Tag Archives: finra arbitration attorney

Paulson Hedge Fund Losses May Be Recoverable

Rex Securities Law is investigating the potential for investors to recover losses suffered by investors in the Paulson & Co. Advantage and Advantage Plus hedge funds. These funds suffered significant losses in 2011 and 2012. Recent press reports indicate the Paulson Gold Fund lost 18% last month and is down 26% for the year.

The Paulson Funds were sold by many of the major brokerage firms, including Merrill Lynch, UBS Financial, Citigroup  and Morgan Stanley. The major broker dealers used feeder funds to direct investors funds into the Paulson Advantage and Advantage Plus funds. The feeder funds utilized had various names, including:

  • CAIS Paulson
  • Morgan Stanley HedgePremier Paulson
  • LionHedge Paulson
  • UBS Paulson Advantage
  • Paulson Advantage Access

Hedge funds are generally suitable only for investors who investment objectives include speculation and are considered to be high risk. They are not generally considered to be suitable for most retired persons.

Most of the major firms had their investors pull out from the funds, but only after the funds had already dropped dramatically in value.

If you suffered significant losses in any of the Paulson hedge funds purchased from a major broker dealer and did not have speculation and high risk tolerance as your objectives, you may be able to recover all or a part of those losses through FINRA arbitration.

Rex Securities Law , located in Boca Raton, FL, provides representation to  investors  nationwide who are seeking recovery of investment losses due to the negligence or fraud of stockbrokers and broker dealers. If you have questions about how your account has been handled, call to speak with an experienced securities attorney. Most cases handled on a contingent fee basis meaning that you do not pay legal fees unless we are successful.

Rex Securities Law

561 391 1900

Elder Abuse Can Include Financial Abuse of Your Investment Account

Elder abuse is often defined as a single of repeated act, or lack of appropriate action, occurring in any relationship where there is an expectation of trust, which causes harm or distress to an older person. It is also referred to as:

  • elder mistreatment
  • senior abuse
  • abuse in later life
  • abuse of older adults

The types of abuse include physical , psychological and emotional, sexual, neglect and abandonment. Victims of any of these types of abuse should consider contacting the Adult Protective Services office in the city or county where you reside.

Elder abuse can also involve financial abuse or financial exploitation, for example the illegal or unauthorized use of a person’s money or valuables. It can also include being deceived and or coerced  by a financial advisor or stockbroker.

The basis of all forms of Elder Abuse stems from the expectation of trust the older person has for the abuser. In the case of nursing home Elder Abuse, it is the trust the older person places in the nursing home staff. In cases involving financial Elder Abuse, it is the trust the older person places in their trusted adviser or stock broker.

While the overwhelming majority of financial advisers and stockbrokers are honest and do their very best to take care of their clients, we can tell you from experience that there exists a small percentage who will take advantage of the elderly by trading their account in a manner that benefits the broker/advisor, and his firm at the expense of the trusting elderly account holder.

This abuse can range from over-trading the account or selling high risk high commission products like REITs, private placements and limited partnerships, to outright theft .

AARP  suggests you think twice if you hear words like this from your broker:

•    “Your profit is guaranteed.”
•    “It’s an amazingly high rate of return.”
•    “There’s no risk.”
•    “You can get in on the ground floor.”
•    “This offer is only available today.”
•    “It’s a secret investment tip just for you.”
•    “I’ll get you the paperwork later.”
•    “Just make your check out to me.”

If you believe you are the victim of elder financial abuse, you need to consult with an attorney experienced in pursuing losses from stockbrokers and brokerage firms. It is likely that you may be able to recover all or a part of your losses through FINRA arbitration.

We have been helping investors recover stock market losses for 25 years. No charge for initial consultation.

Rex Securities Law , located in Boca Raton, FL, provides representation to  investors  nationwide who are seeking recovery of investment losses due to the negligence or fraud of stockbrokers and broker dealers. If you have questions about how your account has been handled, call to speak with an experienced securities attorney. Most cases handled on a contingent fee basis meaning that you do not pay legal fees unless we are successful.

Rex Securities Law

561 391 1900

Oil & Gas Investment Losses May Be Recoverable

Investors who have losses on Oil & Gas investments may be able to recover losses through FINRA arbitration. Many investors were sold products that were not suitable for them due to the high risk associated with many of these products that generally pay a higher commission than most other products.

Here is a listing of some companies who offered Oil & Gas investments  to retail customers through various brokerage firms over  recent years.

