Investor Lawyers Blog

Fired Morgan Stanley Brokers May Have Grounds for Wrongful Termination Claims

Published on: December 1, 2020 | by Shepherd Smith Edwards & Kantas, LLP

Morgan Stanley Fires Financial Advisors After Inherited Account Credits Investigation

Morgan Stanley (MS) announced recently that it has terminated a number of financial advisors after a months-long investigation into payments being made to retired Morgan Stanley financial advisors under Morgan Stanley’s own Legacy Account Payments Program.

Morgan Stanley’s “sunset plan” allows brokers who are retiring from the firm to split fees and commissions with brokers who inherit the retiring broker’s accounts.

New York Yankees’ Aroldis Chapman Files $3M Investment Fraud Claim Against Pro Management Resources

Published on: November 30, 2020 | by Shepherd Smith Edwards & Kantas, LLP

Florida-Based Financial Management Company Employee Allegedly Stole Money

Albertín Aroldis Chapman de la Cruz, the star relief pitcher for the New York Yankees, has filed an investment fraud lawsuit against Pro Management Resources and several individuals. The financial management and tax planning company reportedly has also been serving as Chapman’s business manager for almost a decade. Now, the MLB pitcher is accusing the company of stealing $3M.

Shepherd Smith Edwards and Kantas (SSEK Law Firm at investorlawyers.com) represent investors in Florida that have suffered investment losses due to broker and financial fraud or negligence. Contact us at (813) 560-2992 or by using our online contact form so that we can help you explore your legal options.

Frontier Communications to Sell $2.8B of Junk Bonds as Part of Bankruptcy Exit

Published on: November 27, 2020 | by Shepherd Smith Edwards & Kantas, LLP

Investors Who Were Sold Telecommunication Company’s Bonds Grapple with Losses

In its second sale in two months, Frontier Communications Corp. wants to sell $2.8B in junk bonds to help pay for its exit from bankruptcy.

According to sources that spoke with Bloomberg, this includes new $1.8B first-lien bonds at an about 5.25% yield and another $1B of second-lien notes at a 7 – 7.25% yield. The new bonds, along with an increase to an existing term loan, are meant to allow Frontier to pay back debt it owes that will mature in 2024 and 2026.

Spartan Capital Securities Broker Joseph Kelly Is Accused of Making Unsuitable Investment Recommendations

Published on: November 24, 2020 | by Shepherd Smith Edwards & Kantas, LLP

New York Stockbroker is Named in Multiple Customer Disputes

If you suffered substantial losses from investments recommended to you by Spartan Capital Securities broker Joseph Kelly, you may have grounds for filing a Financial Industry Regulatory Authority (FINRA) arbitration claim to recover your losses.

Kelly, who is based in New York, is the subject of three pending customer complaints seeking damages. He has been with Spartan Capital Securities since 2017 and before that from 2013 to 2016. At Shepherd Smith Edwards and Kantas (SSEK Law Firm), our New York securities fraud attorneys would be happy to offer you a free case assessment. Contact us at (716) 261-3529 today.

Royal Alliance, Securities America, & Other Firms To Pay $3M for Allegedly Unsuitable iPath S&P 500 VIX Short–Term Futures ETN & Other ETP Sales

Published on: November 23, 2020 | by Shepherd Smith Edwards & Kantas, LLP

Retail Investors Were Allegedly Told To Hold Exchange-Traded Products for Too Long

In separate settlements reached with the US Securities and Exchange Commission (SEC), Royal Alliance Associates, Securities America Advisors, Summit Financial Group, Benjamin F. Edwards & Co., and American Portfolio Financial Services / American Portfolio Advisers will pay over $3M in penalties and restitution for their allegedly unsuitable sales of exchange-traded products (ETPs) to customers between January 2016 and April 2020. The firms did not deny or admit to the findings.

