Law firm Zamansky is investigating alleged unsuitable sales of exchange-traded funds by financial advisors.
On 20 July 2013, Reuters reported that Morgan Stanley was fined USD100,000 by New Jersey state securities regulators for selling unsuitable leveraged ETFs and inverse ETFs to elderly customers who needed income.
According to stock fraud attorney Jake Zamansky (pictured), leveraged and inverse ETFs are very risky investments that are often described as speculative in their prospectuses. As a result, they are not suitable or appropriate for conservative or even moderate investors, he says. Any investor who did not want a high risk level and who lost money in one of these funds should have the investment reviewed for suitability, says Zamansky.
