Massachusetts Sues RBC for ETF sales

Massachusetts recently filed an administrative complaint against RBC Capital Markets, LLC and one of its former brokers, Michael Zukowski, for “dishonest practices in selling leveraged and inverse leveraged ETF’s.” These products are said to have been sold between 2007 and 2009 at which point RBC halted most of the sales.

The lawsuit states that neither Zukowski nor many of his clients understood the products and the risk that they carried. RBC claims that they understood the degree of risk that these products carried but they did not inform and educate their agents sufficiently. Secretary of State William Galvin is seeking a cease-and-desist order, an administrative fine and restitution for Massachusetts investors who suffered losses with these products. Secretary Galvin claims that this type of investment may be “appropriate for sophisticated investors but not the type of people we’ve had complaints from.”  The number of claims involving leveraged or inverse ETF’s through FINRA arbitration has increased from 28 in 2009 to 112 in 2010.

If you have suffered losses investing in leveraged or inverse ETF’s with Michael Zukowski or RBC Capital Markets, please contact Eccleston Law Offices to discuss your recovery options at (312) 332-0000.

Eccleston Law represents individual and institutional investors nationwide to recover their investment losses caused by unsuitable investment recommendations, breach od fiduciary duty, negligence or other misconduct. We have extensive experience representing investors in arbitration and litigation disputes with securities broker-dealers and investment advisory firms, and have recovered tens of millions of dollars for investors.