Our Houston Securities Law Firm Is Representing These Investors In FINRA Arbitration
Due to what we believe was a blatant commission grab by Merrill Lynch, Pierce, Fenner & Smith and its broker Philip Wayne Jones, two Texas investors have suffered extreme portfolio losses involving complex structured notes and the purported churning of mutual funds. Now, they are suing the brokerage firm for more than $5,000,000. Shepherd Smith Edwards and Kantas (investorlawyers.com) is representing these claimants in their investment loss recovery claim.
Our clients, a married couple with limited investing experience, entrusted their money to Merrill Lynch and this Houston financial advisor. Philip Jones, who has been with the brokerage firm as a broker and investment adviser for over 30 years, is not a Respondent in this structured product lawsuit.
Despite what at first glance appeared to be the implementation by the broker-dealer of a diversified strategy for managing these investors’ money, what this standard asset allocation appears to have hidden was that the funds were being churned through these complex and expensive structured products. Churning is when a broker excessively trades in a customer’s account for the purpose of making commissions.
Our clients’ portfolio appears to have been concentrated in Market Linked Investments (MLIs), which greatly increased the risk to them and reduced their overall returns. Meanwhile, these investments earned significant commissions of $800,0000 for Merrill and Jones.
The broker-dealer and its registered representative may have made more from these alternative investments than the investors did. Not only that, but allegedly, this Merrill broker kept these customers in fee structures that generated fees and commissions beyond what was well over what is considered appropriate.
The Texas investors are now out of millions of dollars from too- risky structured products and allegedly improper fees and commissions. We believe that if their money had been appropriately invested, they would have, instead, generated millions of dollars in gains.
Our clients are alleging churning, unsuitable recommendations, mutual fund switching, misrepresentations and omissions, Regulation Best Interest violations, the failure by Merrill Lynch to supervise its financial advisor, and more.
Merrill Lynch’s Record of Allegedly Wrongful Structured Note Sales
At the same time that this broker-dealer sold our clients tens of millions of dollars in these complex vehicles, it received sanctions from the Financial Industry Regulatory Authority (FINRA) and the US Securities and Exchange Commission (SEC) for the purported way it sold structured notes to customers. The SEC ordered Merrill to pay a $10M penalty. FINRA ordered the brokerage firm to pay a $5M fine for allegedly negligent disclosures involving five-year senior debt notes to retail customers.
Representing Structured Note Investors That Were The Victims of Broker Misconduct
Shepherd Smith Edwards and Kantas represents investors who have suffered losses in structured products. These are complex investments that are unsuitable for many retail investors and even, at times, for wealthy and experienced investors. We have the knowledge, resources, and manpower to provide you with the kind of securities representation needed to pursue damages, including against the largest brokerage firms in the United States. More than 90% of our clients have secured full or partial financial recovery.
Contact Our Houston Securities Law Firm Today
If you suffered structured note losses while working with Merrill Lynch broker Philip Jones or another financial advisor, call (800) 259-9010 or fill out this online contact form to schedule your free, no obligation case consultation.