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Investors With “Blown-Out” Securities-Backed Credit Line and Margin Accounts: How do You Recover Your Investment Losses?

If you are reading this article, we are guessing you had a bad experience recently in either a securities-backed line of credit (“SBL”) or margin account that suffered margin calls and was liquidated without notice, causing you to realize losses. Ordinarily, investors with margin calls receive 3 to 5 days to meet them; and if that happened, the value of the securities in your account might have increased within that period and the firm might have erased the margin call and might not have liquidated your account. If you are an investor who has experienced margin calls in the past, and that is your only complaint then, read no further because when you signed the account agreement with the brokerage firm you chose to do business with, you probably gave it the right to liquidate all of the securities in your account at any time without notice. On the other hand, if you are an investor with little experience or one with a modest financial condition who was talked into opening a securities-backed line of credit account without being advised of the true nature, mechanics, and/or risks of opening such an account, then you should call us now! Alternatively, if you are an investor who needed to withdraw money for a house or to pay for your taxes or child’s education but was talked into holding a risky or concentrated portfolio of stocks and/or junk bonds in a pledged collateral account for a credit-line or a margin account, then we can probably help you recover your investment losses as well. The key to a successful recovery of your investment loss is not to focus on the brokerage firm’s liquidation of the securities in your account without notice. Instead, the focus on your case should be on what you were told and whether the recommendation was suitable for you before you opened the account and suffered the liquidation.

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Regulation Best Interest (Reg. BI): Better But Not the Best!

Finally, ten years after the Dodd Frank Wall Street Reform and Consumer Protection Act of 2010 (Dodd-Frank) was enacted to bring about sweeping changes to the securities industry, the best regulation the U.S. Securities & Exchange Commission (“SEC”) could pass, SEC Regulation Best Interest, is now the law governing broker-dealers giving investment advice to retail customers. Although the SEC had the authority to impose a uniform and expansive “Fiduciary Duty” standard throughout the country upon broker-dealers and investment advisors, it yielded to the stock brokerage industry demands and enacted Regulation Best Interest (“Reg. BI”), which is better than the Financial Industry Regulatory Authority (“FINRA”) “Suitability Rule,” but not the best that it could have been done to protect investors. Last month FINRA amended its Suitability Rule to conform with SEC Reg. BI and made it clear that stockbrokers now uniformly have duties related to disclosure, care, conflicts and compliance, which are equivalent to the common law “fiduciary duty” standard when making recommendations to retail customers. See, FINRA Regulatory Notice 20-18. 1

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FINRA Arbitration: What To Expect And Why You Should Choose Our Law Firm

If you are reading this article, you are probably an investor who has lost a substantial amount of money, Googled “FINRA Arbitration Lawyer,” clicked on a number of attorney websites, and maybe even spoken with a so-called “Securities Arbitration Lawyer” who told you after a five minute telephone call that “you have a great case;” “you need to sign a retainer agreement on a ‘contingency fee’ basis;” and “you need to act now because the statute of limitations is going to run.”

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A Stockbroker’s Introduction to FINRA Examinations and Investigations

Brokers and financial advisors oftentimes do not understand what their responsibilities and obligations are and what may result from a Financial Industry Regulatory Authority (FINRA) examination or investigation. Many brokers do not even know the role that FINRA plays within the industry. This may be due to the fact that FINRA, a self-regulatory organization, is not a government entity and cannot sentence financial professionals to jail time for violation of industry rules and regulations. Nevertheless, all broker-dealers doing business with members of the public must register with FINRA. As registered members, broker-dealers, and the brokers working for them, have agreed to abide by industry rules and regulations, which include FINRA rules.

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Merrill Lynch Puerto Rico Stockbroker Wipes Novice Investor Out With Bond Transactions on Margin

The Law Offices of Robert Wayne Pearce, P.A. filed a claim against Merrill Lynch Pierce Fenner & Smith Incorporated (Merrill Lynch) for an investor residing in Puerto Rico (the “Claimant”) arising out of Merrill Lynch’s Puerto Rico office. A summary of Claimant’s allegations against Merrill Lynch are set forth below. If you or any family member received similar misrepresentations and/or misleading statements from Merrill Lynch and its Puerto Rico stockbrokers or found yourself with an account overconcentrated in Puerto Rico municipal bonds and/or closed-end bond funds, or if you borrowed monies from Merrill Lynch and used your investments as collateral for those loans, we may be able to help you recover your losses. Contact our office for a free consultation about your case.

