FINRA Fines VALIC Financial Advisors $350,000 for Failure to Supervise Variable Annuity Sales Practices

FINRA Fines VALIC Financial Advisors $350,000 for Failure to Supervise Variable Annuity Sales Practices

On January 8, 2021, VALIC Financial Advisors agreed to a Letter of Acceptance, Waiver and Consent (AWC) (Case No. 2018060548501)  which included a Fine of $350,000 by the Financial Industry Financial Authority (FINRA), the securities industry regulator established to protect investors.  According to the agreement with FINRA, VALIC Financial Advisors “consented to the sanctions and to findings that it failed to establish a reasonably designed system and written procedures for the surveillance of rates of variable annuity replacements and for corrective action in the case of inappropriate replacements”.  FINRA also determined. “The procedures also failed to provide guidance as to…

DAVID LERNER INVESTOR ALERT: KlaymanToskes Announces Preparation to File FINRA Arbitration Claim seeking more than $1,000,000 on Behalf of Investor who Purchased Spirit of America Fund

DAVID LERNER INVESTOR ALERT: KlaymanToskes Announces Preparation to File FINRA Arbitration Claim seeking more than $1,000,000 on Behalf of Investor who Purchased Spirit of America Fund

KlaymanToskes (“KT”) announces that it is preparing to file a claim against David Lerner Associates (“David Lerner”) on behalf of an investor who sustained losses due to investment and sector concentrations in proprietary products invested in non-traded Oil & Gas Investments offered exclusively to David Lerner clients.  Specifically, this case focuses on Spirit of America Fund (NASDAQ:SOAEX), one of three David Lerner proprietary funds that have recently seen a precipitous decline. According to the claim, the investor was seeking to preserve his investment principal, while earning supplemental income to provide for his growing family, including his children’s educations and other…

ATTENTION CUSTOMERS WITH ACCOUNTS SERVICED BY FINANCIAL ADVISOR JOSEPH IJONG CHU – KlaymanToskes Files FINRA Arbitration Claim against Merrill Lynch and RBC Seeking $1,000,000 on Behalf of Investors

ATTENTION CUSTOMERS WITH ACCOUNTS SERVICED BY FINANCIAL ADVISOR JOSEPH IJONG CHU – KlaymanToskes Files FINRA Arbitration Claim against Merrill Lynch and RBC Seeking $1,000,000 on Behalf of Investors

KlaymanToskes (“KT”) announces that it recently filed a claim for breach of fiduciary duty seeking $1,000,000 against Merrill Lynch (NYSE: BAC) and RBC Capital Markets (“RBC”) on behalf of investors who had discretionary accounts mishandled by Joseph Ijong Chu (“Chu”).  A discretionary account is one that allows an authorized broker, in this case Chu, to buy and sell securities without client consent on each trade and is based on a client consent granting this authorization in writing.  This type of relationship is especially one of trust. According to the claim, the investors gave Chu discretion to invest their hard-earned savings…

FSKR INVESTOR ALERT: KlaymanToskes Continues Investigation into Full-Service Brokerage Firms for Recommended Investments in Excess of $250,000 in Franklin Square KKR Capital II Fund Predecessors Prior to the IPO

FSKR INVESTOR ALERT: KlaymanToskes Continues Investigation into Full-Service Brokerage Firms for Recommended Investments in Excess of $250,000 in Franklin Square KKR Capital II Fund Predecessors Prior to the IPO

New York–(BUSINESS WIRE)–National investment fraud law firm, KlaymanToskes (“KT”), continues its investigation into full-service brokerage firms for the unsuitable recommendations to purchase non-traded Business Development Companies (“BDCs”) including:  FS Investment Corp II (“FSIC II”), FS Investment Corp III (“FSIC III”), FS Investment Corp IV (“FSIC IV”), and Corporate Capital Trust (“CCTII”).  These four BDCs merged into the Franklin Square KKR Capital II Fund (NYSE:FSKR) on December 18, 2019.   On June 17, 2020, FSKR announced the listing on the NYSE.  These investments, and other non-traded BDCs, may have been marketed and sold to investors who were risk averse, such as retirees…

ATTENTION EXERCISE AND HOLD STRATEGY INVESTORS WITH EMPLOYER COMPANY STOCK:  KlaymanToskes Commences Investigation into Full-service Brokerage Firms for Mismanagement of Concentrated, Leveraged Positions in Employer Company Stock

