Category Archives: Alternative Investments

The Securities Arbitration Law Firm of Klayman & Toskes, P.A. Continues to Investigate and Pursue FINRA Arbitration Claims Against VSR Financial Services for Sales Practice Violations Related to Non-Traded Alternative Investments

By | Alternative Investments, Blog, Featured Investigations | No Comments

New York (Globe Newswire) – April 7, 2016 – The Securities Arbitration Law Firm of Klayman & Toskes, P.A. (“K&T”) www.nasd-law.com, announced today that it is continuing to investigate and pursue Financial Industry Regulatory Authority (FINRA) securities arbitration claims against VSR Financial Services (“VSR”) for sales practice violations related to solicited investments in non-traded alternative investments. According to K&T, the scope of its investigation is related to investments in non-traded alternative investments, including Real Estate Investment Trusts (“REITs”) and Business Development Companies (“BDCs”) solicited by VSR financial advisors.

K&T is pursuing FINRA securities arbitration claims against VSR for unsuitable recommendationsmisrepresentations and omissions, securities concentration and failure to supervise. According to securities attorney Lawrence Klayman, “Our investigation is continuous and ongoing, and focused on whether investors were able to make investment decisions with the benefit of full disclosure.” Mr. Klayman explains, “Non-traded alternative investments have risks and costs which make them unsuitable for many investors.” K&T’s investigation is related to alternative investments in non-traded REITs and BDCs that include:

  • America Realty Capital Properties (Vereit);
  • CNL Corporate Capital Trust;
  • Cole Capital REITs;
  • Franklin Square Energy and Power Fund;
  • Griffin Capital;
  • Northstar Real Estate Income;
  • Sierra Income Corporation; and
  • United Development Funding IV;.

According to FINRA Notice to Members 15-02, brokerage firms are required to provide greater disclosure concerning non-traded REITs and BDCs on customer account statements. Our investigation relates to whether adequate disclosure of the costs and risks associated non-traded REITs and BDCs was made by VSR and its financial advisors.

About Klayman & Toskes, P.A.

K&T is a leading national securities law firm which practices exclusively in the field of securities arbitration and litigation, on behalf of retail and institutional investors, such as non-profit organizations, unions, public and multi-employer pension funds, in large and complex securities matters. K&T has office locations in California, Florida, New York and Puerto Rico. If you wish to discuss this investigation or have knowledge of VSR’s sales practices related to investments in non-traded REITs and BDCs can contact us, or call Steven D. Toskes, Esq. at 888-997-9956.

Notice to Franklin Square Energy and Power Fund Investors: The Securities Arbitration Law Firm of Klayman & Toskes, P.A. Launches Investigation into Potential FINRA Sales Practice Violations by Brokerage Firms

By | Alternative Investments, Blog, Business Development Companies, Featured Investigations | No Comments

Boca Raton (Globe Newswire) – April 7, 2016 – The Securities Arbitration Law Firm of Klayman & Toskes, P.A. (“K&T”), www.nasd-law.com, announces that it is conducting an investigation into potential Financial Industry Regulatory Authority (FINRA) sales practice violations by brokerage firms for solicited investments in Franklin Square Energy and Power Fund (“FSEP”), a non-traded Business Development Company (“BDC”). FSEP assets, with assets in excess of $3.6 billion, are invested primarily in senior secured loans made to private companies focused in oil industry infrastructure for drilling and exploration. FSEP investors have experienced a decline in the value of the non-traded BDC Net Asset Value (NAV) along with the decline in the price of oil. According to K&T, the scope of the investigation includes whether brokerage firms made suitable recommendations related to FSEP and whether adequate disclosure was made concerning the syndication costs and risks of non-traded BDC concentrated in the energy sector.

A new regulatory notice, FINRA Notice to Members 15-02, effective April11, 2016 instructs brokerage firms to provide greater disclosure concerning BDCs, such as FSEP on customer account statements. Securities attorney Lawrence Klayman, Esq. comments on the regulatory notice, ”Investors in Franklin Square’s Energy and Power Fund will now receive more accurate information disclosed on account statements, including deductions of 10% for distribution costs and changes in the value of the loan portfolio concentrated in the energy sector.” Mr. Klayman asserts, “Our investigation is to determine whether financial advisors failed to adequately disclose the risks related to concentration in the energy sector and the effects of syndication costs on the valuation of this BDC.”

FINRA sales practice rules related to potential violations may include misrepresentations and omissions of material facts, conflicts of interest, unsuitable investment advice, securities concentration, or failure to supervise its financial advisors. Our investigation relates to brokerage firms and its financial advisors’ recommended investments in Franklin Square Energy and Power Fund for customer accounts.