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Santander Securities Broker Switches Investors Into Unsuitable Closed End Funds

The Law Offices of Robert Wayne Pearce, P.A. filed yet another claim against Santander Securities, LLC (Santander). A summary of the allegations the Claimant made against the Puerto Rico based brokerage is below. If you or any family member received similar misrepresentations and/or misleading statements from Santander and its stockbrokers or found yourself with an account overconcentrated in closed-end bond funds, or if you borrowed monies from Santander and used your investments as collateral for those loans, we may be able to help you recover your losses. Contact our office for a free consultation about your case.

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UBS Puerto Rico Made Unsuitable Recommendations To Pledge Closed-End Funds Against Bank Loans

The Law Offices of Robert Wayne Pearce, P.A. filed yet another claim against UBS Financial Services Incorporated of Puerto Rico (UBS Puerto Rico). A summary of the allegations the Claimant made against the Puerto Rico based brokerage is below. If you or any family member received similar misrepresentations and/or misleading statements from UBS Puerto Rico and its stockbrokers or found yourself with an account overconcentrated in closed-end bond funds, or if you borrowed monies from UBS Puerto Rico and used your investments as collateral for those loans, we may be able to help you recover your losses. Contact our office for a free consultation about your case.

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Another UBS Puerto Rico Investor Sues Brokerage For Unsuitable Investments

The Law Offices of Robert Wayne Pearce, P.A. filed another claim against UBS Financial Services Incorporated of Puerto Rico (UBS Puerto Rico). A summary of the allegations the Claimant made against the Puerto Rico based brokerage is below. If you or any family member received similar misrepresentations and/or misleading statements from UBS Puerto Rico and its stockbrokers or found yourself with an account overconcentrated in closed-end bond funds, or if you borrowed monies from UBS Puerto Rico and used your investments as collateral for those loans, we may be able to help you recover your losses. Contact our office for a free consultation about your case.

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Retired Couple Lose Life Savings Due To Santander Securities Stock Recommendations

The Law Offices of Robert Wayne Pearce, P.A. filed its first claim against Santander Securities. Below is a summary of the allegations made by the Claimants against the Puerto Rico based brokerage. If you or any family member received similar misrepresentations and misleading statements from Santander Securities and its stockbrokers or found yourself with an account overconcentrated in Puerto Rico bank preferred stocks, or if you borrowed monies from Santander Securities and used your investments as collateral for those loans, we may be able to help you recover your losses.

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The Law Offices of Robert Wayne Pearce, P.A. Wins $600,000 Plus Interest Award Against UBS Puerto Rico

In an arbitration proceeding against UBS Financial Services, Inc. of Puerto Rico (UBS-PR), the Law Offices of Robert Wayne Pearce, P. A. won a $600,000 plus interest award for one of the firm’s clients. A summary of Claimant’s allegations against UBS-PR are set forth below. If you or any family member received similar unsuitable recommendations from UBS-PR and its stockbrokers or found yourself with an account overconcentrated in Puerto Rico municipal bonds and/or closed-end bond funds, or if you borrowed monies from UBS and used your investments as collateral for those loans, we may be able to help you recover your losses. Contact our office for a free consultation about your case.

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Eighty Year Old Investor Sues UBS Puerto Rico

Attorney Robert Wayne Pearce filed another claim against UBS Financial Services Incorporated of Puerto Rico (UBS Puerto Rico) and this time the claim was by an eighty (80) year old Puerto Rico resident who alleged he was tricked into making an over-concentrated investment in a variety of UBS Puerto Rico closed-end bond funds and told to hold them until they collapsed. A summary of the allegations the Claimant made against the Puerto Rico based brokerage firm is below. If you or any family member have heard similar misrepresentations and/or misleading statements from UBS Puerto Rico and its stockbrokers or found yourself with an investment account over-concentrated in closed-end bond funds, or if you borrowed monies from UBS Puerto Rico and used your investments as collateral for those loans, we may be able to help you recover your losses.

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The Pearce Law Firm Files First Claim Against UBS Puerto Rico

The Law Offices of Robert Wayne Pearce, P.A. filed its first claim against UBS Financial Services Incorporated of Puerto Rico (UBS Puerto Rico). A summary of the allegations the Claimant made against the Puerto Rico based brokerage is below. If you or any family member heard similar misrepresentations and misleading statements from UBS Puerto Rico and its stockbrokers or found yourself with an account overconcentrated in closed-end bond funds, or if you borrowed monies from UBS Puerto Rico and used your investments as collateral for those loans, we may be able to help you recover your losses.

