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18 de marzo de 2023

J.P. Morgan demandada por la presunta mala conducta de Edward Turley: ¡55 millones de dólares!

The Law Offices of Robert Wayne Pearce, P.A. has filed another case against Ex-J.P. Morgan broker Ed Turley for alleged misrepresentations, misleading statements, unsuitable recommendations, and mismanagement of Claimants’ accounts. The Law Offices of Robert Wayne Pearce has filed another case against J.P. Morgan Securities for alleged misrepresentations, misleading statements, unsuitable recommendations, and mismanagement of Claimants’ accounts continuing in fall 2019 and thereafter by Edward Turley (“Turley”), a former “Vice-Chairman” of J.P. Morgan. At the outset, it is important for our readers to know that our clients’ allegations have not yet been proven. IMPORTANT: We are providing information about our clients’ allegations and seeking information from other investors who did business with J.P. Morgan and Mr. Turley and had similar investments, a similar investment strategy, and a similar bad experience to help us win our clients’ case. Please contact us online via our contact form or by giving us a ring at (800) 732-2889. Latest Updates on Ed Turley – November 18, 2022 The Advisor Hub reported today that the former star broker with J.P. Morgan Advisors in San Francisco Edward Turley agreed to an industry bar rather than cooperate with FINRA’s probe of numerous allegations of excessive and unauthorized trading that resulted in more than $100 million worth of customer complaints. FINRA had initiated its investigation of Edward Turley as it related to numerous customer complaints in 2020. The regulator noted in its Acceptance Waiver and Consent Agreement (AWC) that the investors had generally alleged “sales practice violations including improper exercise of discretion and unsuitable trading.” According to Edward Turley’s BrokerCheck report, he had been fired in August 2021 for “loss of confidence concerning adherence to firm policies and brokerage order handling requirements.” On October 28th, FINRA requested Turley provide on-the-record testimony related to his trading patterns, including the “use of foreign currency and margin, and the purchasing and selling of high-yield bonds and preferred stock,” but Edward Turley through counsel declined to do so. As a result, Edward Turley violated FINRA’s Rule 8210 requiring cooperation with enforcement probes, and its catch-all Rule 2010 requiring “high standards of commercial honor,” the regulator said and he was barred permanently from the securities industry. Related Read: Can You Sue a Financial Advisor or Stockbroker Over Losses? Turley Allegedly Misrepresented And Misled Claimants About His Investment Strategy The claims arise out of Turley’s “one-size-fits-all” fixed income credit spread investment strategy involving high-yield “junk” bonds, preferred stocks, exchange traded funds (“ETFs”), master limited partnerships (“MLPs”), and foreign bonds. Instead of purchasing those securities in ordinary margin accounts, Turley executed foreign currency transactions to raise capital and leverage clients’ accounts to earn undisclosed commissions. Turley over-leveraged and over-concentrated his best and biggest clients’ accounts, including Claimants’ accounts, in junk bonds, preferred stocks, and MLPs in the financial and energy sectors, which are notoriously illiquid and subject to sharp price declines when the financial markets become stressed as they did in March 2020. In the beginning and throughout the investment advisory relationship, Turley described his investment strategy to Claimants as one which would generate “equity returns with very low bond-type risk.” Turley and his partners also described the strategy to clients and prospects as one “which provided equity-like returns without equity-like risk.” J.P. Morgan supervisors even documented Turley’s description of the strategy as “creating portfolio with similar returns, but less volatility than an all-equity portfolio.” Note: It appears that no J.P. Morgan supervisor ever checked to see if the representations were true and if anybody did, they would have known Turley was lying and have directly participated in the scheme. The Claimants’ representative was also told Turley used leverage derived from selling foreign currencies, Yen and Euros, to get the “equity-like” returns he promised. Turley also told the investor not to be concerned because he “carefully” added leverage to enhance returns. According to Turley, the securities of the companies he invested in for clients “did not move up or down like the stock market,” so there was no need to worry about him using leverage in Claimants’ accounts and their cash would be available whenever it was needed. The Claimants’ representative was not the only client who heard this from Turley; that is, he did not own volatile stocks and not to worry about leverage. Turley did not discuss the amount of leverage he used in clients’ accounts, which ranged from 1:1 to 3:1, nor did Turley discuss the risks currency transactions added to the portfolio, margin calls or forced liquidations as a result of his investment strategy. After all, Turley knew he could get away without disclosing those risks. This was because J.P. Morgan suppressed any margin calls being sent to Turley’s clients and he liquidated securities on his own to meet those margin calls without alarming clients.  This “one-size-fits-all” strategy was a recipe for disaster. J.P. Morgan and Turley have both admitted that Turley’s investment strategy was not suitable for any investor whose liquid net worth was fully invested in the strategy. It was especially unsuitable for those customers like Claimants who had other plans for the funds in their J.P. Morgan accounts in fall 2019 and spring 2020. Unfortunately, Turley recommended and managed the “one-size-fits-all” strategy for his best clients and friends, including Claimants. Turley was Claimants’ investment advisor and portfolio manager and required under the law to serve them as a “fiduciary.” He breached his “fiduciary” duties in making misrepresentations, misleading statements, unsuitable recommendations, and mismanagement of Claimants’ accounts. The most egregious breach was his failure to take any action to protect his clients at the end of February 2020, when J.P. Morgan raised the red flags about COVID-19 and recommended defensive action be taken in clients’ accounts. Turley Allegedly Managed Claimants’ Accounts Without Written Discretionary Authority Claimants’ representative hired Turley to manage his “dry powder,” the cash in Claimants’ accounts at J.P. Morgan, which he would need on short notice when business opportunities arose. At one point, Claimants had over $100 million on deposit with J.P. Morgan. It was not...

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1 de septiembre de 2020

Inversores con cuentas de margen y líneas de crédito respaldadas por valores "reventadas": ¿Cómo recuperar sus pérdidas de inversión?

