Investment fraud lawyers are currently investigating claims on behalf of investors who suffered significant losses as a result of their investment in Winex Investments LLC. Winex Investments is a foreign currency investment. In many cases, broker-dealers may have improperly recommended Winex Investments to their clients. Furthermore, securities arbitration lawyers believe some broker-dealers misrepresented the risks associated with Winex.
Recent anxiety about the devaluation of the dollar and rising U.S. government debt has made some investors turn to foreign currency investing. However, because this type of investment is relatively unknown to many investors, it is essential that the risks are adequately disclosed before any decisions are made. Trading in foreign currency involves the purchasing of debt of foreign countries. Exchange-traded funds, or ETFs, can either buy options and future contracts or purchase the currencies directly.
Prior to recommending an investment to a client, brokers and firms are required to perform the necessary due diligence to establish whether the investment is suitable for the client, given their age, investment objectives and risk tolerance. Financial Industry Regulatory Authority rules have established that firms have an obligation to fully disclose all the risks of a given investment when making recommendations. Furthermore, brokerage firms must, before approving an investment’s sale to a customer, conduct a reasonable investigation of the securities and issuer.
Based on the information that is now known about Winex, investment fraud lawyers believe that many of the brokerage firms that sold this investment failed to accurately assess the risks involved with the investment. Without an accurate risk assessment, firms cannot adequately communicate investments’ risks to investors and, as a result, investors cannot make informed financial decisions. Furthermore, many brokerage firms allegedly sold the Winex investment to clients for which it was unsuitable, a clear violation of the suitability standard upheld by the securities industry.
If you suffered significant losses as a result of your investment in Winex Investments LLC, or another foreign currency investment, you may have a valid securities arbitration claim. To find out more about your legal rights and options, contact a securities arbitration lawyer at The Law Office of Christopher J. Gray at (866) 966-9598 for a no-cost, confidential consultation.