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D. Daxton White
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The White Law Group is a national securities fraud, securities arbitration, investor protection and securities regulatory/compliance law firm with offices in Chicago, Illinois and Boca Raton, Florida. We pride ourselves on providing quality legal services to our clients and handle securities... More
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The White Law Group
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The White Law Group's Securities Fraud Blog
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  • Recovery Of Inverse ETF Losses

    Have you suffered losses in an inverse ETF? To the extent that you purchased the investment at the recommendation of a financial advisor, the securities attorneys of The White Law Group may be able to help you recover your losses through a FINRA arbitration claim.

    An inverse ETF is an exchange-traded fund (ETF) that is constructed by using various derivatives for the purpose of profiting from a decline in the value of an underlying benchmark. Investing in these ETFs is similar to holding various short positions, or using a combination of advanced investment strategies to profit from falling prices. They are also known as a "Short ETFs," or "Bear ETFs."

    Unfortunately, many investors confuse these investments with traditional ETFs that simply attempt to track a particular index - thereby believing that the investments are relatively safe. More troubling is that some financial advisors either do not know the difference or fail to explain the difference between traditional ETFs and inverse ETFs (particularly with respect to how the investments react to market movements and the increased risk of the derivatives trading necessary to profit from a decline in the underlying benchmark of the inverse ETF).

    If a financial advisor fails to adequately explain the risks of an investment or recommends an investment unsuitably, that advisor (or his/her broker-dealer) may be held responsible for any investment losses.

    With the recent bull market, many inverse ETFs have suffered enormous losses, including but not limited to:

    KOLD - ProShares UltraShort DJ-UBS Natural Gas

    DUST - Direxion Daily Gold Miners Bear 3X Shrs

    *BIS - ProShares UltraShort Nasdaq Biotech

    *SOXS - Direxion Daily Semicondct Bear 3X Shares

    DRV - Direxion Daily Real Estate Bear 3X Shrs

    *FINZ - ProShares UltraPro Short Financials

    *RXD - ProShares UltraShort Health Care

    SRS - ProShares UltraShort Real Estate

    *TZA - Direxion Daily Small Cap Bear 3X Shares

    SSG - ProShares UltraShort Semiconductors

    *SRTY - ProShares UltraPro Short Russell2000

    SDP - ProShares UltraShort Utilities

    *BXDB - Barclays Short B Lvgd Inv S&P 500 TR ETN

    *MIDZ - Direxion Daily Mid Cap Bear 3X Shares

    *SMDD - ProShares UltraPro Short MidCap400

    *SQQQ - ProShares UltraPro Short QQQ

    SJL - ProShares UltraShort Russell MidCap Val

    SKK - ProShares UltraShort Russell2000 Growth

    SDK - ProShares UltraShort Russell MCap Growth

    The White Law Group continues to investigate the liability that brokerage firm's may have for improperly selling such investments. For information on the firm's investigation, visit http://www.whitesecuritieslaw.com/2012/05/07/recovery-of-inverse-etf-and-etn-investment-losses/.

    If you suffered losses in an inverse ETF recommended to you by your financial advisor, please call the securities attorneys of The White Law group at 312/238-9650 for a free consultation.

    The White Law Group is a national securities fraud, securities arbitration, and investor protection law firm with offices in Chicago, Illinois and Boca Raton, Florida.

    For more information on The White Law Group, visit www.whitesecuritieslaw.com.

    Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

    Mar 25 10:12 AM | Link | Comment!
  • Puerto Rico Bonds Considered Junk By S&P

    According to Reuters, Puerto Rico general-obligation bonds have been downgraded to junk-bond status by one of three major bond rating companies, Standard & Poor (S&P). Previously rated BBB-, S&P dropped the rating to BB+ which indicates the bonds are no longer considered investment grade.

    Not only is this troubling news for the US territory, but also for many bond investors. According to Morningstar, approximately 70% of US municipal mutual funds own Puerto Rico municipal securities. Many investors who purchased Puerto Rico bonds through UBS have also been hit hard as a result of heavily concentrated portfolios in Puerto Rico debt securities.

