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FINRA Fines Credit Suisse Securities for Alternative Investments

Have you suffered losses in an alternative investment, hedge fund, or fund of funds sold to you by Credit Suisse Securities or Credit Suisse Securities’ Private Banking USA Unit?  If so, The White Law Group may be able to help.

FINRA recently announced that Credit Suisse Securities was censured and fined $350,000.  Without admitting or denying FINRA’s findings, Credit Suisse Securities consented to the findings that it maintained a Private Banking USA unit (PBUSA) that offered and sold alternative investments, including hedge funds and funds of hedge funds, to customers.

The findings further stated that Credit Suise Securities Private Bank relationship managers used a marketing pitch book to market the firm’s alternative investment products, including hedge funds and funds of hedge funds, to customers and prospective customers. The pitch book’s purpose was apparently to introduce qualified, high net-worth customers and prospective customers to, among other things, the various types of hedge funds and funds of hedge funds the firm offered.

FINRA’s findings also included that certain statements in these “pitch books” were not accurate because for certain funds, the firm performed little ongoing due diligence, and when it was performed, it was done on a sporadic and irregular basis.  In the case of at least one fund (not identified in FINRA’s findings), the firm did not perform any ongoing due diligence.

Alternative investments, like hedge funds and fund of funds, can be extremely complex and risky investments.  These investments are only appropriate for high net worth and sophisticated investors.  Such investments have been a focus of regulators over the last few years due to the increase in sales of the products and the concern that the investments are being offered to unsophisticated investors that do not understand the risks.

If you have questions about investments you made with Credit Suisse Securities (USA) LLC, the securities attorneys of The White Law Group may be able to help.  To speak with a securities attorney, please call the firm’s Chicago office at 312/238-9650.

The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm with offices in Chicago, Illinois and Boca Raton, Florida.

For more information on The White Law Group, please visit our website at https://whitesecuritieslaw.com.

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