Finding the Right Los Angeles Broker Cooperation Attorney

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Finding the Right Los Angeles Broker Cooperation Attorney

When an investment goes bad, the first place you may turn to right this wrong is with the broker who sold you the investment. Generally speaking, the majority of securities fraud litigation is the result of a broker who allegedly lied, failed to inform an investor of certain risks, or just outright stole investor funds.

Who is Really at Fault?

In some cases, however, brokers themselves have become the victim of their brokerage firm when the firm fails to properly explain a particular investment (including the risks) to their brokers, and then expect the brokers to sell the investment to investors. In other situations, the brokerage firm may fail to properly train their brokers, potentially resulting in the substantial loss of an investment.

Upon closer examination, it may turn out that your broker may be willing to cooperate if he or she was defrauded by the brokerage firm, and may be willing to assist you in pursuing a case against the firm to recover your investment losses.

Call a Los Angeles Broker Cooperation Attorney Today

If you suffered significant investment losses that may be the result of brokerage firm misconduct, or if you are a broker who was defrauded by the firm you work or worked for, you may have certain legal rights that require your immediate attention. Contact an experienced Los Angeles broker cooperation attorney today for a consultation to discuss your rights and obligations.

 

Investing in Structured Products

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Investing in Structured Products

A structured product, known by names such as equity-linked note, market-linked note, or principal protection note, is a prepackaged investment based on derivatives. They can present themselves in several forms including a single security, multiple securities, commodities, options, options on hedge funds, and more.

What are Structured Products?

According to the SEC, structured products are “securities whose cash flow characteristics depend upon one or more indices or that have embedded forwards or options or securities” where “payment obligations are contingent upon changes in the value of underlying assets, indices, interest rates or cash flows.”

What Do Structured Products Have to Offer?

Structured products offer an alternative to traditional investment products like stocks, bonds, and mutual funds. They typically are part of the asset allocation process to diversify a portfolio in an attempt to minimize risk. Some structured products offer a “principal guarantee,” which may provide some level of protection to the principal if held until maturity.

Call a Los Angeles Structured Products Lawyer Today

Similar to any investment, there are certain attendant risks. If you suffered significant investment losses after investing in structured products or if your stockbroker or brokerage firm failed to inform you or misrepresented these risks, you may have certain legal rights that require your immediate attention. Contact an experienced Los Angeles structured products lawyer today for a consultation to discuss your rights and obligations.

Fraud & Class Action Lawsuit Los Angeles

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Fraud & Class Action Lawsuit Los Angeles

A class action lawsuit is a type of lawsuit where one or several people file a lawsuit against a defendant for wrongdoing on behalf of an entire group of victims of the defendant’s misconduct. A class action lawsuit allows for the efficient litigation of a large-scale misconduct that affected hundreds, thousands, or even millions of victims in the same way.

The Benefits of a Class Action Suit

Class actions are popular because it allows all of the same claims for all class members to be resolved in a single proceeding, increasing efficiency and lowering the cost of litigation. Further, it can provide relief to the individual victims, who may not have the resources necessary to fight a large corporation on their own.

The Various Types of Class Action Lawsuit

There are many different types of class action lawsuits depending on the nature of the case. Some companies, whether intentionally or not, create, distribute or otherwise manufacture a defective product, or provide false or misleading information about the nature or safety of their goods on a widespread level. Other companies may find themselves on the wrong end of a class action for committing financial fraud on a large scale. A qualified Los Angeles attorney can help you determine if your case has merit for a potential class action filing.

Call a Los Angeles Class Action Lawyer Today

If you have been harmed because of a defective product, financial scam or other securities fraud, you may have certain legal rights that require your immediate attention. Contact an experienced Los Angeles class action attorney today for a consultation to discuss your rights and obligations.

Investing in Variable Annuities

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Investing in Variable Annuities

A variable annuity is a tax-deferred investment option aimed at helping those planning for retirement. It allows you to choose from a variety of investments, and once you retire, the annuity pays you an income determined by the performance of the investments you chose. The better your annuity performs, the more income you’ll receive as a payout during retirement. A fixed annuity, on the other hand, provides a guaranteed payout over time, without subjecting your retirement income to the volatility of the stock market.

What Distinguishes Variable from Fixed Annuity?

