The Law Offices of Robert Wayne Pearce is currently investigating NFP Securities for recommending Warsowe Acquisition Corp. Debentures, which caused many of their clients to lose money. Andrew Rosenberg and Stuart Horowitz, former stockbrokers with NFP Securities, recommended Warsowe Acquisition to clients in 2007 along with other risky and illiquid investments such as the Hennessey Financial Monthly Income Fund (also known as Capital Solutions) and Inland American Real Estate Trust. Warsowe Acquisition began winding down operations as early as March 2008, which caused investors to lose a significant amount of principal in addition to the income they were promised but never received.
A debenture is type of debt instrument that is not secured by physical assets or collateral. Debentures are backed only by the general creditworthiness and reputation of the issuing entity. Both corporations and governments frequently issue this type of bond in order to secure capital. Bond buyers typically purchase debentures based on the belief that the bond issuer is unlikely to default on the repayment. An example of a government debenture would be any government-issued Treasury bond (T-bond) or Treasury bill (T-bill). Warsowe Acquisition is a Florida corporation that offered investments secured by collateral assignments and corresponding mortgages. NFP Securities marketed and sold the Warsowe Acquisition debentures as safe and secure investments because they were "asset-backed," when the mortgages sold through Warsowe were really subordinate to other mortgages, which made them higher risk investments.
Broker-dealers have a duty to perform due diligence on an investment before offering and selling it to their clients. This consists of examining whether a specific fund will meet an investor's investment horizon, risk tolerance and investment strategy. Financial advisors also have a duty take an individual investor's age, investment experience, and net worth into consideration before making a recommendation. If broker-dealers and financial advisors fail to carry out their duties, investors have the right to file arbitration claims to hold them liable and recover monetary losses.
Have you suffered losses resulting from an investment in Warsowe Acquisition Corp. Debentures? If so, call Robert Pearce at the Law Offices of Robert Wayne Pearce, P.A. for a free consultation. Mr. Pearce is actively investigating and accepting clients with valid claims against stockbrokers who misrepresented and sold the Warsowe Acquisition Corp. Debentures to investors.
The most important of investors' rights is the right to be informed! This Investors' Rights blog post is by the Law Offices of Robert Wayne Pearce, P.A., located in Boca Raton, Florida. For over 30 years, Attorney Pearce has tried, arbitrated, and mediated hundreds of disputes involving complex securities, commodities and investment law issues. The lawyers at our law firm are devoted to protecting investors' rights throughout the United States and internationally! Please visit our website, www.secatty.com, post a comment, call (800) 732-2889, or email Mr. Pearce at firstname.lastname@example.org for answers to any of your questions about this blog post and/or any related matter.