Si está leyendo este artículo, suponemos que recientemente ha tenido una mala experiencia en una línea de crédito respaldada por valores ("SBL") o en una cuenta de margen que sufrió ajustes de márgenes y fue liquidada sin previo aviso, lo que le ocasionó pérdidas. Normalmente, los inversores con ajustes de márgenes disponen de 3 a 5 días para cumplirlos; y si eso hubiera ocurrido, el valor de los valores de su cuenta podría haber aumentado en ese plazo y la empresa podría haber borrado el ajuste de márgenes y no haber liquidado su cuenta. Si usted es un inversor que ha experimentado ajustes de márgenes en el pasado, y esa es su única queja, no siga leyendo, porque cuando firmó el contrato de cuenta con la empresa de corretaje con la que eligió hacer negocios, probablemente le dio el derecho de liquidar todos los valores de su cuenta en cualquier momento sin previo aviso. Por otro lado, si usted es un inversor con poca experiencia o con una situación financiera modesta al que convencieron para abrir una cuenta de línea de crédito respaldada por valores sin informarle de la verdadera naturaleza, mecánica y/o riesgos de abrir una cuenta de este tipo, ¡llámenos ahora! Alternativamente, si usted es un inversor que necesitaba retirar dinero para una casa o para pagar sus impuestos o la educación de sus hijos, pero le convencieron de mantener una cartera arriesgada o concentrada de acciones y/o bonos basura en una cuenta de garantía prendaria para una línea de crédito o una cuenta de margen, entonces probablemente también podamos ayudarle a recuperar sus pérdidas de inversión. La clave para recuperar con éxito sus pérdidas de inversión no es centrarse en la liquidación por parte de la empresa de corretaje de los valores de su cuenta sin previo aviso. En su lugar, el foco de su caso debe estar en lo que le dijeron y si la recomendación era adecuada para usted antes de que abriera la cuenta y sufriera la liquidación.

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1 de julio de 2020

Arbitraje FINRA: Qué esperar y por qué debe elegir nuestro bufete de abogados

Si está leyendo este artículo, es probable que sea un inversor que ha perdido una cantidad sustancial de dinero, ha buscado en Google "FINRA Arbitration Lawyer" (abogado de arbitraje de la FINRA), ha hecho clic en varios sitios web de abogados y puede que incluso haya hablado con un supuesto "Securities Arbitration Lawyer" (abogado de arbitraje de valores) que le dijo tras una llamada telefónica de cinco minutos que "tiene un gran caso"; "necesita firmar un acuerdo de retención sobre la base de "honorarios de contingencia"; y "necesita actuar ahora porque el plazo de prescripción va a correr".

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Mar 2, 2019

Introducción de los agentes de bolsa a los exámenes e investigaciones de la FINRA

Los corredores y asesores financieros a menudo no entienden cuáles son sus responsabilidades y obligaciones y lo que puede resultar de un examen o investigación de la Autoridad Reguladora de la Industria Financiera (FINRA). Muchos corredores ni siquiera conocen el papel que desempeña la FINRA en el sector. Esto puede deberse al hecho de que FINRA, una organización autorreguladora, no es una entidad gubernamental y no puede condenar a los profesionales financieros a penas de cárcel por infringir las normas y reglamentos del sector. No obstante, todos los corredores-agentes que operan con el público deben registrarse en FINRA. Como miembros registrados, los corredores-agentes, y los corredores que trabajan para ellos, han acordado cumplir las normas y reglamentos del sector, que incluyen las normas de la FINRA.

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Jan 10, 2025

The Top 5 Best Investment Fraud Attorneys of 2025

When you searched for “best investment fraud lawyer” on Google, you came across a few different directory websites that claim to “rank” or “review” investment fraud law firms. As a consumer, you rely on these types of websites to give you an unbiased opinion on who the top service providers are. Unfortunately, the investment fraud lawyers that you see at the top of these lists have likely paid to be there. Legal directories like SuperLawyers or FindLaw are a pay-to-play platform where the best firms are not necessarily the ones that are listed first. This means that the order in which the lawyers are listed, or ranked, is not based on merit or quality, but rather on who is willing to pay the most money to publish them closer to the top. These directory websites have neither the knowledge nor expertise to determine who the best investment fraud lawyers actually are. They are looking to make a quick buck by selling ad space to the highest bidder. That is why I decided to write this article. With over 45 years of experience in the securities industry, I have first-hand knowledge of the top investment fraud law firms in the United States. Did You Lose Money Because of Investment Fraud? If you have lost money due to negligence or fraud by a stockbroker or advisor, the easiest way to know if you have a case is to call our office at 800-732-2889. Our investment fraud attorneys will evaluate your claim for free and let you know if we can help you recover your losses. Need Legal Help? Let’s talk. or, give us a ring at 561-338-0037. I am publicly endorsing some of my firm’s biggest competitors. These are attorneys that I’ve worked with or cases that I’ve followed closely, and which I consider to be the best at what they do. I am publicly endorsing some of my firm’s biggest competitors. These are attorneys that I’ve worked with or cases that I’ve followed closely, and which I consider to be the best at what they do. Why would I do this? Simple. I want you, the investor, to have the best chance possible of recovering your losses. I am more qualified than Justia.com or FindLaw.com or Avvo.com to give my opinion to investors looking for a great investment fraud lawyer. Unlike these websites, I know first-hand the hard work, dedication, and success that each of these attorneys has achieved. My law firm has worked with many of them. We’ve studied their cases. We’ve referred cases to them. They’ve referred cases to us. While we would love for you to come to us first, we understand that you have other options and need to find the one that is best suited for your specific situation. Our goal is for you be successful no matter who you choose. We consider the following to be the best investment fraud lawyers in the United States: 1. Robert Wayne Pearce – The Law Offices of Robert Wayne Pearce, P.A. Best Investment Fraud Lawyer – Based in Florida Reviews on Google | AV® Preeminent Rating – Martindale-Hubbell Attorney Robert Wayne Pearce is the Lead Attorney of The Law Offices of Robert Wayne Pearce, P.A. and is one of the top investment fraud lawyers in the country. He is a well-respected advocate for investors throughout the legal community; he is known for his fierce litigation skills and tireless advocacy on behalf of his clients. With over 45 years of first-hand experience with investment disputes in Florida, nationwide, and internationally, Mr. Pearce is one of the most experienced Investment Fraud Lawyers nationwide. Attorney Pearce has tried over 100 cases to trial verdict or arbitration award and only lost 4 cases for investors in his career. The Law Offices of Robert Wayne Pearce, P.A. has represented thousands of investors in securities arbitration cases and has been successful in recovering more than $175 Million on behalf of our clients. Our most significant case was College Health & Investment Ltd. v Esther Spero, where we obtained $21 million for our client as a result of investment fraud, breach of fiduciary duty, and civil theft. Mr. Pearce has also been AV Preeminent Peer Review Rated by Martindale-Hubbell, the highest available rating through that program. If you have suffered investment losses due to fraud, misrepresentation, or any other type of securities misconduct, we welcome you to contact our office for a free consultation. More: Read About Robert Pearce 2. Lloyd Schwed – Schwed Kahle & Kress, P.A. AV® Preeminent Rating – Martindale-Hubbell Attorney Lloyd Schwed is a founding partner of Schwed Kahle & Kress, P.A., where he has practiced law for more than 45 years. Since 2005, Mr. Schwed has obtained the prestigious AV® Peer Review Rating from Martindale-Hubbell, which signifies “very high” ethical standards, trustworthiness and diligence, as well as “very high to preeminent” legal aptitude. Mr. Scweb received the AV® Preeminent Rating in 2011, which is the Highest Possible Rating that must be met for both Legal Ability and Ethical Standards. One of Mr. Scwed’s most notable cases is Gomez v. UBS Financial Services Inc. in which he recovered $18.2 million for his clients. This case was one of the biggest FINRA awards in the past 10 years. We have worked directly with Lloyd Schwed and his legal team and can attest to his experience, knowledge, and dedication to fighting for the rights of investors who have been victimized by securities fraud. 3. Carl Schoeppl – Schoeppl Law, P.A. Peer Reviewed – Martindale-Hubbell Attorney Carl Schoeppl is the Managing Shareholder of the Law Firm of Schoeppl Law, P.A. Mr. Schoeppl used to work as a senior federal prosecutor for the United States Securities and Exchange Commission (“SEC”), under the Enforcement Division. Over the past several years, Mr. Schoeppl has been appointed to act as a receiver in complex investment fraud cases initiated by both the SEC and the Federal Trade Commission (FTC). Mr. Schoeppl and his legal team have been instrumental in obtaining millions of dollars for investors and customers in receivership litigation cases. A receiver is a court-appointed official who is...