Unlike a fixed annuity, a variable annuity is designed to give you a chance to increase savings by giving you with opportunity for long-term growth by investing in anything various stock and bond funds. You do not get taxed on any gains until withdrawal, and because of the growth potential, variable annuities can outpace inflation when managed properly.

The Risk of Investing in Variable Annuities

Variable annuities also come with a certain amount of risk. For starters, if your investments fail to perform, the value of your annuity can decline – resulting in a lower payout to you. In addition, because you do not pay taxes on gains when earned, you do have to pay taxes when you withdraw them. If you withdraw early, you could face penalties around 10% if you are under 59 ½ years old; further, certain long-term capital gains are taxed at an ordinary income rate, which is higher than the capital gains rate. Finally, you are likely also going to have to pay annual management fees and sales commissions on your investment.

Call a Los Angeles Stock Attorney Today

If your broker failed to advise you of the risk of an investment or failed to disclose the penalties and fees for early withdrawal, you may have certain legal rights that require your immediate attention. Contact an experienced Los Angeles stock attorney today for a consultation to discuss your rights and obligations.

Exercising Your Rights to Employee Stock Options

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Exercising Your Rights to Employee Stock Options

An employee stock option is a contract between employer and employee allowing the employee to purchase a certain amount of company shares at a fixed price for a limited period of time. If managed properly, an employee stock option plan can be a lucrative component of an employee’s compensation, which is why stock option plans have long been a successful and popular tool to sign non-executive employees.

The Importance of Understanding Your Stock Options

Understanding how stock options work and their potential impact on your investment portfolio is critical to successfully exercising your rights under such a plan. Of course, employees should have the ability to exercise their rights according to the contract, but this is not always the case. Sometimes an employer can pressure an employee not to sell stock after exercising an option. If the stock loses its value, you could lose your investment because of the pressure you faced not to sell. Other times, relying on the advice of your broker in deciding how to properly protect or exercise your options can be problematic if your broker was negligent or ill equipped to provide proper advice.

Common Issues Relating to with Stock Options

The most common issues with stock options arise when:

  • Your employer urged you to trade through a particular firm that fails to perform its fiduciary duty to you, including advising you what to do with a concentrated stock position
  • The stockbroker is not properly trained to handle stock options
  • The brokerage firm handling the option was negligent

Call a Los Angeles Employee Stock Option Attorney Today

If you have lost money relating to your stock options due to the bad advice of others or because of pressure from your employer, you may have certain rights that require your immediate attention. Contact an experienced Los Angeles employee stock option attorney today for a consultation to discuss your rights and obligations.

Los Angeles Mutual Fund Investing

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Los Angeles Mutual Fund Investing

A mutual fund is a company that pools money from a group of investors and invests in different securities, such as stocks and bonds. The various securities that make up the mutual fund are known as “the portfolio,” and investors can buy shares in the overall portfolio.

The Advantages of Investing in a Mutual Fund

Mutual funds are popular among investors because they tend to be diversified, which lowers the risk of loss if one or more of the securities within the portfolio fail to perform as expected. Further, many mutual funds offer low minimum investments so that there is an affordable entry point for investors. Mutual funds also generally can be sold without any difficulty.

The Disadvantages of Investing in a Mutual Fund

Similar to any investment, all mutual funds carry varying levels of risk. Even if your fund is diversified to mitigate risk, you could lose some or all of your investment if the securities held in the fund drop in value. Market conditions can also play a factor, and just because a fund did well in the past does not guarantee its performance in the future. Furthermore, the more volatile the securities in mutual fund portfolio, the higher the investment risk is.

Call a Los Angeles Securities Fraud Attorney Today

Investing in mutual funds should always fit your risk tolerance. If you have been steered into investing in a mutual fund that does not fit your profile, or if your broker failed to disclose the risk of a particular mutual fund, you should contact a Los Angeles securities fraud attorney today for a consultation to discuss your legal rights.

Los Angeles False Claims Actions

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Los Angeles False Claims Actions

Businesses and other entities sometimes defraud state and federal governments by filing false claims in order to pocket money. These can include fraudulent Medicare claims, improper tax deductions, or excessive billing for goods and services sold or provided to the government. As an employee, you may have discovered sensitive information regarding your employer’s fraudulent activity, but are not sure what your rights or responsibilities are.

In California, the Attorney General is permitted to bring an action for damages and penalties against any person or business that knowingly makes a false statement to avoid paying money owed to the State or to obtain money from the State.

