BOCA RATON, Fla., Aug. 27, 2007 (PRIME NEWSWIRE) -- The Law Firm of Klayman & Toskes, P.A. ("K&T") (http://www.nasd-law.com) announced today that it has filed a lawsuit before The National Association of Securities Dealers ("NASD") n/k/a The Financial Industry Regulatory Authority ("FINRA"), Case No. 07-02225, against Brookstreet Securities Corporation ("Brookstreet"). The lawsuit, filed on behalf of two retirees in their late 70s, seeks damages of about $1,000,000. Specifically, the Statement of Claim alleges that Brookstreet, through its registered representative, Clifford Popper ("Popper"), purchased high risk, speculative Collateralized Mortgage Obligations ("CMOs") in the Claimants' retirement accounts. Many of these CMOs were purchased through the use of margin. Brookstreet and Popper represented to the Claimants that these CMOs were "safe investments," and that they were suitable for retired individuals. However, mortgage backed securities, including CMOs, can be one of the most complex, risky securities an investor can buy. As a result of Brookstreet and Popper's unsuitable investment advice, the Claimants' life savings has been decimated.
In a related matter, K&T continues to process claims on behalf of several investors of Bear Stearns' (NYSE:BSC) High-Grade Structured Credit Strategies and High-Grade Structured Credit Strategies Enhanced Leverage Funds ("the Bear Funds") which were concentrated in subprime CMOs and other types of mortgage backed securities. These claims primarily deal with allegations of misstatements and misrepresentation made by Bear Stearns with regard to level of subprime exposure in the Funds. Investors in the Bear Funds include high-net worth individuals, institutions and fund of funds.
K&T continues its representation of investors throughout the world in securities arbitration and litigation matters, against major Wall Street brokerage firms for securities violations including fraud, misuse of margin, failure to supervise, unsuitability, misrepresentation and omission of material fact. If you lost money by purchasing CMOs through Brookstreet, were an investor of the Bear Funds, or have information relevant to our securities arbitration and litigation claims, please contact Jahan K. Manasseh, Esquire of Klayman & Toskes, P.A., at 888-997-9956, or visit us on the web at http://www.nasd-law.com.