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2013 Most Effective Lawyers Finalist

Daily Business Review Monday, December 9, 2013 ARBITRATION AWARD AGAINST WELLS FARGO RECOVERS MOST OF FAMILY’S LOSSES Mediation and arbitration are supposed to be faster and more cost-effective than going to court. However, it was neither in a case involving the theft of millions of dollars from College Health and Investment L.P., a family-run limited partnership. The case took more than three years to resolve as attorneys for Wachovia Securities, now part of Wells Fargo, used numerous delaying tactics before ultimately paying a $2.75 million arbitration award, said Boca Raton securities attorney Robert W. Pearce, who represented College Health. The case grew out of Wells Fargo’s failure to detect the alleged theft and unauthorized transactions of millions of dollars by Esther Spero, whose aunt, Shari Jakobowitz, was in charge of the partnership’s accounts. Spero was accused of misusing the family’s financial information to steal about $7 million, which she in turn lost to one-time Miami Beach developer Michael Stern, who was supposed to be investing in real estate. Instead, Stern allegedly used the money to pay off his own debts after the real estate crash while funding a lavish lifestyle. Pearce traced most of the money and made recoveries in state court against Stern, a title company, Spero and Wachovia. “They came up a bit short, but we came close to getting most of their money back,” Pearce said. Then, in July, a Financial Industry Regulatory Authority arbitration panel ordered Wells Fargo to pay $2.75 million in damages and interest for failing to detect Spero’s alleged embezzlement. Pearce alleged bank employees went so far as to create a false power of attorney to give Spero control over the account that held most of the assets. Had the bank enforced its own policies and procedures, as well as FINRA’s rules, it would have detected the embezzlement, Pearce argued. “The bank had numerous red flags. It should have made inquiries to stop the movement of funds,” Pearce said.

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Municipal Arbitrage Structured Products

The Law Offices of Robert Wayne Pearce, P.A. has handled over 100 cases and investigations involving another form of complex structured products. They are structured credit products crafted from municipal bonds, tender option bonds, swap contracts, swaptions, and sold as “arbitrage”, “hedged” and “fixed income” investments to lure in investors with conservative risk profiles seeking to incrementally increase the yields and risk in their bond portfolio. However, according to Attorney Pearce many of the products were not arbitrage, not fully hedged and not fixed income products. Representing clients throughout Florida and nationwide. Se habla español The so-called municipal bond “arbitrage” strategy was a very complex investment strategy involving multiple investments in the tax exempt and taxable fixed income markets. The fund managers invested in long tax exempt municipal bonds and, in effect, shorted the equivalent of taxable corporate bonds utilizing libor swap contracts and swaptions. The key to the success of the strategy was “market timing” and the “continued correlation” of the tax exempt municipal bond yields and the libor swap contract yields. It was originally used by many banks as a short term trading strategy. But many firms converted it to a flawed long term buy and hold strategy to maximize their own sales commissions and management fees. The largest issuer of the securities Citigroup, under the Smith Barney division and Citibank divisions, marketed these products as MAT and ASTA. Our firm has handled over 100 MAT and ASTA investor cases in the last three years. Other faulty municipal arbitrage structured products include the Anchor Capital, Aravali, Belvedere Tax Advantaged, Blue River, TW Advantaged and 1861 Capital funds. We have helped our clients recover millions of dollars of investment losses in the so-called “municipal arbitrage” funds. For more information about our municipal arbitrage cases and investigations involving Smith Barney, Citibank, Deutsche Bank, Merrill Lynch Pierce Fenner & Smith and other issuers of the so-called municipal arbitrate products, click on the links below: Our MAT/ASTA Cases & Investigation FREE INITIAL CONSULTATION WITH MUNICIPAL ARBITRAGE INVESTMENT DISPUTE ATTORNEYS The Law Offices of Robert Wayne Pearce, P.A. understands what is at stake in securities, commodities and investment law matters and constantly strives to secure the most favorable possible result. Attorney Pearce provides a complete review of your Municipal Arbitrage 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 the firm by telephone at 561-338-0037 or toll free at 800-732-2889 or via e-mail. We may also be able to arrange a meeting with you at offices located in Boca Raton, Fort Lauderdale, Miami and West Palm Beach, Florida and elsewhere.

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