Apple (AAPL) Equity-Linked Structured Products
Dimond Kaplan & Rothstein, P.A. is investigating sales of structured investment products linked to Apple (symbol: AAPL) common stock. Brokerage firms including J.P. Morgan Chase, (symbol: JPM), Morgan Stanley (symbol: MS), UBS (symbol: UBSN.VX), and Barclays (symbol: BARC.LN) collectively sold hundreds of millions of dollars of these so-called equity-linked notes to investors. These products included single-observation reverse convertibles, reverse convertibles and auto-callable notes linked to Apple's stock price. The notes transferred the downside risk of owning Apple stock to investors but capped the upside at somewhat more than corporate bond yields. Many brokers have not been properly trained about these products and they consequently often misrepresented and failed to explain the significant risks of these complex structured products to investors. The recent drop in Apple's stock price has caused Apple equity-linked note investors to sustain tens of millions of dollars in unexpected investment losses. If you lost money in Apple equity-linked notes, please call attorney Jeffrey Kaplan at Dimond Kaplan & Rothstein, P.A. for a free consultation.
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LIBOR, JPY LIBOR, TIBOR, and EURIBOR Manipulation
Dimond Kaplan & Rothstein, P.A. is investigating UBS’s, Barclay’s, and other banks’ manipulation of LIBOR and other interest-rate benchmarks, such as EURIBOR (Euro interbank offered rate) and TIBOR (Tokyo interbank offered rate). These rates determine everything from the values of complex derivatives to the monthly interest rates many people pay on their home mortgages and auto loans. Barclays and UBS collectively have agreed to pay regulatory settlements of nearly $2 billion as a result of their participation in the rate rigging. About a dozen banks remain under investigation, and additional settlements are expected in coming months and years. Dimond Kaplan & Rothstein, P.A. currently represents several clients in lawsuits against the offending banks. DKR’s clients suffered financial damages in derivatives investments that were affected by interest rate manipulations. If you suffered damages as a result of LIBOR or other benchmark interest-rate manipulation, please call attorney Jeffrey Kaplan at Dimond Kaplan & Rothstein, P.A. for a free consultation.
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Robert W. Baird Broker Peter Frawley’s Unauthorized Trading
Dimond Kaplan & Rothstein, P.A. is investigating Robert W. Baird & Co. stockbroker Peter Frawley for making unauthorized trades. DKR represents a Michigan resident who lost a significant amount of money after Detroit-area stockbroker Peter Frawley made numerous unauthorized trades in the customer’s Robert Baird brokerage account. Mr. Frawley was fired after admitting that he exercised discretionary trading authority without the customer's authorization. FINRA, the securities industry's self-regulatory body, has initiated formal disciplinary action against Mr. Frawley as a result of this misconduct. If you lost money in your Robert W. Baird account handled by Peter Frawley, please call attorney Jeffrey Kaplan at Dimond Kaplan & Rothstein, P.A. for a free consultation.
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David Brouwer’s and Great American Advisors’ Sales of Equity-Linked Notes
Dimond Kaplan & Rothstein, P.A. is investigating Ohio-based brokerage firm Great American Advisors, Inc. and its former broker David Brouwer for misrepresenting the risks of equity-linked notes. DKR represents at least two investors who lost several hundred thousand dollars after Mr. Brouwer, who worked in Great American’s Homestead, Florida office, misrepresented that equity-linked notes were safe when the securities actually were very complex and very risky. The SEC has found that Mr. Brouwer engaged in fraud and violated federal securities when he recommended and sold equity-linked notes to customers and has barred Mr. Brouwer from the securities industry. If you lost money in equity-linked notes that David Brouwer or Great American Advisors recommended and sold to you, please call attorney Jeffrey Kaplan at Dimond Kaplan & Rothstein, P.A. for a free consultation.