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Dec 18, 2024

Announcing 2024 Winner – Robert Wayne Pearce Investor Fraud Awareness Scholarship

As promised, today we are announcing the 2024 winner of the Robert Wayne Pearce Investor Fraud Awareness Scholarship. Over the course of the year, we received applications from over 92 students from schools around the country who all wrote quality essays about How Important Is Asset Allocation and Diversification to Investors Today? The winner of the $2,500 scholarship is Estephany Padilla, a student at University of Central Florida, located in Orlando, Florida, who wrote: How Important Is Asset Allocation and Diversification to Investors Today? In the world of investing, asset allocation and diversification are like the bread and butter of a solid financial strategy. Since Harry Markowitz introduced the concept in 1952 with his revolutionary work “Portfolio Selection,” the idea has stood the test of time. Markowitz’s Modern Portfolio Theory (MPT) taught us that it’s not just about picking good investments; it’s about how you combine them to balance risk and return. Decades later, even as skeptics raise eyebrows at its relevance in today’s market, asset allocation and diversification remain critical tools for navigating the financial landscape. To understand why they’re still important, let’s break them down. Asset allocation is essentially deciding how to divide your investments among different categories like stocks, bonds, real estate, and cash. Diversification takes it further, suggesting that within those categories, you spread your money across various options. For example, in stocks, you might diversify by investing in different industries or countries. The goal? Minimize risk. If one part of your portfolio takes a hit—say, the tech sector faces a downturn—other investments might hold steady or even thrive, cushioning the blow. Today’s markets are more dynamic than ever. With economic uncertainties, geopolitical tensions, and rapid technological advancements, the need to spread risk wisely has grown. Sure, some argue that Markowitz’s theories are outdated because they don’t fully account for today’s market complexities or behavioral finance. But even with criticism, the principles of asset allocation and diversification still provide a foundation for thoughtful investing. Let’s consider a real-world example. Think about the 2020 COVID-19 pandemic. Markets across the globe tanked, but not all assets performed the same. Technology stocks skyrocketed as remote work became the norm, while traditional energy sectors struggled. Investors with diversified portfolios—those who had a mix of tech, energy, healthcare, bonds, or gold— were better positioned to weather the storm than those who had all their eggs in one basket. This isn’t just a theoretical advantage; it’s tangible evidence of diversification’s power. That said, diversification isn’t without its critics. Some argue it can lead to “diworsification,” where you spread investments so thinly that you dilute potential returns. This is where strategic asset allocation becomes crucial. It’s not about owning a little bit of everything; it’s about owning the right mix for your goals, risk tolerance, and time horizon. For example, a young investor saving for retirement might lean heavily on stocks, while a retiree might prioritize income-generating assets like bonds. In today’s investing world, there’s also a rise in algorithm-driven portfolios and exchange-traded funds (ETFs), which make diversification more accessible than ever. With a few clicks, anyone can invest in a portfolio that includes hundreds or even thousands of companies. This ease of access reinforces the continued relevance of diversification and asset allocation.So, are Markowitz’s theories still applicable? Absolutely. While the details might need tweaking for modern complexities, the core idea—that spreading investments reduces risk—remains a timeless principle. Asset allocation and diversification aren’t just buzzwords; they’re the backbone of a resilient investment strategy. In a world where uncertainty is the only constant, they’re more essential than ever. After all, no one knows what tomorrow holds, but being prepared for anything? That’s smart investing. We thank all the other applicants for their efforts and announce that the next scholarship to be awarded December 15, 2025, will be given to the student who writes the most thoughtful essay about “The Pros and Cons of Investing in Real Estate Investment Trusts.”

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Nov 28, 2024

¿Qué puede hacer un abogado de valores por los inversores y los intermediarios?

