“When broker-dealer firms hire investment advisers and authorize them to sell investment products to the public, they must monitor their advisers’ investment-related activities.”
New Orleans, LA and Cleveland, OH (PRWEB) October 15, 2013
Richard Schwartz investors may be able to recover losses they likely suffered as a result of Schwartz’ alleged fraud, according to two securities lawyers.
Richard Schwartz, a Kokomo, Indiana investment adviser, has recently been accused by the Indiana Secretary of State's office of perpetrating a Ponzi scheme, according to a Kokomo Tribune report dated October 3, 2013. He took his own life in August this year, shortly after fraud allegations emerged.
When a Ponzi scheme collapses, there is typically very little money left within the scheme itself to be distributed back to investors. Ponzi scheme perpetrators often siphon investor money to finance their extravagant lifestyle. Schwartz reportedly lived a luxurious life, with exotic cars and numerous parties.
However, investigation by securities attorneys Joe Peiffer and Alan Rosca has established that, during much of his alleged fraud, Richard Schwartz was affiliated with a securities broker-dealer firm. The two attorneys, based in New Orleans and Cleveland, respectively, often help investment fraud victims nationwide recover their losses.
“New York Life, the securities broker-dealer firm that hired Schwartz and was required to supervise him, should have put an end to this scheme before it started,” said attorney Joe Peiffer. "They lent legitimacy to Schwartz and owed the investors a duty to at least check out what he was selling."
“When broker-dealer firms hire investment advisers and authorize them to sell investment products to the public, they must monitor their advisers’ investment-related activities,” said attorney Alan Rosca.
Investors who lost money as a result of stockbroker misconduct or fraud can often file claims against such stockbrokers’ employers in FINRA arbitration. FINRA, the financial industry’s regulatory authority, organizes an arbitral forum for disputes between brokerage firms and investors. FINRA arbitrations typically take less time, and cost less, than court litigation.
Attorneys Joe Peiffer and Alan Rosca would like to make Richard Schwartz investors aware of this investment loss recovery option. They believe that many, though not all, investors may qualify. They are continuing to investigate this matter and assemble more evidence, and have launched a blog for investors with updates about the Richard Schwartz investigation: http://www.richardschwartzfraud.com.
Richard Schwartz investors are encouraged to contact attorneys Alan Rosca or Joe Peiffer for a free evaluation of their investment recovery options and to provide information for the ongoing investigation, toll free at 888-998-0520.
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