Mark & Associates, P.C. Attorneys At Law

Were Your Assets Frozen in Auction Rate Securities? You May Have Rights

The auction-rate securities market suddenly crumbled in early 2008, leaving billions of investor dollars frozen in accounts that investors had been told were safe and as liquid as cash. Many investors were shocked to find out they could not withdraw their funds after they were misled by brokers and financial advisors about the risks of auction rate securities.

If you lost money in the failure of the $330 billion auction-rate securities market, you may be able to recover your financial losses. If your broker or financial advisor withheld or misrepresented information about the risks of the investments or told you your funds were liquid, you may have rights to financial compensation. The investment fraud attorneys at Mark & Associates, P.C. are experienced at helping investors recover losses from auction rate securities and are available 24 hours a day, 7 days a week to discuss your case. Contact us today by submitting the case inquiry form on our website or by calling 1-866-50- RIGHTS (1-866-507-4448).

What Are Auction Rate Securities?

Auction rate securities are long-term bonds with interest rates that are tied to the short-term market. The interest rates on the securities are typically determined at weekly or monthly auctions. In many cases, the securities were packaged as municipal bonds, corporate bonds, or preferred stocks issued by cities, towns, and other municipalities or tax-exempt institutions. The securities were typically sold to wealthy persons and corporations as safe alternatives to cash that offered higher interest rates than other investments.

Were You Misled Into Buying Auction Rate Securities?

Many investors put their money into auction rate securities on the advice of brokers or financial planners, who promised that the funds would remain liquid and readily available. Some of the best-known investment firms in the country, including Citigroup, UBS, Goldman Sachs, RBC, Morgan Stanley, Lehman Brothers, JPMorgan, Wachovia, Merrill, and Bank of America, sold auction-rate securities.

Many investors were promised that the securities were virtually risk-free -- safe, liquid, short-term cash equivalents and an attractive alternative to money market investments. When the market for auction rate securities fell apart, many investors lost access to their funds.

Free Legal Consultation

If you lost money in the collapse of the auction rate securities market, you may have rights. Many securities brokers and financial advisors, who were eager to earn high commissions from these investments, misled investors and withheld important about the risks of auction rate securities. Investors may now qualify for financial compensation for their losses. The experienced, aggressive attorneys at Mark & Associates, P.C. are available 24 hours a day, 7 days a week to discuss your case. Contact us today by submitting the case inquiry form on our website or by calling 1-866-50- RIGHTS (1-866-507-4448).