The term “securities attorney” refers to an lawyer who concentrates his/her practice on assisting clients in navigating the laws and regulations that govern the purchase and sale of securities. If you’re having difficulties with your financial advisor or broker and suffered investment losses, you might want to hire a securities attorney who knows the securities laws and securities industry rules inside and out.  Brokers and advisors provide investment advice and sell securities products such as stocks, bonds, and mutual funds. When you work with an advisor or broker, you probably signed an agreement that required them to comply with Federal and state securities laws and securities industry rules, including the rules requiring an advisor or broker to only make suitable investment recommendations and to act in your best interest. IMPORTANT: If your financial professional isn’t doing what was agreed to, or if you think they’ve committed securities fraud, you can file a complaint with the Financial Industry Regulatory Authority (FINRA). But before you do, you might want to talk to a securities lawyer. You have the right to seek compensation from the parties responsible if you were an investor who lost money as a result of broker misconduct. What Does a Securities Lawyer Do? A securities lawyer specializes in securities laws and regulations that apply to investors, brokers, and financial advisors. Securities lawyers represent investors claiming losses as a result of misconduct or fraud, as well as brokers and financial advisors accused of misconduct by their clients or their employers. Investment Losses? Let’s Talk. or, give us a ring at 800-732-2889. What Are Securities Laws? Securities laws are the laws that regulate the securities industry. The SEC (Securities and Exchange Commission) is the government agency that oversees the securities industry and enforces the Federal securities laws. These rules are designed to protect investors from fraud and other abuses, and to ensure that the securities industry operates fairly and transparently. Federal law requires companies that sell securities to register with the SEC. This registration process provides important information about a company’s business, its financial condition, and its management. It also gives the SEC important information about the people who sell the company’s securities. The federal securities laws also require those who sell securities to be licensed and to meet other standards of conduct. Investors and brokers use this information to make informed investment decisions. When brokers don’t disclose important information, or make false or misleading statements, they may have committed securities fraud. Further, the SEC provides a forum where investors can bring SEC complaints. The SEC may use these complaints to assist them in SEC investigations and the detection of securities fraud. In comparison to other areas of the law in the United States, there are few securities lawyers. Most lawyers who practice in this area work for the government, regulating or prosecuting firms and individuals who have violated securities law. It’s Important To Find A Good Securities Lawyer Who Represents Investors! There are a few lawyers who represent investors in private lawsuits and arbitrations against firms or individuals who have committed fraud and violated other securities laws. In order to sue someone for securities fraud, you must be able to prove that they made false or misleading statements, and that you relied on those statements to your detriment. Proving fraud can be difficult, and you should talk to a securities lawyer before you decide whether to sue. If you are an investor who suffered losses due to broker misconduct, you have the right to seek reimbursement from the parties responsible. Broker misconduct exists in multiple forms, including: While some forms of broker misconduct are easy to recognize, others are not. A financial advisor who stole funds out of your account and transferred them to a personal account clearly misappropriated your funds and committed misconduct. It’s more difficult to prove that a financial advisor recommended unsuitable investments, however, because the suitability of an investment depends on a number of different factors.  If you suffered investment losses and believe it was a result of broker misconduct, contact a good securities fraud lawyer today to evaluate your case.  Securities Laws are Complex and Numerous The laws that govern the securities industry are complex and numerous. This is partially due to the fact that the securities industry is complex and ever-changing. As new technologies and products are developed, they must be regulated. And as the markets change and evolve, the rules must change with them. This complexity can make it difficult for investors to understand their rights and what they should do if they think their broker has committed securities fraud. Below are just a few of the securities laws that may be relevant to your case: The Securities Act of 1933 Often called the “truth in securities” law, the Securities Act of 1933 has two main objectives: You can read more about the Securities Act of 1933 here. The Securities Exchange Act of 1934 The Securities Exchange Act of 1934 is often called the “most important securities law in the United States.” It created the SEC and gave it broad authority to regulate the securities industry. Among other things, the Securities Exchange Act of 1934 requires companies that sell securities to the public to disclose important information about their business, financial condition, and management. It also requires brokers and dealers who trade securities to be licensed and to meet other standards of conduct. You can read more about the Securities Exchange Act of 1934 here. Trust Indenture Act of 1939 The Trust Indenture Act of 1939 is a federal law that regulates the sale of municipal securities. Municipal securities are debt obligations issued by states, cities, and other government entities. The Trust Indenture Act of 1939 requires state and local governments to disclose important information about their finances before they sell municipal securities. It also prohibits them from selling municipal securities unless they comply with certain conditions. You can read more about the Trust Indenture Act of 1939 here. Investment Company Act of 1940 The Investment Company Act of...

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Nov 28, 2024

¿Qué es la Norma 3210 de la FINRA?

