investment fraud lawyers

Published on: April 4, 2012

Victims of LPL Financial Advisor Could Recover Losses

Victims of Elliot Kravitz, an LPL Financial Corp. independent client investment representative, are seeking the help of investment fraud lawyers in recovering their losses. Kravitz pleaded guilty recently to one count of wire fraud, according to the Cincinnati Business Courier. The wire fraud was in connection with an investment scheme. In this scheme, nine of Kravitz’ customers were defrauded out of over $2 million.

Victims of LPL Financial Advisor Could Recover Losses

Kravitz sold securities through LPL Financial Corp., which was formerly Waterstone Financial Corp., according to the plea agreement. In accordance with Kravitz’ recommendation, a client pulled money out of the stock market in order to invest in a REIT, or real estate investment trust, in July 2007. In order to gain permission to move the money, Kravitz had the client sign a distribution form. However, Kravitz placed the money in an account under his control instead of investing it in the REIT. Kravitz then made 12 additional withdrawals from the client’s account, totaling $713,765. The client then received a year-end account portfolio statement from Kravitz that listed the fake REIT. Allegedly, Kravitz diverted funds from eight other clients as well, amounting to approximately $1.12 million, for personal use.

According to securities arbitration lawyers, a firm may still be held responsible for investment losses if it can be proved that they were negligent in the supervision of their brokers, even if the broker or advisor was conducting business without their knowledge. Therefore, victims of Kravitz’ fraud may be able to recover losses with the help of an investment fraud lawyer, through securities arbitration against LPL Financial.

Published on: April 2, 2012

Investors Could Recover American Investment Exchange Losses

by InvestorLawyers

Investment fraud lawyers are currently representing individuals who suffered losses as a result of their investments in an American Investment Exchange TIC or other real estate co-ownerships investments. In many cases, brokers improperly recommended the purchase of tenant in common investments that were too risky for the investor’s portfolio and/or investment objectives. American Investment Exchange TICs are among these risky investments.

Investors Could Recover American Investment Exchange Losses

TICs, or tenancies-in-common, are investments in which multiple investors are sold a property. These investors are then co-owners of the property, and receive fractional interests in said property. The investors then enjoy their own share of the net income and expenses, proceeds of sale and appreciation of the property.

Because of the high commission paid by co-ownership real estate investments and TICs, stockbrokers often make improper recommendations in order to earn the commission, which is often as high as 10 percent. If this fraud has occurred, a securities arbitration lawyer can help investors recover their losses through Financial Industry Regulatory Authority securities arbitration.

Published on: March 30, 2012

Victims of Former LPL Financial Representative, Arthur Lin, Could Recover Losses

by InvestorLawyers

Securities arbitration lawyers are currently consulting with investors who suffered losses because of their association with Arthur Lin. A former LPL Financial representative, Lin has been accused of selling “…$5,360,000 in unregistered promissory notes issued by Malarz Equity Investments LLC to at least 20 investors, including 15 LPL customers,” according to Securities and Exchange Commission documents. Lin was registered with the Financial Industry Regulatory Authority (FINRA) member firm LPL Financial; investors who suffered losses during the time he was registered may be able to recover their losses through FINRA arbitration.

Victims of Former LPL Financial Representative, Arthur Lin, Could Recover Losses

According to the SEC, Lin was permanently enjoined from future violations of federal securities law on January 25, 2012. Between September 2006 and December 2008, Lin allegedly sold unregistered promissory notes to LPL Financial clients. Some fraudulent promissory notes should be registered with applicable regulatory bodies but, instead, bypass registration. Unregistered promissory notes that should have been registered are in violation of federal securities laws and victims of this fraud may be able to recover losses through securities arbitration.

Furthermore, according to the complaint, “Lin knowingly or recklessly made material misrepresentations or omitted to state material facts to investors regarding the risks of the investments and the use of investor funds,” according to the SEC.

Published on: March 28, 2012

Ziegler Healthcare Real Estate Fund Investors Could Recover Losses

by InvestorLawyers

Investment fraud lawyers are investigating possible Financial Industry Regulatory Authority (FINRA) claims against broker-dealers who improperly recommended the purchase of Ziegler Healthcare Real Estate Funds (ZHREF). ZHREF is one of many risky private equity funds that have been improperly recommended and could result in loss recovery through securities arbitration.

Ziegler Healthcare Real Estate Fund Investors Could Recover Losses

A series of four private equity funds, ZHREF are investments designed to take part in the development and ownership of medical office buildings and other medical facilities. ZHREF I was formed in May 2005, and is fully invested. Its portfolio includes 8 buildings, totaling 221,000 square feet and approximately $54 million. ZHREF II was formed in March 2006, and is fully invested. Its portfolio includes 8 buildings, totaling 340,000 square feet and approximately $76 million. ZHREF III was formed in June 2007, and is fully invested. Its portfolio includes 6 buildings, totaling 133,000 square feet and approximately $34 million. ZHREF IV’s portfolio currently contains two properties. In total, these funds are comprised of 23 properties across 12 states.

A recent investor alert from FINRA addresses how alternative investments such as private equity funds are marketed and sold. Securities fraud attorneys warn investors that brokers often market these investments to clients as safe, despite the risks of private equity funds. Individuals with a conservative portfolio or low risk tolerance may have received unsuitable recommendations from their broker to invest in ZHREF. Individuals who suffered losses as a result of an unsuitable investment may be able to recover losses through securities arbitration.

Published on: March 26, 2012

Shareholders of First Solar Could Recover Losses

by InvestorLawyers

Securities fraud attorneys are investigating possible claims for shareholders of First Solar. First Solar shareholders may have sustained significant investment losses as a result of overconcentration in First Solar stock shares. In July 2008, First Solar shares traded at more than $300 each. However, after a significant decline, First Solar is now trading at around $30 per share. Of course, this roughly 90 percent decline has resulted in significant losses for many shareholders.

