Ridgewood, New Jersey investors who have suffered losses in their brokerage and/or retirement accounts need the assistance of a knowledgeable and experienced securities law firm. That firm is Lubiner, Schmidt & Palumbo. In the last three decades the securities attorneys at Lubiner, Schmidt & Palumbo have handled hundreds of securities arbitrations conducted by the Financial Industry Regulatory Authority (“FINRA”). Among the attorneys at the firm is a former stockbroker, a former New York criminal prosecutor and a former in house attorney at a major Wall Street investment firm. The firm’s attorneys have also handled numerous securities matters in courts in New Jersey and New York. Ridgewood investors need the securities fraud attorneys at Lubiner, Schmidt & Palumbo to protect them from wrongdoers such as Anthony F. Ferrone. Ferrone was employed at Morgan Stanley in Ridgewood from 2011 through 2016. In 2017 he was being investigated by FINRA for the unsuitable sales of unit investment trusts (UITs”). He was in the middle of his on-the-record testimony before FINRA when he left, indicating that he would no longer cooperate with FINRA. He later agreed to a letter of acceptance, waiver and consent (“AWC”), in which he was barred from the securities industry.
Securities fraud is a broad term that includes many different improper activities of brokerage firms and their employees, including the unsuitable trading referenced above. Financial advisors are also required to obtain the consent of a customer before entering an order on behalf of that customer. If the financial advisor doesn’t obtain that consent, any order entered by the advisor in the customer’s account can be viewed as unauthorized trading. The experienced securities litigation attorneys at Lubiner, Schmidt & Palumbo can recover a client’s losses stemming from unauthorized trading.
Brokers are also obligated to disclose to their clients all material facts regarding the investments they recommend. A broker who does not fully disclose such facts may be accused of making misrepresentations/omissions to the client. If a broker fails to disclose a back end sales charge on a particular class of mutual fund, that could be seen a material omission and any damages caused by that omission can be recovered. If a broker misrepresents the risks inherent in an exchange-traded fund (“ETF”), or misstates the expected holding period of a complex investment product, a client can recover losses resulting from the misrepresentation.
Ridgewood investors should also be wary of investments such as penny stocks. Also known as “microcap” stocks, the securities industry defines penny stocks as those having a price below $5 per share. These stocks do not trade on the major exchanges, instead trading on the “pink sheets” or the OTC Bulletin Board. The companies who issue penny stocks are not required to make the financial disclosures required of companies that list their stock on the major exchanges. Information on the company’s industry performance, its performance compared to competitors and who runs the company may be difficult to obtain.
Penny stocks are subject to large price swings. That volatility makes them appealing to speculative traders. Ridgewood investors who are not speculative traders, however, should be wary.
Penny stocks are also frequently illiquid; investors may not be able to sell their shares since the demand to purchase the shares may be lacking. This is another reason investors may want to avoid these investments.
Elderly Ridgewood investors, and their friends and family, should be aware of the existence of the abuse of elderly customers. Securities industry authorities have recently implemented various rules in an effort to eliminate the abuse of elderly investors. Unfortunately, such reprehensible conduct continues to occur. See here, here, here and here. Senior citizen investors may not appreciate the risks entailed in investments presented to them by unscrupulous financial advisors. They may have difficulty following the activity reflected on their account statements. If you are an elderly Ridgewood investor, or a relative of one, and have concerns regarding your brokerage or retirement account you should consult the experienced securities fraud lawyers at Lubiner, Schmidt & Palumbo.
Ridgewood investors who have incurred investment losses, or question whether their brokerage and/or retirement accounts have been properly handled, should contact the experienced securities fraud attorneys at Lubiner, Schmidt & Palumbo for a consultation.