About Klayman & Toskes, P.A.

K&T is a leading national securities law firm which practices exclusively in the field of securities arbitration and litigation, on behalf of retail and institutional investors, such as non-profit organizations, unions, public and multi-employer pension funds, in large and complex securities matters. K&T has office locations in California, Florida, New York and Puerto Rico. If you wish to discuss this investigation or have knowledge of brokerage firm sales practices related to Franklin Square Energy and Power Fund can contact us, or call Steven D. Toskes, Esq. at 888-997-9956.

The Securities Arbitration Law Firm of Klayman & Toskes, P.A. Continues to Investigate Sales Practices Violations Related to Credit Suisse X-Links and Velocity Shares ETNs

By | Alternative Investments, Blog, Featured Cases, Featured Investigations, FINRA Sales Practice Violations, MArket-Linked Notes, Oil & Gas Investments, Securities Arbitration, Structured Securities Products | No Comments

Boca Raton, Florida (BUSINESSWIRE) – January 21, 2016 – The Securities Arbitration Law Firm of Klayman & Toskes, P.A., www.nasd-law.com, continues to investigate Financial Industry Regulatory (FINRA) sales practice violations related to Credit Suisse Securities USA (“Credit Suisse”) X-Links and Velocity Shares Exchanged Traded Notes (ETNs). Credit Suisse X-Links and Velocity Shares ETNs are issued by affiliated banks, Credit Suisse A.G and Credit Suisse Group A.G., ADR (NYSE:CS). In some instances, Credit Suisse X-Links and Velocity Shares performance is linked to oil prices, energy-related master limited partnerships and commodity indexes. Credit Suisse manages its proprietary X-Links and Velocity Shares ETNs, commonly known as structured securities products, to generate greater returns through the use of embedded derivatives designed to track the performance of a volatile security, index, commodity or currency, many times without any principal protections.

FINRA sales practice rules require a fair and balanced representation to investors that Credit Suisse X-Links and Velocity Shares ETNs are more complex and risky than a simple “interest rate” credit when based on a volatile index or commodity. Credit Suisse underwrites, manages and markets billions of dollars in Credit Suisse X-Links and Velocity Shares ETNs including the following:

  • Credit Suisse S&P MLP ETN (NYSE Arca: MLPO)
  • Credit Suisse X-Links Commodity Benchmark ETN (NYSE Arca: CSCB)
  • Credit Suisse X-Links Commodity Rotation ETN (NYSE Arca: CSCR)
  • Credit Suisse X-Links Cushing MLP Infrastructure ETN (NYSE Arca: MLPN)
  • Credit Suisse Velocity Shares 3X Long Crude ETN (NYSE Arca: UWTI)
  • Credit Suisse Velocity Shares 3X Natural Gas ETN (NYSE Arca: VGAZ)

In 2015, a Securities Exchange Commission (SEC) audit of major Wall Street brokerage firms led to a National Exam Program – Risk Alert Report after the review of sales practices violations related to Structured Securities Products, similar to Credit Suisse X-Links and Velocity Shares ETNs. According to the SEC examination, deficiencies were found in some brokerage firms’ supervisory and sales practices related to the determination of “suitability” and “levels of concentration” in customer accounts.

Our investigation of major Wall Street brokerage firms, including Credit Suisse relates to sales practices related to Credit Suisse X-Links and Velocity Shares ETNs. Brokerage firm violations of FINRA sales practice rules may include misrepresentations and omissions of material facts, conflicts of interest, unsuitable investment advice, securities concentration or the failure to supervise its financial advisors. Our investigation relates to investments in Credit Suisse X-Links and Velocity Shares ETNs designed to track the Price of Oil, MLP Pipeline Indexes, Commodities Baskets, and in some instances are leveraged up to 300%.

About Klayman & Toskes, P.A.

Klayman & Toskes, P.A., an experienced, qualified and nationally recognized securities litigation law firm, is currently investigating FINRA sales practice violations of major Wall Street brokerage firms related to the sale of Credit Suisse X-Links and Velocity Shares ETNs. Investors who have knowledge or experience related to the sales practices of brokerage firms and its financial advisors’ recommendations related to Credit Suisse X-Links and Velocity Shares ETNs, contact Steven D. Toskes, Esq. at 888-997-9956.

