New York Securities Fraud Lawyers Blog

Malecki Law takes a proactive and informed approach to the financial news of today: actively engaging in fact-finding analysis on prospective cases from around the world. Our thorough knowledge of securities law’s history and fine points makes us ideal consultants for investors who have suffered losses due to misadvice from their broker or other financial counsel. Information on a selection of funds and companies currently under investigation by Malecki Law can be found below. Our pursuit of excellence is constant, but our opportunities to make lasting positive change to the securities industry begin and end with determined clients who seek justice.

Malecki Law is currently investigating the potential for recovery of losses from Citigroup’s FALCON and ASTA-MAT hedge funds, as sold by its broker-dealer Smith Barney in the years spanning from 2005 to 2008. It is alleged that Citigroup presented the funds as affordable options, with fair-to-little risk and low volatility.

If the group failed to disclose crucial information about dangerous aspects of the funds and potential for severe losses, a claim may be warranted. Both funds were increasingly and excessively invested in real estate, leading to both funds reporting upward of 80% losses in 2008. Investors’ legal claims against Citigroup have included but are not limited to Fraud, Failure to Supervise, Unsuitability, Misrepresentations & Omissions, Breach of Contract, and Breach of Fiduciary Duty.

Malecki Law takes a proactive and informed approach to the financial news of today: actively engaging in fact-finding analysis on prospective cases from around the world. Our thorough knowledge of securities law’s history and fine points makes us ideal consultants for investors who have suffered losses due to misadvice from their broker or other financial counsel. Information on a selection of funds and companies currently under investigation by Malecki Law can be found below. Our pursuit of excellence is constant, but our opportunities to make lasting positive change to the securities industry begin and end with determined clients who seek justice.

Malecki Law is currently investigating the potential for recovery of losses from 1861 Capital municipal bond arbitrage funds sold by brokerage firm UBS. 1861 Capital Management is an investment firm based in New York, NY. It has been alleged that 1861 Capital Discovery Domestic Fund, LP was marketed and sold by UBS and other broker dealers as a sound and secure addition to a portfolio of municipal bonds. It may be more accurate to say, however, that 1861 would be better described as a leveraged municipal arbitrage fund.

In marketing such funds to investors, it has been alleged that UBS and their peers sought investors who were not only wealthy, but also cautious: those avoiding risk, making slow-but-steady investments, who would be drawn to the tax free municipal bonds to which the leveraged fund was coupled.

Malecki Law takes a proactive and informed approach to the financial news of today: actively engaging in fact-finding analysis on prospective cases from around the world. Our thorough knowledge of securities law’s history and fine points makes us ideal consultants for investors who have suffered losses due to misadvice from their broker or other financial counsel. Information on a selection of funds and companies currently under investigation by Malecki Law can be found below. Our pursuit of excellence is constant, but our opportunities to make lasting positive change to the securities industry begin and end with determined clients who seek justice.

Malecki Law is currently investigating the potential for recovery of losses from reverse convertible securities. Reverse convertible notes can be defined as complex, short-term bonds. At the end of one year, the owner receives either a 100% return on their investment or a predetermined amount of stock should the value of the note drop by a set figure (typically 70-80%). Their high-interest rates (recently set at as much as 13%) make them an alluring prospect for quick and significant gains.

Such notes are widely discussed in the finance industry today, both because of their popularity ($6.76 billion worth of reverse convertibles were sold in the U.S. in 2010) and because of growing concerns that the industry is selling such notes to unsuitable investors, and failing to supervise investments properly once funds have been transferred. RCNs have thus received increased regulatory attention from FINRA and other regulators.

Malecki Law takes a proactive and informed approach to the financial news of today: actively engaging in fact-finding analysis on prospective cases from around the world. Our thorough knowledge of securities law’s history and fine points makes us ideal consultants for investors who have suffered losses due to misadvice from their broker or other financial counsel. Information on a selection of funds and companies currently under investigation by Malecki Law can be found below. Our pursuit of excellence is constant, but our opportunities to make lasting positive change to the securities industry begin and end with determined clients who seek justice.

Malecki Law is currently investigating the potential for recovery of losses in Desert Capital REIT, a Henderson, Nevada based real estate investor, and its co-owned brokerage firm CM Securities.

Desert Capital is a real estate investment trust (REIT) that is believed to have been financing short-term high interest mortgage loans. These types of loans and any dividends are believed to have been paid to investors through real estate transactions, and are today generally thought to be risky investments, with potential for high gains due to their interest rates, but with equal if not unwarranted potential for resolute failure, and a possible lack of accountability toward investors.

