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JP Morgan Chase Clients Sold Unsuitable Investments

By SHUSTAK REYNOLDS & PARTNERS of Shustak Reynolds & Partners, P.C. posted on Tuesday, November 15, 2011.

Unsuitable investments continue to be sold to unsuspecting clients of major brokerage firms. On November 15, 2011 FINRA, ordered JP Morgan Chase to reimburse clients $1.9 million for losses those investors sustained when JP Morgan sold them high risk, unsuitable unit investment trusts (“UIT’s”) and illiquid floating-rate loan funds. According to FINRA, these high risk, illiquid investments were sold primarily to conservative investments. In addition to the restitution, FINRA also fined the firm $1.7 million. According to a statement issued by FINRA, the JP Morgan representatives who sold the unsuitable investments did not have the training, experience or supervision necessary to determine whether these investments were suitable for the clients. This is just one example, of many, where a major brokerage firm is fined for selling unsuitable investments and securities to unsuspecting clients. If any investor has been the victim of having been sold an unsuitable investment security-whether unit investment trusts or illiquid floating loan funds- whether sold by JP Morgan Chase, or any other brokerage firm, contact our managing partner, Erwin Shustak, at 619.696.9500 and visit our web site at

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