Levin Law, P.A. (“Levin Law”) is continuing its investigation into brokerage firms and their representatives who offered, recommended, or sold investment in a Collateral Yield Enhancement Strategy (“CYES”). Levin Law has been retained by multiple CYES investors who believe they have suffered losses from investment in the CYES program.
Levin Law recently filed an arbitration claim against Merrill Lynch for CYES losses. The investor alleged that the investment recommendation into a Collateral Yield Enhancement Strategy was unsuitable. Additionally, the investor alleged that misrepresentations were made when recommending the high-risk strategy. Damages in the amount of $600,000 have been requested.
According to publicly available information, the financial advisor who recommended the product, Patrick Dwyer, is a previously registered broker employed with Merrill Lynch, Pierce, Fenner & Smith Incorporated from 1993 through 2019. On August 21, 2019, he voluntarily resigned. Allegations at the time included that he engaged in activities “inconsistent with Firm standards and policies governing conduct.” He currently has two customer disputes pending against him.
CYES is a complex and risky overlay strategy that may be unsuitable for most investors. Similar to Yield Enhancement Strategies (YES), investors in the CYES program can suffer steep losses during market volatility. Many investors have alleged that the CYES program was represented as a conservative investment or “low-risk strategy” despite carrying a substantial risk of investment loss.
Investment in the CYES program may be speculative, carrying a high degree of risk. The fund performance may be volatile. Brokerage firms and their registered representatives have an obligation to fully disclose all risks and material information about any investment strategy to a client.
Additionally, they must do their due diligence to ensure that investment recommendations are suitable for the customer. Suitability may depend on the customer’s age, portfolio diversity, financial situation, investment experience, and risk tolerance.
Levin Law will be continuing to investigate and file claims on behalf of investors who have suffered losses after being recommended or sold high-risk investment strategies such as the CYES program.
If you invested in a Collateral Yield Enhancement Strategy (CYES) and suffered financial losses, please contact managing attorney and Levin Law founder, Brian Levin. Call (305) 402-9050 or email Attorney Levin directly at email@example.com. You may also visit Levin Law’s website, www.levinlawpa.com, for more information.
Levin Law accepts most cases on a contingency fee basis, meaning that you would not be obligated to pay Levin Law’s attorney fees unless money is recovered on your behalf.
Levin Law is a premier national cryptocurrency, securities, commodities, futures, and class action law firm. Brian Levin, Levin Law’s founding attorney, has helped recover in excess of $150,000,000 through arbitration and litigation for individual and institutional investors throughout the country and the rest of the world. Levin Law represents retirees, individual investors, high-net-worth investors, ultra-high-net-worth investors, institutions, family offices, trusts, publicly held companies, and others.