Questionable investment advice.

[Edward Gordon]

my 88 year old father-in-law in florida has lost about $136,000. in investments recommended by a broker in fort pierce. i am wondering if it would be worthwhile to consult an attorney for the intention of instituting legal action against this broker, who has recommended high risk investments totally inappropriate, in my opinion for an elderly person.

these investments included 50,000 in "guaranteed" viatical contracts where the guarantor has defaulted and the rest in a contract guaranteed to pay 12% income when the going rate then was 7%. that company filed for bankruptcy.

there are more questionable investments in addition to these 2.

 

[ALawyer]

There are several excellent lawyers in Florida who go after those who are involved in insurance related fraud, and viaticals have been the subject of MAJOR FRAUDS.

There also is a "suitability" requirement in terms of broker recommendations under SEC and NASD rules. A securities broker, and his or her firm, who recommends unsuitable investments can be subject to disciplinary action and damages.

You'll likely want a lawyer to take this to an NASD or NYSE arbitration panel for resolution soon, given the age, as litigation can otherwise take years.

 

[Edward Gordon]

Thank you for the answer. I am returning to Florida in a few weeks and will try to get an appointment to discuss the matter with an attorney. If I knew who you were and you were in the same area, I would be seeing you about this.

 

[vrzirn]

contact [email protected] Gloria has an excellent website and the latest on legal action regarding viaticals.