The Law Firm of David R. Chase, P.A., www.davidchaselaw.com, headed by former Securities and Exchange Commission Prosecutor and Special Assistant United States Attorney, David R. Chase, announces that it is has filed an arbitration claim against Citigroup Global Markets, Inc. ("Citigroup") on behalf of a Trust created for the benefit of an elderly investor for losses sustained as a result of, among other claims, unsuitable investment recommendations. The claim was filed with the Financial Industry Regulatory Authority (FINRA) Department of Arbitration. The claim alleges that Citigroup's broker improperly over-concentrated the account in preferred securities of financial companies creating a dangerous exposure to equities in general, and to the financial sector in particular, thereby creating a high-risk portfolio that was inappropriate for an elderly investor given her income needs and moderate risk tolerance. When the market experienced substantial declines in 2008, particularly in the financial sector, the investor's portfolio declined substantially due to its over-exposure to the financial industry. The arbitration claim also alleges that the preferred securities were excessively traded in the account for the purpose of generating higher payouts for the broker through underwriter commissions paid in the initial public offerings of the preferred securities.
Investors who incurred investment losses due to over-concentration in preferred securities of financial stocks may contact the Law Firm of David R. Chase, P.A. to explore their legal options. The Firm's principal, David R. Chase, has sixteen (16) years of experience, is AV-Rated by Martindale-Hubbell (its highest rating), and previously served as Senior Counsel in the Enforcement Division of the Securities and Exchange Commission, and as a Special Assistant United States Attorney in the Economic Crimes Division of the United States Attorney's Office in the Southern District of Florida. More about the firm is available on its website at: www.davidchaselaw.com.
