Our law firm is handling several cases on behalf of investors against Brookstreet Securities (“Brookstreet”), who sustained significant losses as a result of being over-concentrated in Collateralized Mortgaged Obligations (“CMOs”). Brookstreet represented these CMOs to be safe, low risk, fixed income products. Additionally, Brookstreet, through its financial advisors, recommended that their clients purchase these CMOs through the use of margin. However, unbeknownst to the clients, these CMOs carried significant risks. In 2007, as the liquidity crisis swept the markets, the value of these CMOs plummeted in value. As a result, these investors’ concentrated, leveraged accounts also sustained substantial losses.