FINRA Rule 3210 is a newer FINRA rule, approved by the U.S. Securities and Exchange Commission (SEC) in the Spring of 2016 and rolled out the following year. The regulators’ goal in approving this rule was to prevent conflicts of interest by financial advisors and broker-dealers. To carry out this goal, the rule governs the ability of registered financial advisors to use investment accounts outside of the accounts offered by their FINRA member firm.  At the Law Offices of Robert Wayne Pearce, P.A., we are committed to helping you enhance your investor education and understand all the FINRA-registered broker-dealer rules that may impact your decision-making. What is FINRA Rule 3210? FINRA Rule 3210 requires all employees to notify their employers if they intend to open or maintain an investment account at a competing financial firm. Rule 3210 governs accounts opened by members at firms other than where they work. Need Legal Help? Let’s talk. or, give us a ring at 561-338-0037. FINRA Rule 3210 also imposes conditions on accounts opened and maintained by associated persons of members, which include spouses, children, and other family members of the employee. IMPORTANT: Understanding rules like FINRA Rule 3210 can help you become a well-informed investor. It may also help you know what to look for when selecting a brokerage firm or a registered financial professional. FINRA Rule 3210 Broker Dealer Overview When an individual works for a brokerage firm, they typically keep their assets at that firm. The firm is therefore able to monitor their trades and can ensure that the financial advisor is not frontrunning their clients in a personal brokerage account. The firm can also monitor the financial advisor’s account for insider trading or other bad activity. But what happens when the financial advisor works for Bank A but wishes to keep their accounts at Bank B? Rule 3210 specifies that the financial advisor must receive written permission from Bank A to open the account at Bank B. Not only may the financial advisor not open the account without permission, but they must also declare any account in which they have a “beneficial interest.” This means that if their spouse has a brokerage account at Bank B, they must disclose that to their employer as well.  These FINRA-registered broker-dealer rules may seem challenging at first. However, they have been carefully implemented to protect investors from financial advisor conflicts of interest. Your Financial Advisor’s Requirements Under Rule 3210 Rule 3210 is not merely about allowing your financial advisor’s employer to see what is in their account. It is primarily about preventing conflicts of interest. In doing so, the rule requires: An important part of this rule is the written consent part. Everything must be in writing under Rule 3210. Indeed, keeping written records is a requirement under most FINRA-registered broker-dealer rules. Maintaining a record of requests and consents is important in this case because Rule 3210 pertains to conflicts of interest. FINRA does not have a set form for requests and consents under Rule 3210. Each firm creates its own FINRA Rule 3210 letters. The FINRA 3210 Letter Rule 3210 requires financial advisors to make a request and obtain consent from the FINRA member firm they work for to keep their accounts somewhere else. It also requires a disclosure letter to the outside firm when a securities industry professional opens an account. This disclosure action is sometimes referred to as a FINRA 3210 Letter. Making this disclosure is one important step in preventing conflicts of interest for either firm. Even more important than consent may be the fact that a financial advisor must submit duplicate brokerage statements to their employer. A financial professional may have their brokerage accounts at an outside firm. However, their employer must have transparency into their account activity just as if the accounts were in the employer’s custody. Rule 3210 is essential in balancing the right of financial professionals to use whichever brokers they choose with an employer’s need for compliance and a client’s need for transparency.  Close Family Members Must Also Comply with FINRA 3210 It may seem hard to believe that a FINRA broker dealer rule might apply to someone who doesn’t work in the financial services industry. But it’s true—FINRA 3210 requires disclosure of accounts from the following people related to a registered financial industry professional: In the event that both spouses work at FINRA member firms, then each spouse would have to comply with this rule. Both member firms would be notified about the other spouse’s accounts. Protecting Against Conflicts of Interest A primary goal of FINRA Rule 3210 is to prevent FINRA member conflicts of interest. Your financial advisor and your brokerage firm should be working for you, in your best interest. Where an undisclosed conflict is lurking, your broker simply cannot provide you with the advice or level of service you should expect.  An important part of investor education about FINRA broker dealer rules is to allow you to understand the issues behind rules like FINRA 3210. Being well-informed about what these rules are and how they work helps make you a savvy investor. You will be better equipped to ask questions about potential conflicts of interest. You will also know to ask about your brokerage firm’s compliance systems and record retention.  Related Read: What Constitutes a Breach of Fiduciary Duty? Concerned That a Conflict of Interest Has Led to Investment Loss? If you are concerned that a conflict of interest caused you investment loss, we are here to fight for your rights. When you engage an investment advisor or a brokerage firm, you expect the highest level of service. When these professionals fail to act in your best interest, they should be held accountable. Learn how you can file a formal FINRA complaint against your advisor. At The Law Offices of Robert Wayne Pearce, P.A., our practice focuses on all manner of investment-related litigation, FINRA arbitration, and dispute resolution. Our FINRA arbitration lawyers have the expertise and savvy to take on...

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Oct 22, 2024

Regulation D Lawyers (Reg. D Offerings)

Regulation D is just one of the exemptions that fraudsters commonly rely upon in an attempt to avoid disclosure of important facts relating to a company that might have influenced your investment decision. According to Attorney Pearce, the private nature of the investment has given many unscrupulous brokers the opportunity to profit by selling away these unauthorized products due to many brokerage firms’ lack of supervision of their sales force. These investments pose the greatest number of risks to investors, have no liquidity, pay highest commissions, and have caused investors to lose billions of dollars. These securities offerings are generally exempt from registration under the Federal and state securities laws if the issuer complies with the strict letter of the laws. Get Representation from a Lawyer with Unparalleled Experience Regarding Regulation D-related Fraud Private Placements have historically been the first source of financing of many of our greatest companies in America. Unfortunately, they have also been the number one source of investment fraud in America. The good news for victims of such frauds is that the attorneys at The Law Offices of Robert Wayne Pearce, P.A. have over 45 years experience investigating and prosecuting the perpetrators of these type of scams. Representing Clients Nationwide Although the private placement market is an important source for small business growth, investors must be wary of fraud, illiquidity, valuation figures, sales practice abuses, and marketing materials issued with inaccurate statements or omitted information pertinent to making a sound investment decision. The following are some of the primary risks associated with investing in private placements: If a broker-dealer lacks important information about a private placement issuer or its securities it is recommending, the broker-dealer must disclose this fact along with the risks that arise from a lack of information. However, a broker-dealer is not permitted to rely blindly upon an issuer for information about a company, nor may it rely on information given by the issuer or its counsel in the place of conducting its own reasonable investigation. Broker-dealers are required to exercise a high degree of care in investigating and verifying an issuer’s representations and claims. Even if a broker-dealer’s customers are sophisticated and well-educated investors, it does not obviate their duty to conduct a reasonable investigation. For more information about Private Placements/ Reg. D Offerings and our cases and investigations, click on the links below: FREE INITIAL CONSULTATION WITH PRIVATE PLACEMENT AND REGULATION D INVESTMENT DISPUTE ATTORNEYS The Law Offices of Robert Wayne Pearce, P.A. understands what is at stake in Private Placement and Regulation D investment law matters and constantly strives to secure the most favorable possible result. Attorney Pearce provides a complete review of your case and fully explains your legal options. The firm works to ensure that you have all of the information necessary to make a sound decision before any action is taken in your case. For dedicated representation by a law firm with substantial experience in all kinds of securities, commodities and investment disputes, contact us at 561-338-0037 or toll free at 800-732-2889 or via e-mail.

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5 de septiembre de 2024

¿Qué se considera incumplimiento del deber fiduciario?

