Published On: June 18, 2015

You can sue Wells Fargo Advisers for investment losses in Good Harbor Financial US Tactical Core and F Squared Investments AlphaSector Allocator Select. Wells Fargo invested clients into this fund, and the bank was sued in June of 2015 for violations of common law fraud, breach of fiduciary duty, negligence and negligent supervision. An arbitration claim has been filed in the Financial Industry Regulatory Authority (FINRA) forum. In an Order filed by the Securities and Exchange Commission (SEC) F Squared, beginning in September 2008, began receiving a signal indicating when to buy or sell an investment. These signals were based on an algorithm, which F Squared,and its President, Howard Present, used to create a portfolio model to track exchange‐traded funds (ETFs). They named the product “AlphaSector” and it quickly became the firm’s largest source of revenue.

Unfortunately, while marketing AlphaSector, the SEC alleged that F Squared falsely advertised the product. They based it on a seven year track record for investment strategy options, but in reality, the product did not even exist for those seven years. The data derived from it was through backtesting, which is the application of a quantitative model to historical market data to generate a hypothetical performance during a prior period. F Squared touted the product as “not backtested” in their marketing materials, which was clearly false. These false statements were made from September 2008 until September 2013.

Wells Fargo and its brokers, have a fiduciary duty to adequately disclose risks involved when recommending products to be sold to clients. They must performdue diligence on an investment to ensure that it is a sound investment and one that is suitable for the investor.  Often, retail clients portfolios were over-concetrated in F Squared related investments.   If they do not make suitable investments, they can be held responsible for investment losses in those products.

If you were recommended F Squared and AlphaSector investment opportunities please call our Chicago‐based securities law firm at 312‐332‐4200 to speak with an attorney or review the video below for more information. We can help you determine the best way to sue Wells Fargo for failing to do their due diligence on investment products, and for unsuitable investments. The call is free with no obligation.

 

Disclaimer

The posting on this site are mere OPINIONS and NOT statements of fact in any way whatsoever. The information should not be relied upon and there have been no findings made against the firms or individuals referenced on this site. In addition, this Blog is made available for educational purposes only and incorporates information from the web as well as to give you general information and a general understanding of the law, not to provide specific legal advice. By using this blog site you understand that there is no attorney client relationship between you and Stoltmann Law Offices (161 N Clark Street 16th Floor Chicago, IL 60601). The Blog opinions should not be used as a substitute for competent legal advice from a licensed professional attorney in your state.

PLEASE NOTE THIS IS ADVERTISING AND IT IS NOT A NEWSPAPER ARTICLE OR POST FROM AN INDEPENDENT OR NON-BIASED, NEWS SITE, NEWS SOURCE OR NEWSPAPER.

Chicago Investment Fraud Attorneys Offering Nationwide Representation to Investors

If you have suffered financial losses because of the negligence or fraud of your financial advisor or broker through unsuitable investment recommendations, over-concentration, churning, misrepresenting risks, conversion or selling away, you have legal rights and options to pursue recovery of those losses.

Stoltman Law Securities and Investment Fraud Attorneys