Many businesses and institutions, large and small, utilize the securities markets in varying ways as part of their business plans. Sometimes those plans include the use of the markets to raise funds, either through a stock offering, or through a debt transaction including things like bonds, swaps, or other structures. In other instances, business and institutions utilize securities accounts as a holding place for cash reserves to generate some amount of income or growth on those reserves until they are needed. In either case, those businesses and institutions are often relying upon the expertise and guidance of financial advisors and other professionals working for broker-dealers for guidance on planning and execution of those transactions.
Sometimes, unfortunately the decision makers are misled by these advisors about how the transactions will work, what the costs or risks of those deals may be, or otherwise generally given bad investment advice that they ultimately rely upon. Other times, those advisors may simply make mistakes, potentially including exercising bad judgement on behalf of that client, or by failing to take some action necessary to properly effectuate the businesses' transactions. In either case, those problems, whether intentional or negligent, can have devastating consequences for the businesses that were relying upon the advisors. Our firm has represented a number of business entities, retirement plans and municipalities in these situations and can advise you on what your rights may be to try to recover the losses that resulted from these problems.
Business Entities: We have represented corporations that were the victims of unscrupulous or ill-advised investment strategies. When you run a company, you need cash reserves for when things go wrong or when things go right. These assets may be saved for covering shortfalls, or perhaps opportunities of expansion. The proper investment must be recommended that provides stability and reasonable liquidity. Often, a financial advisor will recommend a product that his employer, the financial entity, will want to get off its books. Sometimes, the financial advisor just does not understand the investments being recommended. One such situation was the Auction Rate Securities ("ARS") collapse, wherein many businesses were left holding illiquid securities that were marketed as being liquid. SSEK was engaged by many investors, institutional and otherwise, during the ARS crisis. Our experience in working with business entities, including credit unions, is surpassed by few, if any, other law firms in this realm.
Retirement Plans: Business related retirement solutions range from smaller Keogh Plans and Sep IRAs to Pension Plans. We have represented owners of a small to mid-sized businesses and larger entities and municipalities. Individuals in charge of retirement plans have their employees' best interests at heart. That is why you chose to work with an investment professional, to ensure the very best financial advice for precious employee retirement plans. Financial advisors can sometimes become infatuated with certain products. These products may have certain commission features the advisor likes. Sometimes the financial advisor just did not do the proper due diligence. Regardless if it was intentional or just negligent, the advisor and his firm owed a fiduciary duty to you and your employees. SSEK has handled many situations like these and are well versed in the process of rehabilitating your entity's retirement plan.
Municipalities: Municipalities raise capital via various means. One of the most utilized methods is via a bond offering. However, sometimes an offering is ill advised and/or ill timed. The Board relied on due diligence by the underwriter. Many small municipalities rely on volunteers. Board members and administrators can't be expected to do complex analyses. That is the exact reason a financial firm was hired to provide underwriting services. Part of its duty is to make a determination if a bond offering is even viable. Fees to be garnered by the underwriter should not be a factor in its determination to move forward. SSEK has represented many municipalities around the country and would like to offer their experience to you.