Peiffer Wolf Abdullah Carr & Kane Opens Investigation Into The Brown Group
The law firm of Peiffer Wolf Abdullah Carr & Kane LLP has opened an investigation into The Brown Group, an investment advisory group whose principals were formerly affiliated with Merrill Lynch. Public records indicate that Stephen Brown and James Goetz were accused of advising clients to invest outside of Merrill Lynch into a private hedge fund. The Peiffer Wolf securities practice lawyers are encouraging The Brown Group’s clients to contact them to discuss their individual situations.
Advising clients to invest in a product outside of the brokerage firm like Brown and Goetz are accused of doing is a practice commonly referred to as “selling away.” Such activities typically result from a broker’s desire to earn unreported commissions and the brokerage firm’s failure to appropriately supervise the broker.
Here, the Peiffer Wolf Carr & Kane securities practice attorneys were surprised to learn that Merrill Lynch had fired brokers who were such big producers for it. The Brown Group managed approximately $2.5 billion in assets and catered to wealthy investors who have around $10 million or more in investable assets.
Although soliciting investments in an outside investment is certainly a practice worthy of termination, it is rare for a brokerage firm to terminate such profitable brokers. Such termination suggests that these were very serious violations. Brown Group investors are encouraged to contact the Peiffer Wolf attorneys to discuss about their investments.
The Peiffer Wolf securities attorneys have represented hundreds of investors victimized by stockbroker selling away activities. They take most cases of this type on a contingency fee basis and advance the case costs, and only get paid for their fees and costs out of money they recover for their clients.
Investors who believe they lost money as a result of investment fraud or misconduct may contact the securities lawyers of Peiffer Wolf, Jason Kane or Joe Peiffer, at 504-523-2434 or locally at 585-310-5140 (Jason Kane) for a free, no-obligation evaluation of their recovery options.