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Texas Stockbroker Purportedly Earned High Commissions From Illiquid Alternative Investments

If you are an investor who was sold alternative investments by First Allied Securities broker William Fox, you may have grounds for an investor claim. Fox, an Austin, TX-based registered representative, has been accused by at least one customer, who already filed a Financial Industry Reguinveslatory Authority (FINRA) claim, of not performing the proper due diligence before recommending that the claimant invest over $2M in retirement funds in illiquid, poor quality alternative investments. 

This included nontraded real estate investment trusts (nontraded REITs), annuities, private placements, equipment leasing, and oil and gas investments. The sale of these investments to the claimant resulted in Fox earning $140K in commissions and an investment advisory fee. 

Collateralized Loan Obligations Are Losing Value In The Wake Of The Coronavirus 

Investors who have suffered losses from collateralized loan obligations (CLOs) after the outbreak of the novel coronavirus (COVID-19) should contact one of our broker fraud lawyers right away. 

While the pandemic is responsible for much of the volatility impacting the markets, bad advice by your stockbroker and their firm recommending that you invest in this form of security may also have contributed to how your portfolio has been affected. 

ETF Investors Of United States Oil Fund May Not Have Known Full Extent Of Risks

Our investment fraud lawyers are offering free case consultations to investors who’ve lost money in the United States Oil Fund (USO) after it dropped 30%. The exchange-traded security continues to make changes to its structure in an attempt to stave off more losses. Part of this now involves giving itself the leeway to get into long-term contracts. The USO exchange-traded fund (ETF), which keeps track of oil prices, is popular among retail investors. 

Unfortunately, many of these investors think they are betting on oil prices’ long-term rise and do not fully comprehend how the futures market operates or that these types of funds hold primarily short-dated oil futures contracts and should never be held long-term. 

FMSBonds May Not Have Apprised Frontier Communications Investors Of The Risks 

If you purchased Frontier Communications bonds from FMSBonds, also known as First Miami Securities, or any other bonds that have turned out riskier than what was represented to you, please contact our broker fraud lawyers at Shepherd Smith Edwards and Kantas (SSEK Law Firm) today. 

Our investor law firm has been speaking to investors with complaints against the Florida-based municipal bond firm to help them determine whether they have grounds for a securities arbitration claims to recover their losses. 

Advisor Group Suspends Real Estate Investment Product Sales

Another brokerage firm has temporarily stopped selling real estate products due to the Coronavirus (COVID-19) has causing valuation issues. Advisor Group’s decision to suspend the sales of real estate interval funds and NAV real estate investment trusts (NAV REITs) comes soon after another independent brokerage-dealer (IBD), LPL Financial, announced that it was suspending its sales of a number of nontraded REITs and publicly traded property interval funds. 

The temporary cessations are counter to what IBDs did prior to the 2008 economic crisis when they sold a lot of real estate investments that were illiquid. These investments later saw their prices take a nosedive at great cost to investors. 

LPL Blocks Sales of Nontraded Real Estate Investment Trusts and Publicly Traded Property Interval Funds 

This week, LPL Financial (LPLA) announced that it had suspended its sales of several nontraded REITs, as well as a number of publicly traded property interval funds. This is because the novel coronavirus (COVID-19) was placing these investments at a higher risk of losses. 

In an email to InvestmentNews, LPL EVP of Products and Platforms, Rob Pettman, wouldn’t offer the names of the funds but did note that the broker-dealer hoped to offer them to investors again once the markets had calmed.

Market Volatility Forces Arbitrage Funds to Temporarily Close

Reports of arbitrage funds temporarily shuttering in the wake of the impact of the novel coronavirus (COVID-19) on the markets has caused concern for investors. 

At Shepherd Smith Edwards and Kantas (SSEK Law Firm), our investment fraud lawyers are offering free case assessments to help you determine whether you have grounds for an investor claim. We understand the difficulties that US citizens are facing in the wake of COVID-19 and want to assure that we are here to help during this time. 

Structured Notes See Steep Decline During Coronavirus Market Crisis

Just weeks into the financial crisis wrought by the novel Coronavirus (COVID-19), many investors are struggling to deal with the volatile impact of this pandemic not just on the markets but also on their portfolios. 

But what many of them don’t know is that some of these losses might not have been as severe if only their brokers had refrained from making investment recommendations that were unsuitable for them or, at the very least, had properly apprised them of the risks involved. 

Broker Fraud Along With The Coronavirus May Be Causing Investment Losses 

Becoming the victim of securities fraud is a serious matter. With stocks plummeting and the markets fluctuating all over the place in the wake of COVID-19, investors may not realize that it’s not just the economic reverberations of the coronavirus that’s plaguing their portfolio. 

They also may be losing money because their stockbrokers or investment advisor were fraudulent or negligent when handling their investments and placed them in an even more precarious financial situation with more losses than they would now be sustaining otherwise. 

Inverse and Leveraged ETNs and ETFs Are Shuttering

As the novel coronavirus (COVID-19) continues to adversely affect the markets and cause crude oil prices to drop, the number of inverse and leveraged exchange-traded notes (ETNs), exchange-traded funds (ETFs) and exchange-traded products (ETPs) involving crude oil that have been forced to close, delist, or automatically accelerate continues to grow and this has caused more losses for investors.

Right now, our broker fraud lawyers at Shepherd Smith Edwards and Kantas (SSEK Law Firm) are working with leveraged and inverse ETF and ETP investors throughout the US to help them explore their legal options.

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