Paducah, KY Couple Files Easterly ROCMuni High Income Fund Loss Lawsuit Against Stifel, Nicolaus & Co. Claimants Are Suing For Up To $500,000 In Damages
Our Kentucky securities law firm of Shepherd Smith Edwards and Kantas (investorlawyers.com) is representing two more Paducah, KY investors against Stifel, Nicolaus.& Co. over losses involving the Easterly ROCMuni High Income Fund (RMJAX, RMHIX, and RMVHX). The Claimants are a senior couple and inexperienced investors. Both of them are on disability. They entrusted their life savings to their Stifel broker, Adam Michael Chustz.
They contend that Stifel made the outrageous decision to concentrate their account with the Easterly ROCMuni fund. This is a speculative, illiquid, high-risk junk bond that lost more than half of its value over three days in June. Many millions of dollars were lost. Its stock price is now below $3.00/share.
Even though the Respondent liquidated the Claimants’ money in the fund before the total collapse, that did not save them from losing 30% percent of their investment. This was during a time when the market was doing well.
The investors allege that they were misled to believe this was a simple fund involving bonds from municipalities. In fact, a lot of the bonds in the Easterly Fund were either junk-rated or unrated, which makes it more of a junk bond fund than a municipal fund.
At no time were our clients notified that their Stifel financial advisor was worried about their investment in the Easterly Fund, and he was pulling them out. The investors say that Stifel proposed a plan to recoup their losses. But, because it involved trading in options in their account, they declined this too high-risk strategy.
In their Easterly ROCMuni fund loss lawsuit, our clients are alleging misrepresentations and omissions, unsuitable recommendations, breach of fiduciary duty, and other broker misconduct. They are requesting up to $500,000 in damages.
Stifel financial advisor Adam Chustz is based in Paducah, KY. He has worked in the brokerage industry for 25 years.
Representing Easterly ROCMuni Fraud Law Firm Investors in Kentucky and Throughout The US
The Shepherd Smith Edwards and Kantas Kentucky Securities Law Firm is continuing to file broker fraud claims against Stifel over investor losses in the Easterly Fund. We are also investigating other brokerage firms, including Osaic and Janney Montgomery Scott, over their possible sale of this junk bond to customers.
Many of the Kentucky investors who are suing Stifel are from Paducah. We are continuing to speak with investors all over the state and throughout the US. We are seasoned, trusted securities lawyers who have helped thousands of investors to recoup losses caused by broker fraud.
Contact our Kentucky Securities Law Firm at (866) 931-7628 or nationally at (800) 259-9010. You can also reach out to us online to request a free consultation.