New York, NY (Law Firm Newswire) June 15, 2014 - Zamansky LLC has filed a FINRA arbitration on behalf of an elderly investor against Oppenheimer & Co. Inc. (“Oppenheimer”) who claims that her accounts were churned by her financial advisor. The case is FINRA TN 1400862.
The Statement of Claim in the arbitration alleges that the claimant, who is an 85 year-old investor, had her and her late husband’s accounts churned and excessively traded by their financial advisor at Oppenheimer. Although they needed to preserve their money, the Statement of Claim alleges that the Oppenheimer financial advisor concentrated their accounts in risky stocks which were unsuitable investments with no diversification, and that he traded these stocks to generate commissions. The Statement of Claim alleges that he recommended an unsuitable “Alpha” managed account to the investors, which was a subterfuge for the financial advisor’s excessive trading. As a result, the investor seeks to recover losses of $700,000.
According to securities attorney, Jacob Zamansky, churning is the excessive trading of an account by a financial advisor to charge higher fees and commissions. Excessive trading is not appropriate or suitable for any elderly or retired investor, or any investor with conservative or moderate objectives, Zamansky states. The attempt to earn a quick profit for a short-term price rise or fall of a stock is the definition of speculation, Zamansky states, not investing.
What Investors Can Do
If you believe that you have suffered losses from excessive trading, and would like to have your brokerage accounts reviewed or discuss your legal rights, you may, without obligation or cost to you, email jake(at)zamansky(dot)com or call the law firm at (212) 742-1414.
About Zamansky LLC
Zamansky LLC is one of the leading law firms specializing in securities fraud, FINRA arbitration and class action litigation. Our FINRA attorneys represent both individual and institutional investors. Our practice is nationally recognized for our ability to aggressively prosecute cases and recover losses.
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