Category Archives: Broker Misconduct

Arbitration hearing form on a desk with paperwork

Notice to Clients of Christopher Tolmacs and Triad Advisors: The Securities Arbitration Law Firm of Klayman & Toskes¸ P.A. has Commenced an Investigation into Potential Sales Practice Violations by Triad Advisors in Light of Recent Regulatory Action Alleging that its Broker Christopher Tolmacs Impermissibly Sold Promissory Notes to his Clients

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New York (Globe Newswire) – July 15, 2016 – The Securities Arbitration Law Firm of Klayman & Toskes¸ P.A. (“K&T”), www.nasd-law.com, has commenced an investigation into potential sales practice violations by Triad Advisors in light of recent regulatory action alleging that its Broker Christopher Tolmacs (“Tolmacs”) impermissibly sold promissory notes to his clients.

The Financial Industry Regulatory Authority (“FINRA”) recently filed a regulatory action against former Triad Advisors registered representative and Harbinger Asset Management, LLC investment advisor Tolmacs (FINRA No. 20160489663-01). The investigation concerned allegations that Tolmacs entered into lending arrangements through promissory notes with several of his customers.  Providing loans or selling promissory notes and other investments outside of a brokerage firm constitutes impermissible private securities transactions – a practice which is commonly referred to in the industry as “selling away.”

On March 10, 2016, Tolmacs was barred from the securities industry after he failed to fully cooperate with the abovementioned FINRA investigation.  Prior to being barred from the securities industry, Tolmacs was employed by Triad Advisors in Portage, Michigan and also managed a couple of his own businesses, including Harbinger Financial Group and Harbinger Asset Management.  According to securities attorney Lawrence L. Klayman, “Triad Advisors is responsible for adequately supervising its registered representatives.  When brokerage firms fail to adequately supervise their registered representatives, they may be liable for any resulting investment losses sustained by customers.”

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, 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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