Florida Securities Investor Rights Blog

UBS Hit Hard in Recent Arbitration Awards Involving Sale of Lehman Principal Protected Notes
Posted by: David Chase
February 01, 2011
Topic: Recent FINRA Arbitration Awards

    UBS Financial Services, Inc. was a big seller of Lehman Principal Protected Notes, hawking almost $1 billion worth to its clients. The Lehman Notes were pitched to investors, including retirees and the elderly, seeking a safe and conservative "risk free" haven for their monies. As is now painfully clear, the "100 percent principal protection" guarantee was illusory as it became essentially worthless when Lehman Brothers declared bankruptcy.

    Recently, UBS was hit hard in two arbitration cases filed by investors. The awards for the investors, a $530,000 ruling in November 2010, and a $2.2 million dollar ruling in December 2010, are some of the largest to date. In both awards, investors were awarded the amount of losses they sought in their claims. According to Investment News, investors have won seven of the eight Lehman note cases that have gone to arbitration hearing, reporting that many more have been settled by UBS prior to final hearing.

    If you suffered an investment loss from your purchase of a Lehman Note from UBS, or any major brokerage house, and are uncertain as to how to attempt to recover your losses, you may contact me for a free and confidential consultation, toll free at: (866) 457-2847. Waiting on a drawn-out bankruptcy proceeding in the hopes of recovering some monies in the Lehman Brothers bankruptcy is not your only option. FINRA arbitration proceedings generally are resolved within 12 months (on average) of filing and, in some cases, earlier for elderly investors.

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KENNETH WAYNE MCLEOD FRAUD VICTIM?
Posted by: David Chase
October 20, 2010
Topic: Stock Broker Fraud

    The Securities and Exchange Commission has alleged in court that the late Kenneth Wayne Mcleod engaged in a long-running Ponzi scheme that targeted and defrauded active and retired Federal Employees. The core of the alleged fraud involved McLeod's sale of the FEBG Bond Fund, which he touted as a safe and conservative investment that would consistently produce 8-10% returns.

    In truth, as the SEC claims, the FEBG Bond Fund did not exist and McLeod never purchased government securities with investor funds. Instead, in a class Ponzi scheme fashion, McLeod used the funds to prop-up his investment adviser business and to support his extravagant personal lifestyle, the SEC contends. It is believed that McLeod raised in excess of $34 million from over 260 investors across the country.

    Unfortunately, in these types of frauds, very little is left for investors after the Ponzi scheme is exposed and the authorities become involved. In this case, however, McLeod was a registered securities representative and associated with certain registered securities brokerage firms while he engaged in the alleged fraud. As a result, those brokerage firms had an obligation under the law to reasonably supervise McLeod's activities and may be legally responsible for investor losses caused by McLeod's fraudulent activities.

    The Law Firm of David R. Chase, P.A., headed by former SEC Prosecutor David R. Chase, has been retained to represent McLeod victims against Lincoln Financial Securities Corporation, one of the securities brokerage firms with which McLeod was associated from approximately January 2008 through May 2009. The arbitration claim alleges that Lincoln Financial is liable for investor losses because: (1) it failed to reasonably supervise McLeod's activities, (2) it is legally responsible for McLeod's fraudulent conduct under the doctrine of respondeat superior, and (3) it is legally responsible for McLeod's wrongful acts under Florida Administrative Code 69W-600.008(5). The arbitration claim seeks full recovery of the investment loss sustained in the FEBG Bond Fund, prejudgment interest, costs of the arbitration and punitive damages.

    The arbitration claim was filed with FINRA. These cases typically take approximately 1 year from filing to be heard, and are designed to be more efficient and less expensive than court.

    My law firm is filing only individual claims, not group claims. Individually filed claims have the benefit of ensuring that the unique and individual facts about the particular investor are highlighted, and are not lost amongst multiple claimant investors. Individual claims, unlike group claims, also allow the investor greater control (and avoid potential complicated conflicts) over the decision of whether the case should settle and, if so, for how much. While there are certain cost efficiencies with a group claim, given the relatively low costs involved in the arbitration process, those efficiencies are likely outweighed by the more significant benefits of control over the process and ensuring that the case is focused only on your individual facts and situation.

