Stoltmann Law Offices Announces the Filing of a FINRA Arbitration Claim Against Wells Fargo Advisers for Sales of F Squared Investment


CHICAGO, June 17, 2015 (GLOBE NEWSWIRE) -- The securities arbitration law firm of Stoltmann Law Offices announced today a FINRA arbitration claim has been filed against Wells Fargo Advisors for sales practices related to F-Squared Investments. This action comes on the heels of an SEC Enforcement action last year against F-Squared Investments. The firm agreed to pay $35 million and admit wrongdoing to settle charges that it defrauded investors through false performance advertising about its flagship product.

According to Chicago securities law attorney Andrew Stoltmann, the SEC's order settled claims against Massachusetts-based F-Squared, which is the largest marketer of index products using exchange-traded funds (ETFs). The firm began receiving signals from a third-party data provider in September 2008 indicating when to buy or sell an investment. The signals were based on an algorithm, and F-Squared used the signals to create a model portfolio of sector ETFs that could be rebalanced periodically as the signals changed. They named the new product "AlphaSector" and launched the first index a month later. The SEC alleges that while marketing AlphaSector into the largest active ETF strategy in the market, F-Squared falsely advertised a successful seven-year track record for the investment strategy based on the actual performance of real investments for real clients.  In reality, the algorithm was not even in existence during the seven years of purported performance success. 

According to Chicago securities attorney Andrew Stoltmann, "Brokerage firms like Wells Fargo Advisors are required to perform due diligence on investments prior to selling them to the public. Unfortunately, often the promises of fees and commissions lead advisers to sell funds, regardless of their quality. We believe there are many investors who were sold F Squared related investments who may have actionable claims against Wells Fargo for issues related to the due diligence performed by the firm on the Funds or suitability based concentration claims."

If you wish to discuss this announcement or securities fraud claims through the FINRA arbitration process or a class action lawsuit against Wells Fargo Advisers for the peddling of F Squared Investments, including the F Squared AlphaSector Allocator Select, or the Good Harbor Financials U.S. Tactical Core product, please call Stoltmann Law Offices at 312.332.4200 or visit www.InvestmentFraud.PRO


            

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