OUR STOCKBROKER FRAUD CASES & INVESTIGATIONS
For over 40 years, Attorney Pearce and his staff members at The Law Offices of Robert Wayne Pearce, P.A. have worked on and continue to work on a wide variety of securities, commodities and investment disputes for investors arising out of stock brokerage, commodity brokerage, insurance and other financial service company’s’ employees, representatives and agents’ misconduct. We represent investors with securities and commodities law issues and a broad range of other practice areas in courtroom litigation, arbitration and mediation proceedings from offices in Boca Raton, Florida across the United States.
Our Florida Attorneys Handle Stockbroker Fraud Cases & Investigations Nationwide
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The most common investor claims have been claims for misrepresentation, failure to disclose important information, unsuitable recommendations, churning or excessive trading, and unauthorized trading in stocks, bonds, mutual funds and options in violation of federal and state statutes, common law and industry rules. However, in the past three years, most of our cases have arisen out of the latest wave of investment products, widespread misconduct with the same investment firms, branch offices and/or brokers. We are presently engaged in a number of cases and investigations involving not only the so-called “garden variety” stock, bond and option claims but many other types of misrepresented and mismanaged investment products and fraudulent schemes.
List of brokers we’ve investigated (both current 2024 and historic)
A brief description of some of our current stockbroker fraud Cases and Investigations with links to other pages within our website and Investors Rights Blog to help answer your questions and help you recover your losses is below:
May 1, 2019
Variable and equity indexed annuities are another form alternative investments involving mutual fund type and/or insurance products which occupy a large portion of the attorneys at The Law Offices of Robert Wayne Pearce, P.A. caseload. Variable annuities are mutual funds with insurance contracts with a variety of features that have hidden costs. They are not wise investments for many investors. According to Attorney Pearce the suitability of variable annuities for elderly investors and those on the verge of retirement or those seeking to make investments in 401(k) Plans, IRAs or pension plans is highly suspect. Sales of equity-indexed annuities (EIAs) have grown considerably in recent years with the promise of expensive guarantees. EIAs are anything but easy to understand; one of the most confusing features of an EIA is the method used to calculate the gain in the index to which the annuity is linked and there is not one, but several different indexing methods. Because of the variety and complexity of these annuity products, many investors are duped into buying something they don’t need, cannot afford and do not understand. Representing clients throughout Florida and nationwide Variable annuity investments are becoming popular among senior investors who are close to retirement. While a variable annuity can be an appropriate investment under the right circumstances, investors should be aware of their restrictive features and tax consequences. Investors should also be concerned with sales pitches. Before purchasing a variable annuity, investors should carefully investigate the product they are considering as well as the salesman. Investors should start out by reading the prospectus, which contains important information about the annuity contract terms, fees and charges, investment options, and death benefits. In addition, investors should compare the benefit and costs of the annuity to other variable annuities as well as other types of investments such as mutual funds. EIAs are far more complex financial instruments than variable annuities. They have characteristics of both fixed and variable annuities. Their return varies more than a fixed annuity, but not as much as a variable annuity. So EIAs give you more risk (but more potential return) than a fixed annuity but less risk (and less potential return) than a variable annuity. EIAs offer a minimum guaranteed interest rate combined with an interest rate linked to a market index. One of the most confusing features of an EIA is the method used to calculate the gain in the index to which the annuity is linked. To make matters worse, there is not one, but several different indexing methods. FREE INITIAL CONSULTATION WITH VARIABLE ANNUITY & EQUITY INDEXED ANNUITY INVESTMENT DISPUTE ATTORNEYS The Law Offices of Robert Wayne Pearce, P.A. understands what is at stake in securities, commodities and investment law matters and constantly strives to secure the most favorable possible result. Attorney Pearce provides a complete review of your case and fully explains your legal options. The firm works to ensure that you have all of the information necessary to make a sound decision before any action is taken in your case. For dedicated representation by a law firm with substantial experience in all kinds of Variable Annuity and Equity Indexed Annuity investment law disputes, contact the firm by telephone at 561-338-0037 or toll free at 800-732-2889 or via e-mail.
