Securities Arbitration Law Firm Dimond Kaplan & Rothstein, P.A. Files FINRA Arbitration Claim against Newbridge Securities to Recover ETF Losses

MIAMI, Feb. 12, 2018 -- The securities arbitration law firm Dimond Kaplan & Rothstein, P.A. (DKR) (http://www.dkrpa.com) has filed a FINRA arbitration claim against Boca Raton, Florida-based Newbridge Securities Corporation on behalf of an Austin, Texas couple who lost a large portion of their life savings in risky exchange traded funds (ETFs). The timing of this case happens to coincide with recent stock-market volatility that caused significant losses in certain ETFs and exchange traded notes (ETNs), including the Proshares Short VIX Short-Term Futures (SVXY) and Credit Suisse VelocityShares Daily Inverse VIX ST ETN (XIV). 

Leveraged and Inverse ETFs Are Complex and Risky

DKR’s clients allege that Newbridge Securities broker Matt Neas recommended that they place nearly the entirety of their savings in unsuitably risky ETFs, including leveraged ETFs, short ETFs, and ETFs tied to the VIX (the S&P volatility index). Many ETFs are designed to be bought and held for only one trading session. When held for longer periods, the performance of the ETFs can deviate significantly from the performance of the ETFs’ benchmarks. Many investors do not understand this feature and many brokers either do not understand it or fail to properly inform investors about the nature of the ETFs.

Mr. Neas has been the subject of numerous prior customer complaints and recently was barred permanently from working in the securities industry after he failed to cooperate with a FINRA investigation into his business practices.

Many Brokerage Firms Prohibit Leveraged and Inverse ETF Sales

Securities regulators have issued reminders to brokerage firms of the daily nature of the ETFs and that leveraged and inverse ETFs are highly complex. Due to the complexity of these securities, many Wall Street brokerage firms prohibit solicited sales of leveraged and inverse ETFs to retail customers. Newbridge appears to have ignored regulators’ warnings. 

Contact Our Stockbroker Negligence Lawyers

If you lost money in leveraged or inverse ETFs, contact a Dimond Kaplan & Rothstein investment fraud and stockbroker negligence lawyer for a free case evaluation at (888) 578-6255 or [email protected]. You may have a valid FINRA arbitration claim to recover your ETF investment losses. You also can visit Dimond Kaplan & Rothstein, P.A. on the web at www.dkrpa.com.

Contact:
Jeffrey B. Kaplan, Esq.
[email protected]
2665 S. Bayshore Drive, PH-2B
Miami, Florida  33133
* Offices in Miami, Los Angeles, New York, West Palm Beach,
and Bloomfield Hills, Michigan
(888) 578-6255                                             
URL http://www.dkrpa.com