No Recovery, No Fee

424-835-5733 | 310-525-3516

You may have lost money in your investment portfolio,
due to mismanagement and not even know it.

Unsuitable investments: sometimes a pattern is just clear

As we noted in a recent blog post focused upon securities investing, "not every undesirable outcome can be chalked up to market forces."

Indeed, and as our Los Angeles securities law blog at the well-established Law Offices of Marc I. Zussman has repeatedly pointed out, the investment universe unfortunately features a number of characters who are not beyond committing illegal acts to line their own pockets while simultaneously fleecing good-faith investors.

And we periodically stress this for readers, too: Even when market forces seem to be singly responsible for a precipitous fall in investors' portfolios, that drop might itself owe to broker advice and choices made that are simply inappropriate in a particular context.

That is amply borne out in a recent national media focus on a former investment adviser who the U.S. Securities and Exchange Commission recently targeted in a civil complaint.

The SEC's complaint centrally contended that the broker was patently investing on behalf of multiple clients in a manner that was both unsuitable and reckless.

As we stated in our May 1 blog post cited above, "not every client has the same goals."

That reality is flatly understood by every licensed broker, who bears a duty of investing on behalf of a customer in a way that makes reasonable sense for that individual in light of his or her investment amount, stated views on risk and return, investment timeframe and other relevant factors.

In the aforementioned case, the SEC alleged that the broker, while knowing his clients "were unsophisticated with limited or no investing experience and modest incomes," nonetheless invested their hard-earned money into vehicles deemed by regulators to be inherently risky and volatile.

Understandably, the clients lost money as a result. Moreover, their broker diverted their funds to his personal accounts.

The SEC is now demanding a permanent injunction against the broker's further participation in the industry, as well as restitution to his victims and additional penalties.

It is simply a reality in the modern-day investment world that consumers need to engage in adequate due diligence when vetting advisers and entrusting them with investment capital.

Notwithstanding their efforts, fraud sometimes occurs, and they suffer personal damages from third-party misconduct.

A proven securities law attorney who routinely represents defrauded investors can help them when that occurs, providing diligent representation that seeks to fully compensate them for any injuries they have suffered.

No Comments

Leave a comment
Comment Information

Our Office Location

The Law Offices of Marc I. Zussman
433 N. Camden Drive
Suite 730 
Beverly Hills, CA 90210       
Map & Directions

Local: 424-835-5733
Local: 310-525-3516
Toll Free: 866-451-2517
Fax: 310-525-3528