The Financial Industry Regulatory Authority awarded the Everett Ross family trust 100 percent of its losses plus expert witness costs.
“Although Charles Schwab recommended the purchase of the Schwab YieldPlus Fund Select Shares and the Schwab YieldPlus Investor Shares as safe, conservative cash alternatives to investors, the evidence established that the YieldPlus funds were over concentrated in toxic mortgage-backed securities,” said the Ross’ attorney, Ryan K. Bakhtiari.
The brokers who sold the Schwab YieldPlus Fund are not targets of investor claims, attorneys said. A representative from Charles Schwab did not return a call seeking comment.
FINRA arbitration is a dispute resolution process administered by the Financial Industry Regulatory Authority (FINRA). It provides a forum for resolving monetary disputes between investors and securities firms or brokers without going to court. The process is generally faster and less formal than traditional litigation, and decisions are made by a panel of arbitrators who are knowledgeable in securities law and industry practices. Arbitration through FINRA is binding, meaning the decision is final and enforceable in court. This process is commonly used for disputes involving investment losses, unsuitable recommendations, or misrepresentation. Investors must agree to arbitration in their brokerage agreements, often as a condition of opening an account. While arbitration can be a more efficient way to resolve disputes, it also has limitations, such as limited appeal options and potentially high costs. Despite these challenges, FINRA arbitration remains a crucial mechanism for investor protection and dispute resolution in the securities industry.
Arbiter rules for San Diego investor, against Charles Schwab
San Diego News Network
The widow of a San Diego resident who lost trust fund money in a retirement fund advertised as being low-risk, but that invested in mortgage-backed securities, was awarded $157,498 today by an arbitration panel.
The Financial Industry Regulatory Authority awarded the Everett Ross family trust 100 percent of its losses plus expert witness costs.
“Although Charles Schwab recommended the purchase of the Schwab YieldPlus Fund Select Shares and the Schwab YieldPlus Investor Shares as safe, conservative cash alternatives to investors, the evidence established that the YieldPlus funds were over concentrated in toxic mortgage-backed securities,” said the Ross’ attorney, Ryan K. Bakhtiari.
The brokers who sold the Schwab YieldPlus Fund are not targets of investor claims, attorneys said. A representative from Charles Schwab did not return a call seeking comment.
FINRA arbitration is a dispute resolution process administered by the Financial Industry Regulatory Authority (FINRA). It provides a forum for resolving monetary disputes between investors and securities firms or brokers without going to court. The process is generally faster and less formal than traditional litigation, and decisions are made by a panel of arbitrators who are knowledgeable in securities law and industry practices. Arbitration through FINRA is binding, meaning the decision is final and enforceable in court. This process is commonly used for disputes involving investment losses, unsuitable recommendations, or misrepresentation. Investors must agree to arbitration in their brokerage agreements, often as a condition of opening an account. While arbitration can be a more efficient way to resolve disputes, it also has limitations, such as limited appeal options and potentially high costs. Despite these challenges, FINRA arbitration remains a crucial mechanism for investor protection and dispute resolution in the securities industry.
The Financial Industry Regulatory Authority awarded the Everett Ross family trust 100 percent of its losses plus expert witness costs.
“Although Charles Schwab recommended the purchase of the Schwab YieldPlus Fund Select Shares and the Schwab YieldPlus Investor Shares as safe, conservative cash alternatives to investors, the evidence established that the YieldPlus funds were over concentrated in toxic mortgage-backed securities,” said the Ross’ attorney, Ryan K. Bakhtiari.
The brokers who sold the Schwab YieldPlus Fund are not targets of investor claims, attorneys said. A representative from Charles Schwab did not return a call seeking comment.
FINRA arbitration is a dispute resolution process administered by the Financial Industry Regulatory Authority (FINRA). It provides a forum for resolving monetary disputes between investors and securities firms or brokers without going to court. The process is generally faster and less formal than traditional litigation, and decisions are made by a panel of arbitrators who are knowledgeable in securities law and industry practices. Arbitration through FINRA is binding, meaning the decision is final and enforceable in court. This process is commonly used for disputes involving investment losses, unsuitable recommendations, or misrepresentation. Investors must agree to arbitration in their brokerage agreements, often as a condition of opening an account. While arbitration can be a more efficient way to resolve disputes, it also has limitations, such as limited appeal options and potentially high costs. Despite these challenges, FINRA arbitration remains a crucial mechanism for investor protection and dispute resolution in the securities industry.