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Apr 1, 2019
In the last 5 years early retirement scams have become widespread as a result of the financial crisis. Many major corporations decided to downsize and offer early retirement with benefits (pension plan or lump sum payments) to their older and highly compensated employees in their 50s or near retirement. Many holders of 401(k)s became unemployed and instead of seeking new employment they were persuaded by financial advisors to cash out their 401(k)s and enjoy their early retirement with promises that could never possibly be kept by financial advisors. The common thread in all of these early retirement scams is the false promise of investment returns at a rate greater than the rate one would need to withdraw funds from their retirement savings annually to support themselves. Unfortunately for many employees who accepted the offers of early retirement and/or those who were persuaded to cash out their pension plans or 401(k)s and reinvest with unscrupulous financial advisors and stockbrokers, the results have been horrible in terms of tax consequences, investment returns, and the total loss of years of retirement savings. It is important to be on high alert for retiree predators because those who promote early retirement schemes can be highly persuasive. Run when you hear pitches from financial advisors like the following: Everyone can retire early! You can make as much in retirement as you can by continuing to work! You can expect returns of 10% or more annually! You can withdraw 8% or more of your savings and never run out of money! We know a secret tax loophole (IRS section 72 (t)) that allows you to retire early! These financial advisors will prepare beautiful charts, graphs and glossy brochures that will absolutely demonstrate their promises can be kept if only you invest through them. However, the stockbrokers will not tell you about the effect of ordinary income tax on your withdrawals; the large upfront sales charges and management fees on the mutual funds or variable annuities they use in their projections; the effect of stock market volatility on projected returns; or the assumed rate of returns in their hypothetical retirement proposal. The reality is, you are always going to pay income tax on the amount you withdraw from your retirement account, even if you avoid IRS penalties; you are always going to pay for new investments, and that expense is going to affect your rate or return; all of the advisors projections assume a steady rate of return, and that periods of lower than average investment returns or negative returns will severely deplete your savings and render it impossible to live out your retirement with the same projected income; and the assumed rate of returns used in their projections were historically and/or statistically unachievable throughout your life time. It is critical that you think carefully before you decide to voluntarily take an early retirement and/or cash out your 401(k) or other retirement account for management by some financial advisor or stockbroker promoting an early retirement scheme. Taking early retirement can only make sense if you have enough saved to begin with based on your lifestyle and monthly expenses. Further, only withdraw funds at a rate that would not deplete your savings too early and certainly no greater than 3 to 5% per year with less being withdrawn in the early years. You need to make smart investment decisions and not base your retirement upon lofty growth expectations in your investment portfolio. Remember, medical science and health care has improved all of our life expectancies. And so, it is as important not to underestimate your future expenses as it is to not overestimate your future retirement income in making your decision about retirement at any age. The most important of investors’ rights is the right to be informed! This article on Early Retirement Scams is by the Law Offices of Robert Wayne Pearce, P.A. , located in Boca Raton, Florida. For over 40 years, Attorney Pearce has tried, arbitrated, and mediated hundreds of disputes involving complex securities, commodities and investment law issues. The lawyers at our law firm are devoted to protecting investors’ rights throughout the United States and internationally! Please visit our blog, post a comment, call 800-732-2889, or email Mr. Pearce at pearce@rwpearce.com for answers to any of your questions about losses you may have suffered in connection with any early retirement recommendation and/or any related investment matter.
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Feb 1, 2019
In general, structured products are notes linked to a single security, a basket of securities, an index, a commodity, a debt obligation, and/or a foreign currency. There is a large variety of structured products, some of which offer full principal protection, while others offer limited or no protection of principal. The majority of structured products have a fixed maturity date and pay an interest rate substantially above the prevalent market rate, but they also frequently limit the upside participation in the reference asset if principal protection is offered. Investment banks or their affiliates are the primary issuers of structured products, but the products are not all listed on a national securities exchange.
