| Filed in:
SEC, Brokage Firm Fraud, SEC, Brokage Firm Fraud |
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Posted: December 13, 2009 @ 8:22 am - Nicholas Guiliano |
The Guiliano Law Firm, P.C., a leading securities lawyer firm in Philadelphia, Pennsylvania announced today it is actively investigating and pursuing securities fraud claims against certain securities broker-dealers resulting from the risky or unsuitable recommendation of securities.
Investment trusts, labor unions, pension funds, local municipalities, school boards and charitable foundations, required by law in most states to only invest in prudent, and otherwise conservative fixed income securities and preferred shares, have collectively lost tens of billions in the securities of Wachovia, Fannie Mae, Freddie Mac, Bear Stearns, and Lehman Brothers.
Despite ample evidence of the deterioration of assets connected to the sub-prime market, and global credit crisis, contained in regulatory filings, rating reports, and the comments of independent analysts, as early as February 2007, Wall Street continued to recommend the purchase of these securities, and in pursuit of their own self interests continued to raise billions of dollars for these otherwise troubled financial institutions.
It was widely known and widely reported, certainly by December 2007, that the widespread dispersion of credit risk related to mortgage delinquencies and defaults was expected to have a very significant adverse impact on the performance of large banks, financial institutions, and the owners or originators of mortgage-backed securities.
Broker-dealers and their agents may have liability for the recommendation and sale of the securities of certain financial institutions based upon adverse information in the marketplace as early as spring of 2007.
The viability of these securities fraud claims depends upon, among other things, the timing of any such purchases, and to what extent any particular investment portfolio may have been over-concentrated in the securities, including the preferred securities, of issuers. |
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