{"id":4500,"date":"2007-07-18T22:40:15","date_gmt":"2007-07-18T22:40:15","guid":{"rendered":"https:\/\/www.stockbrokerfraudblog.com\/2007\/07\/wedbush_hit_with_nuns_complain"},"modified":"2021-09-20T15:41:42","modified_gmt":"2021-09-20T20:41:42","slug":"wedbush-hit-with-nuns-complain","status":"publish","type":"post","link":"https:\/\/www.investorlawyers.com\/blog\/wedbush-hit-with-nuns-complain\/","title":{"rendered":"Wedbush Hit with Nun\u2019s Complaint over CMO\u2019s – May Have More Than Brokers in Common with Brookstreet"},"content":{"rendered":"

\t\t\t\tLast month, when Brookstreet Securities suffered a flame-out over high risk mortgage investments, its second in command, also the son of its founder, joined Wedbush Morgan and invited Brookstreet brokers to join him at that firm. Some thought it an odd fit, but the firms may have more in common than earlier believed. <\/p>\n

Recently, a group on nuns, who claim they were led to believe they were making safe investments, apparently had their funds invested by Wedbush into mortgage-backed CMO securities which were just pools of mobile home loans. They soon lost $1 million, according to a complaint filed by The Sisters of St. Joseph of Carondelet in California against Wedbush Morgan in arbitration through the National Association of Securities Dealers. <\/p>\n

Ed Wedbush, president of the firm that handled the nuns’ investments, said in an interview that the losses in this and other cases came on the riskier portions of mortgage investments and were the result of “clients being very aggressive and wanting high yields.” They should have understood, he said, that “high yield is high risk.” (The statement resembles another recently made by Oppenheimer & Company, which claimed an elderly widow “only has herself to blame” for losses in a joint account as her husband lay dying. Oppenheimer was subsequently fined $1 million and ordered to reimburse over a million to the widow by the state of Massachusetts.) <\/p>\n

Continue Reading \u203a<\/a><\/div>\n","protected":false},"excerpt":{"rendered":"

Last month, when Brookstreet Securities suffered a flame-out over high risk mortgage investments, its second in command, also the son of its founder, joined Wedbush Morgan and invited Brookstreet brokers to join him at that firm. Some thought it an odd fit, but the firms may have more in common than earlier believed. Recently, a […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[3832,3753,3838],"tags":[],"class_list":["post-4500","post","type-post","status-publish","format-standard","hentry","category-brookstreet","category-mortgage-backed-securities","category-wedbush-morgan"],"yoast_head":"\nWedbush Hit with Nun\u2019s Complaint over CMO\u2019s - May Have More Than Brokers in Common with Brookstreet — Investor Lawyers Blog — July 18, 2007<\/title>\n<meta name=\"description\" content=\"Last month, when Brookstreet Securities suffered a flame-out over high risk mortgage investments, its second in command, also the son of its founder, — July 18, 2007\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.investorlawyers.com\/blog\/wedbush-hit-with-nuns-complain\/\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:title\" content=\"Wedbush Hit with Nun\u2019s Complaint over CMO\u2019s - 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