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Oct 9, 2018
The independent broker and investment advisor model has gained popularity among financial advisors in recent years. According to Attorney Pearce the business model of choice for many successful independent financial advisors has been the only choice for the lesser quality broker and advisor with multiple customer complaints and regulatory problems. The flaw in this business model of multiple small one to two person offices is the lack of supervision over the salespersons who need the most supervision. In recent years, many rogue (bad) broker and investment advisor cases have spawned out of these small offices, including Ponzi schemes, selling away, and outright theft of funds with multiple victims. The Law Offices of Robert Wayne Pearce, P.A. is handling a number of these cases and investigating new ones every day. Representing clients throughout Florida and nationwide. For more information on the rogue (bad) broker and investment advisor cases that we are working on, click on the links below: Our Brokers in the News Blog Archives Our Brokerage Firms in the News Blog Archives Our Investment Advisors in the News Blog Archives FREE INITIAL CONSULTATION WITH LAWYERS WHO AGGRESSIVELY PROSECUTE ROGUE (BAD) BROKERS IN ALL SECURITIES, COMMODITIES AND INVESTMENT DISPUTES The Law Offices of Robert Wayne Pearce, P.A. understands what is at stake in securities, commodities and investment law matters and constantly strives to secure the most favorable possible result for victims of Rogue (Bad) brokers. Attorney Pearce provides a complete review of your case and fully explains your legal options if you are the victim of a Rogue (Bad) broker. The firm works to ensure that you have all of the information necessary to make a sound decision before any action is taken in your case. For dedicated representation by a law firm with substantial experience in all kinds of securities, commodities and investment disputes, contact the firm by telephone at 561-338-0037 or toll free at 800-732-2889 or via e-mail. We may also be able to arrange a meeting with you at offices located in Boca Raton, Fort Lauderdale, Miami and West Palm Beach, Florida and elsewhere.
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Aug 21, 2018
The Ponzi Scheme is named after Charles Ponzi who, in 1920, offered and sold his supposed arbitrage investment throughout Boston, Massachusetts. He claimed he would double investors’ money in 90 days through a bizarre plan to buy and resell international postal-reply coupons. The scheme ultimately proved to be merely a masquerade for paying off early investors with the deposits of later investors. And so the Ponzi Scheme became recognized as a distinct type of investment fraud in which the schemer finances its payout of returns to investors using money paid in by new investors. To keep the scheme afloat, these firms work to attract new money by promising investors high returns with little or no risk. The funds that a Ponzi Scheme generates are usually spent on enriching the manager of the scheme. Many of our readers are familiar with Ponzi Schemes. The most famous Ponzi Schemes in recent history were perpetrated by Bernie Madoff who has been sentenced to a 150 year prison term, and Scott Rothstein, a Florida attorney who will be in prison for 50 years. By the time a Ponzi scheme collapses or investors have discovered the plan, it can be difficult or impossible for investors to get back their money from the perpetrator of the fraud. But that doesn’t mean the investor is without hope. The Ponzi Scheme generally could not have been perpetrated without the veil of legitimacy provided by attorneys and accountants and those who sell the investment from reputable brokerage offices. One of our recent class actions, the Tri-Med Ponzi Scheme, resulted in $4.3 million in settlements with a nationally recognized law firm and Florida accountants who allegedly aided and abetted the scheme. Attorney Pearce and his staff members at The Law Offices of Robert Wayne Pearce, P.A. worked on a number of Ponzi Scheme disputes. We have represented investors in Federal court class actions filed against the perpetrators of the scheme along with the lawyers and accountants who aided and abetted the scheme. We have also sued unregistered financial advisors and other salespersons in state court for violation of the anti-fraud provisions of the Federal and state securities laws and failure to register themselves or securities as required under the securities laws. Our FINRA arbitrations against member firms focus upon the failure to supervise their stockbrokers who went against firm policies and sold investments that were not vetted by management and sold as part of a fraudulent scheme. We bring multiple types of claims against the FINRA registered stockbrokers caught up in the Ponzi Scheme, including violations of the antifraud and registration provisions of the securities laws, common law fraud, breach of fiduciary duty, negligence, breach of contract, and failure to follow FINRA’S Conduct Rules by engaging in unauthorized Private Securities Transactions and Selling Away. Our attorneys are currently focused on investigating the alleged EquiAlt Funds Ponzi Scheme and reviewing investors’ cases against registered stockbrokers and unregistered salespersons who raised over $175 million from 1100 investors nationwide. We are investigating not only the salespersons but the law firm and accountants that represented the EquiAlt Funds. FREE INITIAL CONSULTATION WITH ATTORNEYS WHO KNOW PONZI SCHEMES The Law Offices of Robert Wayne Pearce, P.A. understands what is at stake in alternative investment law matters and constantly strives to secure the most favorable possible result. Attorney Pearce provides a complete review of your case and fully explains your legal options. The firm works to ensure that you have all of the information necessary to make a sound decision before any action is taken in your case. For dedicated representation by a law firm with substantial experience in all kinds of securities, commodities and investment disputes, contact the firm by telephone at 561-338-0037 or toll free at 800-732-2889 or via e-mail.
