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Former FINRA Arbitration Counsel Now Representing Individual Investors

By Karen Tucci

After sitting on the sidelines, watching all of the action take place before my eyes, I decided to jump in head-first. After working five years at the New York Stock Exchange Arbitration Division (now 'FINRA') I decided it was time to help individuals who have lost money due to a broker's or firm's misconduct. I recently joined Napoli Bern Ripka, LLP, where I represent individual investors who have brought claims against, among many others, Edward Jones, Citigroup, RBC Dain Rauscher, Inc., and Morgan Stanley. The cases range in causes of action for a broker's negligence in handling the account, unsuitable trades, breach of fiduciary duties, and misrepresentations of the investments.

Specifically, in February, I filed a million dollar claim against Merrill Lynch Pierce Fenner & Smith ('Merrill Lynch'). Merrill Lynch's broker decided my clients, a couple in their fifties, should be invested in a portfolio of undiversified preferred stocks. Wow! What a way to protect them with some diversification, especially when the couple asked for a preservation of capital and minimal investments in stocks.

Thereafter, I amended a Statement of Claim filed at the National Futures Association ('NFA') to name individual employees responsible for scamming my client out of $50,000. West Point, a company based in Kew Gardens, Queens, disappeared with my client's $50,000. West Point together with Bacera Corporation, a California company, excessively traded my client's money, all the while earning steep commissions. Bacera Corporation withdrew from the claim just moments before the hearing in order to escape liability. I have discovered Bacera's new corporate entity and have named them as a party to the action as well.

Friends and colleagues often ask me if I can help them recover monetary losses. On behalf of a colleague, I recently sent a letter to a Morgan Stanley financial advisor who placed my clients in Real Estate Investment Trusts ('REITs'). I know – what are those? My clients did not know what REITs were either. After investing over $200,000 of my clients' money in the complex REITS, she advised them that their REITs would increase in value. From the initial investment and for the past two years the REITs have been hammered like the real estate market. All the while, their advisor was telling them to hold the position and to not sell. Talk about a great investment for unsophisticated, conservative investors, with no investment experience. She 'advised' them to lose over $100,000 in a 'safe' investment. I plan on settling this matter before filing an arbitration claim.

I know, I know - you are tired of hearing about all of the money lost in this economic recession. However, I advise you to take a look at your own portfolio. Are you sure your account is suitable for you? When was the last time you spoke with your financial advisor? Do you even know his/her name?

Now is the time to be proactive. Even though it can be scary, now is the time to take action if you have been the victim of broker misconduct. If you are having trouble understanding why you have lost money, we at Napoli Bern Ripka, LLP can help you. We dedicate our securities law practice to assisting individual investors in recapturing lost money due to the negligence of financial advisors and brokerage firms.

If you think you have recently lost money due to a broker's negligence or a firm's misrepresentations, call me, Karen Tucci, at 212-267-3700.

Originally posted at InjuryBoard by Karen Tucci

Full post as published by New York City Personal Injury Lawyer on March 11, 2009 (boomark / email).