Claim Against Stifel Nicolaus Could Mean More Arbitration Claims for Cardiac Network Promissory Note Investors

by InvestorLawyers on June 18, 2012

in Arbitration,FINRA,Private Placements,Securities Fraud

In light of a recent claim against Stifel Nicolaus, securities arbitration lawyers say other investors may come forward to recover losses sustained as a result of their investment in a Cardiac Network Promissory Note. This month, a claim was filed against Stifel to recover losses suffered by an 89-year-old veteran of World War II who suffered losses as a result of his investment in the Cardiac Network Promissory Note.

Claim Against Stifel Nicolaus Could Mean More Arbitration Claims for Cardiac Network Promissory Note Investors

According to securities fraud attorneys, the note was allegedly sold to the claimant, by a representative of Stifel, without prior approval by Stifel. This action is known as “selling away.” Securities brokerage firms have a legal obligation to provide reasonable supervision of their financial advisors’ activities. If a firm fails to reasonably supervise their advisors, they can sometimes be held responsible for losses sustained by investors.

The claim’s allegations state that the claimant was approached by the Stifel advisor and he was presented with an opportunity to earn 10 percent on a six-month investment. The advisor allegedly recommended a $150,000 Promissory Note investment but did not provide a prospectus or any other offering materials and did not mention he would be investing in “Cardiac Network.” Instead, the adviser allegedly only represented the investment as a Stifel enterprise that was being offered to affluent clients of the firm. The claimant agreed to the investment in the note based on its purported affiliation with Stifel. However, securities arbitration lawyers say that when the note came due, the claimant received no principal payment and the note is now believed to be worthless.

If you invested in a Cardiac Network Promissory Note through Stifel or another firm and suffered significant losses as a result, you may be able to recover your losses through securities arbitration. To find out more about your legal rights and options, contact a securities fraud attorney at The Law Office of Christopher J. Gray at (866) 966-9598 for a no-cost, confidential consultation.

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