failed to meet the duties they owed to the Claimant, including, but not limited to, recommending suitable investment strategies and giving full disclosure of all material information regarding the risk associated with a concentrated portfolio.
Coral Gables, Florida (Vocus) April 29, 2010
The Securities Law Firm of Tramont Guerra & Nunez, PA announces the recent filing of a securities arbitration claim with the Financial Industry Regulatory Authority (FINRA), Case No. 10-01693, against JP Morgan Securities, Inc. (JP Morgan). The securities arbitration claim alleges, “sales practice violations, including unsuitable allocation of account assets, overconcentration and inadequate due diligence and supervision of the handling of investment account assets by JP Morgan.” This conduct led to an over-concentration in Venezuelan bonds and in banking and financial sector stocks, including JP Morgan’s recommended purchase of Washington Mutual stock, days before JP Morgan’s parent acquired the banking operations of Washington Mutual. The claim further alleges JP Morgan “failed to meet the duties they owed to the Claimant, including, but not limited to, recommending suitable investment strategies and giving full disclosure of all material information regarding the risk associated with a concentrated portfolio.” As a result of these allegations, Claimant’s assert damages in excess of $650,000.
The FINRA sales practice rules and regulations are promulgated through member firm internal compliance procedures that are established to protect investors from investment losses that are the direct result of the violation of these rules. In this instance, Claimant did not understand the risks associated with securities concentration in Venezuelan bonds and the banking and financial sector of the U.S. economy. JP Morgan is required to supervise the handling of client accounts to assure compliance with securities industry standards for the handling of client accounts. This arbitration claim filed with FINRA seeks to recover losses stemming from the violation of these FINRA sales practice rules and regulations. Brokerage firms are obligated to give, and investors are entitled to rely upon, brokerage firms for competent, suitable investment advice in accordance with FINRA. Recommendations of unsuitable investments and/or maintaining unprotected concentrated stock positions are both causes of action that may be available to investors against their full-service brokerage firm in an individual securities arbitration claim filed with FINRA. Investors should consider whether an individual securities arbitration claim filed with the Financial Industry Regulatory Authority, (FINRA) is an effective method to recover their investment losses.
The Securities Law Firm of Tramont Guerra & Núñez, PA is a nationally recognized, Martindale Hubbell “AV” rated securities law firm. To request a confidential consultation from a TGN attorney to determine whether you have a viable individual securities arbitration claim for investment losses that exceed $250,000 from a full service brokerage account, contact us on our website. To speak directly with an attorney, call (888) 834-2171 and ask for Ben Fernandez, Esquire.