FREE INITIAL CONSULTATION WITH ATTORNEYS WHO CAN HANDLE YOUR SECURITIES, COMMODITIES AND INVESTMENT PROBLEMS

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. Mr. 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 phone at 561-338-0037, 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.

Apr 1, 2020

Steepener Structured Products Losses Attorneys

At The Law Offices of Robert Wayne Pearce, P.A., we specialize in representing investors who have suffered losses due to steepener structured products. With over 40 years of experience, our team of highly skilled attorneys understands the complexities of these sophisticated financial instruments and the legal challenges they present. Steepener structured products, including notes and CDs, are designed to pay varying interest rates based on the steepness or flatness of the yield curve. However, these products can lead to significant investment losses when market conditions change, as seen in the yield curve flattening of 2018 and inversion in 2019. Many investors have experienced rapid declines in value and reduced or eliminated interest payments as a result. Preliminary Reading: We offer comprehensive legal services for investors who have been affected by: What Are Steepner Structured Products? Steepener structured products are complex financial instruments that derive their value from the shape of the yield curve. These products, typically issued as notes or CDs, offer variable interest rates based on the difference between long-term and short-term interest rates. For example, a steepener might pay interest equal to a multiple of the difference between the 30-year and 2-year Treasury rates, minus a spread. Steepeners often have long maturities, sometimes up to 20 years, and are generally illiquid as they don’t trade on public exchanges. They may offer attractive initial “teaser” rates for the first year or two, followed by uncertain future payments. For instance, a steepener might pay 5% for the first year, but subsequent payments could drop significantly or cease entirely if the yield curve flattens. The risks of steepeners became apparent in 2018 when the yield curve flattened, causing many of these products to rapidly decline in value. The situation worsened in 2019 when the yield curve inverted, leading to further losses. During these periods, many investors saw their interest payments reduced dramatically or eliminated altogether. While often marketed as safe, high-quality fixed-income investments, steepeners carry significant risks. These include potential loss of principal, reduced or eliminated interest payments, and difficulty in valuing or selling the product before maturity. The complexity of steepeners makes them challenging for many retail investors to fully understand. For example, some brokers have faced legal action for misrepresenting steepeners as “bonds” or failing to adequately disclose their risks. In one case, a family filed a FINRA arbitration claim seeking over $1 million in damages due to unsuitable recommendations in these products. Given their complexity and potential for misrepresentation, proper disclosure and suitability assessment are crucial when recommending steepeners to retail investors. Financial advisors must ensure clients understand the product’s structure, risks, and potential outcomes under various market conditions. How We Can Help If You’ve Suffered Losses Due to Steepener Structured Notes Our team is well-versed in FINRA arbitration and mediation proceedings, and we pursue claims for fraud, misrepresentation, breach of fiduciary duty, and failure to supervise. We work tirelessly to secure the best possible outcome for our clients, operating on a contingency fee basis to ensure that justice is accessible to all. If you’ve experienced losses due to steepener structured products or other complex derivatives, don’t hesitate to reach out. Contact The Law Offices of Robert Wayne Pearce, P.A. for a free initial consultation and let our experienced securities law attorneys fight for your rights and recover your structured notes investment losses. We are investigating and claims against brokerage firms including Centaurus Financial, Inc., J.P. Turner & Company, LLC, Aegis Capital Corp., Wells Fargo Advisors, and other brokerage firms for structured products investment losses. Please call us if you purchased steepeners through Ricky Mantei (CRD# 1098981), Cindy Chiellini (CRD# 1015592), Katherine Nishnic (CRD# 2499553), Dana Matthew Hawkins (CRD# 5731136), Alan Applebaum (CRD# 500336) or Joseph Andreoli (CRD#1718688). Contact a Steepener Investment Fraud Attorney We have been retained by many investors to file FINRA arbitration claims against brokerage firms to recover their losses. Our firm has been very successful in making recoveries for our clients throughout the United States for investment fraud and has recovered over $175 million for investors. Was it just the market or were you mislead to invest in unsuitable steepener investments? Call Attorney Pearce at 1-800-SEC-ATTY (732-2889) with any questions you may have about how you may recover your steepener investment losses.

