Boca Raton, Florida (Businesswire) – March 21, 2016 – The Securities Arbitration Law Firm of Klayman & Toskes, P.A. (“K&T”), www.nasd-law.com, announces an investigation into Financial Industry Regulatory (FINRA) sales practice violations of full-service brokerage firms related to the handling of client brokerage accounts with concentrated positions in energy company stocks collateralized by margin loans. According to K&T, the investigation encompasses investors who acquired energy company stocks through personal investment, inheritance or as a company employee.
Recent economic and political changes in the global oil markets have resulted in historic declines in the price of oil and losses for energy investors. According to securities attorney, Steven D. Toskes, Esq., “Brokerage firms may have recommended clients establish margin loans to avoid taxation and generate income utilizing their concentrated energy stock positions as collateral.” Mr. Toskes asserts, “Financial advisors may have failed to explain the risks associated with securities concentration and margin loans. Mr. Toskes explains, “Financial advisor recommendations which result in unsuitable investment advice, margin call risks and/or a failure to recommend risk management strategies for unprotected concentrated stock positions are causes of action that may be available to investors in an individual securities arbitration claim filed with FINRA.”
Our investigation includes sales practices violations related to the handling of concentrated positions in energy stocks, including the following:
- Linn Energy (NASDAQ:LINE);
- Swift Energy (PNK:SFYWQ);
- Southwestern Energy (NYSE:SWN);
- Consol Energy (NYSE:CNX);
- Kinder Morgan (NYSE:KMI);
- Range Resources (NYSE:RRC);
- ONEOK (NYSE:OKE);
- Murphy Oil (NYSE:MUR):
- Marathon Oil (NYSE:MRO):
- Devon Energy (NYSE:DVN):
- Ensco (NYSE:ESV);
- Williams Companies (NYSE:WMB); and
- National Oilwell Varco (NYSE:NOV).
Brokerage firm violations of FINRA sales practice rules may include misrepresentations and omissions of material facts, conflicts of interest, unsuitable investment advice, securities concentration, failure to implement risk management strategies or failure to supervise its financial advisors. Our investigation relates to concentrated investments in energy company stocks through personal investment, inheritance or as a company employee.
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, 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. Investors, with losses in excess of $250,000 in energy company stocks, or who have knowledge of full-service brokerage firm sales practices can contact us, or call Steven D. Toskes, Esq. at 888-997-9956.