For the past few years, many of my clients have suffered losses in alternative investments. These investments, as the name suggests, are alternative to stocks, bonds or mutual funds. In my opinion, no one actually buys these investments — they are sold these investments. If the average investor or retiree knew what they were being pitched, they would not invest in these products. Alternative investments are often illiquid, expensive, and offer huge commissions and fees to the broker or financial advisor. Check out his video describing alternative investments.

As in many areas of our lives, prevention is the key to avoiding many pitfalls of modern society. The U.S. Securities and Exchange Commission website contains a lot of helpful information on avoiding investment fraud. Click on the link below for a nice summary on how to avoid scams.

Back in 2008 and 2009, stockbrokers and financial advisors were flooded with telephone calls from frightened and panicked customers. Most customers simply wanted to protect their assets and sit on the sidelines during the market upheaval. However, if history has proven anything, it has shown that Wall Street is skilled at spotting sales opportunities. Not surprisingly, during the dark days of 2008-2009, many Wall Street firms pitched “alternative investments” to the market adverse clients.

Recently, I was asked to review investment account statements for a number of individual investors who were surprised to learn their broker had unexpectedly left the brokerage firm. Or as they say in the business, the broker was “permitted to resign.”

After 20+ years of representing individual investors in Wall Street disputes, I have heard hundreds of defense arguments presented by Wall Street attorneys. Some of the arguments are presented in a reasoned, thoughtful and compelling manner supported by the facts and the law. Some other arguments, not so much.

Warren Buffet famously once said, “Only when the tide goes out do you discover who has been swimming naked.”  Mr. Buffet was explaining that rising tides (or markets) can mask a lot of unseemly and improper behavior.