Notice to UBS ETRACS Monthly Pay 2x Leveraged Mortgage REIT ETN Series B (MRRL) investors. The Haselkorn & Thibaut, P.A. law firm is a nationwide investment fraud law firm (www.investmentfraudlawyers.com) investigating potential sales practice violations by financial advisors who were recommending ETRAC exchange-traded notes, MRRL etn, to investors. Unfortunately, if you self-direct your investments using broker such as Robinhood, E-Trade, TD Ameritrade, Schwab, Fidelity, or Interactive Brokers, this investigation does not apply to you.
The recent trading in MRRL stock has been in the $0.50/share range with a current quote of $0.21! Looking back, over the second half of 2017, MRRL stock was generally trading at or above $15.00/share and by 2018 was still trading between $12.00/share and $16.00/share. That trend continued through 2019 and even into early March 2020. The year-to-date total return is down over -95%.
MRRL tries to return linked to the Market Vectors® Global Mortgage REITs Index. The ETRACS Monthly Pay 2xLeveraged Mortgage REIT ETN Series B due October 16, 2042, is a series of Monthly Pay 2xLeveraged ETRACS.
The REIT index tracks the overall performance of publicly-traded mortgage REITs that derive at least 50% of their revenues from mortgage-related activities. The investments are senior unsecured debt securities issued by UBS AG. The Securities are two times leveraged concerning the index, and, as a result, will benefit from two times any positive, but will be exposed to two times any negative, compounded monthly performance of the index.
MRLL Stock FINRA Lawsuit Investigation
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The Haselkorn & Thibaut, P.A. law firm is a nationwide investment fraud law firm (www.investmentfraudlawyers.com) investigating potential sales practice violations by financial advisors who were recommending MRRL and many similar ETRAC exchange-traded notes sold to investors.
For investors, this is a particularly harsh blow as these are the types of investments that were often recommended by financial advisors to clients who were looking for income in their portfolios (often retirees or similarly conservative investors).
This was likely a recommendation that was expected to be low volatility and relatively conservative, now investors are faced with substantial losses as a result of a level of risk to their original investment principal that was probably never adequately disclosed (if it was ever disclosed at all) by their financial advisors.
As some strategies are leveraged in the hopes of increasing potential returns, they also increased the level of risk, and some investors may not have been advised of those inherent risks as well.
Although financial advisors may claim that these were unforeseen market events, the reality is that these are similar risks to those experienced in the 2008-2009 financial crisis. These potential risks were material risks that should have been appropriately disclosed to clients before recommending these investments individually or as part of a portfolio or investment strategy.
Many of these investments were sold by UBS Financial advisors and other financial advisors without proper risk disclosures, as these are considered very risky and complicated (some even speculative because of the leverage) securities. In cases where these were recommended to retirees or similar conservative income-seeking investors there is the potential for sales practice abuse as a result of misrepresentations, but more often as a result of omissions of material fact, or due to a lack of proper supervision.
Recover Losses From MRLL
For some investors, a private FINRA arbitration customer dispute enables them to bring a claim and potentially recoup their investment losses from MRLL. These customer disputes typically involve only paper discovery and no depositions, and they are generally faster and more efficient compared to traditional court litigation, as they provide a private forum to resolve disputes more quickly and efficiently.
About Haselkorn & Thibaut, P.A.
Haselkorn and Thibaut, P.A. is a nationwide law firm specializing in handling investment fraud and securities arbitration cases. The law firm has offices in Palm Beach, Florida, on Park Avenue in New York, as well as in Phoenix, Arizona, and Cary, North Carolina. The two founding partners have nearly 45 years of legal experience.
Haselkorn & Thibaut, P.A. has filed numerous (private arbitration) customer disputes with the Financial Industry Regulatory Association (FINRA) for customers who suffered investment losses relating to issues similar to those matters mentioned above. There are typically no depositions involved, and those cases are typically handled on contingency with no recovery, no fee terms. Experienced attorneys at Haselkorn & Thibaut, P.A., are available for a free consultation as a public service. Call today for more information at Call 1-800-856-3352 or visit our website and email us from there at www.investmentfraudlawyers.com.