The Securities Arbitration Law Firm of Klayman & Toskes, P.A. Continues to Investigate Sales Practices Related to UBS ETRACS ETNs

By | Alternative Investments, Blog, Broker Misconduct, Featured Investigations, FINRA Sales Practice Violations, MArket-Linked Notes, Oil & Gas Investments, Structured Securities Products | No Comments

Boca Raton, Florida (BUSINESSWIRE) – January 20, 2016 – The Securities Arbitration Law Firms of Klayman & Toskes, P.A., www.nasd-law.com, continues to investigate Financial Industry Regulatory Authority (FINRA) sales practice violations related to UBS Exchange Traded Access Securities (ETRACS) whose performance is linked to declining energy, currency and commodity markets. UBS Financial Services, Inc. (UBS), a wholly owned subsidiary of UBS Group A.G. (NYSE:UBS) sells and distributes UBS ETRACS Exchange-Traded Notes (ETNs). UBS ETRACS ETNs, commonly known as structured securities products, are designed to generate greater returns through the use of embedded derivatives designed to track the performance of a volatile security, index, commodity or currency, many times without any principal protections.

FINRA sales practice rules require a fair and balanced representation to investors that UBS ETRACS ETNs are more complex and risky than a simple “interest rate” credit when based on a volatile index or commodity. UBS underwrites, manages and markets billions of dollars in UBS ETRACS ETNs to its customers, including the following:

  • UBS ETRACS Alerian MLP Index ETN (NYSE Arca: AMU)
  • UBS ETRACS 2X Monthly Leveraged S&P MLP Index ETN (NYSE Arca: MLPV)
  • UBS ETRACS Alerian MLP Infrastructure Index ETN (NYSE Arca: MLPI)
  • UBS ETRACS 2X Monthly Leveraged Long Alerian MLP Infrastructure Index ETN (NYSE Arca: MLPL)
  • UBS ETRACS CMCI Energy Total Return ETN (NYSE Arca: UBN)
  • UBS ETRACS CMCI Total Return ETN (NYSE Arca: UCI)
  • UBS ETRACS Bloomberg Commodity Index Total Return (NYSE Arca: DJCI)

In 2015, a Securities Exchange Commission (SEC) audit of major Wall Street brokerage firms led to a National Exam Program – Risk Alert Report after the review of sales practices violations related to Structured Securities Products, similar to UBS’ proprietary ETRACS ETNs. According to the SEC examination, deficiencies were found in some brokerage firms’ supervisory and sales practices related to the determination of “suitability” and “levels of concentration” in customer accounts.

Our investigation relates to UBS’ sales practices related to its proprietary ETRACS ETNs. UBS’ violations of FINRA sales practice violations may include misrepresentations and omissions of material facts, conflicts of interest, unsuitable investment advice, securities concentration or the failure to supervise its financial advisors. Our investigation relates to investments in UBS ETRACS ETNs designed to track the Price of Oil, MLP Pipelines, Indexes, Currency and Commodities Baskets, and in some instances leveraged up to 200%.

About Klayman & Toskes, P.A.

Klayman & Toskes, P.A., an experienced, qualified and nationally recognized securities litigation law firm, is continues to investigate FINRA sales practice violations related to the sale of UBS ETRACS ETNs. Investors who have knowledge or experience related to the sales practices of brokerage firms and its financial advisors’ recommendations related to UBS ETRACS ETNs, contact Steven D. Toskes, Esq. at 888-997-9956.

The Securities Arbitration Law Firm of Klayman & Toskes, PA Continues to Investigate UBS V10 Enhanced FX Carry Strategy Notes Following UBS Settlement with SEC for $19.5 Million

By | Alternative Investments, Blog, Featured Investigations, MArket-Linked Notes, Regulator Disciplinary Actions, SEC Disciplinary Actions, Securities Concentration, Structured Securities Products | No Comments

Boca Raton, Florida (BUSINESSWIRE) October 14, 2015 – The Securities Arbitration Law Firm of Klayman & Toskes, P.A., www.nasd-law.com announced today that it continues to investigate UBS Financial Services (UBS) in connection with the sale of senior unsecured notes, issued by affiliated banks of parent company UBS AG (NYSE: UBS). In response to a Securities Exchange Commission (SEC) Cease and Desist Order, UBS AG submitted an Offer of Settlement which included payment of $19.5 million for violations of securities laws related to the issue and sale of senior unsecured notes linked to the V10 Currency Index. According to the SEC, “The V10 was a proprietary index, developed and sponsored by UBS that measured the performance of a hypothetical algorithmic trading strategy designed to identify and exploit trends in G10 foreign exchange forward rates.”

According to yesterday’s SEC press release, “Between December 2009 and November 2010 approximately 1,900 U.S. investors bought approximately $190 million of structured notes linked to the V10 index.” As a part of the settlement offer, UBS agreed to refrain from similar future violations and pay “disgorgement and prejudgment interest of $11.5 million” and to pay “a civil monetary penalty of $8 million.”

