Glen Rock Investors

Investors who live in Glen Rock, NJ, and who believe their securities and/or retirement accounts have been mishandled, can contact the securities law firm of Lubiner, Schmidt & Palumbo to seek relief. The securities fraud attorneys at Lubiner, Schmidt & Palumbo have handled securities matters for over 30 years. In that time, the securities group at the firm has become experts in state and federal securities laws across the country and the rules and regulations that govern the operations of Wall Street investment firms. The securities litigation attorneys at the firm have managed hundreds of securities arbitrations nationwide conducted before the Financial Industry Regulatory Authority (”FINRA”). The securities attorneys at Lubiner, Schmidt & Palumbo also appear in court in New York and New Jersey in securities cases. Among the securities attorneys at the firm are a former stockbroker, a former in house attorney at a financial investment firm and a former New York City prosecutor. They routinely handle securities fraud cases such as unsuitable trading, misrepresentations and omissions and unauthorized trading. An example of such conduct recently occurred in Bergen County. In October 2017 Glen Rock resident Scott Jason Wallach consented to FINRA’s findings that he entered five unauthorized trades in a client’s account in 2016. Wallach was working at Wells Fargo in Paramus at the time. He agreed to a $5,000 fine, a one-month suspension and disgorgement of the $874 in commissions charged for the five trades. Glen Rock investors who may become the victims of unscrupulous or incompetent financial advisors need experienced securities fraud attorneys to turn to. Lubiner, Schmidt & Palumbo stands ready to assist any Glen Rock investors seeking to recover investment losses.

Glen Rock investors should be wary of the many complex investment products that are currently available in the marketplace – but not necessarily appropriate for all investors. Exchange traded funds (“ETFs”) are popular investment vehicles that are bundled into an underlying “basket” of securities such as notes, stocks, etc. They are typically comprised of investments related to a specific sector of the economy. They trade like a stock and are priced daily.

However, investment firms have now developed related products - leveraged and inverse ETFs. Leveraged ETFs use the underlying bundle of securities as collateral to acquire additional securities. Leveraged ETFs give investors the opportunity for increased profits; but they can also lead to increased risk to unsuspecting investors if the market moves against their position.

Inverse ETFs use derivative products to enable the ETF to perform opposite to the performance of its underlying bundle of securities. Leveraged ETFs are meant to be held for one day only. These are very complex trading vehicles and are unsuitable for many Glen Rock investors.

Other products that Glen Rock investors should think twice about include structured products. These are investments that consist of an underlying “basket” of securities such as commodities, indexes, etc. They are tied to a derivative security, typically an option. They are issued by large financial institutions and guarantee the return of principal plus some rate of return. Some of these products are credit default swaps (“CDS”), collateralized mortgage obligations (“CMOs”) and mortgage backed securities (“MBS”).

Structured products are actually the unsecured debt of the issuing institution. If the issuer goes bankrupt, the notes will most likely fail. The instruments are meant to be long-term investments. As such, they are very illiquid. The instruments pay an initial interest rate that is guaranteed for only a defined period and then is reset, and can then be as low as zero.

These notes were originally meant for institutional investors and may not be suitable for Glen Rock clients.

Elder abuse continues to be an unsettling occurrence in the securities industry. Industry regulators have issued new regulations, attempting to prevent the abuse of senior citizen investors. Nevertheless, instances of financial abuse of seniors continue to occur. See here, here, here and here. Senior investors may not fully understand the risks entailed in investments presented to them by unscrupulous financial advisors. They may experience difficulty following transactions in their monthly statements. If you are a senior Glen Rock investor, or a relative of one, and have questions concerning the handling of your account, you should consult the experienced securities lawyers at Lubiner, Schmidt & Palumbo.

Investors in Glen Rock who have questions about their brokerage or retirement accounts can contact the experienced securities fraud attorneys at Lubiner, Schmidt & Palumbo for a consultation.