Colling, Gilbert, Wright & Carter Securites Fraud

In this turbulent market environment, where 401K's and IRA portfolios have been cut nearly in half, angry investors are looking to place blame and recover their losses. However, just because a portfolio is down does not mean an investor necessarily has a claim for damages resulting from stockbroker fraud or stockbroker negligence.

When a brokerage account is established, the client and firm determine the parameters for the account, including the investment objectives and risk profile. Assuming the selected investment objective and risk profile are consistent with the clients financial situation, investment experience and needs, there is generally not a cause of action. However, if the broker fails to adhere to stated goals and objectives and losses occur in the account, the investor may have a claim for damages.

A client may also have a claim for damages if the broker or representative misrepresents or omits material information about the security or product during the sale. Under state and federal securities laws, if there is a misrepresentation or omission in the sale of a security, the purchaser is entitled to damages, including the amount of money paid for the security (less income received) plus statutory interest, costs and, in some instances, reasonable attorney's fees. Such are the allegations set forth in the hundreds of claims against Morgan Keegan and Charles Schwab related to the RMK Select Funds and the YieldPlus fund respectively. There may also have been misrepresentations in the sale of Lehman Brothers bonds, senior unsecured and exchange traded notes. There are allegations that many of the brokerage houses had advance knowledge of the deteriorating finances at Lehman yet pushed the firms risky debt on their clients under the guise of safe and secure investments. Also, some firms sold products marketed to investors as providing exposure to certain indexes with participation on the upside and protection on the downside only to learn the underlying securities were really unsecured Lehman debt. These Exchange Trade Notes or ETNs were marketed as secure investments to conservative investors. As the subsequent Lehman bankruptcy revealed, these products were anything but secure or safe. The firms selling this toxic debt include Charles Schwab, Morgan Stanley, UBS, Bank of America Securities, Wachovia Securities, Washington Mutual and Edward Jones.

If you have experienced stock market losses related to a failure by your broker to follow your predetermined goals and objectives or if you have purchased any of the RMK Morgan Keegan Funds, the Schwab YieldPlus fund or any Lehman Brothers bonds or notes, contact our office today for a free consultation. You may be entitled to compensation for your losses.