Stockbroker MisconductThe U.S. Securities and Exchange Commission has said that it is increasing its enforcement actions over the fraudulent sale of complex structured products to retail investors. The SEC stated that retail investors often lack the financial sophistication to understand the products and to detect fraud. The enforcement actions are coordinated by the SEC’s Complex Financial Instruments Unit, which investigates potential misconduct related to asset-backed securities, derivatives, and other complex financial products. This initiative appears consistent with the SEC’s current investigation into JP Morgan’s sales of in-house structured products.

The complex products that are the focus of the SEC’s efforts include derivatives, such as leveraged and inverse exchange-traded funds, equity-indexed annuities and principal-protected notes and other structured products that are linked to various assets or indexes. Part of the SEC’s efforts will include examining whether banks and brokerage firms are adequately disclosing the risks and nature of complex structured products.

If you believe you have been the victim of fraudulent sales, contactsecurities fraud lawyer at Dimond Kaplan & Rothstein for assistance. We have offices in Miami, West Palm Beach, Los Angeles and New York City.

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Miami Office
Grand Bay Plaza
2665 S. Bayshore Drive
Penthouse 2B
Miami, FL 33133
Telephone: 786.628.8236

Los Angeles Office
Available by Appointment
2029 Century Park East
Century Plaza Tower
Suite 400N
Los Angeles, CA 90067
Telephone: 424.544.7930

New York City Office
Available by Appointment
14 Wall St, 20th Floor
New York, NY 10005
Telephone: 917.382.5217

West Palm Beach Office
Northbridge Centre
515 N. Flagler Drive, Suite P-300
West Palm Beach, FL 33401
Telephone: 561.475.2887

Detroit Office
41000 Woodward Avenue,
Suite 350 East
Bloomfield Hills, Mi 48304
Telephone: 248.368.0182