Nostalgic America Broward North Dade Issue#3 2013 : Page 71

INVESTMENT LOSSES? KNOW YOUR RIGHTS. Questions & Answers from Peter M. Spett, Esq. Securities Fraud and Investment Loss Attorney Q. You represent victims of misconduct by financial advisors, other investment professionals, and their companies. What legal rights do victims have to recover their investment losses? A. This may sound surprising but many investors are unaware that laws and regulations give them the right to recover their losses if they are the victims of unsuitable investment advice or other misconduct by their financial advisor or stockbroker. These individuals are licensed professionals so they and their employers may be held legally responsible for misdeeds in handling the investments of their clients. Many people believe that securities fraud is limited to Ponzi schemes, Madoff types of situations, or insider trading. This simply is not the case. Q. What might be considered to be unsuitable investment advice? A. Investment professionals are legally required to know and to take into account their client’s investment profile when they make recommendations or provide advice regarding an investment strategy. This investment profile is comprised of many different elements such as the investor’s age, other investments, financial situation and needs, tax status, investment objectives, investment experience, investment time horizon, liquidity needs, and risk tolerance. Q. Can you provide some specific examples? A. It may be misconduct for a financial advisor to recommend that a retiree with limited income and wealth concentrate his or her investment portfolio in high risk investments. Recently, there has been an increase in unsuitable recommendations of exotic investment vehicles such as leveraged or inverse exchange-trade funds (ETFs), non-tradable real estate investment trusts (REITS), commodities, and collateralized debt obligations (CDOs). Also, an investment recommendation or advised investment strategy in mainstream securities such as stocks and bonds can be unsuitable for a particular investor if it places a substantial percentage of the investor’s savings at a high risk of loss or illiquidity. In addition, excessive trading of securities in an investor’s account is often unsuitable. Q. What can investors do if they believe that they are victims of misconduct by an investment professional? A. Typically claims between investors and their investment advisors are made in securities arbitration proceedings conducted through the dispute resolution section of the Financial Industry Regulatory Authority (FINRA). FINRA regulates most investment professionals in the United States and their companies. I strongly recommend that any investors who believe that they might have a claim against their financial advisor contact me for a free consultation. Listen to Peter Spett on the radio program “OMG I’m Getting Older and So Is My Mom” hosted by Scott Greenberg on Monday, April 1, 2013 at 6:06 p.m. on Seaview Radio 960 AM, 95.9 FM and 106.9 FM LAW OFFICE OF PETER M. SPETT Boca Raton, FL Contact me for a FREE CONSULTATION to learn if you may be entitled to recovery! No attorney fees if no recovery (client is responsible for expenses, if any) • 19 years of litigation and arbitration experience • Graduate of Columbia College and Columbia Law School • Admitted to the Florida Bar and New York Bar 1-888-217-4919 or 561-463-2799 •

Law Office Of Peter M. Spett

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