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Jul 10, 2018
Investment fraud attorney Pearce and his staff members at The Law Offices of Robert Wayne Pearce, P.A. have worked on and continue to work on a wide variety of alternative investment disputes. These investments fall outside of traditional stock and bond categories. In theory, anything that is not a traditional equity investment – common stock and preferred stock – or a traditional bond – coupon and zero-coupon debt – qualifies as an alternative investment. Thus, the category of alternative investments includes structured products, reverse convertibles, hedge funds, non-traded REITs, exchange traded funds, exchange traded notes and many others. Investment fraud lawyer representing clients throughout Florida and nationwide. Alternative investments are generally quite complex and present wide-ranging risk and regulatory issues, including suitability and disclosure issues, limited liquidity, lack of transparency, opaque and often expensive fee structures, lack of secondary market activity, and difficulty in pricing. These characteristics make it difficult for both brokers and investors to fully understand and appreciate the dangers and risks associated with alternative investments. In turn, this makes it difficult, if not impossible, for a broker to provide full and balanced disclosure regarding the alternative investment and its risks. In addition, most alternative investments pay high commissions to the brokerage firm that sells them and high fees to the firm that structures them (often the same firm). Accordingly, brokerage firms have major incentives to sell these investments. A brief description of some of our current Alternative Investment Cases and Investigations with links to other pages within our website and Investors Rights Blog to help answer your questions and help you recover your losses is below: Exchange Traded Funds (ETFs) and Exchange Traded Notes(ETNs) UBS ETRAC Exchange Traded Note Investors: How Do You Recover Your UBS ETRAC Investment Losses? Investing in ETFs Our ETF Blog Archives Our ETN Blog Archives Hedge Funds Investing in Hedge Funds Our Hedge Fund Blog Archives Municipal Arbitrage Structured Products Our MAT/ASTA Cases & Investigation Note Linked Structured Products Investing in Structured Products Investing in Note Linked Structured Products The UBS Lehman Brothers “100% Principal Protection” Note Fraud Our Structured Product Blog Archives Real Estate Investment Trusts (REITs) Our REIT Blog Archives Reverse Convertible Structured Products Our Reverse Convertible Blog Archives Steepener Structured Products Our Steepener Blog Archives UBS Enhanced Yield Strategy (“UBS-YES”) Variable Annuities and Equity Indexed Annuities Our Annuities Blog Archives FREE INITIAL CONSULTATION WITH ALTERNATIVE INVESTMENT DISPUTE ATTORNEYS The Law Offices of Robert Wayne Pearce, P.A. understands what is at stake in alternative investment law matters and constantly strives to secure the most favorable possible result. Investment fraud attorney Pearce provides a complete review of your case and fully explains your legal options. The firm works to ensure that you have all of the information necessary to make a sound decision before any action is taken in your case. For dedicated representation by a law firm with substantial experience in all kinds of securities, commodities and investment disputes, contact the firm by telephone at 561-338-0037 or toll free at 800-732-2889 or via e-mail. We may also be able to arrange a meeting with you at offices located in Boca Raton, Fort Lauderdale, Miami and West Palm Beach, Florida and elsewhere.
