Financial Product Failures Leading to Investment Losses

The team of investment attorneys at Shepherd Smith Edwards and Kantas represents investors throughout the United States. Specializing in investors who have suffered financial losses. On account of brokers or investment advisors that marketed and sold failed financial products. Commonly, unsuitable for investors' portfolios, investing goals, or risk tolerance levels.

A financial or investment product failed in several cases because it was part of a Ponzi scam. In other cases, the broker, or the dealer did not perform due diligence to ensure the investment was legitimate.

Whatever the reason, if your investment has plunged drastically in value and is a fraudulent product or a poorly constructed financial product. You may have grounds for a Financial Industry Regulatory Authority (FINRA) arbitration case against your stockbroker or firm to recover your losses and other damages.

Over the last 30 years, our seasoned stockbroker and investment attorneys have represented thousands of investors. Our securities lawyers have recovered millions of dollars on our clients’ behalf. Despite your financial advisor claiming market volatility or adverse events, such as COVID-19, are to blame for your investment failure. You still may be able to hold them accountable for the harm that you have suffered.

Contact our team of investment attorneys online or call (800) 259-9010 for your free, no-obligation case consultation.

• Collateralized Loan Obligations (CLOs) and CLO Closed-End Funds
• Credit Default Swaps (CDS)
• Derivative Securities (Derivatives), Mortgage-Backed Securities (MBS) and Collateralized Mortgage Obligations (CMOs)
• Exchange-Traded Funds (ETFs)
• Frontier Communications from FMSbonds
• FS KKR Capital Corp. II
• GPB Capital Holdings Private Placement Funds
• GWG Holdings L Bonds
• Harvest Volatility Management CYES and Other Strategies
• UBS Yield Enhancement Strategy
• High Yield “Junk” Bonds and Funds
• Master Limited Partnerships (MLPs)
• Non-Traded or Privately Traded REITs
• Northstar Financial Services (Bermuda) Ltd
• Northstar Healthcare Income Real Estate Investment Trust (REIT)
• Sierra Income
• Steepener Structured Notes
• Structured Certificates of Deposits (Structured CDs)
• UWT or VelocityShares 3x Long Crude Oil ETN
• Titan Securities
• Vida Longevity Fund, LP

Wall Street creates products with the primary goal of generating fees for themselves. They then use their sales force to market these products to an unwitting public. Often, the investment advisor has no idea how risky and conflicted these products are, while zealously marketing them.

Sometimes these products are solely bad investments. In other cases, the stockbroker or investment advisor overconcentrates clients on proprietary products that pay handsome fees and commissions. Although, it is understood that financial products generally have some risk involved, thus it is beneficial to consult a securities lawyer.

Often, the stakes are downplayed to the consumer to make the sale. Conservative and inexperienced investors are more likely to suffer huge losses in comparison to sophisticated investors. Especially when high-risk or illiquid securities fail. Contrary to that, high net wealth individual investors and institutional investors are not always immune to being misled and suffering huge losses. That is why it is important that you work with an investment attorney or a broker who knows what they are doing. An experienced securities lawyer would not overconcentrate on your portfolio, or hyper-fixate on one investment and investment strategy that is too aggressive for you.

Yet, how exactly can you know, as an investor, whether or not the securities you invested in are beginning to fail? These are some of the signs that you should be aware of:

• Your broker or investment advisor sets a new benchmark because an investment that you purchased did not perform as promised.
• Withdrawals and redemptions from a particular investment begin to take longer than usual or were suspended completely, making it impossible to access your funds.
• The company that issued the investment stops sending you financial statements or continues to delay disclosing its quarterly financial results.
• Your portfolio takes a massive hit because your investment advisor or broker heavily invested your account in highly volatile or high-risk financial products.

Often, a stockbroker or investment advisor’s negligent or reckless actions can cause your portfolio to fail. Churning, unsuitability, selling away, and broker misconduct are just common reasons investors lose money.

However, financial products have led to massive investor losses over the past decade. Furthermore, brokerage firms have been guilty of inadequate supervision due to their agents because of pushing the broker to sell these products. Such actions can be fraudulent or, at the very least, negligent. Generally, these firms can be held liable if losses occur.

Our team of experienced investment attorneys, securities lawyers, and consultants has over 100 years of combined legal experience. Specializing in securities law and the securities industry. We have successfully fought for investors in arbitration, litigation, and mediation.

Contact seasoned investment attorneys at the SSEK Law Firm today and request your free, no-obligation case assessment.