ATTENTION EXERCISE AND HOLD STRATEGY INVESTORS WITH EMPLOYER COMPANY STOCK: KlaymanToskes Commences Investigation into Full-service Brokerage Firms for Mismanagement of Concentrated, Leveraged Positions in Employer Company Stock

National investment fraud law firm, KlaymanToskes (“KT”), commences an investigation into full-service brokerage firms for the mismanagement of concentrated, company stock positions accumulated through employer sponsored plans.  The investigation focuses on whether full-service brokerage firm recommendations for an “exercise and hold” strategy represents unsuitable investment advice and a failure to supervise the management of concentrated, leveraged positions in employer company stock. Investment portfolios holding large concentrated stock positions carry significant downside risks, especially when leveraged by a margin loan.  Full-service brokerage firms whose customers hold large concentrated stock positions have a duty to ensure that their customers understand the risks…

ATTENTION CHESAPEAKE ENERGY EMPLOYEES:  KlaymanToskes Continues Investigation into Damages of More Than $500,000 Sustained in Chesapeake Energy Stock with Full-Service Brokerage Firms

ATTENTION CHESAPEAKE ENERGY EMPLOYEES: KlaymanToskes Continues Investigation into Damages of More Than $500,000 Sustained in Chesapeake Energy Stock with Full-Service Brokerage Firms

National investment fraud law firm, KlaymanToskes (“KT”), continues its investigation into damages of more than $500,000 sustained by current/former employees who held large positions in Chesapeake Energy (NYSE:CHK) stock at full-service brokerage firms. Investment portfolios holding large positions can carry significant downside risks. The investigation focuses on full-service brokerage firms’ negligence and failure to supervise the management of large concentrated positions that resulted in investors suffering substantial losses. Employees may have accumulated concentrated investments in Chesapeake Energy stock due to their participation in employer-sponsored plans or merger acquisitions.  No matter what the reason for maintaining a concentrated stock position, a…

CHK INVESTOR ALERT:  KlaymanToskes Continues Investigation into Damages of More Than $500,000 Sustained in Chesapeake Energy Stock with Full-Service Brokerage Firms

CHK INVESTOR ALERT: KlaymanToskes Continues Investigation into Damages of More Than $500,000 Sustained in Chesapeake Energy Stock with Full-Service Brokerage Firms

National investment fraud law firm, KlaymanToskes (“KT”), continues its investigation into damages of more than $500,000 sustained by investors who held large positions in Chesapeake Energy (NYSE:CHK) stock at full-service brokerage firms. Investment portfolios holding large positions can carry significant downside risks. The investigation focuses on full-service brokerage firms’ negligence and failure to supervise the management of large concentrated positions that resulted in investors suffering substantial losses. Investors may have accumulated concentrated investments in Chesapeake Energy stock, due to their participation in employer-sponsored plans, financial advisor recommendations, or merger acquisitions.  No matter what the reason for maintaining a concentrated stock…

FSKR INVESTOR ALERT: KlaymanToskes Investigates Full-Service Brokerage Firms for Unsuitable Investment Recommendations Regarding Franklin Square KKR Capital II Fund

FSKR INVESTOR ALERT: KlaymanToskes Investigates Full-Service Brokerage Firms for Unsuitable Investment Recommendations Regarding Franklin Square KKR Capital II Fund

National investment fraud law firm, KlaymanToskes (“KT”), announces an investigation into full-service brokerage firms for the unsuitable recommendations to purchase non-traded Business Development Companies (“BDCs”) including:  FS Investment Corp II (“FSIC II”), FS Investment Corp III (“FSIC III”), FS Investment Corp IV (“FSIC IV”), and Corporate Capital Trust (“CCTII”).  These four BDCs merged into the Franklin Square KKR Capital II Fund (NYSE:FSKR) on December 18, 2019.   On June 17, 2020, FSKR announced the listing on the NYSE and that “J.P. Morgan, Morgan Stanley, Keefe, Bruyette & Woods, A Stifel Company, and SunTrust Robinson Humphrey are serving as lead advisors to…

ATTENTION UPS EMPLOYEES WITH RAMPART ACCOUNTS AT MERRILL LYNCH:  KlaymanToskes Continues to Investigate Claims for UPS Employees with Losses from Unsuitable Covered Call Writing Strategies

ATTENTION UPS EMPLOYEES WITH RAMPART ACCOUNTS AT MERRILL LYNCH: KlaymanToskes Continues to Investigate Claims for UPS Employees with Losses from Unsuitable Covered Call Writing Strategies