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UBS’s Sales of SinoTech Energy Limited Shares
Dimond Kaplan & Rothstein, P.A. is investigating brokerage firm UBS’s sales of American Depository Shares (the “shares”) issued by SinoTech Energy Limited (“SinoTech”) (symbol: CTE). UBS AG and UBS Securities LLC were underwriters for SinoTech’s initial public offering in November 2010 and then sold millions of dollars of SinoTech shares to UBS customers. It recently was reported that SinoTech’s financial statements were fraudulent and investors have lost millions of dollars. UBS’s failure to detect SinoTech’s alleged fraud could subject UBS to liability for SinoTech investors’ losses. If you lost money in SinoTech shares that you bought from UBS, please call attorney Jeffrey Kaplan at Dimond Kaplan & Rothstein, P.A. for a free consultation.
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Santander Securities of Puerto Rico Sales of Reverse Convertible Notes
Puerto Rican residents who bought First Puerto Rico Family of Funds that invested in reverse convertible notes may be able to recover their investment losses. The Financial Industry Regulatory Authority (FINRA) fined Santander Securities of Puerto Rico (“Santander”) $2 million for selling risky reverse convertible securities to elderly investors who were not willing or able to accept a high risk of loss and for failing to properly train and supervise its brokers. If you live in Hato Rey, Bayamón, Ponce, Rincón, San Juan, Isabela, Mayaguez, or other places in Puerto Rico and you lost money in reverse convertible notes that you bought from Santander Securities please call a Dimond Kaplan & Rothstein, P.A. lawyer for a free consultation about a securities arbitration claim.
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Puerto Rico Conservation Trust Fund and Other Puerto Rico Investment Losses
Puerto Rican residents who invested in Puerto Rico Conservation Trust Fund notes, Lehman Brothers “principal protection” notes, and RG Financial, Western Bank, and First Bank preferred shares may be able to recover their investment losses. Brokerage firms, such as UBS Financial Services, Inc. of Puerto Rico, Santander Securities, Popular Securities, and Oriental sold many of these securities as safe and secure investments. But the securities oftentimes were more risky than they were represented to be and the securities often comprised an unsuitably large concentration of investors’ brokerage accounts. Puerto Rican residents, including investors from Hato Rey, Bayamón, Ponce, San Juan, Isabela, Rincón, and Mayaguez, who lost money in these investments may be able to recover their losses through FINRA arbitration. To discuss the recovery of your investment losses, call a Spanish-speaking securities lawyer at Dimond Kaplan & Rothstein, P.A. at (888) 578-6255.
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Regions Bank Pays $1 Million Penalty to Settle SEC Complaint
Regions Bank agreed to pay a $1 million penalty to settle a complaint filed by the U.S. Securities and Exchange Commission ("SEC"). The SEC sued Regions Bank for its role in an alleged investment fraud. The bank served as trustee of investment plans through which unregistered broker-dealers, U.S. Pension Trust Corp. ("US Pension Trust") and U.S. College Trust Corp. ("US College Trust") (collectively, "USPT") allegedly defrauded investors. According to the SEC, USPT charged millions of dollars in undisclosed commissions and fees. The SEC accused Regions Bank of violating securities law and aiding and abetting USPT's violations of Federal securities laws. USPT sold mutual funds to investors and, until March 2006, neither USPT nor Regions disclosed that USPT took up to 85% of investors' annual contributions and as much as 18% of investors' lump-sum contributions to pay exorbitant sales commissions to sales agents and profits. The SEC alleged that Regions knew or should have known that the commissions and fees were not disclosed to investors. USPT's marketing materials touted the safety investing with USPT by emphasizing that Regions is a long-standing U.S. bank with significant trustee experience. The marketing materials also claim that Regions applies "the most prudent approach" in the "management of assets," which the SEC alleged was misleading because Regions did not "manage" the USPT assets. Regions created a video that USPT posted on its website that featured two Regions trust department employees who boasted the history of the bank and Regions' trust services. The video welcomed USPT and its "customers" and claimed that Regions' trust department had been protecting trust clients' interests for over 100 years. The video presumably served to assure investors of the safety of investing with USPT because of Regions' role as trustee.
