Investment losses due to wrongful or negligent conduct is a growing field in America because investors who are victims have had enough.
There are certainly valid reasons why investments may lose money, but you should never lose money due to the negligence, incompetence, or malfeasance of another.
At Wayne Wright LLP, we handle a wide variety of investment loss cases and asset management fraud and negligence cases, such as:
Stock Broker Misconduct
Stock broker misconduct includes actions, such as, failure to execute trades, misleading promises, misrepresentations, omissions, unsuitability of products, overconcentration (instead of diversification), churning (or excessive trading), failure to supervise, breach of contract, breach of duty, margin account abuse, registration violations, or unauthorized trading.
Auction Rate Securities Fraud
This latest nationwide investment issue has left thousands of Americans saddled with securities that were sold as being "liquid" but are the securities are not! These were marketed by major brokerage firms as a safe, liquid vehicle for your investment money. Your broker may have even called them "cash equivalents." Now that thousands of consumers are left holding these securities without any method to liquidate them, many people are literally going broke with high bank balances. Threats to these securities should have noticed and investors should have been warned.
Americans work hard and save money to have enough for retirement. In fact, in many cases these retirement funds are a workers’ largest asset. It is unfortunate that some financial advisors prey upon workers and their large cache of money. This type of fraud is wrong, but still exists. How does it happen? Sometimes the broker suggests the selling or rolling over of a 401(k) or union pension into a much riskier investment vehicle. These riskier propositions usually generate higher commissions for the broker and make him or her significantly vested in getting your business—and your money. Oftentimes, this leads to the purchase of variable annuities or stocks and mutual funds which are then overtraded to generate excessive commissions. Many other such investment and retirement scams exist. Contact the lawyers at Wayne Wright LLP to see if the facts of your case are actionable.
Variable annuities are one of the fastest growing investment vehicles sold by brokers. This is largely due to the fact that brokers get very generous commissions for selling variable annuities. Oftentimes, these commissions are as much as 6% of the amount invested in the annuity. This equates to a commission of roughly $30,000.00 for a $500,000.00 annuity. These annuities are marketed a number of ways—sometimes as tax shelters or as safe investments. The AARP has reported on these and called them the "Dine and Dash", where retirees are invited to a free dinner only to become the victims of a sales pitch to purchase annuities without any consideration for the interests of the investors. Investors should be warned about deceptive marketing techniques and decisions made with broker’s best interests in mind instead of yours. Several articles addressing these problems have been written in publications such as Newsweek, The Los Angeles times and The Chicago Tribune.
1031 TIC deals gone bad
If you are in one of these, you know it. Basically, this investment scheme involves a producer who sells investors an undivided piece of real estate to be tenants in common (TIC) with other investors. These investors are typically strangers to each other. The projects are marketed as investments that will have professional management, generate continual cash flow, tax deferral and future appreciation. First of all, if you were sold an interest in such an investment pool by a real estate agent, you have a cause of action against them. This is because interests in real estate held as a TIC with others is considered by federal regulators to be a security. Therefore, these interests can only be sold by licensed securities brokers. But even then, problems can abound. Sometimes problems arise at the sponsor level, and sometimes the problems arise at the securities broker level. Oftentimes, adequate investigations regarding the packages are not performed. Problems generally are external, that is, they rely on the strength of the real estate market. But in almost all cases the broker or sponsor will claim the problems were unforeseen, when in reality they were highly foreseeable. The lawyers at Wayne Wright LLP can assist you in determining whether you have a claim against the brokerage firms and/or sponsors where material facts were not disclosed or not investigated.