KlaymanToskes (“KT”), www.klaymantoskes.com, continues to investigate and pursue FINRA arbitration claims against Merrill Lynch on behalf of UPS (NYSE: UPS) employees for losses sustained from an unsuitable recommendation to invest in the Rampart Options Management Services Program (“Rampart”). According to multiple FINRA claims, Merrill Lynch employed an unsuitable covered call writing strategy. After hard-working UPS employees accumulated thousands of UPS shares through UPS’s Employee Stock Purchase Program and the Manager Incentive Program, they were solicited to invest with Merrill Lynch.  Merrill Lynch and its financial advisors recommended Rampart to facilitate the unsuitable investment strategy of selling covered call options on…

ATTENTION GOLDMAN SACHS MLP AND ENERGY RENAISSANCE FUND (GER) INVESTORS – KlaymanToskes Continues Investigation on Behalf of GER Investors Who Sustained Losses in Excess of $250,000 as a Result of a Recommendation from their Financial Advisor

ATTENTION GOLDMAN SACHS MLP AND ENERGY RENAISSANCE FUND (GER) INVESTORS – KlaymanToskes Continues Investigation on Behalf of GER Investors Who Sustained Losses in Excess of $250,000 as a Result of a Recommendation from their Financial Advisor

KlaymanToskes (“KT”), http://www.klaymantoskes.com, continues its investigation on behalf of investors who sustained losses from the purchase of Goldman Sachs MLP and Energy Renaissance (NYSE:GER) (“GER”), a Master Limited Partnership (“MLP”).  This investment may have been marketed and sold to customers who were risk averse, such as retirees or other conservative investors, that were seeking income and capital preservation and were not explained the potential risks. MLPs are investment vehicles available only to the real estate and natural resource sectors.  Unfortunately, MLPs may become risky during times when those sectors are hit hard.  Real estate and natural resources, especially the energy…

ATTENTION UBS CUSTOMERS WITH YES ACCOUNT LOSSES:  KlaymanToskes Continues to Investigate and Pursue Claims to Recover Investment Losses

ATTENTION UBS CUSTOMERS WITH YES ACCOUNT LOSSES: KlaymanToskes Continues to Investigate and Pursue Claims to Recover Investment Losses

KlaymanToskes, www.klaymantoskes.com, continues to  investigate and pursue claims to recover investment losses suffered by investors in UBS’s (NYSE:UBS) Yield Enhancement Strategy (“YES”). KT believes that investor claims are meritorious as they relate to the marketing, offer, and sale of the YES strategy, including the sales presentation that was provided to customers. The YES program utilized an options strategy known as the Iron Condor, trading call and put options on the S&P 500. UBS characterized YES as a strategy that would have limited correlation to the market and as having downside protection. However, the YES strategy has shown significant correlation to…

NOTICE TO FRANKLIN SQUARE ENERGY & POWER FUND INVESTORS: KlaymanToskes Announces Investigation into Investor Losses at Full-Service Brokerage Firms

NOTICE TO FRANKLIN SQUARE ENERGY & POWER FUND INVESTORS: KlaymanToskes Announces Investigation into Investor Losses at Full-Service Brokerage Firms

KlaymanToskes (“KT”) announces an investigation of full-service brokerage firm sales practice violations of Financial Industry Regulatory Authority (“FINRA”) rules and regulations related to recommended investments in Franklin Square Energy & Power Fund.  According to securities attorney, Lawrence L. Klayman, “our investigation relates to whether brokerage firms’ recommendations represented unsuitable investment advice, and whether financial advisors failed to disclose all relevant facts, including the risks associated with concentrated investments in the energy sector.” According to Franklin Square Energy & Power Fund (FSEP), “FSEP is a non-traded business development company (BDC). The fund invests primarily in the debt and, to a lesser…

ATTENTION NORWEGIAN EMPLOYEES/INVESTORS:  KlaymanToskes Commences Investigation into Damages Sustained in Norwegian Stock held with Full-Service Brokerage Firms During Coronavirus Pandemic

ATTENTION NORWEGIAN EMPLOYEES/INVESTORS: KlaymanToskes Commences Investigation into Damages Sustained in Norwegian Stock held with Full-Service Brokerage Firms During Coronavirus Pandemic

KlaymanToskes (“KT”), www.klaymantoskes.com, announced today that it is investigating damages sustained by current and former employees and investors of Norwegian Cruise Line (NYSE:NCLH) (“Norwegian”) who held large, unhedged concentrated positions in Norwegian stock and/or received margin calls resulting in the forced sale of stock.  The recent losses were the result of unsuitable advice during the Coronavirus (“COVID-19”) pandemic.  The investigation focuses on full-service brokerage firms’ negligence and failure to supervise the management of concentrated, leveraged positions in Norwegian stock. Investment portfolios holding large, concentrated stock positions carry significant downside risks, especially when leveraged by a margin loan. Full-service brokerage firms…

