Yes, many investors have filed claims to recover losses sustained as a result of their investments in NYC REIT, a real estate investment trust that purports to own “a portfolio of high-quality” commercial real estate located within the five boroughs of New York City. This REIT began as a non-traded…
Rich, Intelisano & Katz, LLP (RIK) filed a $3 million FINRA arbitration this month on behalf of clients that invested in UBS Financial Services, Inc.’s Yield Enhancement Strategy (YES). UBS claimed the YES Program had minimal risk, but unbeknownst to its customers, the risks of this options trading strategy significantly…
Arbitration at FINRA has long been known as a quicker, more efficient alternative to court litigation of disputes eligible for submission to FINRA’s Dispute Resolution forum. This continues to be true, to an even greater extent, during the COVID-19 pandemic. Many courts at the federal and state levels, both in…
We are increasingly hearing from investors who say that their investment representative at their “self directed” broker dealer—such as T.D. Ameritrade—recommended an outside investment advisor who was not formally affiliated with the firm and incurred investment losses as a result. There could be many reasons why this may happen: the…
Mortgage REITs have often been recommended by brokerage firms as safe investments that generate consistent income. However, during the recent market turmoil the bottom has fallen out for many Mortgage REITs. For example, AGNC Investment and Annaly Capital are down over 50% in the last month or so, a way…
Margin call disputes often arise during times of market turmoil such as now. Knowing what to do and whom to speak to when a margin call is issued is vitally important to an investor’s financial well-being. Here is a little primer on what to do. A margin call often occurs when…
Many firms, such as TD Ameritrade, Charles Schwab and Fidelity, whose business model includes or is tailored primarily to investors who want the benefits of a self-directed account also offer to introduce investors who wish independent investment advice to professional investment advisors who are technically “unaffiliated” with the firm. Such…
In a move intended to emphasize that FINRA’s ultimate mandate is to protect investors, the SRO’s National Adjudicatory Council last week issued newly-revised Sanction Guidelines including tougher ranges of recommended punishments to be meted out against member firms or brokers who commit fraud or make unsuitable recommendations to customers. Since…
What are non-traditional exchange-traded funds (ETFs) and non-traded real estate investment trusts (REITs)? Why are independent broker dealers selling these complex products without proper supervision? FINRA wants to know and just slammed LPL Financial for doing such a thing. This week, FINRA censured and fined LPL $10 million for broad…
Merrill Lynch was fined almost $20 million by the Financial Conduct Authority (FCA) in London for incorrectly reporting more than 35 million transactions from 2007 to 2014. Merrill Lynch didn’t report, at all, another 120,000 transactions. It’s the largest fine ever levied by the FCA for reporting failures. While this…