Making financial investments with money from a loan on your home is generally a poor, high risk activity. And it’s a particularly poor idea when the investment is a private placement that’s speculative and unable to be liquidated easily or traded publically. Brokerage houses that encourage clients to take out extra mortgages or home equity loans in order to buy risky investments in limited partnership and private placements are often held liable for their customers’ financial loss.
In 2009, the Ameritas Investment Corporation was fined $100,000 by the Financial Industry Regulatory Authority (FINRA) for not supervising one of its brokers whose deceptive financial recommendations to customers included home refinancing to purchase securities. The broker was fined $60,000 by FINRA, and her license was suspended for five years.
If your broker encouraged you to take out real estate loans in order to invest in any private securities, limited partnerships or other investments, you should seek the advice of a securities attorney. Contact Carlson Law for a free consultation.
Tags: Broker Fraud, Fiduciary Duty Breach, financial loss, Investment Fraud, investment loss, investment recovery, limited partnerships, Negligent Misrepresentation, private securities, San Diego, Securities Arbitration, Securities Attorney, Securities Fraud Attorney San Diego, securities lawsuit
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Recently, many investors have experienced significant financial loss in their securities accounts because of the inappropriate and improper trading of exchange traded funds (ETFs) by their stockbrokers.
A number of leveraged and inverse ETFs, including some funds by Direxion and Proshares, had risk associated that may not have been fully disclosed to some investors. Although these ETFs were built to seek out multiples of the exchange that they were created to track, many were also structured to reset daily. The result is radical disparities in their performance in the long term compared to the index that they were intended to follow.
Often, stockbrokers did not tell their clients about the extremely risky nature of holding these types of funds for any period of time, a risk that the Financial Industry Regulatory Agency (FINRA) clearly recognizes. In a June 2009 Regulatory Notice (09-31), FINRA underscored the high-risk character of these ETFs, asserting their unsuitability for many investors that intend to hold them for longer than one trading session, especially if the markets are volatile.
Have you incurred financial loss due to your broker’s advice on leveraged or inverse ETFs and/or the amount of time you were advised to hold those funds? Contact Carlson Law to discuss your potential claim with an experienced securities attorney today at 619-544-9300 or www.securities-fraud-attorney-san-diego.com
Tags: ETFs, financial loss, FINRA, high-risk securities, inverse ETF; Direxion, investment loss, investment recovery, leveraged ETF, Proshares, Securities Attorney, Securities Fraud, Securities Fraud Attorney San Diego
Posted in Broker Fraud, Fiduciary Duty Breach, Investment Fraud, Negligent Misrepresentation, Securities Arbitration, Securities Fraud, Securities Law, Securities Litigation, Stock Fraud, Stock Loss | Comments (1)
There are over 210 possible different credentials available to financial advisors. Very few of those credentials are regulated and some mean little or nothing. It is important for every investor to do their homework and really get to know their financial advisor, their credentials, licensing and experience. Simply because your advisor has many credentials or friends have recommended them is not enough.
While the CFP (Certified Financial Planner) and CFA (Certified Financial Advisor) designations require course work, exams and continuing education many certifications in the financial industry do not. So what should an investor do in order to select a financial advisor? There are a number of things that can be done.
- Everyone can go and look up the record of the advisor they are considering using on the Financial Industry Regulatory Authority’s BrokerCheck service. The BrokerCheck service will give you important information about the advisor you are considering; such as if that advisor has had prior complaints, been sued before, where he or she has worked in the past and for how long, the reason they left a prior employer, in addition to information about licensing and credentials.
- Next, look at the information from state securities regulators at the North American Securities Administrators Association.
- Also, review the National Association of Insurance Commissioners website regarding the advisor you are considering using.
A good question to ask a prospective advisor regarding their credentials is what percentage of people who apply for the credential obtain it? Also, feel free to ask about the qualifications of the instructors for the credential program touted. As an investor interviewing a financial advisor, you should be careful if the advisor is put off or unable to answer such simple questions.
If you have already fallen victim to an unqualified investment advisor and suspect an incidence of investment fraud, please call the Carlson Law Firm at (619) 544-9300 or contact a San Diego securities fraud attorney today.
Tags: Broker Fraud, California, Fiduciary Duty Breach, Financial Attorney, Fraud Attorney, Fraud Lawyer, Investment Fraud, Negligent Misrepresentation, San Diego, Securities Arbitration, Securities Attorney, Securities Fraud, Securities Law, Securities Lawyer, Securities Litigation, Security Lawyer, Stock Fraud, Stock Fraud Attorney, Stock Fraud Lawyer, Stock Loss
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