    I have many years of experience in handling Ponzi scheme cases. I civilly prosecuted Ponzi schemes when I worked for the Securities and Exchange Commission in its Division of Enforcement, and criminally prosecuted them as a Special Assistant United States Attorney in the Southern District of Florida. I have also served as Court- appointed Receiver in several SEC and Federal Trade Commission fraud cases. For the last decade, I have represented defrauded investors across the nation against securities brokerage firms in cases to recover investment losses.

    If you have lost money in the FEBG Bond Fund through Wayne McLeod, do not hesitate to contact me for a confidential, no obligation review of your potential case. I can be reached toll free at: 888-337-8625 or at my e-mail: david@davidchaselaw.com. More information about my law firm and representation of securities investors can be found at: www.davidchaselaw.com.

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FORESEE-STRATEGIES-INSURANCE-FUND-VICTIM
Posted by: David Chase
August 23, 2010
Topic: Stock Fraud

    Pitched to investors as a defensive, hedged play against market downside, the Foresee Strategies Insurance Funds certainly did not perform as represented, causing tremendous losses to many individual investors who never intended to speculate or take substantial risks with their hard earned monies. The Foresee Strategies Insurance Funds were shut down in May of 2010. The demise of these funds may have been attributable to high-risk, naked options trading.

    For investors who purchased the Foresee Strategies Insurance Funds through a securities broker-dealer, they must pursue their claims against the brokerage firm in FINRA arbitration. On average, the arbitration process takes around 12 months from filing to have a case heard. As of today, no class action case, which can take years to go to trial, appears to have been filed.

    Typical claims in arbitration include unsuitability (that the investment was not suitable for the client given his/her investment objectives, risk tolerance, age, etc.), and misrepresentation and omission (that certain material facts about the investment were false or untrue,or that certain important information was not disclosed). The Foresee Strategies Insurance Fund may have been unsuitable for the elderly, retired or those seeking a low-risk, non-speculative investment strategy.

    I have been speaking with investors in the Foresee Strategies Investor Fund who have sustained losses of the vast majority of their principal investment. My law firm represents investors nationwide and works on a contingency fee basis, meaning if there is no recovery no attorney's fees are owed.

If you suffered losses in Foresee Strategies Insurance Fund, call now for a free and confidential case evaluation.

David R. Chase, Esq.
David R. Chase, P.A. Law Firm
1700 East Las Olas Boulevard
Suite 305
Fort Lauderdale, FL 33301
888-337-8625 (Toll Free)
954-920-7779

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MEDICAL CAPITAL SECURITIES: A PONZI SCHEME HEAVILY SOLD TO RETIREES AND THE ELDERLY
Posted by: David Chase
July 06, 2010
Topic: Securities Fraud

     The Law Firm of David R. Chase, P.A., headed by former Securities and Exchange Commission Prosecutor and Special Assistant United States Attorney, David R. Chase, is currently representing investors against securities brokerage firms, including Securities America and Workman Securities Corporation, which sold Medical Capital Securities.  These FINRA Arbitration claims allege that the brokerage firms failed to conduct adequate due diligence of Medical Capital prior to agreeing to sell it to its retail customers, and that they materially misrepresented the true nature and risks of this product when soliciting it.

    On July 16, 2009, the Securities and Exchange Commission filed an emergency court action to halt an alleged $77 million offering fraud perpetrated by Medical Capital Holdings, Inc., and others. The SEC's Complaint claims that the defendants defrauded investors by misappropriating about $18.5 million of investor funds and by misrepresenting to investors that no prior offerings had defaulted on or been late in making payments to investors of principal and/or interest.

    Although a class action has been filed against certain broker-dealers that sold Medical Capital securities, investors who have suffered substantial losses should seriously consider pursuing their own individual FINRA arbitration claims as a potentially superior alternative to joining a class action. Unlike a class action, a FINRA arbitration claim allows you to: (1) chose your own counsel (only the lead plaintiff has this right in a class action), (2) have your unique facts presented to an arbitration panel, (3) control the decision whether to settle your case and for how much, and (4) generally secure a result within approximately twelve months, as opposed to potentially years with a class action.

