Easterly ROCMuni Fund Investor in Paducah, KY Sues Stifel For Up TO $500K
Too Risky Junk Bond Fund Investment Leads To Serious Losses For This Claimant
Shepherd Smith Edwards and Kantas High Income Fund Loss Attorneys (investorlawyers.com) have filed another six-figure FINRA lawsuit against Stifel, Nicolaus & Co. on behalf of a Paducah investor who also worked with Kentucky broker Adam Michael Chustz. The Claimant sustained losses in the Easterly ROCMuni High Income Fund (RMJAX, RMHIX, and RMVHX). He is seeking up to $500,000 in damages from the broker-dealer.
Our client’s case revolves around what appears to be the outrageous decision of his Stifel broker to concentrate his account with this speculative fund that has since lost more than half of its value in a few days. This unsuitable investment strategy resulted in significant portfolio losses for someone who wanted only “Moderate Growth” investments.
Stifel liquidated this Paducah, KY investor’s investment in the Easterly ROCMuni Fund (formerly called the Principal Street High Income Fund) before its full collapse, but that did not save the Claimant from losing a significant percentage of his money in what appears to have been misrepresented as a municipal fund but is, in actuality, more of a junk bond fund. Given that the market was doing well at the time, this was an unnecessary loss.
In his Easterly ROCMuni High Income Fund fraud lawsuit, our client is alleging unsuitable recommendations, misrepresentations and omissions, the willful withholding of information, breach of fiduciary duty, and other wrongs. While he was not a novice investor, he relied on Stifel and its financial advisor to properly invest his money. He paid regular advisory fees for a fiduciary relationship with financial professionals who should have been taking care of his assets.
Easterly ROCMuni Fund Losses Many Millions of Dollars
The Easterly ROCMuni Fund purportedly invested at least 80% of its net assets in tax-exempt debt securities, as well as illiquid bonds from private projects that had little to no financial history to support issuance. Most of those securities are rated below investment grade.
During the June 2025 fire sale, its share price plunged to under $3.00, even as it lost more than 50% of its value. Roughly holding $300M in assets in October 2024, as of the end of June, the Easterly Fund now has less than $25M. There was a corresponding mass exodus by investors.
Our client claims that at no time did Stifel broker Adam Chustz express any concern about the Easterly ROCMuni Fund, even on June 13, which was the day of its big drop. When the financial advisor eventually acknowledged that a significant portfolio loss had occurred, according to this investor, not many details were provided. We are representing other clients of Chustz over their losses in the Easterly Fund.
Contact Our Easterly ROCMuni Fund High Income Fund Loss Attorneys
Shepherd Smith Edwards and Kantas High Income Fund Loss Attorneys are representing investors who suffered Easterly ROCMuni Fund losses after working with Stifel, Nicolaus, & Co. and other brokerage firms. In Kentucky, call our local office at (866) 931-7628. You can also reach us at (800) 259-9010 nationwide or contact us online.