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Jun 26, 2018
The Law Office of Robert Wayne Pearce, P. A. is investigating and representing clients in another group of structured products that were mass marketed and mass misrepresented to fixed income investors which were reverse convertibles known as ELKS, PLUS, yield optimization notes, etc. According to Attorney Pearce they were routinely sold to individual investors as a way of earning more income without taking on greater risk. They were pitched as safe investments and many investors were told that their principal would absolutely be protected. The only risk, according to many investors, was that the rate of return could fluctuate. In truth, reverse convertibles were complex investments involving options that put investors’ principal at a significant risk of loss. The high-yield, short-term notes (IOUs) that investors thought they were buying were linked to the performance of a stock or basket of stocks that investors actually received at maturity instead of a return of their cash investment. If you are not suitable for option investing you are not suitable for reverse convertibles. Representing clients throughout Florida and nationwide. Se habla español They are also known as “revertible notes” or “reverse exchangeable securities” and sold under a variety of proprietary names that may or may not use the term “structured” to describe the product. Reverse convertibles are debt obligations of the issuer that are tied to the performance of an unrelated security or basket of securities. Although often described as debt instruments, they are far more complex than a traditional bond and involve elements of options trading. Reverse convertibles expose investors not only to risks traditionally associated with bonds and other fixed income products-such as the risk of issuer default and inflation risk-but also to the additional risks of the unrelated assets, which are often stocks. For more information about reverse convertibles and our cases and investigations, click on the links below: Our Reverse Convertible Blog Archives FREE INITIAL CONSULTATION WITH REVERSE CONVERTIBLE INVESTMENT DISPUTE ATTORNEYS The Law Offices of Robert Wayne Pearce, P.A. understands what is at stake in securities, commodities and Reverse Convertible investment law matters and constantly strives to secure the most favorable possible result. Attorney Pearce provides a complete review of your case and fully explains your legal options. The firm works to ensure that you have all of the information necessary to make a sound decision before any action is taken in your case. For dedicated representation by a law firm with substantial experience in all kinds of securities, commodities and investment disputes, contact the firm by telephone at 561-338-0037 or toll free at 800-732-2889 or via e-mail. We may also be able to arrange a meeting with you at offices located in Boca Raton, Fort Lauderdale, Miami and West Palm Beach, Florida and elsewhere.
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May 22, 2018
The Law Offices of Robert Wayne Pearce P.A. handles Closed-end Bond Fund cases throughout the United States and within Puerto Rico. A closed-end bond fund is a publicly traded investment company that raises a fixed amount of capital through an initial public offering (IPO) to purchase and hold bonds for a certain period. The closed end fund is structured, listed and traded like a stock, usually on a major stock exchange. Many investors confuse closed-end bond funds with the more traditional open-end mutual funds. Attorney Pearce will explain the differences: once the fund begins operating, a closed-end bond fund is closed to new capital; closed-end bond fund shares trade on a stock exchange rather than being redeemed directly by the fund; shares of a closed-end bond fund can be purchased or sold throughout the day as opposed to an open-end fund that can be traded only at the closing price at the end of the market day; closed-end bond funds often sell at a premium or discount to net asset value, but an open-end fund sells at its net asset value; and closed-end bond funds can own a greater amount of illiquid investments than open-end funds. Representing clients throughout Florida and nationwide. Brokerage firms often omit disclosing the risks associated with closed-end bond funds. Here are some of the important facts that brokerage firms have neglected to inform investors: The first 5% of the investors’ money in a closed-end IPO goes straight into the pocket of the people selling the fund as a commission; closed-end bond funds are not actively managed, meaning the bonds are held to a certain date and sold at the prevailing price with either gains or losses; closed-end shares usually trade for less than their net asset value because brokerage firms deliberately sell these IPOs at the market’s peak when enthusiasm runs high and the shares are poised to fall; and shares of closed-end bond IPOs are incredibly volatile. So why are investors still being steered by their brokers to closed-end bond funds, particularly those in an IPO? It’s the commissions! For more information about Closed-end Bond Funds and our cases and investigations, click on the links below: FREE INITIAL CONSULTATION WITH CLOSED-END BOND FUND INVESTMENT DISPUTE ATTORNEYS The Law Offices of Robert Wayne Pearce, P.A. understands what is at stake in closed-end investment law matters and constantly strives to secure the most favorable possible result. Attorney Pearce provides a complete review of your case and fully explains your legal options when are sold misrepresented and/or unsuitable closed-end bond funds. The firm works to ensure that you have all of the information necessary to make a sound decision before any action is taken in your case. For dedicated representation by a law firm with substantial experience in all kinds of securities, commodities and investment disputes, contact the firm by telephone at 561-338-0037 or toll free at 800-732-2889 or via e-mail.