Malecki Law takes a proactive and informed approach to the financial news of today: actively engaging in fact-finding analysis on prospective cases from around the world. Our thorough knowledge of securities law’s history and fine points makes us ideal consultants for investors who have suffered losses due to misadvice from their broker or other financial counsel. Information on a selection of funds and companies currently under investigation by Malecki Law can be found below. Our pursuit of excellence is constant, but our opportunities to make lasting positive change to the securities industry begin and end with determined clients who seek justice.

Malecki Law is currently investigating preferred stock of Fannie Mae and Freddie Mac, as sold by an array of investment firms throughout 2007 and 2008, including but not limited to UBS, CitiGroup, Morgan Stanley, and Merrill Lynch.

Preferred stock can be defined as a hybrid of equity and debt instruments: it is prioritized over common stock when paying dividends and/or after liquidation. Preferred stock has been considered an appealing financing tool: selling such stock allows companies to defer dividends without affecting their credit or defaulting.

Malecki Law takes a proactive and informed approach to the financial news of today: actively engaging in fact-finding analysis on prospective cases from around the world. Our thorough knowledge of securities law’s history and fine points makes us ideal consultants for investors who have suffered losses due to misadvice from their broker or other financial counsel. Information on a selection of funds and companies currently under investigation by Malecki Law can be found below. Our pursuit of excellence is constant, but our opportunities to make lasting positive change to the securities industry begin and end with determined clients who seek justice.

Malecki Law is currently investigating allegations against Carr Miller Capital LLC, a New Jersey investment firm, accused in a lawsuit by the state Attorney General’s office of creating a Ponzi scheme that defrauded investors of over $40 million. Company CEO Carr Miller has since been banned from practicing within the securities industry by state legislators.

Companies who shared investments with Carr Miller have been named as defendants. Among those cited is energy company Indigo-Energy (“Indigo”), a group in which Carr Miller had previously invested. Indigo has been named in the lawsuit against Carr Miller because Carr Miller invested in the energy company, who was then deemed by the state to be unjustly enhanced by Carr Miller’s money, obtained through illegal actions taken by the firm.

Malecki Law takes a proactive and informed approach to the financial news of today: actively engaging in fact-finding analysis on prospective cases from around the world. Our thorough knowledge of securities law’s history and fine points makes us ideal consultants for investors who have suffered losses due to misadvice from their broker or other financial counsel. Information on a selection of funds and companies currently under investigation by Malecki Law can be found below. Our pursuit of excellence is constant, but our opportunities to make lasting positive change to the securities industry begin and end with determined clients who seek justice.

Malecki Law is investigating possible unsuitability claims against David Lerner Associates (DLA), a New York based real estate firm based in Syosset, NY. In May of 2011, FINRA regulators accused the brokerage entity of selling shares in illiquid real estate investment trusts, or REITs, to unsophisticated and elderly customers.

In addition, FINRA’s suit against the firm argues that DLA’s trusts were unsuitable for the consumer to whom the group was targeting. It is alleged that Lerner provided misleading information that failed to show that distributions far exceeded income and were financed by debt.

Malecki Law takes a proactive and informed approach to the financial news of today: actively engaging in fact-finding analysis on prospective cases from around the world. Our thorough knowledge of securities law’s history and fine points makes us ideal consultants for investors who have suffered losses due to misadvice from their broker or other financial counsel. Information on a selection of funds and companies currently under investigation by Malecki Law can be found below. Our pursuit of excellence is constant, but our opportunities to make lasting positive change to the securities industry begin and end with determined clients who seek justice.

Malecki Law is currently investigating Financial Industry Regulatory Authority (FINRA) brokerage firms who have advised customers to purchase a private placement called LaeRoc Income Funds, LP. LaeRoc is a real estate investment firm started in 1988, creating and owning property throughout the United States. Among those who sold the funds to investors are LPL Financial and Commonwealth Financial Network. We believe these investments were often marketed as modest, fixed income products.

The LaeRoc 2005-2006 Income Fund, LP is presumed to be at least $49 million in debt and presently aims to raise $12 million to $15 million, with lenders threatening foreclosure. The Fund currently owes $105 million dollars in total mortgage debt. Such an urgent pursuit of fast cash is a foreboding sign for investors. Malecki Law is researching a potential failure on the part of brokerage firms to properly disclose risk.