Breach of fiduciary duty occurs when a person or entity in a position of trust (the fiduciary) fails to act in the best interests of another party (the principal). Given that fiduciary duty is the highest legal standard of care, any failure to uphold this responsibility can have severe consequences and monetary losses for those who have been entrusted with a fiduciary duty. Breach of fiduciary duty involves violating the fiduciary’s obligation to prioritize the principal’s interests over their own. Common examples include self-dealing, conflicts of interest, misappropriation of funds, and failure to disclose important information. Fiduciary relationships exist in various contexts, such as between trustees and beneficiaries, directors and shareholders, lawyers and clients, and guardians and wards. Stockbrokers and financial advisors often have fiduciary duties to their clients, requiring them to provide suitable investment advice and manage assets responsibly. What constitutes a breach of fiduciary duty? To prove that breach of fiduciary duty has occurred, the principal must typically demonstrate the existence of a fiduciary relationship, breach of fiduciary obligation, and resulting damages. Remedies may include monetary compensation or equitable relief. In the financial sector, breaches can lead to regulatory penalties and loss of professional licenses. See below for the detailed information you are looking for. Investment Losses? We Can Help The Law Offices of Robert Wayne Pearce, P.A., offers free consultations on breach of fiduciary duty cases. Give us a call at (800) 732-2889. Let’s discuss your case and see what we can do to help you get the compensation you need and deserve. Investment loss? Let’s talk. or, give us a ring at 561-338-0037. How Do You Prove Breach of Fiduciary Duty – Four Elements of a Breach of Fiduciary Duty Case To prove a breach of fiduciary duty, four key elements must be demonstrated: the existence of a fiduciary duty, a violation of that duty, resulting harm, and a causal connection between the breach and the harm. Duty – There Exists a Fiduciary Duty There must be an established fiduciary relationship between you and the other party for the fiduciary to owe you a duty. To hold a fiduciary accountable to their standard of care, it is essential to demonstrate that they knowingly accepted the role. This is typically shown through a written agreement between the parties, such as a customer agreement. Breach – There Was a Violation of This Duty Fiduciaries are required to work in the best interests of their clients, and any deviation from this standard may constitute a breach. To demonstrate a breach of fiduciary duty, one must have evidence that the individual holding this responsibility acted negligently or maliciously—or prioritized their own interests over yours. This can include lost investments, diminished value of your assets, outright theft, decisions made without your consent, or failure to carry out one’s fiduciary responsibility. You can also prove a breach through the fiduciary’s failure to act—for example, not disclosing a conflict of interest. It is best to speak with an investment fraud lawyer to determine if your fiduciary failed in their responsibility and contributed to your losses. Damages – The Breach of Duty Resulted in Harm to You For there to be a legitimate claim of breach of fiduciary duty, the breach must have caused you to suffer damages. Proving there was a breach is not enough for a valid claim of breach of fiduciary duty. Unless you can demonstrate how the violation of fiduciary duty directly caused you to suffer damages, your claim may not be successful. Damages can be either economic or non-economic, such as mental anguish.  Causation – There is a Connection Between the Breach and the Harm There must be a direct link between the fiduciary’s breach and harm to you. If you incurred damages that cannot be connected to the individual’s breach, your claim may not be successful. Breach of Fiduciary Duty Examples Breaches of fiduciary duties can take many forms. A fiduciary must act in the best interests of their client. When they fail to do so, serious harm can result. Examples of a breach of fiduciary duty include misrepresentation or failure to disclose information, excessive trading, unsuitable investments, failure to diversify, and failure to follow instructions. Misrepresentation or Failure to Disclose Information If a financial advisor does not present a client with all material information about an investment, this is a breach of fiduciary duty. Material information is what a reasonable investor would consider important when deciding whether to invest.  Sometimes financial advisors will mislead investors by omitting information, such as risk factors or any negative information about a stock.  Excessive Trading Excessive trading, also known as churning, in your account is a breach of fiduciary duty. Financial advisors or stockbrokers will make large numbers of trades solely to generate more commissions for themselves.  Unsuitable Investments Financial advisors must “know their customer” before making investment recommendations. This includes understanding the client’s investment objectives, risk tolerance, time horizon, financial standing, and tax status. The advisor breaches their fiduciary duty if they make an unsuitable investment, even with the best intentions.  Failure to Diversify Your financial advisor must recommend a mix of investments so that your assets are properly allocated among various asset classes and industries. Failing to diversify your portfolio puts you in a position of great risk and is a breach of fiduciary duty. If your assets are over-concentrated in a particular stock or sector, you may experience significant losses if the company or industry does not perform well.  Failure to Follow Instructions When you give instructions to your financial advisor, they have the fiduciary duty to promptly perform your orders. If your advisor fails to follow your instructions in a timely manner and you suffer financial losses, you can recover. Can You Pursue a Lawsuit for a Breach of Fiduciary Duty? Yes, you can pursue a lawsuit for a breach of fiduciary duty. You will need to speak with an investment fraud lawyer to determine if your fiduciary failed in their responsibility and contributed to your losses. It is important that you prove there was a breach, damages were caused, and the breach was directly...

