Franklin Lakes Investors

Franklin Lakes investors who have incurred investment losses, or simply have questions or concerns regarding the handling of their retirement or securities accounts, can call the securities law firm of Lubiner, Schmidt & Palumbo for assistance. Lubiner, Schmidt & Palumbo has decades of experience in handling securities litigation and regulatory matters. The firm’s securities attorneys, who include a former brokerage firm in house lawyer, a former New York prosecutor and a former stockbroker, have handled hundreds of FINRA securities arbitrations across the United States. They have also appeared in court in securities matters in New Jersey and New York. Franklin Lakes investors may need the securities fraud attorneys at Lubiner, Schmidt & Palumbo to protect them; in March 2017 a Manhattan federal jury convicted Franklin Lakes resident Christopher Cervino of securities fraud. Cervino and others were charged with and convicted of market manipulation involving a penny stock fraud scheme. Cervino and his cronies manipulated the price of VGTel stock by controlling millions of shares of the stock and opening dummy accounts to buy and sell shares to artificially inflate the stock’s price. According to the government, over 100 investors lost millions of dollars to the conspirators. In July 2018 Cervino was sentenced to one year and a day in prison and later barred from the securities industry by the SEC. The securities fraud attorneys at Lubiner, Schmidt & Palumbo have detailed knowledge of the inner workings of financial firms, how branch offices work and how brokerage firms are required to supervise their employees to prevent harm to customers. Franklin Lakes investors can call Lubiner, Schmidt & Palumbo to discuss any questions or concerns they have regarding their brokerage and/or retirement accounts.

Securities fraud is a broad term that describes multiple actions of brokers that can result in financial harm to investors. Unauthorized trading, excessive trading/churning, negligence and misrepresentations/omissions by brokers can lead to Franklin Lakes investors suffering losses in their accounts. In order to properly investigate such cases and recoup any losses, financially injured clients need the assistance of experienced securities litigation and regulatory attorneys, such as Lubiner, Schmidt & Palumbo.

Another area of expertise of the Lubiner, Schmidt & Palumbo law firm concerns margin trading. In margin trading, clients are allowed to borrow funds from the firm, using the securities held in the customers’ accounts as collateral. This allows the clients to increase their “buying power.” Customers can potentially increase any trading profits. However, the converse is true: margin trading also increases the risk of financial loss if the market moves against the customers’ margin holdings. Margin trading is a strategy only experienced investors should employ. It is not suitable for many Franklin Lakes investors.

Current popular investment products include Real Estate Investment Trusts (“REITs”). REITs are created by bundling income producing properties such as office complexes, hospitals, etc. They are similar to mutual funds and trade on national exchanges. Non-traded REITs are also being sold to investors. They are a very different investment. Non-traded REITS are not traded on the major securities exchanges. They are illiquid and intended to be held several years, as many as eight. Given that, there is a limited market for their sale prior to maturity. If a non-traded REIT is sold prior to maturity, the seller will most likely receive a return substantially below the purchase price. Non-traded REITs are not suitable for many Franklin Lakes investors.

In instances of questionable sales practices as detailed above, the next issue an experienced securities fraud attorney must investigate concerns failure to supervise. Branch offices are the “faces” of brokerage firms that interact daily with the firm’s clients. In light of this fact, broker dealers are required to have supervisory procedures in place in their branch offices. The experienced securities litigation and regulatory attorneys at Lubiner, Schmidt & Palumbo can ascertain if the firm has failed to supervise an unscrupulous, negligent or simply lazy financial advisor. Failure to supervise is a separate violation on the part of the firm. An injured client can recover damages from the firm for failure to supervise.

Franklin Lakes investors need an experienced securities fraud law firm like Lubiner, Schmidt & Palumbo to explore such issues and fully protect their rights. Contact Lubiner, Schmidt & Palumbo if you have questions regarding the handling of your account.