Westfield investors who have suffered financial losses in the stock market now have a law firm that can protect their rights and recoup their losses. The local law firm of Lubiner, Schmidt & Palumbo stands ready to fight on behalf of aggrieved Westfield investors who are the victims of stockbroker fraud or who have otherwise incurred losses due to broker misconduct. For over three decades Lubiner, Schmidt & Palumbo has practiced securities law in courts in Florida, New York and New Jersey and nationwide in securities arbitrations administered by the Financial Industry Regulatory Authority (“FINRA”). The attorneys at the firm include a former Brooklyn, NY Assistant District Attorney, a former stockbroker and a former in house attorney at a major securities firm. The attorneys at Lubiner, Schmidt & Palumbo have developed an in depth understanding of how the brokerage industry works. They are also well versed in the laws and regulations that govern Wall Street and its financial advisors. They can use that knowledge to win recoveries for financially injured Westfield investors.
“Securities fraud” is a term that encompasses a multitude of improper actions on the part of brokerage firms and their employees. The experienced securities fraud attorneys at Lubiner, Schmidt & Palumbo have represented clients in cases involving:
Structured products 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 principle plus some rate of return. Some of these products are collateralized mortgage obligations (“CMOs”), mortgage backed securities (“MBS”) and credit default swaps (CDS”).
However, they actually are the unsecured debt of the issuer. If the issuer goes bankrupt, the notes will probably fail. The instruments are meant to be held long term and are very illiquid. The initial interest rate paid by these instruments is guaranteed for only a defined period and then is reset, and can be as low as zero.
These notes were originally meant for institutional investors and may not be suitable for retail clients;
Penny stocks are perhaps one of the most common vehicles for investment fraud schemes. The Securities Exchange Commission defines penny stocks as those having a price below $5 per share. Penny stocks do not trade on the major exchanges, instead trading on “pink sheets” or the OTC Bulletin Board. The companies who issue penny stocks are not required to make the detailed and regular financial disclosures required of companies who list on the major exchanges. Information on the company’s performance compared to competitors, the corporate leadership, extent of debt, etc., is therefore difficult to obtain.
Penny stocks are very volatile and subject to large price swings. Those roller coaster-like price swings make penny stocks attractive to speculative investors but unsuitable for most other investors.
In addition to their volatility, penny stocks holders may not be able to liquidate their position due to the lack of buyers. This is another reason penny stocks are not appropriate investments for most investors;
The securities industry regulations require brokerage firms to adequately supervise their employees. Once it has been determined that a broker has mishandled a customer’s account, the next question an experienced securities litigation attorney asks is “Was the broker properly supervised?” Failure to supervise is a separate rule violation from whatever misdeed the broker directly handling the customer’s account may have committed. Lubiner, Schmidt & Palumbo attorneys know how to prove both the underlying offense of the broker and also determine if the firm is separately liable for failing to supervise its misbehaving broker. The experienced securities fraud attorneys at Lubiner, Schmidt & Palumbo are familiar with the inner workings of brokerage firms and know how to build a case in support of a failure to supervise claim.
If a Westfield investor believes her financial advisor has mishandled her brokerage accounts and/or retirement funds, she needs to consult with the experienced securities litigation attorneys at Lubiner, Schmidt & Palumbo. Contact us now for a free consultation.