Oregon FINRA Arbitration Attorneys

Oregon’s scenic landscape attracts retirees looking for an active, outdoor lifestyle. However, while many prefer the natural peaks and valleys of the Pacific Northwest, few expect to see similar fluctuations in their investment portfolios. Conservative investors planning for retirement generally aim for stability, balancing their portfolios with blue-chip equities and low-risk fixed-income investments. Unfortunately, some retirees have been misled into taking on excessive risk, investing in speculative alternative products that are unsuitable for their financial needs. When financial advisors fail to act in the best interests of their clients, investors may suffer significant losses.

Malecki Law has decades of experience recovering investment losses for retirees and individual investors. The firm understands the unique challenges that investors face, particularly when they are required to resolve disputes through financial industry arbitration rather than traditional litigation. Most disputes with brokerage firms are handled through the Financial Industry Regulatory Authority, a specialized arbitration forum with its own rules and procedures. Malecki Law has successfully recovered millions of dollars for investors in Oregon and nationwide through FINRA arbitration.

Over the past few decades, alternative investments have become increasingly popular. These investments, often marketed to retirees, are structured as private placements, non-traded real estate investment trusts, or business development companies. While financial advisors may pitch these products as low-risk options with high potential returns, they often come with significant drawbacks that are not fully explained to investors.

The U.S. Securities and Exchange Commission has warned investors about the risks of alternative products, emphasizing the lack of liquidity as a key concern. Unlike publicly traded stocks, non-traded securities cannot be easily sold. Investors may be required to wait years before gaining access to their funds, and liquidity events—such as a public listing—may never occur. Many retirees need reliable access to their savings, and illiquid investments do not align with their financial objectives.

Another major issue with alternative investments is the high cost associated with purchasing them. The SEC has highlighted that many of these products charge excessive upfront fees, sometimes amounting to as much as 15% of the investment amount. These fees benefit the brokerage firms and advisors selling the products, but they immediately reduce the investor’s potential returns. Advisors have a legal obligation to disclose these conflicts of interest, but they often fail to fully explain how fees impact the investment’s actual value.

Unlike publicly traded securities, private placements and non-traded investments are difficult to evaluate. Public stock prices reflect real-time market conditions and investor sentiment, while private investment values are determined through opaque pricing methods that are not easily verified. Without transparent pricing, investors may not realize that their investments are significantly overvalued until it is too late.

Financial advisors and brokerage firms have a duty to act in the best interests of their clients, particularly when handling retirement accounts. FINRA’s rules require firms to properly supervise their advisors, ensuring that all investment recommendations are suitable for the investor’s financial situation and goals. Advisors must also fully disclose all risks and conflicts of interest before recommending an investment.

Despite these regulations, many financial professionals continue to push alternative investments that are not appropriate for their clients. Some investors only discover the risks when they attempt to access their funds, only to find that their money is locked up in an illiquid product. Others realize too late that the promised returns never materialize, and their portfolios have been significantly impacted by high fees and market fluctuations.

Malecki Law’s arbitration attorneys have extensive experience handling cases involving alternative investments. The firm understands the tactics used by financial professionals to mislead investors and knows how to hold brokerage firms accountable for failing to protect their clients.

Investors who have suffered losses due to misleading investment recommendations may have legal options for recovery. When alternative investments are involved, traditional claims may not always be the best approach. Instead, attorneys may pursue legal remedies such as rescission, which allows investors to cancel the original transaction and recover their initial investment amount. This strategy is particularly useful for illiquid investments that have lost significant value.

Malecki Law is committed to helping Oregon retirees and investors seek justice when they have been misled by financial professionals. The firm has a strong track record of success in FINRA arbitration and other legal proceedings. Investors who have been harmed by unsuitable investment recommendations should seek legal representation from professionals who understand the complexities of securities law.

If you or a family member has lost money due to misleading financial advice, contact Malecki Law for a free consultation. Call (212) 943-1233 or email jenice@maleckilaw.com to discuss your case and explore your options for recovery.