News Report 10/20/17

  1. ThinkAdvisor.com reported on 10/20/17 that Massachusetts securities regulators charged a Waltham, Mass. based investment advisor and his firm with allegations of fraudulent and dishonest conduct as well as breaches of fiduciary duty. The underlying issues related to the firm, Moser Capital Management and its raising capital in Moser Capital Fund, LLC and in Moser Capital Fund II, LLC when it was soliciting its own clients as potential investors and allegedly misleading them (by among other things) failing to properly disclose financial incentives related to the sales of the investment, and misrepresenting material information such as the clientele and funding status relating to the investments. If you are a current or former client of Moser Capital Management who has questions relating to your investments or who suffered losses, please contact the Investment Loss Recovery Team at 1-800-856-3352 for a no-cost consultation and review.
  2. Advisorhub.com reported on 10/20/17 reported that the SEC had charged a New York based advisor with stealing $9 million from a charitable foundation. The investment advisory firm, Train, Babcock Advisors made hundreds of unauthorized wire transfers out of the client accounts that were custodied at Charles Schwab by the client (believed to be) a New Jersey-based charitable foundation, Kurr Foundation. Train, Babcock Advisors manages over $400 million in client assets according to the SEC filings. If you are an investor who has suffered losses with Train, Babcock Advisors or any other investment advisor where you have suffered losses or had funds improperly wired out of your account, please contact the Investment Loss Recovery Team at 1-800-856-3352 for a no-cost consultation and review.
  3. On October 20, 2017, ThinkAdvisor.com reported Cetera Financial Specialists and Cetera Investment Services were censured by FINRA for failing to properly provide eligible customers with sales charges waivers or otherwise improperly overcharged customers, sometimes by way of improperly recommending mutual fund share class purchases that were not as advantageous to the customer as other share classes available. If you are an investor who has been overcharged or who has suffered losses with Cetera Advisors, Cetera Financial Specialists, or Cetera Investment Services, please contact the Investment Loss Recovery Team at 1-800-856-3352 for a no-cost consultation and review.
  4. Patrick Hudson of Baltimore, MD was a financial consultant terminated by RBC Capital Markets in June 2015 based on allegations that he had improperly engaged in private securities transactions involving promissory notes and outside real estate business. See FINRA brokercheck. If you are an investor who suffered losses with Hudson or RBC Capital Markets, please call the Investment Loss Recovery Team at 1-800-856-3352 for a no-cost consultation and review.
  5. ThinkAdvisor.com reported on 10/20/17 that FINRA has censured and fined Morgan Stanley for failure to properly train and supervise its employees. If you are an investor who has suffered losses with Morgan Stanley, or if you have any questions or concerns, please contact the Investment Loss Recovery Team at 1-800-856-3352 for a no-cost consultation and review.
  6. Peter Doyle was most recently employed by H. Beck, Inc. and was previously terminated by Morgan Stanley in July 2016 (before being recently banned by FINRA in July 2017). Doyle has a number of customer complaints alleging (among other things) unauthorized trading and recommendations of unsuitable securities. See FINRA brokercheck. If you are an investor who suffered losses with Doyle, H. Beck or Morgan Stanley relating to unauthorized trading, unsuitable securities, please call the Investment Loss Recovery Team at 1-800-856-3352 for a no-cost consultation and review.
  7. On 8/30/17, AdvisorHub.com reported that ex-Morgan Stanley brokers were in hot water over Unit Investment Trust (UIT) rollovers. UITs are designed to be held until maturity and regulators are stepping up the pressure in firms and brokers who abuse the products. Earlier in August 2017, FINRA had also suspended a Colorado broker, Elaine LaCorte for recommending UITs to customers well before their maturity dates. The majority of the UIT investment products carried sales charges ranging from 1.95% to 3.95%and the broker was recommending sales of the UITs less than a year after they were purchased. LaCorte was also allegedly often recommending that customers use the sales proceeds to purchase other UITs with similar investment objectives. If you are an investor who suffered losses with LaCorte, Morgan Stanley or relating to Unit Investment Trusts (also referred to as UITs), please call the Investment Loss Recovery Team at 1-800-856-3352 for a no-cost consultation and review.
  8. On October 10. 2017, CNBC.com reported that the following mutual funds have the most exposure to Puerto Rico debt. As the prospects now for Puerto Rico bond holders only appears to have become more negative in light of unprecedented devastation that the island faces from Hurricane Maria, and a request for over $1 billion in federal aid, the expectation of significant losses for bond holders is only worse now due to the weakened economic outlook for Puerto Rico. Many investors have exposure to these securities based on direct bond investments, but many more have exposure through mutual funds held with: Oppenheimer Funds, Franklin Templeton Investments, MFS, Mainstay, and many others. For example, Puerto Rico debt exposure in the following mutual funds appears quite significant:
    • Oppenheimer Rochester MD Municipal Fund (over 22%)
    • Oppenheimer Rochester VA Municipal Fund (over 20%)
    • Oppenheimer Rochester Short Duration HY Muni Fund (over 18%)
    • Oppenheimer Rochester Fund Munis Fund (over 17%)
    • Oppenheimer Rochester AZ Municipal Fund (over 17%)
    • Oppenheimer Rochester NJ Municipal Fund (over 17%)
    • Oppenheimer Rochester AMT-Free NY Muni Fund (nearly 15%)
    • Transamerica High Yield Muni Fund (over 10%)
    • MainStay High Yield Muni Fund (over 9%)
    • Eaton Vance OR Muni Income Fund (over 9%)
    • Eaton Vance MO Muni Income Fund (over 8%)
  9. If you have losses relating to your Puerto Rico bond or mutual fund investments, please contact the Investment Loss Recovery Team at 1-800-856-3352 for a no-cost consultation and review.
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