Shareholders of First Solar Could Recover Losses

Investment fraud lawyers have long been aware that holding concentrated positions in a single sector or security can result in significant investment losses for high net worth and ultra-high net worth investors. In some cases, client portfolios have been mismanaged and risk management strategies could have protected the investor’s concentrated portfolio. These risk management strategies include protective puts and collars, stop loss and limit orders. These strategies provide accounts with an exit strategy and downside protection in the event that the stock suffers a decline in value, such as what has happened with First Solar. A “zero cost” collar is one example of a hedge strategy. This collar creates a value range maintained by the portfolio, despite the fluctuating of the price of the underlying stock.

A failure to hedge, or to utilize risk management strategies, exposes investors who hold concentrated stock positions to dangerous fluctuations in securities markets. Furthermore, if you are not a high net worth investor, but were recommended an investment only suitable to said investors, your broker made this recommendation unsuitably and you may have a valid securities arbitration claim.

Published on: March 23, 2012

News: FINRA Fines, Enforcement Actions Up in 2011

by InvestorLawyers

According to a new study, in 2011 the Financial Industry Regulatory Authority’s (FINRA) enforcement actions and fines were significantly higher than in 2010. Enforcement actions rose from $45 million in 2010 to $68 million in 2011. Of that $68 million, the largest portion was for improper advertising penalties. Furthermore, the FINRA sanctions survey stated that 1,488 disciplinary actions were filed and 329 brokers were barred by FINRA in 2011 for broker misconduct. Both of these figures saw a rise from 2010.

News: FINRA Fines and Enforcement Actions Up in 2011

A common claim made by securities fraud attorneys for investors occurs when an unsuitable recommendation is made by their broker or financial adviser. Fines for suitability violations more than doubled in 2011, as did the number of cases filed. There were 106 suitability cases filed, with fines amounting to $7.7 million in 2011, compared to 53 cases and $3.75 million in fines in 2010. These fines do not include arbitration awards to investors for losses as a result of suitability violations.

FINRA hopes the new suitability rule will keep pressure on brokers to only offer investments that are in keeping with individual investors’ investment needs, risk appetite and timeline. The new suitability rule is scheduled to be finalized in the summer of 2012. According to Brian Rubin, the former deputy chief counsel of FINRA’s predecessor, the National Association of Securities Dealers, “We anticipate this will continue to be a hot area for FINRA. The new rule gives FINRA additional ammunition.”

Published on: March 21, 2012

Investors of Guggenheim Shipping ETF Could Recover Losses Through Securities Arbitration

by InvestorLawyers

Investors who suffered losses as a result of their broker’s recommendation of Guggenheim Shipping ETF are seeking the help of investment fraud lawyers in recovering their losses. Guggenheim Shipping ETF is a targeted ETF that tries to track the shipping industry. In general, the shipping industry can be a leveraged play — when there is a strong demand for freight transportation — on the global economy. However, as a result of the decreasing demand for raw materials from emerging markets, the need for shipping services has decreased. Reportedly, the Guggenheim Shipping ETF is down 46 percent, which is bad news for many investors. Luckily, investors who suffered significant losses may have a valid securities arbitration claim.

Investors of Guggenheim Shipping ETF Could Recover Losses Through Securities Arbitration

Brokers, and brokerage firms, have a fiduciary duty to their clients. They must research an investment prior to making a recommendation to an investor, to establish that the investment is suitable. It must be appropriate for each individual investor, taking into consideration the investor’s investment objectives, investment experience, net worth and age. The Financial Industry Regulatory Authority has a dispute resolution form where investors can settle disputes with their brokerage firms relating to unsuitability and other forms of stock broker fraud.

Brokers have been known to sell ETFs and ETNs as conservative ways to track a sector of the market, or the market as a whole. However, complicated trading strategies are necessary to accomplish this, and using these investments to track a sector of the market may or may not be a conservative trading strategy. This depends on the sector of the market and assets in the account relative to the investment’s concentration level.

Published on: March 19, 2012

Investors of Market Vectors Solar Energy ETF Could Recover Losses Through Securities Arbitration

by InvestorLawyers

Because of the attention received by the solar power industry, many brokers and financial advisers recommended the Market Vectors Solar Energy ETF to their clients. However, as a result of budget crises in Europe, subsides that were badly needed to develop solar technology were reduced or eliminated. As a result, technological advancements that would have made solar power economically viable did not materialize as expected. Reportedly, the Market Vectors Solar Energy ETF is down 67 percent, which is bad news for many investors. Luckily, investors who suffered significant losses can consult with a securities fraud attorney to see if they may have a valid securities arbitration claim.

Investors of Market Vectors Solar Energy ETF Could Recover Losses Through Securities Arbitration

Brokers, as well as brokerage firms, have a fiduciary duty to their clients. They must research an investment prior to making a recommendation to an investor in order to establish that the investment is suitable. It must be appropriate for each individual investor, taking into consideration the investor’s investment objectives, investment experience, net worth and age. The Financial Industry Regulatory Authority has a dispute resolution form where investors and their investment fraud lawyers can settle disputes with their brokerage firms relating to unsuitability and other forms of stock broker fraud.

Brokers have been known to sell ETFs and ETNs as conservative ways to track a sector of the market or the market as a whole. However, complicated trading strategies are necessary to accomplish this, and using these investments to track a sector of the market may or may not be a conservative trading strategy. This depends on the sector of the market and assets in the account relative to the investment’s concentration level.