The experienced securities litigation law firm of Lubiner, Schmidt & Palumbo has over has over 30 years experience in practicing securities law and, in particular, handling securities fraud cases. Bedminster, NJ investors who may have incurred losses in their brokerage accounts can retain Lubiner, Schmidt & Palumbo to assist them recover any losses. Among the experienced securities fraud attorneys at Lubiner, Schmidt & Palumbo are a former New York City prosecutor, a former in house attorney at a securities firm and a former stockbroker. The experienced securities litigation attorneys at Lubiner, Schmidt & Palumbo regularly appear in court in New Jersey and New York and in Financial Industry Regulatory Authority ("FINRA") customer arbitrations across the country. The securities fraud attorneys at Lubiner, Schmidt & Palumbo know how brokerage firms work; how branch offices and back offices are supposed to operate; the industry and firm regulations that firms are obligated to follow; and how internal compliance departments enforce those regulations. Most importantly, the securities attorneys at Lubiner, Schmidt & Palumbo can determine if an investor's rights have been violated. Bedminster investors who have incurred losses in their accounts will find that the experienced securities attorneys at Lubiner, Schmidt & Palumbo will be aggressive advocates on their behalf.
Securities fraud [CLICK ON BOLD PRINT FOR A MORE DETAILED DISCUSSION] takes many forms. The experienced securities litigation attorneys at Lubiner, Schmidt & Palumbo have investigated and handled matters involving unauthorized trading, unsuitable trading and even simple negligence. Some of the more complex matters that Bedminster investors may face could include elder abuse. Elder abuse is a recurring problem in the securities industry and regulators have focused on such cases. See here, here, here and here. Senior investors may have difficulty reading and understanding their account statements. They may not fully grasp the complexity and inherent risks of a particular product. Lubiner, Schmidt & Palumbo can assist any elderly Bedminster investor who has questions or concerns regarding his retirement accounts.
Another area of expertise of the Lubiner, Schmidt & Palumbo law firm concerns margin trading. Brokerage firms permit customer to borrow funds from the firm, using the securities held in the customer's account as collateral for the loans. By increasing the customer's buying power through margin, the firm enables customers to potentially increase any trading profits. However, the converse is true: using margin also increases the risk of loss if the market moves against the client's position. Therefore, margin trading is a strategy only experienced, sophisticated investors should use. It is unsuitable for many investors.
Other dubious products sold to unsuspecting investors include penny stocks. The Securities Exchange Commission ("SEC") defines penny stocks as those having a price below $5 per share. Penny stocks, often referred to as "microcap" stocks, do not trade on the major exchanges, instead trading on the OTC Bulletin Board or pink sheets. Since they are not exchange traded, the companies who issue penny stocks are not required to make the public financial disclosures made by companies who list their stock on the major exchanges. Information on the company's leadership, industry performance, performance compared to similarly situated companies, etc., may therefore be difficult to obtain.
Penny stocks are very volatile, susceptible to large price fluctuations. That volatility makes them appealing to speculative traders but not suitable for most investors.
In addition to their volatility, penny stocks are frequently illiquid, meaning that investors may not be able to sell their shares due to the lack of buyers in the market. This is another reason investors may want to avoid these investments.
Lubiner, Schmidt & Palumbo can assist Bedminster investors who have suffered losses in their brokerage and/or retirement accounts. The experienced securities litigation attorneys at Lubiner, Schmidt & Palumbo can determine what caused those losses and if they are recoverable. Contact Lubiner, Schmidt & Palumbo for a free consultation.