Video: How do attorneys decide which securities fraud cases to pursue?

How do attorneys decide which securities fraud cases to pursue?

Also available at KansasCityLaw.tv
In this video, Jason M. Kueser discusses factors that securities fraud attorneys often evaluate in determining which cases to pursue. This often includes a number of factors, including (1) individual aspects of the customer and the customer’s situation; (2) the amount of investment loss suffered by the investor; (3) the type or types of investments involved; and (4) whether the stockbroker, adviser, or brokerage firm has previously regulatory issues. There are other factors that are involved, as well.

If you feel you have been the victim of investment fraud or securities fraud, please contact an attorney. If you would like to speak with The Kueser Law Firm, please call the firm at (816) 374-5865 or send us an href=”mailto:jason@jmkesquire.com&subject=Contact from Kueser Law Firm blog”>e-mail.


This video is provided for informational purposes only and nothing contained herein is or should be constituted as legal advice. If you have questions related to any legal topic, you should consult with an attorney and should not rely solely upon information provided via the internet.
The choice of an attorney is an important one and should not be based solely upon advertisements such as this website. Past results afford no guarantee of future results. Every case is different and must be judged on its own merits. *Any information submitted via this website may not be secure and/or confidential. Merely contacting this firm does not establish an attorney-client relationship.

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FINRA Arbitration Statistics – December 2010

FINRA recently released its arbitration statistics for the month/year ended December 2010.

For the year, there were 20% fewer cases filed (5,680 v. 7,137 in 2009) and there were 6,241 cases closed (a 37% increase over 2009). Of these cases, 22% were resolved by arbitration hearing, 52% were resolved by direct settlement between the parties, 10% were resolved through mediation, and 16% of cases were either withdrawn or resolved through “other” method.

Results for investors also improved in 2010, as 47% cases that were decided by an arbitration panel resulted in an award of damages to the customer. This reflects a 2% increase over the results in 2009, and a 10% increase compared to arbitration claims decided by arbitration panels in 2007 — the worst year, for investors, in arbitration claims over the past six years.

The overall turnaround time for cases closed during the year also increased to 12.7 months (from 11.5 months in 2009). For cases that are resolved after an arbitration hearing, the turnaround time increased to 15 months (from 14 months in 2009).

The most common claims in arbitration were: (1) Breach of Fiduciary Duty; (2) Negligence; (3) Fraud/Misrepresentation; (4) Failure to Supervise; and, (5) Breach of Contract. The most common type of securities involved in arbitration claims were mutual funds and common stocks.

The Kueser Law Firm represents investors in securities arbitration. If you feel that your investments have been mismanaged, please contact the firm to discuss your rights.

Fighting Inflation — Tips for Retirees

Robert Powell of Marketwatch.com recently posted an article entitled “Inflation hits hard when you can least afford it: Four ways older Americans can deal with higher inflation rates.”

The article offers four tips for retirees and those approaching retirement. Most importantly, the article states that retirees should (1) live within their means, and (2) calculate retirement expenses. This is good advice because retirees are as guilty as many Americans for failing to properly budget and plan. In addition, many retirees are told that the only way they can support their retirement is to invest more aggressively. This is not true and, in fact, can be devastating when the stock market experiences broad declines, as has happened over the last 18 months (the S&P 500 has declined from approximately 1,540 to a low of 666.79).

If you are retired, or are approaching retirement, and your financial advisor tells you that the only way you can “afford” to retire is by investing more of your money in stocks or stock-based mutual funds, get a second opinion. Although stocks have provided the greatest historical returns over the long-term, retirees and those approaching retirement need to focus on the short-term. As reported on mybudget360.com, the Dow Jones Industrial Average has suffered one-year losses of 18.94% or more in 11 years (see chart).

These one year declines can prove disastrous for retirees. This is why it is important to manage portfolio risk and why the “solution” to affording retirement is not to invest more money in stocks, but rather, to manage retirement expenses. Mr. Powell has also written an article discussing 10 major retirement risks. In this article, he offers tips on how to manage these risks, including stock market risk.

Avoiding Investment Fraud

Darren Barbee of the Fort Worth Star-Telegram has written a good article that outlines various ways investors can reduce the risk of being defrauded by a financial or investment adviser.  

This is a “must read” article that anyone who is dealing with an investment adviser.  In addition, The Kueser Law Firm’s website contains an Investor Resource Center that provides helpful links to several sources that investors can utilize to do a background check on their financial or investment adviser (Investment Adviser Public Disclosure) and stock broker (BrokerCheck), as well as insurance agents that are registered to sell variable insurance products (BrokerCheck).  In these uncertain times, it is imperative that investors know everything they can about the professionals they entrust with their future.

California AG Sues Wells Fargo For Sales of Auction Rate Securities

As reported in the New York Times, California’s Attorney General filed a lawsuit today against three Wells Fargo companies, including Wells Fargo Investments.  The suit stems from Wells Fargo’s “false and deceptive advice” to its customers that Auction Rate Securities were safe and liquid as cash.  

As has been reported significantly, a number of firms have faced class actions, individual lawsuits, arbitration claims, and regulatory action as a result of marketing Auction Rate Securities as “cash equivalents.”  In fact, Auction Rate Securities are long-term investments that had interest rates that reset periodically at auctions.  Prior to February 14, 2008, the largest investment banks and broker-dealers supported the auction markets.  However, when these firms ran into liquidity problems, they became unable to continue their support.  As a result, there was not enough money in the auctions to keep them running.  This caused the auctions to fail and resulted in owners owning billions of long-term bonds and perpetual preferred securities that generally paid interest rates equivalent to rates paid on short-term investments.  

While the majority of the prospectuses for Auction Rate Securities disclosed potential risks related to auction failures, most customers never received a copy of the prospectus at the time of sale.  In fact, many investors were not provided a prospectus until after the auctions failed.  Unfortunately, by that time, it was too late as the risks had become self-evident.  

If you own Auction Rate Securities that have not been redeemed, you may want to contact an attorney to discuss your rights.  The Kueser Law Firm is a boutique legal practice that focuses its practice on protecting the rights of investors and recovering investment losses for companies and individuals.  You may contact us by completing the form to the right, or by visiting our website.

Stifel Nicolaus Agrees to Repurchase Auction Rate Securities — In 3 Years

Welcome to InvestmentFraudBlog.com

Thank you for visitng the InvestmentFraudBlog.  This blog is maintained by the Kueser Law Firm, a boutique law practice in Lee’s Summit, Missouri.  The firm focuses its practice on representing individuals, groups, and companies whose investments have been mismanaged.  The firm also represents financial advisors, stockbrokers, and other financial professionals in employment related disputes and regulatory investigations.  

This blog will serve to provide commentary and links to current issues related to investments, and, as the title of the blog suggests, investment fraud.  The firm’s website also contains an Investor Resource Center that has links to a variety of useful sources for investors and financial professionals.

If you need to speak to an attorney about your investments, please feel free to contact The Kueser Law Firm.  We hope you enjoy the future content of this blog.