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May 8, 2018
The Law Offices of Robert Wayne Pearce, P.A. has Hedge Fund cases because they were touted as the panacea for bad markets. Hedge Fund managers claimed to offer diversification through investments that purportedly were not correlated with other asset classes (i.e., they go up when others go down and visa-versa). However, according to Attorney Pearce, in 2008-2009 many investors found out the hard way that was untrue when most investments became correlated and all suffered tremendous losses at the same time. Hedge Funds simply did not perform as hyped and fund managers hid important facts from investors. The common thread in Hedge Funds that has led to many cases is the lack of registration, lack of disclosure, and lack of regulatory oversight (although changes are belatedly underway) making them ripe for fraud and unsuitable investment recommendations. Representing clients throughout Florida and nationwide. Hedge funds are similar to mutual funds in that they pool and invest investors’ money in an effort to earn a positive return. Many hedge funds seek to profit in all kinds of markets by using leverage, short-selling, and other speculative investment practices that are not typically used by mutual funds. Unlike mutual funds, hedge funds are not subject to some of the regulations that are designed to protect investors. Hedge funds are not required to follow any standard procedure when calculating performance, and they may invest in securities that are illiquid and difficult to value. On the other hand, federal securities laws specifically prescribe a mutual fund’s methodology for advertising and calculating current yield, tax-equivalent yield, average annual total return, and after-tax return. Any investor provided with performance data for a hedge fund, should verify whether it reflects cash or assets actually received by the fund as opposed to the manager’s estimate of the change in value of fund assets and whether the data includes deductions for fees. Hedge fund investing can pose several risks for inexperienced and risk averse investors. One of the primary risks associated with hedge fund investing is management’s use of leverage. Hedge funds also invest in other non-conventional securities such as derivatives (options and futures), and they engage in short-selling strategies (selling a security it does not own), which can likewise increase the potential for major losses to its investors. In addition, hedge funds are able to suspend redemptions in certain scenarios, including in times of market distress or when their investments cannot be quickly or easily liquidated. Furthermore, hedge funds may charge investors a redemption fee before allowing them to cash in shares. Hedge funds may also invest in highly illiquid securities. Investors are encouraged to fully understand a hedge fund’s valuation process and know the extent to which a fund’s securities are valued by independent sources. Investors should also keep in mind that valuations of fund assets will affect the fees that the manager charges. FREE INITIAL CONSULTATION WITH HEDGE FUND INVESTMENT DISPUTE ATTORNEYS The Law Offices of Robert Wayne Pearce, P.A. understands what is at stake in securities, commodities and Hedge Fund investment law matters and constantly strives to secure the most favorable possible result. Attorney Pearce provides a complete review of your case and fully explains your legal options. The firm works to ensure that you have all of the information necessary to make a sound decision before any action is taken in your case. For dedicated representation by a law firm with substantial experience in all kinds of securities, commodities and investment disputes, contact the firm by telephone at 561-338-0037 or toll free at 800-732-2889 or via e-mail.
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Feb 19, 2016
In an arbitration proceeding against UBS Financial Services, Inc. (UBS) and UBS Financial Services, Inc. of Puerto Rico (UBS-PR), the Law Offices of Robert Wayne Pearce, P. A. won a $1.45 million plus interest award for one of the firm’s clients last week. A summary of Claimant’s allegations against UBS and UBS-PR are set forth below. If you or any family member received similar unsuitable recommendations from UBS-PR and its stockbrokers or found yourself with an account overconcentrated in Puerto Rico municipal bonds and/or closed-end bond funds, or if you borrowed monies from UBS and used your investments as collateral for those loans, we may be able to help you recover your losses. Contact our office for a free consultation about your case.
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