Adageo Energy
Alliance Petroleum Corporation
Alpha Energy
Atlas Resources
Aztec Oil & Gas
Bradford Energy
Black Diamond Energy
Catalyst Energy
Mewbourne Energy
Noble Royalties
Penneco Drilling
Reef Oil & Gas
Ridgewood Energy
Sandridge Energy
Texas Energy
U.S. Energy
Waveland Capital Partners

Brokers have a duty to make recommendations that are suitable. Many oil and gas investments are risky and unsuitable for the elderly and retired. If you have losses on oil & gas investments you may be able to recover all or a part of your losses through FINRA arbitration.

Rex Securities Law , with offices in Boca Raton, FL,  and  Austin, TX,   provides representation to  investors  nationwide who are seeking recovery of investment losses due to the negligence or fraud of stockbrokers and broker dealers. If you have questions about how your account has been handled, call to speak with an experienced securities attorney.

Most cases handled on a contingent fee basis meaning that you do not pay legal fees unless we are successful.

Nationwide Representation

Rex Securities Law

TollFree: 877-224-3199

Florida-561 391 1900 

Texas-512-329-2870

FINRA Fines ING Companies For Supervisory Issues

FINRA announced February 19 , 2013, that it has fined five ING affiliates $1.2M for failing to review emails for periods ranging from two months to six years. The five affiliates are:

  • Directed Services, LLC
  • ING American Equities, Inc.
  • ING Financial Advisers, LLC
  • ING Financial Partners, Inc.
  • ING Investment Advisors, LLC

The FINRA press release which can be accessed here said:

“In addition, four of the firms failed to review millions of emails that
the firms’ email review software had flagged for supervisory review. At
various times between January 2005 and May 2011, nearly six million
emails flagged for review went unreviewed by supervisory principals
because the email review software was not properly configured.”

These emails could have been flagged for review are likely related to supervisory issues and/or customer complaints and the failure to review them could have resulted in no action being taken where it is clear that supervision was needed.

If you have questions about losses in your brokerage account, do not hesitate to contact us for a no charge consultation.

Rex Securities Law , located in Boca Raton, FL, provides representation to  investors  nationwide who are seeking recovery of investment losses due to the negligence or fraud of stockbrokers and broker dealers. If you have questions about how your account has been handled, call to speak with an experienced securities attorney. Most cases handled on a contingent fee basis meaning that you do not pay legal fees unless we are successful.

Rex Securities Law

561 391 1900

Reef Oil & Gas Investment Subject of FINRA Claim

Rex Securities Law filed a FINRA arbitration claim on behalf of an elderly widow who was sold a number of unsuitable and risky limited partnerships and non exchange traded real estate investment trusts (REITs).

One of the limited partnerships is Reef Oil & Gas Income and Development Fund III LP.  According to the offering documents, this investment ,which went to the market in late 2007, was to be sold only to “accredited investors”. The offering was closed in 2008 with nearly $90 million raised. Units were $100,000 each with a minimum purchase of 1/4 unit ($25,000) .

The SEC defines an accredited investor to include a person with a net worth , not counting the value of the primary residence, of $1 million or more or a person within income exceeding $200,000 in each of the two most recent years or joint income of over $300,000 a year. In addition, there must be a reasonable expectation of the same income in the current year.

In order to make sales, brokers are tempted to stretch the rules and as in this case, exaggerate income, net worth or both in order to get the sale approved. Limited partnerships and other alternative investments tend to have much higher commissions than conventional investments, hence the temptation.

Reef Oil and Gas sold a number of other investments in the oil patch, including these:

  • Reef 2007-2009 Drilling Program
  • Reef 2010 Drilling Fund
  • Reef 2012-2013 Drilling Fund
  • Reef 2011 Private Drilling Fund
  • Reef 2012-A Private Drilling Fund
  • Reef Global Energy I through IX
  • Reef Income Funds, various years

Brokers have a duty to make suitable recommendations. If you were sold an investment and were not apprised of its risks or did not fully understand it, you may be able to recover damages. Likewise if the investment was only qualified for sale to accredited investors and you don’t meet the financial criteria, you may have a claim for damages.

Rex Securities Law , located in Boca Raton, FL, provides representation to  investors  nationwide who are seeking recovery of investment losses due to the negligence or fraud of stockbrokers and broker dealers. If you have questions about how your account has been handled, call to speak with an experienced securities attorney. Most cases handled on a contingent fee basis meaning that you do not pay legal fees unless we are successful.

Rex Securities Law

561 391 1900