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

Did Barclays' Failure to Supervise Your Securities Account(s) and Investment Managers From 2010 Through 2014 Result In Significant Underperformance Of Your Account(s)?

The Securities and Exchange Commission ("SEC") has found Barclays Capital in violation of several sections of the Investment Advisers Act of 1940, Rule 206(4)-7, and the Securities Act of 1933. Without admitting or denying those findings, Barclays has agreed to a cease and desist order and to pay $97 million for the return of "advisory fees" for account supervision and due diligence that was never performed, interest, and a penalty of $30 million to the SEC.

According to SEC, Barclays:

Charged over 2000 advisory clients for due diligence services and monitoring of investment strategies and third party managers, when in fact these services were not performed as claimed.

Charged excess fees to over 22,000 client accounts due to billing errors and miscalculations.

Charged 63 brokerage clients excess mutual fund fees and sales charges by wrongfully recommending more expensive share classes than were available and appropriate.

"Barclays failed to ensure that clients were receiving the services they were paying for" said a spokesperson for the SEC Enforcement Division's Asset Management Unit. "Each set of clients who were harmed are being refunded through the settlement."

The financial services company will pay $49,785,417 in "disgorgement," or money it wrongly received, into a Fair Fund, along with $13,752,242 in interest and a $30 million penalty. The disgorgement and interest will also be paid out to the owners of 22,138 accounts that were charged excess fees.

WHAT IS UNDERPERFORMANCE? If the investment products or strategy was unsuitable for you given your account objectives and risk tolerance, and your account returned less than an account made up of suitable products strategy, asset allocation, and diversification measured by industry accepted benchmarks, then your account underperformed the market. Money damages for underperformance are legally recoverable damages. We have successfully recovered millions of dollars for our clients' underperformed securities accounts. Most cllients did not know at first that there were damages as the accounts actually made money rather than losing money until we reviewed their accounts.

Barclays has also agreed to pay $3.5 millions to clients whose accounts underperformed. Therefore, what is the problem?

The amount of underperformance for 2000 advisory clients' accounts could be in the hundreds of millions of dollars and not just $3.5 million. From July, 2011 to July 2014, Barclays accounts grew 23% while the S&P 500 grew 47%. Barclays neither performed the due diligence nor supervised certain investment strategies and third party managers that it promised it would perform, and charged for these services. Even though your account(s) may have grown during this period due to the Bull Market, it may have still greatly underperformed accepted market bench marks because your account(s) and investment managers were not adequately monitored by Barclays. Barclays' offer to pay a total of $3.5 million for underperformance when the total accounts under its management were valued at $5.6 billion in July 2011, just does not add up. We believe it should be much more than just $3.5 million. Your account(s) may be one that was affected. You would not know until a thorough analysis is done of your account to determine what your market adjusted damages really are.

We offer free confidential analysis of your Barclays account(s). It is very important to consult a experienced securities attorney who knows how to analyze your accounts for evidence of underperformance, investment fraud, overbilling, unsuitability, and/or breach of fiduciary duty.

The Law Offices of Marc I. Zussman helps injured investors nationwide get the answers they need and recover their money after mistakes, mismanagement and bad behavior by brokers, dealers, investment managers, and other players in the securities industry. Contact Marc I. Zussman for a free confidential consultation and review of your account(s).

Do not sign a release of claims for Barclays until your securities account(s) are analyzed. CALL US now for a free confidential consultation with Mr. Zussman.

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