Broker Misconduct Attorneys

When You Suspect Your Alternative Investment Losses May Be Due To Broker-Dealer Negligence

Explore Your Legal Options With Seasoned Broker Misconduct Attorneys

More often these days, financial advisors are marketing and selling alternative investments to all kinds of investors, including retail customers and retirees. Once only sold to high-net-worth individual investors, even less sophisticated investors without as many dollars in their accounts have been wanting to get involved. One of the biggest draws is the chance to make greater returns than with traditional investments, as well as increased portfolio diversification.

As for broker-dealers, a big attraction for selling alternative investments to customers is that they usually are paid higher commissions for them than they would receive for less risky, conservative investments—in addition to the other fees and costs that they may charge customers.

However, for many investors, the high risk of loss when buying into alternative investments can prove too much. Not only can alternative investments be very illiquid, some of them may also be highly leveraged, volatile, or speculative. Compound such risks with broker negligence or misconduct and this may lead to catastrophic financial consequences for investors.

For over 30 years, Shepherd Smith Edwards and Kantas Broker Misconduct Attorneys Broker Misconduct Attorneys have been representing alternative investment investors, from conservative retirees to novice investors to wealthy investors to institutional investors, in recouping the losses they sustained because their financial advisor made an unsuitable investment recommendation, overconcentrated their account, or made misrepresentations and omissions about the risks. If you suspect your portfolio losses may have been due, even in part, to stockbroker negligence, contact us today. This holds true even when a regulator has filed an action against your broker-dealer.

Hightower Securities Penalized Over $353K Related to GPB Private Placement and LJM Mutual Fund Sales 

In June 2023, the Financial Industry Regulatory Authority (FINRA) ordered Hightower Securities to pay $353,200 for allegedly violating industry rules when selling GPB Capital Holdings private placements and the LJM Preservation & Growth Fund, which is an alternative mutual fund. GPB is now accused of running an alleged $1.8B Ponzi scam and the LJM Fund, which employed a high-risk strategy that in part depended on buying on covered options, bet against volatility by “shorting volatility” and lost as did its investors. The Fund is now closed and was liquidated.

Now, FINRA is accusing Hightower Securities of not telling GPB investors that the alternative investment firm had neglected to file audited financial statements with the US Securities and Exchange Commission (SEC). It contends that the broker-dealer failed to properly supervise certain registered representatives’ sales of the LJM fund. Some of the penalties Hightower has been ordered to pay is restitution to customers that were harmed.

Why You Should Consult With Savvy Broker Misconduct Attorneys

While it is a positive action for investors when securities regulators hold broker-dealers accountable, it is important that you explore your legal options with a knowledgeable broker-fraud lawyer. Often, filing your own FINRA lawsuit can maximize your chances for a full recovery. And if you don’t have grounds for suing your financial advisor, an experienced stockbroker negligence law firm can also let you know this.

Should we agree to work together, not only can Shepherd Smith Edwards, and Kantas prepare and submit your investor loss claim for you, but also we will provide you with solid representation before the panel of arbitrators while protecting your legal rights. With over a century’s worth of combined experience in securities law and the securities industry, our securities lawyers have represented investors against even the largest Wall Street Firms. More than 90% of our clients have gotten back all or part of their losses with our help.

This is not the first time that Hightower Securities has been accused of broker misconduct. Broker-dealers have a duty to properly supervise their registered representatives, including making sure they are well-informed on the investment products they are selling to customers and that they abide by all securities regulations.

How Can You Contact Our Trusted Broker Misconduct Attorneys? 

Call (800) 259-9010 today.