Bernoulli High Grade CDO-II Investors Could Recover Losses Through Securities Arbitration

by InvestorLawyers on February 22, 2012

in Arbitration,CMOsCDOs,FINRA,Merrill Lynch

Merrill Lynch customers who purchased Bernoulli High Grade Collateralized Debt Obligations could recover their losses through securities arbitration. Bernoulli High Grade CDO-II was sold to institutional and high-net-worth customers of Merrill Lynch. The Bernoulli High Grade CDO-II was underwritten by Merrill Lynch in 2007. However, all 30 of the CDOs underwritten by Merrill Lynch in 2007 were either in technical default, had their best-rated portion cut to junk, were in danger of being liquidated or were in the process of being liquidated by the summer of 2008. Stock fraud lawyers are now investigating how Bernoulli High Grade CDO-II was marketed and sold by Merrill Lynch.

Bernoulli High Grade CDO-II Investors Could Recover Losses Through Securities Arbitration

Securities that are backed by underlying pools of loans or bonds are CDOs, or collateralized debt obligations. While these investments are inherently risky, they are relatively common among “qualified investors.” Currently, stock fraud lawyers are also investigating if Merrill Lynch properly disclosed the CDO risks to investors in the sale of Bernoulli High Grade CDO-II. Furthermore, the value of Bernoulli High Grade CDO-II may have been inflated and overstated by Merrill Lynch. Many investment attorneys believe that Merrill Lynch either knew or should have known the 2007 CDO deals were bad in the existing mortgage market conditions, given the poor performance of the CDOs.

On January 31, 2012, a Financial Industry Regulatory Authority Arbitration Panel awarded $1.38 million to Bobby Hayes, an investor who purchased Collateralized Debt Obligations from Merrill Lynch in 2007. For more on this case, see the previous blog post, “After Securities Arbitration, Merrill Lynch Must Pay $1.4 Million to Investor Over CDO Loss.”

Numerous securities arbitrations have already been filed on behalf of CDO investors who suffered significant losses. If you believe you have a valid claim, find out more about your legal rights and options by contacting an investment attorney at The Law Office of Christopher J. Gray at (866) 966-9598 for a no-cost, confidential consultation.

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Lexington Capital CDO Investors Could Recover Losses Through Securities Arbitration

by InvestorLawyers on February 20, 2012

in CMOsCDOs,FINRA,Merrill Lynch

Merrill Lynch customers who purchased Lexington Capital Funding III Collateralized Debt Obligations could potentially recover their losses through securities arbitration. Lexington Capital was sold to institutional and high-net-worth customers of Merrill Lynch. The Lexington Capital CDO was underwritten by Merrill Lynch in 2007. However, all 30 of the CDOs underwritten by Merrill Lynch in 2007 were either in technical default, had its best-rated portion cut to junk, was in danger of being liquidated or was in the process of being liquidated by the summer of 2008. Stock fraud lawyers are now investigating how Lexington Capital was marketed and sold by Merrill Lynch.

Lexington Capital CDO Investors Could Recover Losses Through Securities Arbitration

Securities that are backed by underlying pools of loans or bonds are called CDOs, or collateralized debt obligations. While these investments are inherently risky, they are relatively common among “qualified investors.” Currently, stock fraud lawyers are also investigating if Merrill Lynch properly disclosed the CDO risks to investors in the sale of Lexington Capital. Furthermore, the value of Lexington Capital may have been inflated and over-stated by Merrill Lynch. Many investment attorneys believe that Merrill Lynch either knew or should have known the 2007 CDO deals were bad in the existing mortgage market conditions, given the poor performance of the CDOs.

On January 31, 2012, a Financial Industry Regulatory Authority Arbitration Panel awarded $1.38 million to Bobby Hayes, an investor who purchased Collateralized Debt Obligations from Merrill Lynch in 2007. For more on this case, see the previous blog post, “After Securities Arbitration, Merrill Lynch Must Pay $1.4 Million to Investor Over CDO Loss.”

Numerous securities arbitrations have already been filed on behalf of CDO investors who suffered significant losses. If you believe you have a valid claim, find out more about your legal rights and options by contacting an investment attorney at The Law Office of Christopher J. Gray at (866) 966-9598 for a no-cost, confidential consultation.

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Securities Arbitration May Be Better Path for UBS Lehman Brothers Investors

February 17, 2012

Investment attorneys continue to seek investors who suffered significant losses in Lehman Brothers 100 Percent Principal Protection Notes and who wish to pursue securities arbitration claims in order to recover losses. Lehman Brothers 100 Percent Principal Protection Notes, also known as Principal Protected Notes, were issued by UBS Financial Services and have resulted in significant [...]

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Did You Purchase Lyon Capital CLO with Banc of America? You May Have a Securities Arbitration Claim

February 16, 2012

Investment attorneys are seeking Banc of America Securities customers who purchased Lyon Capital Management VII Collateralized Loan Obligations. Banc of America sold Lyon Capital to its institutional and high-net-worth customers. The CLOs were issued in July 2007. However, at this time, the value of investment, which was created by pooling loans together, was already declining. [...]

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Charles Schwab Charged with Violating FINRA Rules in Customer Agreements

February 15, 2012

On February 1, 2012, the Financial Industry Regulatory Authority (FINRA) announced that it had filed a complaint against Charles Schwab & Company. FINRA charged the firm with violating FINRA rules when it required the waiving of rights of customers to bring class actions against the firm. It is the belief of many investment attorneys, investors [...]

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Broker Misconduct: Illegal Transfer of Funds Through Email Hacks

February 13, 2012

On January 27, 2012, the Financial Industry Regulatory Authority (FINRA) issued an Investor Alert warning investors of fraudsters compromising investor email accounts to send trading instructions as a way to commit fraud. According to FINRA, fraudsters will use the email account to gain access to information that they can then use to request wire transfers [...]

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Have You Been a Victim of Cold-call Stock Broker Fraud?

February 10, 2012

Stock broker fraud lawyers are on the lookout for investors who have been the victim of cold-calling fraud. Even though the number of sales calls has been reduced by the National Do Not Call Registry, securities firms still commonly use cold-calling as a tool for generating investments. Because not all cold-calls indicate fraud, cold-call scams [...]

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Watch List Issued by FINRA

February 9, 2012

On January 31, 2012, the Financial Industry Regulatory Authority (FINRA) posted a letter on its website outlining its 2012 priorities for regulation and examination. According to the letter, “FINRA is informing its examination priorities against the economic environment that investors have faced since 2008, as these circumstances have steadily contributed to conditions that foster an [...]

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After Securities Arbitration, Merrill Lynch Must Pay $1.4 Million to Investor

February 8, 2012

Bobby Hayes, a Nevada retiree and wealthy investor, has been awarded $1.4 million in damages in securities arbitration against Merrill Lynch. According to Hayes’ allegations, Bank of America Corp.’s Merrill Lynch sold him collateralized debt obligations which were worthless at the time he purchased them. The case was filed in 2011, and Hayes’ allegations included [...]

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Clients of Bradford Blazar, RIM Securities May Have Valid Securities Arbitration Claim

February 6, 2012

Investors who were customers of Bradford H. Blazar and RIM Securities who have suffered significant investment losses should contact an investment attorney immediately concerning the recovery of their losses. RIM Securities and Blazar are currently being investigated and customers may have potential claims that could lead to loss recovery through securities arbitration. Allegations made against [...]

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