Investment fraud lawyers are investigating claims on behalf of A & O Resource Management investors. A & O Resource Management and other affiliated companies, such as A & O Life Settlements, were used in a fraud scheme that resulted in lengthy prison sentences for two of the principals involved in the fraud. Many investors suffered significant losses as a result of the scheme. Some losses have already been recovered for defrauded investors, but there are still many victims that could recover losses through securities arbitration.
According to securities arbitration lawyers, A & O marketed bonds that were sold as fixed-maturity investments. Furthermore, investors who purchased the bonds were guaranteed annual returns at a minimum of 10 or 12 percent. The scheme claimed the investments were safe and had been designed to grow retirement assets. However, the targets of the fraud, retired and older individuals, were not made aware of the risks associated with the bonds.
While direct claims against A & O cannot be made easily because the company is currently in receivership, investors who purchased the products through a broker may be able to hold that broker responsible if he or she did not adequately explain the investment’s risks. According to investment fraud lawyers, prior to recommending an investment to a client, brokers and firms are required to perform the necessary due diligence to establish whether or not the investment is suitable for the client given their age, investment objectives and risk tolerance. This investment was clearly unsuitable for many of the investors who received the recommendation to purchase the bond.
If you were unsuitably recommended the A & O bond, you may be able to recover your losses through securities arbitration. To find out more about your legal rights and options, contact a securities arbitration lawyer at The Law Office of Christopher J. Gray at (866) 966-9598 for a no-cost, confidential consultation.