Colling, Gilbert, Wright & Carter Securites Fraud

Colling Gilbert Wright & Carter is aggressively pursuing claims against a variety of brokerage firms and banks for misrepresentation and/or omissions in the sale of securities as well as stockbroker negligence and stockbroker fraud. Many of these firms and their products are currently or will be the subject of numerous class action lawsuits. Investors must carefully consider their options when pursuing claims for their investment related losses. There are definite benefits associated with filing an individual arbitration claim, as opposed to participating in a class action.

When participating in a class action lawsuit, investors typically only recover a very small percentage of their losses, usually pennies on the dollar. However, if you have experienced significant losses, it may be more advantageous for you to file an individual securities arbitration claim. Our securities litigation experience has revealed investors who file a securities arbitration claim typically obtain a better result then those investors choosing to participate in a class action lawsuit.

To discuss your options and get a free case evaluation, contact us at (866) 352-3476 or at www.stockmarketfraud.com. Thank you.

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.

A sharp sell off in shares of Morgan Stanley suggested that the venerable investment house, spun out of the old JP Morgan & Co. in 1935, might suffer the same fate as Merrill Lynch which last month agreed to sell out to Bank of America. See our September 15, 2008 blog entry.

In today's trading, Morgan Stanley shares closed down 25.9% to $12.45 and has fallen a staggering 83% since June 2007. "Morgan Stanley is now facing the same type of credit woes that took down other brokerage giants including Bear Stearns, Lehman Brothers and Merrill Lynch.

If you have experienced investment losses related to the shares or product offered by any of these financial institutions, contact our office for a free case evaluation.

Although the stock market has been volatile all day and for the whole week really. Nothing could prepare investors for what happened beginning around 1:30 p.m., with the Dow Jones Industrial Average at 9,208.72. Over the next couple hours, the index fell over 600 points.

All 30 stocks in the Dow were lower. The best performer was IBM, down 1.7% to $89. Big Blue had been up for much of the day after reporting better-than-expected earnings late Wednesday. General Motors was the worst performer, losing almost a third of its share value on fears the company, which is heavily burdened with debt, will not survive the current credit crisis.

If there was any good news on the day, it was the falling price of oil. Crude oil prices fell in after-hours electronic trading to less then $85 a barrel. That was after crude closed in regular trading at $86 1/2, already down 2.7% on the day. Some analysts are predicting the price could break the $80 level in the not to distant future.

Observers believe the affects of the fed bailout will not come soon enough to stabilize the financial system and restore investor confidence in the markets. Investors however seem to believe it will take more time and some apparently were not willing to wait, choosing to sell into the already hemoraging securities markets.

According to a September 26, 2008 Investment News article , the purchase of WaMu Investments, Inc. by JP Morgan Chase will give the combined entity approximately 15% of the market.

Accounting for roughly 10% of the nation's retail-securities business done at banks, JP Morgan Chase & Co. is set to become even more dominant in that segment once it completes its $1.9 billion takeover of Washington Mutual Inc.

WaMu Investments Inc., the Irvine, Calif.-based broker-dealer of the Seattle-based bank holding company, employs approximately 60 Series 7 (general securities representatives) brokers and 500 Series 6 (mutual fund sales) platform representatives.

JP Morgan Chase has approximately 2000 Series 7 brokers and 10,000 Series 6 (mutual fund sales) reps. Meanwhile, WaMu accounts for about 5% of the bank brokerage business. Both banks specialize in mutual fund investments.

The stockbroker fraud attorneys at Colling Gilbert Wright & Carter are actively pursuing investment fraud cases to recover losses associated with unsuitable variable annuities, mutual funds and other investment products purchased from WaMu and JP Morgan Chase. Please contact our offices for a free consultation.

The North American Securities Administrators Association (NASAA), the Financial Industry Regulatory Authority (FINRA) and the Securities Exchange Commission (SEC) have recently released a report to Assist Financial Services providers in servicing older investors.

A portion of the press release announcing the new report follows:

FOR IMMEDIATE RELEASE
2008-220

Washington, D.C., Sept. 22, 2008 - As part of the Securities and Exchange Commission's third annual Seniors Summit held in Washington today, the staff of the SEC along with the Financial Industry Regulatory Authority (FINRA) and the North American Securities Administrators Association (NASAA) released a joint report outlining practices that financial services firms can use to strengthen their policies and procedures for serving older investors as they approach and enter retirement.