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Mar 15, 2020

EquiAlt Private Placement Investment Losses

We are investigating and representing investors against FINRA-registered brokerage firms and financial advisors who offered and sold securities issued by affiliates of EquiAlt, LLC (EquiAlt), a private real estate company which organized at least four private placements: EquiAlt Fund, LLC; EquiAlt Fund II,LLC; EquiAlt Fund III, LLC; and EA Sip, LLC (collectively referred to as the EquiAlt Funds). According to a recent SEC Complaint, Brian Davison (Davison) and Barry Rybicki (Rybicki) offered and sold $175 million of unregistered debentures issued by the EquiAlt Funds to over 1,100 investors nationwide. The SEC alleged that Davison, Rybicki, and others committed securities fraud by misrepresenting the debentures as “secure,” “safe,” “low risk,” and “conservative.” Further, while investors were promised “that substantially all of their money would be used to purchase real estate in distressed markets in the United States and their investments would yield generous returns … EquiAlt, Davison, and Rybicki misappropriated millions in investor funds for their own personal use and benefit.” According to the SEC, the revenues that were generated by the EquiAlt Funds became insufficient to pay the interest owed to investors. As a result, the SEC alleged “the Defendants resorted to [a Ponzi Scheme] fraud, using new investor money to pay the returns promised to existing investors.” While many of the sales were solicited by unregistered EquiAlt salespersons, it is reported there were many sales by small offices of registered salespersons associated with large independent FINRA-registered stockbrokerage and insurance firms primarily located in Florida, Arizona, California, and Nevada, and many other states nationwide. It is alleged that EquiAlt salespersons received “commissions of anywhere between 10%-14%,” which is extraordinarily high for the sale of any investment product. Thus, there was such a strong incentive to sell these debentures by any means. It is likely that many of the FINRA registered brokerage firms did not authorize sales of the EquiAlt Fund debentures and that no due diligence or any other investigation of the company or its investment offerings were ever conducted. Consequently, it is very likely that the EquiAlt Funds were sold via misrepresentations and misleading statements. We have learned that investors who purchased the EquiAlt Funds debentures through FINRA-registered brokerage firm representatives also received the same sales pitch; that is, the debentures are “secure,” “safe,” “low risk,” and “conservative” investments, which was untrue which constitutes securities fraud. If you invested in any of the EquiAlt Funds private placements, you may be able to recoup your losses through a FINRA arbitration proceeding. Mr. Pearce has over 40 years of experience with private placement investment disputes and recovering money for investors lost in Ponzi Schemes. The cases we accept will be filed against FINRA registered broker-dealers for misrepresentation, omissions due to failed due diligence, unsuitable investment recommendations, and unauthorized private securities transactions otherwise known as “selling away.” If Attorney Pearce accepts your case there will be no attorney’s fee or arbitration expenses unless we recover funds for you in a settlement with the brokerage or through an arbitration award. Call 1-800-SEC-ATTY (1-800-732-2889) or email us now and get your questions answered and top notch representation in connection with your EquiAlt Funds private placement investments. If you purchased your investment directly from EquiAlt or BR Support Services, your recovery will probably be limited to what assets the Court Appointed Receiver is able to locate, liquidate, and distribute to investors. However, please call us to find out what recourse is available for this investment fraud.

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Dec 28, 2019

72 (t) Early Retirement-Not for Me!

Section 72 (t) of the Internal Revenue Code is often touted as the secret to early retirement by brokers and financial advisors at free seminars and free lunches for employees of major corporations with profit-sharing and pension plans and 401(k)s. Presentations are made at upscale hotels and restaurants to induce the employees to retire or cash out their 401(k)s earlier than they might otherwise have done through a fairly unknown loophole that allows you to avoid the IRS penalty for early withdrawal. Employees are also promised that that they can cash in their retirement savings in their 40- 50s, reinvest the money, and live off the proceeds for the rest of their lives. But there is a lot more to early retirement benefits that just avoiding the IRS penalty.

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Aug 20, 2019

The Law Offices of Robert Wayne Pearce, P.A. Wins $6 Million Plus Award Against UBS and UBS Puerto Rico

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 $4.25 million in compensatory damages plus interest at 6.25% from February 28, 2014 and costs of $175,000 for one of the firm’s clients last month. A summary of our clients’ 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 loan collateral, we may be able to help you recover your losses. Contact our office as soon as possible for a free consultation about your case. Time is of the essence!

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Aug 1, 2019

Real Estate Investment Trusts (REITs)

Just as the real estate limited partnerships proliferated in the 1980s and 90s, non-traded real estate investment trusts (REITs) were the real estate investment du jour of the past decade. In many cases handled by The Law Offices of Robert Wayne Pearce, P.A., the sales solicitations were gross misrepresentations about the sponsors track record, market valuations, rates of return, liquidity, risks and fees. Unfortunately, Attorney Pearce says investors are now realizing they have been duped by the promoters of many non-traded REITs such as the Apple REITs, Cornerstone REITs and others. Representing clients throughout Florida and nationwide. Se habla español Investing in non-traded REITs is not for everyone. Investors must understand that these are complex and risky investments. First, REIT distributions are never guaranteed. The REIT Board of Directors decides when and the amount of any distribution. The lack of a publicly traded market creates illiquidity and valuation issues. Early redemption is usually limited and may be costly. Non-traded REITs can be expensive due to front-end fees and “issuer costs” that may be hidden from investors. Most non-traded REITs start out as blind pools, which have not yet specified the properties to be purchased. The diversification of properties within REITs is not always present which increases the risk of these investments. For more information about REITs and a complete list of our REIT cases and investigations, the links below: Our REIT Blog Archives FREE INITIAL CONSULTATION WITH REAL ESTATE INVESTMENT TRUST (REIT) INVESTMENT DISPUTE ATTORNEYS The Law Offices of Robert Wayne Pearce, P.A. understands what is at stake in securities, commodities and REIT 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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Jul 1, 2019

Investing in Hedge Funds

THE BASICS Hedge funds are similar to mutual funds in that they pool and invest investors’ money in an effort to earn a positive return. However, hedge funds have more flexible investment strategies than mutual funds. 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.

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Jun 1, 2019

Investing in Exchange-Traded Funds (ETFs)

Exchange-traded funds (ETFs) are mutual fund-like registered investment companies whose shares trade on a securities exchange. ETF shares typically trade throughout the day at prices established by the market, just like common stock issuances.

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May 1, 2019

Variable Annuities and Equity Indexed Annuities

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

Watch Out for Early Retirement Scams

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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Mar 2, 2019

A Stockbroker’s Introduction to FINRA Examinations and Investigations

Brokers and financial advisors oftentimes do not understand what their responsibilities and obligations are and what may result from a Financial Industry Regulatory Authority (FINRA) examination or investigation. Many brokers do not even know the role that FINRA plays within the industry. This may be due to the fact that FINRA, a self-regulatory organization, is not a government entity and cannot sentence financial professionals to jail time for violation of industry rules and regulations. Nevertheless, all broker-dealers doing business with members of the public must register with FINRA. As registered members, broker-dealers, and the brokers working for them, have agreed to abide by industry rules and regulations, which include FINRA rules.

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