Coral Gables, Florida (Vocus) October 3, 2009
The Law Firm of Tramont Guerra & Nunez, PA (TGN) announces the recent filing of a securities arbitration claim with the Financial Industry Regulatory Authority (FINRA), Case No. 09-05330, against Smith Barney a division of Citigroup Global Markets, Inc. (Citigroup) (NYSE:C). The securities arbitration claim was filed by a retired couple, both of advanced age and facing substantial illness and disability, for damages which allegedly resulted caused from the mishandling of their investment account which was concentrated in Citigroup stock. The statement of claim alleges that while the financial banking system collapsed, the value of the Claimant’s Citigroup stock declined in excess of $650,000. During this time Smith Barney and its representatives never disclosed to Claimants the risks associated with an unsuitable concentration of retirement assets in one stock, gave no advice to Claimants to mitigate risk through diversification or other risk management strategies and failed to provide the required supervision for the Claimants’ account. The securities arbitration claim arises from sales practice rule violations, as set forth by the Financial Industry Regulatory Authority (FINRA).
The FINRA sales practice rules and regulations are promulgated through member firm internal compliance procedures which are established to protect investors from investment losses that are the direct result of the violation of these rules. In this instance, the Claimants did not understand the risks associated with securities concentration in the banking and financial sector of the economy. Citigroup is required to supervise the handling of client accounts to assure compliance with internal procedures. This arbitration claim filed with FINRA seeks to recover losses stemming from the violation of these FINRA sales practice rules and regulations. Recommendations of unsuitable investment strategies and/or concentrated investments in the financial sector are both causes of action that form the basis for individual securities arbitration claims filed with FINRA.
The Securities Law Firm of Tramont Guerra & Nunez, PA, is a nationally recognized, Martindale Hubbell “AV” rated securities law firm. To request a confidential consultation from a TGN attorney to assist you in determining whether you have a viable individual claim for investment losses that exceed $100,000 from a full service brokerage account, contact us on our website, or to speak directly with an attorney, call (800) 578-0137 and ask for Ben Fernandez, Esquire.