SEATTLE, WASHINGTON, UNITED STATES, May 30, 2023/EINPresswire.com/ — National investment loss attorneys KlaymanToskes encourages customers of Merrill Lynch who suffered investment losses to contact the firm immediately at 888-997-9956.
KlaymanToskes reports that the firm has filed a FINRA arbitration claim (no. 23-01559) against Merrill Lynch seeking to recover damages between $250,000 to $500,000 on behalf of a customer, due to Merrill Lynch’s volatile and high-risk investment recommendations through its “Custom Managed” investment strategy.
Merrill Lynch and its financial professionals, Scott Edward Smolinsky (CRD #1263972) and Alexander Callahan (CRD#2754040), who were employed at the firm’s Seattle and then Bellevue branch offices, violated the customer’s Trust investment directives by engaging in a discretionary strategy of buying and selling equities in the customer’s Trust account, against the strategy directed by the Trust.
The risk of the Custom Managed equity strategy employed by Merrill Lynch was far greater than the U.S. Treasury strategy and “long-term financial security” desired by the customer’s grandfather, who originally set up the Trust. Merrill Lynch and its investment advisors misrepresented the risk of its investment strategy to the customer.
For the 17 months that Merrill Lynch and its advisors negligently traded the account, the Trust declined by over $250,000. Had the Trust been properly allocated, it would have appreciated in value as opposed to sustaining a loss.
The customer’s damages were the direct result of Merrill Lynch violating its fiduciary duty, by engaging in unsuitable trading, misallocating the account and violating the Trust’s directives. Further, Merrill Lynch charged investment advisory fees as this was a discretionary account and generated substantial fees through markups on principal trades.
Customers of Merrill Lynch who suffered investment losses are encouraged to contact attorney Lawrence L. Klayman, Esq. at (888) 997-9956 or lklayman@klaymantoskes.com for a free and confidential consultation to discuss legal options. We do not collect attorney’s fees unless we are able to obtain a financial recovery for you.
KlaymanToskes is a leading national securities law firm which practices exclusively in the field of securities arbitration on behalf of retail and institutional investors throughout the world in large and complex securities matters. The firm has recovered over $250 million in FINRA arbitrations and over $350 million in other securities litigation matters. KlaymanToskes has office locations in California, Florida, New York, and Puerto Rico.
Lawrence Klayman
KlaymanToskes, P.A.
+1 888-997-9956
lklayman@klaymantoskes.com