Projections show that nearly one in every six Americans will be age 65 or older by the year 2020. Given the increasing number of investors who need advice and guidance, financial services firms are actively developing new products and increasingly providing financial advice and services to senior investors. The SEC, FINRA, and NASAA view the protection of senior investors as a top priority.

The regulators' report - Protecting Senior Investors: Compliance, Supervisory and Other Practices Used by Financial Services Firms in Serving Investors - provides practical examples of proactive steps being taken financial services firms in serving senior investors.

SEC Chairman Christopher Cox said, "Today's market turmoil affects senior investors very directly, because for them, investing for the longer term isn't an option. They and the more than 76 million baby boomers will directly benefit from this report on developing high standards for firms'interactions with senior investors."

NASAA President Fred Joseph said, "The practices outlined in this report, combined with strong regulation, effective industry compliance and supervision, and increased investor awareness, help ensure that the financial needs of our growing senior population are being met by brokers, investment advisers and others in the financial services industry. We appreciate the efforts of those in the industry who shared their successful programs with us and we look forward to continue working with the SEC, FINRA, and the financial services industry in the fight against senior investment fraud."

FINRA CEO Mary Schapiro said, "FINRA is working closely with firms to make sure they treat seniors properly and educate brokers how best to interact with this growing segment of the investor population. The Joint Report will prove to be a valuable resource to financial services professionals as they struggle with the range of issues associated with an aging customer base - and it is my belief that this report will help make the securities industry a leader among industries when it comes to developing guidelines to serve senior customers."

This is welcome albeit belated news for seniors who have seen their retirement savings ravaged by unscrupulous insurance brokers, investment advisers and greedy wall street firms. Retirement savings represent a huge portion of the investable assets in this country but also represent the most vulnerable part of the population. Brokerage firms for years have been peddling 72-t programs and early retirement plans with unrealistic income projections as have insurance agents peddling variable and fixed annuities with huge commissions and long surrender periods.

The stockbroker fraud attorneys at Colling Gilbert Wright & Carter help seniors and retirees recover losses associated with unsuitable investment advice and products. Please contact our offices today if you believe you have been sole investment products or services resulting in losses to your retirement nest egg.

The latest consequence of the credit crises and another example of securities fraud subsequent massive government bailouts are the preferred stock losses. In early September, the rating services began slashing the ratings on Fannie Mae and Freddie Mac preferred shares, creating borrowing problems for the issuers and eventually leading to the massive government bailout.

The major brokerage firms such as Merrill Lynch, Citigroup/Smith Barney, Wachovia/AG Edwards, Morgan Stanley, Edward Jones, JP Morgan and others have sold preferred stocks to their most conservative investors as ultra-safe investments. These firms' representatives presented/misrepresented the shares as a conservative investment that would give investors, often retirees, the upside potential of a stock with the downside protection of a bond (with U.S. Government backing). While the backing part turned out to be correct, at least as to the bailout of the mortgage giants, the individual investors (and taxpayers) have once again been left holding the proverbial bag.

Estimates show over a million investors were sold Fannie Mae and/or Freddie Mac preferreds with the representation these investments were suitable for ultra-conservative investors looking for an income stream. In fact, many clients were persuaded to sell other more secure holdings to raise capital to invest in these inherently risky shares. Preferred have much the same risk characteristics of stocks, not bonds. In the event the issuer fails, as was the case with Freddie and Fannie, bond holders are first in line to get paid and our offered some protection of default. Not so with preferred holders.

If a broker represents preferred shares as ultra-safe investments suitable for conservative investors or fails to explain all the potential risks associated with the investment, the qualifies as a misrepresentation and/or omission which is actionable under most state securities laws. However, account holders with brokerage firms must sign a new account form before the firm will accept the account. Tne new account form serves a contract requiring the investors to take any claim for loss recovery to NASD/FINRA arbitration.

The stock market and broker fraud attorneys at Colling Gilbert Wright and Carter have extensive experience handling NASD/FINRA arbitration claims on behalf of individual investors. If you have lost money as a result of an investment in Fannie Mae or Freddie Mac preferred shares, please contact us for a free case evaluation.