ATTENTION FMSBONDS CUSTOMERS WHO PURCHASED FRONTIER COMMUNICATIONS BONDS:  KlaymanToskes Commences Investigation on Behalf of Investors

ATTENTION FMSBONDS CUSTOMERS WHO PURCHASED FRONTIER COMMUNICATIONS BONDS: KlaymanToskes Commences Investigation on Behalf of Investors

KlaymanToskes (“KT”), www.klaymantoskes.com, announces an investigation on behalf of customers of FMSbonds (“FMS”) who were recommended to purchase Frontier Communications (NASDAQ:FTR) (“Frontier”) bonds.  These bonds may have been marketed and sold to investors who were risk averse, such as retirees or other conservative investors, that were seeking income and capital preservation and were not explained the potential risks. Under FINRA Rules, broker-dealers have an obligation to make suitable recommendations to their customers and to conduct adequate due diligence into investments before recommending them to customers.  Furthermore, FMSbonds was obligated to properly supervise the activities of its brokers to determine if…

ATTENTION WELLS FARGO CUSTOMERS WITH OIL & GAS INVESTMENTS RECOMMENDED BY THEIR FINANCIAL ADVISOR – KlaymanToskes Commences Investigation on Behalf of Investors Who Sustained Losses in Excess of $250,000

ATTENTION WELLS FARGO CUSTOMERS WITH OIL & GAS INVESTMENTS RECOMMENDED BY THEIR FINANCIAL ADVISOR – KlaymanToskes Commences Investigation on Behalf of Investors Who Sustained Losses in Excess of $250,000

KlaymanToskes (“KT”), http://www.klaymantoskes.com, announces an investigation on behalf of investors with Wells Fargo & Company (NYSE:WFC) accounts who sustained losses from investments in the Energy Sector, High Yield Debt, and investments tied to the Alerian MLP Index, including Master Limited Partnerships (“MLPs”), Exchange Traded Funds (“ETFs”), Exchange Traded Notes (“ETNs”), and Business Development Companies (“BDCs”).  These investments may have been marketed and sold to customers who were risk averse, such as retirees or other conservative investors, that were seeking income and capital preservation and were not explained the potential risks. Investments in Oil & Gas are historically risky during times…

ATTENTION UBS CUSTOMERS WITH OIL & GAS INVESTMENTS RECOMMENDED BY THEIR FINANCIAL ADVISOR – KlaymanToskes Commences Investigation on Behalf of Investors Who Sustained Losses in Excess of $250,000

ATTENTION UBS CUSTOMERS WITH OIL & GAS INVESTMENTS RECOMMENDED BY THEIR FINANCIAL ADVISOR – KlaymanToskes Commences Investigation on Behalf of Investors Who Sustained Losses in Excess of $250,000

KlaymanToskes (“KT”), http://www.klaymantoskes.com, announces an investigation on behalf of investors with UBS (NYSE:UBS) accounts who sustained losses from investments in the Energy Sector, High Yield Debt, and investments tied to the Alerian MLP Index, including Master Limited Partnerships (“MLPs”), Exchange Traded Funds (“ETFs”), Exchange Traded Notes (“ETNs”), and Business Development Companies (“BDCs”).  These investments may have been marketed and sold to customers who were risk averse, such as retirees or other conservative investors, that were seeking income and capital preservation and were not explained the potential risks. Investments in Oil & Gas are historically risky during times of volatility and/or…

NOTICE TO ALL CREDIT SUISSE CLIENTS WHO PURCHASED LJM PRESERVATION AND GROWTH FUND: Klayman & Toskes, P.A. Commences Investigation

Boca Raton, Florida – Klayman & Toskes, P.A., www.klaymantoskes.com, has commenced an investigation into potential Financial Industry Regulatory Authority (FINRA) violations by Credit Suisse Securities (USA), LLC (“Credit Suisse”). The potential violations are based on the requirement that member firms perform appropriate due diligence to understand the risks of the LJM Preservation and Growth Fund (“LJM Fund”) and in its recommendations to clients to purchase the LJM Fund.  There are three different classes of shares of the LJM Fund (“LJMAX,” “LJMCX,” and “LJMIX”).  The LJMIX had been trading as high as $10.82 on the first trading day of 2018, but now trades…