Lost Money in Leveraged Energy Exchanged Traded Products (“ETPs”)?
- posted: Dec. 15, 2020
Law Offices of David Harrison, P.C. have opened an investigation on behalf of investors who were sold leveraged funds at the recommendation of their stockbrokers in an attempt to generate excess returns.
Due to oil volatility, many issuers have accelerated and closed their ETPs to investors for pennies on the dollar. For example, Citigroup closed two of its ETPS - VelocityShares 3x Long Crude Oil ETNs (“UWT”) and VelocityShares Index ER 3x Inverse Crude Oil ETNs (“DWT”).
Brokerage firms pitched ETPs to investors as a way to capitalize on additional growth without being told that these securities could be called and closed for a pittance of the original investment. Investors were unaware of these securities’ complexity. They were not intended to be “buy and hold” investments but rather were intended to be daily trading tools for sophisticated investors to manage daily trading risks for not more than one day.
UBS Financial Services and other wire-houses sold these speculative securities.
Contact former Morgan Stanley in-house attorney, David Harrison, Esq. at (310) 499-4732, [email protected] for a free consultation if your stockbroker recommended these unsuitable securities causing losses.