Klayman & Toskes, P.A. is investigating UBS’ sales practices related to senior unsecured notes linked to UBS V10 Currency Index. UBS’ violations of FINRA sales practices may include misrepresentations and omissions of material facts, conflicts of interest, unsuitable investment advice, securities concentration or the failure to supervise its financial advisors. Our investigation relates to investments in UBS senior unsecured notes issued by affiliated banks that are designed to track the UBS V10 Currency Index.

About Klayman & Toskes, P.A.

Klayman & Toskes, P.A. is an experienced, qualified and nationally recognized securities litigation law firm, investigating UBS FINRA sales practice violations related to the sale of its proprietary UBS V10 Currency Index Linked Notes. Investors who have knowledge or experience related to the sales practices of UBS and its financial advisors’ recommended investments in UBS V10 Currency Index Linked Notes, contact Steven D. Toskes, Esq. at 888-997-9956.

 

The Securities Arbitration Law Firm of Klayman & Toskes, P.A. Announces Investigation into FINRA Sales Practices Violations Related to Credit Suisse X-Links and Velocity Shares ETNs

By | Alternative Investments, Broker Misconduct, Featured Investigations, FINRA Sales Practice Violations, MArket-Linked Notes, Oil & Gas Investments, Securities Arbitration, Securities Concentration, Structured Securities Products | No Comments

Boca Raton, Florida (BUSINESSWIRE) – October 13, 2015 – The Securities Arbitration Law Firm of Klayman & Toskes, P.A., www.nasd-law.com, announces an investigation into Financial Industry Regulatory Authority (FINRA) sales practice violations by major Wall Street brokerage firms, including Credit Suisse Securities USA (“Credit Suisse”), related to Credit Suisse X-Links and Velocity Shares Exchanged Traded Notes (ETNs). Credit Suisse X-Links and Velocity Shares ETNs are issued by affiliated banks, Credit Suisse A.G and Credit Suisse Group A.G., ADR (NYSE:CS). In some instance, Credit Suisse X-Links and Velocity Shares performance is linked to oil prices, energy-related master limited partnerships and commodity indexes. Credit Suisse manages its proprietary X-Links and Velocity Shares ETNs, commonly known as structured securities products, to generate greater returns through the use of embedded derivatives designed to track the performance of a volatile security, index, commodity or currency, many times without any principal protections.

FINRA sales practice rules require a fair and balanced representation to investors that Credit Suisse X-Links and Velocity Shares ETNs are more complex and risky than a simple “interest rate” credit when based on a volatile index or commodity. Credit Suisse underwrites, manages and markets billions of dollars in Credit Suisse X-Links and Velocity Shares ETNs including the following:

  • Credit Suisse S&P MLP ETN (NYSE Arca: MLPO)
  • Credit Suisse X-Links Commodity Benchmark ETN (NYSE Arca: CSCB)
  • Credit Suisse X-Links Commodity Rotation ETN (NYSE Arca: CSCR)
  • Credit Suisse X-Links Cushing MLP Infrastructure ETN (NYSE Arca: MLPN)
  • Credit Suisse Velocity Shares 3X Long Crude ETN (NYSE Arca: UWTI)
  • Credit Suisse Velocity Shares 3X Natural Gas ETN (NYSE Arca: VGAZ)

On August 24, 2015, the Securities Exchange Commission (SEC) issued a SEC National Exam Program – Risk Alert Report which reviewed sales practices violations of major Wall Street brokerage firms related to supervision and sales of Structured Securities Products, similar to Credit Suisse X-Links and Velocity Shares ETNs. According to the SEC examination, deficiencies were found in some brokerage firms’ supervisory and sales practices related to the determination of “suitability” and “levels of concentration” in customer accounts.

Our investigation of major Wall Street brokerage firms, including Credit Suisse relates to sales practices related to Credit Suisse X-Links and Velocity Shares ETNs. Brokerage firm violations of FINRA sales practice violations may include misrepresentations and omissions of material facts, conflicts of interest, unsuitable investment advice, securities concentration or the failure to supervise its financial advisors. Our investigation relates to investments in Credit Suisse X-Links and Velocity Shares ETNs designed to track the Price of Oil, MLP Pipeline Indexes, Commodities Baskets, and in some instances are leveraged up to 300%.

About Klayman & Toskes, P.A.

Klayman & Toskes, P.A., an experienced, qualified and nationally recognized securities litigation law firm, is currently investigating FINRA sales practice violations of major Wall Street brokerage firms related to the sale of Credit Suisse X-Links and Velocity Shares ETNs. Investors who have knowledge or experience related to the sales practices of brokerage firms and its financial advisors’ recommended investment in Credit Suisse X-Links and Velocity Shares ETNs, contact Steven D. Toskes, Esq. at 888-997-9956.

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