by Brian Mahany
The world of investments has become very complex. Gone are the days of investments being limited to stocks, bonds and mutual funds. Increasingly Wall Street rolls out new and complex derivatives – products such as futures contracts, forward contracts, options, swaps, mortgage backed securities and reverse convertible notes. Not only are these securities often very risky, many stockbrokers selling them do not even understand them.
Earlier this year the Financial Industry Regulatory Authority (FINRA) issued warnings about the investments. This week the Securities and Exchange Commission chimed in as well.
The SEC warns that many of these products are too risky for many investors. They found that brokers were steering people into these investments without properly disclosing the risks. In many cases, the investments were unsuitable for the clients to whom they were recommended.
How big is the problem? The SEC says $45 billion of these products were sold to retail investors last year alone.
What does this mean for customers? If you invested in one of these securities and lost money, you may have a claim. Stockbrokers have an obligation to make suitable recommendations to their clients. They also must properly disclose the risks of the investments and not make misleading promises as to rates of return or risk.
If you were misled by a broker, you may be able to recoup your losses.
The stockbroker fraud lawyers at Mahany & Ertl can help you recover your hard earned money. Most cases are handled by arbitration and with no fee to you unless we win. If you were the victim of any type of investment fraud, give us a call. Attorney brian Mahany can be reached at (414) 704-6731 (direct) or by email at
Mahany & Ertl, LLC – America’s Fraud Lawyers. Offices throughout the United States including Milwaukee, Detroit, Portland & San Francisco. Services nationwide.