less than $1 million or a yearly income of less than $200,000, private placements may be per se inappropriate investments. If you’ve suffered financial loss due to stockbroker malpractice, contact Carlson Law in San Diego today at 619-544-9300.

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Posted in Broker Fraud, Fiduciary Duty Breach, Investment Fraud, Negligent Misrepresentation, Securities Arbitration, Securities Fraud, Securities Law, Securities Litigation, Stock Fraud, Stock Loss | Comments (2)

Before you Invest in a Mutual Fund, Learn the Basics. Fees, Costs and Undisclosed Risk Can Make Mutual Funds Unsuitable for Investors.

May 13th, 2011

Mutual Funds 101
Mutual funds are sold by companies that pool money (capital) from many investors. This capital is then invested in bonds, stocks and/or other securities. Investors in the fund all have shares, and these shares represent a part of the fund’s holdings.

If you’re interested in making an investment, a mutual fund may or may not be the right choice for you. Like all investments, they come with many different levels of risk. They aren’t insured or guaranteed by financial institutions or government agencies, even those sold by banks. However, because mutual funds are often a mix of various bonds and/or stocks, the risk is some mutual funds is “spread out” or diversified. That said, some mutual funds are not diversified, and it is important to understand that a mutual fund investment can be very high risk, or very low risk, depending upon the holdings and the goals of the fund. Each fund must be looked at individually to determine if it is appropriate for the investor, in the same manner as any individual stock or other investment.

Mutual funds are managed by professional fund managers. These managers invest the money investors contribute into individual stocks, bonds and other securities. And because mutual funds buy and sell securities in large amounts at one time, they usually incur fewer fees, thus operating in a cost-efficient manner. However, it is very important to carefully examine prior to purchase all of the fees and costs associated with the fund you are purchasing as they can vary greatly and take a significant bite out of your return.

If you feel your financial advisor placed you in inappropriate mutual fund investments and/or failed to disclose the fees and costs associated with investment or that the underlying holdings of the fund were beyond your tolerance for risk, you may have a case. Call Carlson Law at 858-544-9300 for a free consultation.

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Posted in Broker Fraud, Fiduciary Duty Breach, Investment Fraud, Negligent Misrepresentation, Securities Arbitration, Securities Fraud, Securities Law, Securities Litigation, Stock Fraud, Stock Loss | Comments (0)

Who’s Scamming Granny? The Answer Might Surprise You

May 4th, 2011
NEW YORK, NY - MAY 11:  Galleon Group founder ...

Image by Getty Images via @daylife

It’s sad but true: every day in America, more and more retirees find themselves victims of investment fraud. Although they constitute just 15 percent of the total population, the United States Securities and Exchange Commission (SEC) estimates that seniors make up 30 percent of those victimized through fraudulent investment schemes.

What makes older Americans such prime targets? Many find themselves with smaller nest eggs than they’d imagined. On top of that, they’re often getting disappointingly small returns on the investments that they do have thanks to historically low interest rates. The result? They’re prime targets for scam artists.

Although financial “professionals” are sometimes the guilty parties, family members are the most frequent perpetrators. A 2004 survey of state adult protective services revealed that grown children (32.6 percent) are the likeliest culprits, followed by other family members (21.5 percent) and spouses (11.3 percent).

Think that you’ve been the victim of investment fraud? Then consider contacting an experienced investment attorney who can offer advice regarding your options. At Carlson Law, we’ll provide you with an initial consultation over the phone, review pertinent documents with you and recommend how you should proceed—all at no cost.

Lawmakers, regulators like the SEC, and securities firms all need to address the growing problem of senior citizen investment fraud. Meanwhile, seniors themselves can take steps to protect themselves from financial abuse by following these “10 Tips to Protect Your Nestegg,” courtesy of the North American Securities Administrators Association.

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Posted in Broker Fraud, Fiduciary Duty Breach, Investment Fraud, Negligent Misrepresentation, Securities Arbitration, Securities Fraud, Securities Law, Securities Litigation, Stock Loss | Comments (0)