The securities litigation and regulatory law firm of Lubiner, Schmidt & Palumbo is ready to assist any Wyckoff investors in need of legal assistance because of investment losses. If a financial advisor for a Wyckoff investor has engaged in securities fraud or has acted negligently in the handling of an investment account, resulting in financial losses, that Wyckoff investor can rely on Lubiner, Schmidt & Palumbo to vigorously protect her rights. The securities group at the firm has handled securities matters in courts in New York and New Jersey for over 30 years. During that time, the securities litigation and regulatory attorneys at the firm have also appeared hundreds of securities arbitrations administered by FINRA, the securities industry regulatory authority. The firm’s securities lawyers know how financial firms operate, the laws Cervino was also barred from the securities industry by the Securities Exchange Commission. And Wyckoff investors need to be vigilant. Only recently a broker from nearby Franklin Lakes was sentenced to one year in jail by a federal judge for securities fraud. A jury convicted Christopher Cervino in March 2017 of conspiracy, wire fraud and securities fraud for his part in an illegal investment scheme involving penny stocks. The government alleged that investors lost millions of dollars due to Cervino and others. The Securities Exchange Commission also barred Cervino from the securities industry.
If a Wyckoff investor has been mistreated by a financial advisor, the securities fraud attorneys at Lubiner, Schmidt & Palumbo can right that wrong.
There are several types of securities fraud that can be perpetrated on unsuspecting Wyckoff investors. For any investment they intend to recommend to a client, brokers are obligated to discuss all material facts regarding the investment. Failure to make full disclosures about the investment would be tantamount to the broker making misrepresentations/omissions to the customer. The failure of a broker to disclose a back end sales charge on a recommended mutual fund would be considered an omission by the broker; if the customer incurs a financial loss because of that omission, the customer can recover her losses. Similarly, if an investment advisor misrepresents the risks inherent in a recommended investment, or misstates the anticipated holding period of a particular product, the customer can recoup any financial damages caused by the misrepresentation.
Financial advisors are required to “know their customer.” They must ascertain the financial background, investment experience, risk tolerance and investment objectives of their clients before recommending investments. If a broker recommends a particular investment to his client without a complete understanding of the client’s financial background and experience, that may lead to an unsuitable trade. The injured client can recover any financial losses resulting from that unsuitable trade.
Wyckoff investors should be cautious if they are considering purchasing one of the many complex investment products that are currently available. Exchange traded funds (“ETFs”) are popular investment vehicles that are structured similar to mutual funds. ETFs consist of an underlying “basket” of securities such as bonds, stocks, etc. They are focused on a specific part of the economy, are priced daily and trade like a stock.
However, customers should be careful when considering the purchase of related but distinct products, leveraged and inverse ETFs. Leveraged ETFs utilize the underlying bundle of securities as collateral to acquire additional securities. This does present a client with the opportunity for increased profits; but, at the same time, can lead to increased risk if the market moves against the client’s leveraged ETF.
Inverse ETFs use derivative products so that the inverse ETF performs in a direction opposite to the underlying basket of securities. This makes inverse ETFs necessarily complex products that are meant to be held for one day only. These are trading vehicles that may not be suitable for many Wyckoff customers.
A recurring problem in the securities industry involves the abuse of senior citizen investors. Securities industry authorities have passed new rules to combat the abuse of senior investors but instances of elderly investor abuse continue to occur. See here, here, here and here. Elderly investors may have difficulty reading and completely understanding activity reflected on their account statements. Some senior investors may not grasp the risks entailed in investments recommended by their financial advisors. If you are a senior Wyckoff investor, or a friend or relative of one, and are concerned about your brokerage or retirement account, you should contact the experienced securities litigation and regulatory lawyers at Lubiner, Schmidt & Palumbo.
Wyckoff investors who are concerned that their brokerage account has been mishandled can rely upon the securities litigation lawyers at Lubiner, Schmidt & Palumbo. Contact Lubiner, Schmidt & Palumbo for a consultation.