    The Law Office of David R. Chase, P.A., based in Fort Lauderdale, Florida, represents investors worldwide in cases against the major Wall Street Firms. David R. Chase has been practicing for over 17 years, is AV-Rated by Martindale-Hubbell -- its highest competence and ethics rating -- and previously served as a securities prosecutor for the Federal Government. More about the firm is available on its website at: www.davidchaselaw.com.

If you suffered losses in Medical Capital Holdings, call now for a free and confidential case evaluation.

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LEHMAN BROTHERS PRINCIPAL PROTECTED NOTES: PRINCIPAL WAS NOT PROTECTED
Posted by: David Chase
July 06, 2010
Topic: Securities Fraud

    The securities law firm of David R. Chase, P.A. (the "Firm"), headed by former SEC Prosecutor David R. Chase, is currently investigating claims on behalf of investors who purchased Lehman Brothers Principal Protected Notes or other Lehman Structured Notes, which were heavily marketed and sold by several of the major Wall Street Firms, including UBS.  

     The Lehman Brothers Principal Protected Notes were pitched to investors, including retirees and the elderly, seeking a safe and conservative “risk free” haven for their monies. As is now painfully clear, the "100 percent principal protection" guarantee was illusory as it became essentially worthless when Lehman declared bankruptcy.   In certain egregious situations, the Lehman Principal Protected Notes were sold to investors just prior to Lehman's bankruptcy filing.

    Significantly, New Hampshire’s Securities Regulator filed a claim against UBS alleging that it failed to warn investors about the risks of its structured investment products once Lehman Brothers began to suffer financial problems.

    The Firm is also investigating investor claims for losses resulting from broker's recommendations of Lehman Brothers Preferred and Common Stock made within the last few months prior to Lehman's bankruptcy filing on September 15, 2008. It is also looking at potential claims by investors who were over-concentrated in Lehman Brothers Securities or that of any other financial institution and suffered significant losses.

    The Law Firm of David R. Chase, P.A., has extensive experience representing defrauded investors nationwide in securities arbitration matters. The Firm's principal, David R. Chase, has over seventeen (17) years of experience, is AV-Rated by Martindale-Hubbell (its highest rating), and previously served as Senior Counsel in the Enforcement Division of the Securities and Exchange Commission, and as a Special Assistant United States Attorney in the Economic Crimes Division of the United States Attorney's Office in the Southern District of Florida. More about the firm is available on its website at: www.davidchaselaw.com.

     If you suffered losses in Lehman Brothers Principal Protected Notes, or Lehman Brothers Preferred or Common Stock, call now for a free and confidential case evaluation.

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Arvali Fund
Posted by: David Chase
July 06, 2010
Topic: Securities Fraud

The Law Firm of David R. Chase, P.A. (the "Firm"), headed by former Securities and Exchange Commission Prosecutor, David R. Chase, is currently representing investors across the nation, including elderly retirees, in FINRA Arbitration cases against Deutsche Bank Securities for its sale of the Aravali Fund, LP.
The cases generally allege that Deutsche Bank misrepresented the Aravali Fund as a conservative, low-risk investment when, in fact, it was extremely risky and speculative given its highly leveraged interest rate arbitrage strategy.  Certain of the cases allege that the sale of the Aravali Fund was unsuitable given the investor’s age, investment objectives and risk tolerance.  The Aravali Fund lost greater than 90% of its value, causing massive investor losses.
The Law Firm of David R. Chase, P.A., has extensive experience representing defrauded investors nationwide in securities arbitration matters. The Firm's principal, David R. Chase, has seventeen (17) years of experience, is AV-Rated by Martindale-Hubbell (its highest rating),and previously served as Senior Counsel in the Enforcement Division of the Securities and Exchange Commission, and as a Special Assistant United States Attorney in the Economic Crimes Division of the United States Attorney's Office in the Southern District of Florida. More about the firm is available on its website at: www.davidchaselaw.com.
If you suffered losses in the Aravali Fund, call now for a free and confidential case evaluation.

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