    The White Law Group continues to investigate claims on behalf of investors who suffered losses investing in Puerto Rico debt. Those claims have focused on the liability that brokerage firms may have for recommending such investments.

    Financial advisers and brokers have a fiduciary duty to make investment recommendations that are in the best interest of their clients and must take into consideration a client's risk tolerance, financial objectives, investment experience, age, and net worth in order to make appropriate investment recommendations. If a brokerage firm recommends an unsuitable investment, misleads a client regarding risks, or over concentrates their portfolio, they may be liable and investment losses may be recovered through a FINRA dispute resolution claim.

    If you are concerned about your investment in a Puerto Rico municipal bond or a fund that invested in Puerto Rico municipal debt and would like to speak to a securities attorney about whether you have a potential FINRA dispute resolution claim, please call The White Law Group's Boca Raton, Florida office at 561-807-6804 for a free consultation.

    To read more on the downfall of the UBS Puerto Rico bonds and visit our earlier posts, click here.

    The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm with offices in Chicago, Illinois and Boca Raton, Florida.

    For more information on The White Law Group, please visit our website at WhiteSecuritiesLaw.com.

    Feb 05 2:32 PM | Link | Comment!
  • Plano, Texas Financial Advisor, John Towers, Suspended By FINRA

    FINRA recently announced that John Towers, a financial advisor formerly working in VSR Financial's Plano, Texas office from June 2002 until December 2013, has been suspended from the securities industry for allegedly recommending that a married couple invest in high-risk private placements and real estate investment trusts.

    The White Law Group recently filed a case on behalf of two Texas residents that appears to be similar to the one described in the FINRA notice. That case was filed with FINRA dispute resolution against VSR Financial Services, Mr. Tower's employer during the relevant time period, and seeks alleged losses between $500,000 and $1,000,000.

    In the claim, The White Law Group has alleged that VSR Financial and Mr. Towers unsuitably invested the clients in the following investments (among others):

    Alliance Petroleum Corp 2006 A
    Behringer Harvard Opportunity REIT I, Inc.
    Black Diamond Energy Partners 2006-A, Ltd
    Bradford Drilling Associates 21, LP
    CNL Arlington Leawood, Ltd.
    Cole Senior Notes IV 8.25%
    Cypress Equipment Fund 15
    Cypress Equipment Fund X
    Cypress Equipment Fund XI
    Cypress Equipment Fund XII
    DBSI 2006 Land Opportunity Fund, LLC - Preferred
    Florida Capital Real Estate Partners 25, Ltd
    Florida Capital Real Estate Partners 26, Ltd
    MacKenzie Patterson Flagship Fund 11, LLC
    NetREIT Common

    Odyssey Operating Partnership II, Ltd
    Reef SWD 2007 - A LP
    Ridgewood Energy Q Fund
    Ridgewood Energy R Fund
    Ridgewood Energy S Fund
    Ridgewood Energy T Fund
    Waveland Drilling Partners 2005-B
    Waveland Drilling Partners 2006-A
    Waveland Drilling Partners 2006-B, L.P.
    Waveland Drilling Partners 2007-A, L.P.
    Waveland North Paradigm III - B Partners
    Waveland Vanguard Partners, LLC

    Not only does the claim filed by The White Law Group appear similar to the one described by FINRA in its sanction of Mr. Towers, but, according to his FINRA Broker Report, it appears that Mr. Towers has been the subject of a number of customer complaints involving similar problems.

    For more information on the lawsuit filed by The White Law Group, please call the firm's Chicago office at 312/238-9650.

    The White Law Group is a national securities fraud, securities arbitration, and investor protection law firm with offices in Chicago, Illinois and Boca Raton, Florida.

    For more information on The White Law Group and its representation of investors in FINRA arbitration claims, visit http://www.whitesecuritieslaw.com.

    Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

    Jan 16 2:48 PM | Link | Comment!
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