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6 de agosto de 2024

Abogado de productos estructurados

The Structured Products Lawyers at The Law Offices of Robert Wayne Pearce, P.A., specialize in representing investors who have suffered losses due to structured products and complex derivatives. With over 45 years of experience, our team of highly skilled attorneys understands the intricacies of these sophisticated financial instruments and the legal challenges they present, and we can help you recover losses from these structured notes. Structured products and complex derivatives are often misunderstood and misrepresented by financial advisors, leading to significant investment losses for unsuspecting clients. Our firm has a proven track record of successfully handling cases involving a wide range of structured notes, including auto-callable notes, market-linked notes, and equity-linked securities. To speak with Attorney Pearce, call (800) 732-2889 or Contact Us online for a FREE INITIAL CONSULTATION with Attorney Pearce about your case. We offer comprehensive legal services for investors who have been affected by: Our team is well-versed in FINRA arbitration and mediation proceedings, and we pursue claims for fraud, misrepresentation, breach of fiduciary duty, and failure to supervise. We work tirelessly to secure the best possible outcome for our clients, operating on a contingency fee basis to ensure that justice is accessible to all. If you’ve experienced losses due to structured products or complex derivatives, don’t hesitate to reach out. Contact The Law Offices of Robert Wayne Pearce, P.A. for a free initial consultation and let our experienced securities law attorneys fight for your rights and recover your investment losses. Can We Help Sue YourFinancial Advisor For Structured Note Investment Losses? Yes, we might be able to sue your financial advisor for structured note investment losses for one or more of the following reasons: What Are Structured Products? Structured products are securities derived from or based on a single security, a basket of securities, an index, a commodity, a debt issuance and/or a foreign currency. They are a hybrid between two asset classes typically issued in the form of a corporate bond or a certificate of deposit but instead of having a pre-determined rate of interest, the return is linked to the performance of an underlying asset class. As this definition suggests, there are multiple types of structured products. These variations include certain products offering full protection of the principal invested while others may offer limited or no protection of principal. For a full detailed description of structured products, read our page here: https://www.secatty.com/legal-blog/structured-notes/ At The Law Offices of Robert Wayne Pearce, P.A. we understand the features and risks of structured products. They are complex investments that often involve terms, features and risks that can be difficult for individual investors and investment professionals alike to evaluate. We have over 45 years experience representing domestic and foreign investors from offices located in Boca Raton, West Palm Beach, and Fort Lauderdale, Florida in courts, arbitrations and mediations nationwide. Contact us for a free consultation if you already have a dispute or problem with a structured product investment. If not, consider the following before you make any investment in structured product securities: Are Structured Notes Suitable Investments? Let me answer that question this way, a particular structured note may be suitable for somebody but not everybody. With regard to the more common structured notes being offered by the major financial institutions these days, they are not suitable for individuals seeking an investment that: They are not suitable investments if you are someone who: Have You Suffered Structured Note Investment Losses? Unfortunately, the lure of higher commissions have in recent years provided added incentives to stockbrokers to recommend structured notes to investors, including those for whom they were inappropriate, too risky, or never in alignment with their investment goals, including, the following types of structured notes: It’s a shock to many investors who sought to avoid market volatility by investing in structured notes. Many who thought they would receive a steady stream of income and guaranteed return of principal have suffered sharp and unexpected losses in structured notes with “reference assets” like Peloton, ARK, Alibaba, Meta(Facebook), Zillow, Yeti, etc. Depending on the other features of those structured notes, the loss of income and principal could be realized permanently. How We Can Help Recover Structured Note Investment Losses At The Law Offices of Robert Wayne Pearce, P.A., we represent investors in all kinds of structured note investment disputes in FINRA arbitration and mediation proceedings. The claims we file are for fraud and misrepresentation, breach of fiduciary duty, failure to supervise, and unsuitable recommendations in violation of FINRA rules and industry standards. There is no way you will recover your structured note investment losses without some legal action. However, Attorney Pearce and his staff represent investors across the United States on a CONTINGENCY FEE basis which means you pay nothing – NO FEES-NO COSTS – unless we put money in your pocket after receiving a settlement or FINRA arbitration award. CONTACT OUR STRUCTURED PRODUCT LAWYER The Law Offices of Robert Wayne Pearce, P.A. have highly experienced structured produce loss lawyers who have successfully handled many structured note cases and other securities law matters and investment disputes in FINRA arbitration proceedings, and who work tirelessly to secure the best possible result for you and your case. For dedicated representation by an attorney with over 45 years of experience and success in structured product cases and all kinds of securities law and investment disputes, contact the firm by phone at 561-338-0037, toll free at 800-732-2889 or via e-mail.

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5 de agosto de 2024

¿Qué son los pagarés estructurados en la inversión? Un abogado lo explica

What are Structured Notes? Structured Notes are investments which often combine securities of different asset classes as one investment for a desired risk and return over a period of time. They are complex investments that are often misunderstood by not only investors but the financial advisors who recommend them.  Structured notes are manufactured by financial institutions in all sizes and shapes. Generally, a structured note is an unsecured obligation of an issuer with a return, generally paid at maturity, that is linked to the performance of an underlying asset, such as a securities market index, exchange traded fund, and/or individual stocks. The return on the structured note will depend on the performance of the underlying asset and the specific features of the investment being made. The different features and risks of structured notes can affect the terms and issuance, returns at maturity, and the value of the structured product before maturity. They may have limited or no liquidity before maturity. Before investing, you better make sure you understand the terms and conditions and risks associated with the structured note being offered. Structured Notes Specifics Structured notes are often represented as investments being guaranteed by large financial institutions. Indeed, the top issuers of structured notes in 2021, Goldman Sachs (12.75%), Morgan Stanley (12.70%), Citigroup (12.46%), J.P. Morgan (11.92%), UBS (80.47%), Credit Suisse (4.99%), RBC (4.45%), Bank of America (3.90%), Scotiabank (3.89%), are some of the largest financial institutions in the world. It’s important to understand that although the benefits of owning structured products may be guaranteed to be paid by one of those large financial institutions, the amount of interest or principal being guaranteed is dependent upon the features of the product being sold; that is, the specific terms and conditions of the investment contract being purchased. In this low-interest rate environment the most popular structured notes being offered are structured notes with principal protection and income features. Some of the structured notes offer full principal protection, but others offer partial or no protection of principal at all. Some structured notes offer higher rates of interest that may be paid monthly and then suddenly stop paying any interest at all because payment was contingent upon certain events not happening. It all depends on the terms and conditions of the investment contract being purchased, which is why you must read the term sheet or better yet the prospectus to understand the nature, mechanics and risks of the structured note being sold. Structured Notes Features You need to understand that there are many key terms beyond the words “guarantor” and “guaranteed” which are used often to describe structured notes. You need to ask about and be sure to understand the following features of the structured notes being offered: Talk to an Attorney Before Investing in Structured Notes Structured notes are a type of investment that can offer higher returns than traditional investments, but they also come with more risks. If you’re thinking about investing in a structured note, it’s important that you understand how these products work before making a decision. Robert Pearce, Attorney at the Law Offices of Robert Wayne Pearce, P.A. is a highly experienced investment fraud lawyer who has successfully handled many structured note cases and other complex securities and investment law matters. He will explain structured notes in more detail below this image. What are the Different Types of Structured Notes? There are different types of structured notes, but they all have one goal in common: to give the investor a higher return than what they would get from a traditional investment, like a savings account or government bond. Structured notes can be created with different underlying assets, including stocks, bonds, commodities, and even currencies. The most common type of structured note is the principal protected note, which is designed to protect the investor’s original investment while still offering the potential for growth. Underlying Asset Categories of Structured Notes: Index: The performance of a selected index is used as a reference asset for some structured products. An index is a statistical measure of change in a securities market and the particular index selected varies by product and issuer. The S&P 500 and Dow Jones Industrial Average are two well known examples, but narrower types of indices may be used, such as those relating to particular sectors or regions. Currency: A selected group or basket of currencies whose weighted average is used as a reference asset for some structured products. The number of and particular currencies selected vary by product and issuer. The Euro and Yen are examples. Commodity: A selected, basic good or group of goods whose value is used as a reference asset for some structured products. The type and number of commodities selected vary by product and issuer. Grains, gold, oil and natural gas are examples. Interest Rates and Yields: Bond indices, yield curves, differences in prevailing interest rates on shorter and longer-term maturities, credit spreads, inflation rates and other interest rate or yield benchmarks are used as a reference asset for some structured products. Other types of structured notes include: How do Structured Notes Work? Structured notes are created by banks and other financial institutions. The issuer of the note will bundle together different types of securities, such as stocks, bonds, and commodities. The way these assets are bundled together will create the desired risk and return for the investor over a period of time. All structured notes have two parts: a bond component and a derivative component. Most of the note is invested in bonds for principal protection, with the rest allocated to a derivative product for upside potential. The derivative product investment allows exposure to any asset class. It’s important to remember that a structured note is a debt obligation. The issuer of the structured note typically pays interest or dividends to the investor, similar to a bond, during the terms of the notes. This makes this type of investment seem safe and secure to many investors. However, there is always the potential for...