All of the respondents recommended and sold iPath S&P 500 VIX Short–Term Futures ETNs (VXX), which utilize short-terms futures contracts https://www.investopedia.com/articles/investing/080715/etf-analysis-ipath-sp-500-vix-futures-vxx.aspto try tracking the S&P 500 Index’s implied volatility. It also is considered one of the largest and most volatile ETPs and among the worst-performing from last year.

Hannes Financial Services’ Ronald Hannes Allegedly Defrauded Woodbury Financial Customers

Published on: November 20, 2020 | by Shepherd Smith Edwards & Kantas, LLP

Banned Woodbury Financial Broker Allegedly Sold Fake Investments, Converted Client Monies

Ronald Walter Hannes, a Spokane, Washington-based investment advisor and former Woodbury Financial Services broker, is accused by the Washington State Department of Financial Institutions of defrauding 19 clients of over $2.9M.

Hannes had operated out of Hannes Financial Services and he was also a registered Woodbury Financial Services broker for 25 years until 2019. He has 33 years of experience working in the industry. Hannes was fired by Woodbury Financial Services last December. Financial Industry Regulatory Authority (FINRA) barred him in February.

Not All Resource Real Estate Opportunity REIT Investors May Have Been Apprised of Risks

Published on: November 19, 2020 | by Shepherd Smith Edwards & Kantas, LLP

Resource Real Estate Opportunity REIT and REIT II Shares Reportedly Trading Under NAV Price

With shares in Resource Real Estate Opportunity REIT and Resource Real Estate Opportunity REIT II reportedly trading privately at lower prices than their net asset value (NAV), some investors may be wondering why they were never fully apprised of all the risks.

The news of the lower than NAV trading prices comes several months after both non-traded real estate investment trusts announced they were partially suspending share redemptions amidst their plans to merge with Resource Apartment REIT III, Inc.

Sierra Income Investors are Losing Money

Published on: November 17, 2020 | by Shepherd Smith Edwards & Kantas, LLP

Risky, Illiquid Business Development Company Was Not Suitable for Many Investors

If you are someone who invested in the Sierra Income Corporation, you may have lost money. This business development company (BDC) is a non-traded investment.

Earlier this year, Sierra Income suffered losses after its announced merger with Medley Capital Corp. and Medley Management Inc. was terminated because of the economic uncertainty caused by COVID-19. Not long after that, the company announced that it was suspending monthly distributions.

Global Investment Advisory Services’ Felipe Vargas is Named in Customer’s $1.3M Barclays Bank iPath Series B S & P 500 Short Term Futures ETN Claim

Published on: November 13, 2020 | by Shepherd Smith Edwards & Kantas, LLP

Investor Contends Insigneo Securities Broker Unsuitably Handled Account

A former customer of Felipe Henao Vargas, an Insigneo Securities stockbroker, is pursuing a Financial Industry Regulatory Authority (FINRA) arbitration claim against the brokerage firm for $1.3M in damages related to the iPath Series B S & P 500 Short Term Futures ETN (VXX). Henao is also a registered investment advisor with Global Investor Advisory Services, LLC in Miami, Florida.

The investor said that Henao had placed a short-term trade for 20,000 of the Barclays exchange-traded note (ETN) in late February 2020 in the investor’s account and then made another trade a few weeks later to cover the short. The claimant reportedly wrote an email expressing concerns over the brokerage account’s performance, which had depreciated in value, and Henao’s lack of communication.

Chinese Tycoon Sues UBS for $500M Over Losses Involving Margin Loan

Published on: November 11, 2020 | by Shepherd Smith Edwards & Kantas, LLP

High Net Worth Individual Investor Alleges That UBS Group AG Persuaded Him To Buy On Margin

Guo Wengui, a rich Chinese businessman exiled in New York, has filed a lawsuit against UBS Financial Group after losing $500M.

Wengui contends that the bank pressured him into borrowing funds to invest in shares of Haitong Securities, Co., a brokerage firm in China. This high net worth institutional investor alleges that in 2015, UBS forced the stock’s sale during both a 45% drop in Haitong’s shares, which were traded in Hong Kong and a market route. Guo said that he lost his entire investment.