Englewood Cliffs Investors
Englewood Cliffs, New Jersey investors who find themselves in need of experienced securities fraud attorneys need look no further than the law firm of Lubiner, Schmidt & Palumbo. The securities attorneys at Lubiner, Schmidt & Palumbo have over thirty years experience handling securities matters in courts in New Jersey and New York and in securities arbitrations before the Financial Industry Regulatory Authority (“FINRA”). The securities fraud attorneys at the firm are experts in all matters relating to securities litigation and stand ready to assist Englewood Cliffs investors who are the victims of securities fraud. Indeed, some Englewood Cliffs investors may have been victims of the fraudulent activity of an Englewood Cliffs securities firm that was expelled from the securities industry by FINRA in January 2017. Caldwell International Securities Group (“CISG”) was headquartered in Fischer, TX with offices in New York, Illinois, Florida, Nevada and - Englewood Cliffs. The Englewood Cliffs office was opened and operated by Alex Etter under the name of the Etter Group Corp. in 2002. In 2011 the Etter Group became affiliated with CISG. In 2015 FINRA alleged that for over the past four years CISG, Etter, and several other individuals, including three additional Englewood Cliffs brokers, “put profits before customers, growth before compliance, and subterfuge before transparency.” FINRA alleged that Etter and other brokers engaged in an unsuitable trading scheme that involved active trading and the charging of excessive commissions and fees. CISG was expelled from the industry and Etter settled with FINRA in October 2016. He was suspended for two years, agreed to disgorgement of $227, 395 and deferred restitution of $6,510.
Another type of securities fraud about which the securities attorneys at Lubiner, Schmidt & Palumbo have significant experience involves unauthorized trading. Securities industry rules and regulations mandate that financial advisors discuss proposed investments and have the consent of a client before entering an order for the client. The failure to obtain prior consent of the customer can be deemed unauthorized trading. Any losses incurred by Englewood Cliffs investors resulting from unauthorized trading can be recovered.
In instances of inappropriate actions on the part of brokers such as those detailed above, the experienced securities litigation lawyers at Lubiner, Schmidt & Palumbo will next look to see if the brokerage firm and its branch management failed to supervise. Branch offices are the “faces” of brokerage firms and deal directly with customers. Recognizing this, securities industry rules require broker dealers to have a supervisory chain of command in their branch offices. They are also required to have supervisory procedures in place to prevent the mistreatment of customers by individual employees. The experienced securities litigation attorneys at Lubiner, Schmidt & Palumbo have the expertise to determine if, in addition to misconduct on the part of an individual broker, the firm has failed to supervise that broker. Failure to supervise is a separate violation by the firm for which damages can be recovered. Englewood Cliffs investors need an experienced securities fraud law firm like Lubiner, Schmidt & Palumbo to explore such issues and protect their rights.
There are numerous products now available to Englewood Cliffs investors. However, investors should be wary before making investments in products that they do not fully understand. Such investment products may include Real Estate Investment Trusts (“REITs”). REITs are essentially “bundles” of income producing real estate such as office building complexes, hotels, hospitals, etc. They are comparable to mutual funds and trade on major national exchanges.
However, related investments are now available which may not be suitable for many Englewood Cliffs investors. Non-traded REITs are not traded on the major exchanges and are meant to be held eight years or longer. If a purchaser of a non-traded REIT later desires to sell, and she is able to do so, she will most likely only receive a small portion of the original purchase price. Englewood Cliffs investors should be cautious when considering the purchase of non-traded REITs.
The Englewood Cliffs securities fraud lawyers at Lubiner, Schmidt & Palumbo can assist Englewood Cliffs investors who have incurred financial losses or have questions concerning the handling of their brokerage account. The experienced securities attorneys at Lubiner, Schmidt & Palumbo are just a phone call away. Contact Lubiner, Schmidt & Palumbo for a free consultation.