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5 de agosto de 2024

Un abogado explica: Los riesgos de los pagarés/productos estructurados

Risks to Consider When Investing in Structured Notes/Products As an investor, you must be fully aware of the associated risks and whether structured notes fit within your investment parameters. Robert Pearce, Attorney at the Law Offices of Robert Wayne Pearce, P.A. will explain these risks to you. He is a highly experienced investment fraud lawyer who has successfully handled many structured note cases and other complex securities and investment law matters. What are structured products? More detail here Features of a particular structured product, dependent upon the type of products issued, that you as an investor should consider when determining its general suitability: Structured Product Credit Risk: Structured products are unsecured debt obligations of the issuer. As a result, they are subject to the risk of default by the issuer. The creditworthiness of the issuer will affect its ability to pay interest and repay principal. The financial condition and credit rating of the issuer are, therefore, important considerations. The credit rating, if any, pertains to the issuer and is not indicative of the market risk of the structured product or underlying asset. If a structured issue provides principal protection or a minimum return, any such guarantee rests on the credit quality of the issuer. Those issued by banks in the forms of CDs may also provide FDIC insurance with standard coverage limitations. Structured Product Liquidity Risk: Structured products are generally not listed on an exchange or may be thinly traded. As a result, there may be a limited secondary market for these products, making it difficult for investors to sell them prior to maturity. Investors who need to sell structured products prior to maturity are likely to receive less than the amount they invested. Therefore, structured products with longer maturities are subject to greater liquidity risk. The price that someone is willing to pay for structured products in a secondary sale will be influenced by market forces and other factors that are hard to predict. Sometimes, a broker-dealer affiliate of the issuer may make a market for the resale of structured products prior to maturity but the price it is willing to pay will be adversely affected by the commissions paid by the issuer on the initial sale of the structured products and the issuer’s hedging costs. Some structured products have lock-up periods prohibiting their sale during such periods. Persons who invest in structured products should have the financial means to hold them until maturity. Structured Product Pricing Risk: Structured products are difficult to price since their value is tied to an underlying asset or basket of assets and there typically is no established trading market for structured products from which to determine a price. Structured Product Income Risk: Structured products may not pay interest (or may not pay interest in regular amounts or at regular intervals), so they are not appropriate for investors looking for current income. Because the return paid on structured products at maturity is tied to the performance of a basket of assets and will be variable, it is possible that the return may be zero or significantly less than what investors could have earned on an ordinary, interest-bearing debt security. The return on structured products, if any, is subject to market and other risks related to the underlying assets. Structured Product Complexity and Derivatives Risk: Structured products typically use leverage, options, futures, swaps and other derivatives, which involve special risks and additional complexity. Structured Product Pay-Out Structure Risk: Some structured products impose limits, caps and barriers that affect their return potential. With barriers, a structured product may not offer any return if a barrier is broken or breached during the term of the structured product. Conversely, some structured products may not offer any return unless certain thresholds are achieved. Some structured products impose maximum return limits so even if the underlying assets generate a return greater than the stated limit or cap investors do not realize that excess return. Structured products also have participation rates that describe an investor’s share in the return of the underlying assets. Participation rates below 100% mean that the investor will realize a return that is less than the return on the underlying assets. Structured Product Volatility and Historical Performance of Underlying Asset(s): Past performance of an underlying asset class is not indicative of the profit and loss potential on any particular structured product. The value of the underlying assets can experience significant periods of fluctuation and prolonged periods of underperformance. Structured Product Costs and Fees: Costs and fees associated with the purchase of a structured product vary. Structured Product Tax Considerations: Structured products may be considered “contingent payment debt instruments” for federal income tax purposes. This means that investors will have to pay taxes each year on imputed annual income based on a comparable yield shown in the final term sheet or prospectus supplement. In addition, any gain recognized upon the sale or exchange, or at maturity, of these products will generally be treated as ordinary income. This especially pertains to principal protected issues. Please consult your tax advisor for guidance. Additional vulnerabilities may include loss of principal and the possibility that at maturity the investor will own the underlying asset at a depressed price. Interest rates and time remaining until maturity are all factors that may affect the value of the structured product. As with any investment selection, structured products should be purchased as a limited percentage of your portfolio and overall investable assets.

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