The California False Claims Act

The California False Claims Act’s qui tam provision permits a whistleblower to file a claim under seal to allow the Attorney General to investigate and decide how to intervene or prosecute. If the claim is successful, the whistleblower may be eligible to be paid a portion of the money that the government recovers from the wrongdoer.

Call a Los Angeles Whistleblower Attorney Today

The California False Claims Act is a complex statute. If you believe you have information relevant to your employer’s fraudulent activity or false claims, you should contact a Los Angeles whistleblower attorney today for a consultation to discuss your legal rights.

Common Types of Credit Derivatives

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A credit derivative is a financial instrument that transfers credit risk from an underlying entity or entities without transferring the underlying asset itself. The most common types of credit derivatives include:

  • Credit Default Swaps
  • Total Return Swaps
  • Credit Linked Notes

What is a Credit Default Swap?

A credit default swap can be comprised of several different forms, but the general notion is that two parties enter into an agreement where one party pays the other a regular, fixed payment, and the other party makes a payment if a specific credit event occurs, such a default or bankruptcy.

What is a Total Return Swap?

A total return swap is a method of transferring the market risk and credit risk of an underlying asset. This generally involves an agreement between two parties to swap recurring payments over a period of time.

What are Credit Linked Notes?

Credit linked notes, also known as credit default notes, is a fixed rate or floating rate note where the principal and/or coupon payments are tied to a credit or basket of credits. If there is no credit event, everything will be paid in full. If there is an event, the payment of the principal, and possibly the coupons, will be reduced.
Call a Los Angeles Stock Attorney Today

In addition to the above-mentioned credit derivatives, there are several more types available to investors. If you have been misled into investing in an unsuitable credit derivative, contact a Los Angeles stock attorney today for a consultation to discuss your legal rights.

Investing in Bonds

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Investing in Bonds

As an investor, you may have heard that bonds are a safe place to put your money, even if you aren’t entirely sure what a bond is. A bond is a form of debt, but you serve as the bank. You loan money to a company or a public entity, such as a city or the government, and the borrower promises to pay you back in full, plus interest. A city might sell a bond to raise money to fix roads, or the federal government might do the same to finance debts.

The Advantages of Investing in Bonds

Bonds are generally perceived as a safe source of steady income, as opposed to the fluctuating stock market. But not all bonds are created equally. Some are considered to be very safe, while others can be extremely risky. Depending on your risk tolerance as an investor, you may be more willing to invest in bonds depending on your age and goals.

The Disadvantages of Investing in Bonds

Bonds are not always a sure thing, and many come with greater risks. Higher-risk bonds usually come with higher interest payments to compensate you for the greater risk that you are taking. The risk of bonds often is based on the “creditworthiness” of the borrower, i.e., the bond issuer, which means the likelihood that the borrower will be able to make the interest payments to you and repay the principal that you have loaned to the borrower. This is why bonds with the highest risks are known as “high yield” or even “junk” bonds. On the other end of the investment spectrum are “investment-grade” bonds, known for their relative safety.
Call a Los Angeles Stock Attorney Today

If you have had a problem collecting payment on a bond or believe you have been deceived regarding the creditworthiness of a bond issuer, contact a Los Angeles bond and stock attorney today for a consultation to discuss your legal rights.

Tips for Avoiding Consumer Fraud

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Tips for Avoiding Consumer Fraud

Companies and scam artists commit all types of fraud on a daily basis to trick you into investing your money in improper investment products. Fraudsters contact potential investors by email, U.S. mail, the internet or telephone. They could be selling you a defective product, or failing to disclose certain important financial terms.

What To Do

Being able to identify these questionable practices can help you to avoid becoming a victim of consumer or investment fraud. The following are some tips to keep in mind:

  • Research the background of the person with whom you are dealing.
  • Be cautious about wiring money.
  • Check with another professional before investing.
  • Do not provide personal or financial information to someone you don’t know.
  • Do not agree to deposit a third-party’s check and then wire money back to the third party.

Businesses also engage in deceptive advertising and promotions that can fail to disclose certain fees. Even if everything else is truthful, failing to do so is still illegal.

Call a Los Angeles Fraud Lawyer Today

If you believe you have been the victim of consumer fraud, contact an experienced Los Angeles fraud lawyer today for a consultation to discuss your legal rights.