Sotos Investor Protection Group

Does Your Financial Loss Deserve a Closer Look?

Not every investment loss means that someone did something wrong.

Markets can fall. Investments involve risk. Even an appropriate investment can lose value.

A closer review may be worthwhile, however, when what happened does not match what you were told, what you understood or what was appropriate for your circumstances.

You may want to speak with an investor protection lawyer if:

• The investment was riskier than you understood. You were told it was safe, conservative, stable or designed to protect your savings.
• The risks were not clearly explained. You did not understand how much you could lose or that your access to the money could be restricted.
• Your advisor’s actions do not make sense. You see transactions, recommendations or changes that you do not recognize or cannot get explained.
• Your money is frozen or gated. You tried to withdraw or redeem your investment, but some or all of your capital remains inaccessible.
• Your account does not reflect your instructions. Your risk profile, financial information, investment goals or account activity are not what you remember discussing.
• Too much of your money was placed in one product or strategy. Your portfolio may have been overconcentrated or exposed to more risk than you could afford.
• An older or vulnerable family member may have been exploited. There are unexplained withdrawals, unusual investments, sudden changes or pressure from someone they trusted.
• A life insurance claim was denied or delayed. The insurer is raising concerns about the application, medical information, premiums, policy terms or how the policy was sold.
• A life insurance policy was supposed to be “paid up” or be permanent and is not.

One warning sign does not prove that you have a legal claim.

But you should not dismiss serious concerns simply because an advisor or financial institution says that the loss was caused by the market.

Start with what you know. We can help investigate the rest.

Tell Us What Happened

How We Help Investors and Families

Start with the problem you are facing.

Unsuitable Advice and Investment Loss

Was the investment wrong for your needs?

An investment in stocks and bonds or in life insurance can be legitimate and still be unsuitable for you.

We review losses involving investments and strategies that may not have matched the investor’s:

• age and stage of life;
• financial circumstances;
• investment goals;
• risk tolerance;
• ability to withstand losses;
• retirement plans;
• income requirements;
• investment knowledge;
• time horizon; or
• need to access money.

Concerns may also arise when too much of a portfolio was placed in one product, company, manager, sector or high-risk strategy.

Learn About Unsuitable Investment Advice and Investment Loss Claims

Advisor Misconduct and Negligence

Did your advisor act without your informed approval?

You trusted your financial advisor, portfolio manager or investment firm to understand your needs, follow your instructions and explain what was being recommended.

Warning signs may include:

• trades in non-discretionary accounts where you did not provide specific instructions on the security, the price, the quantity and the timing
• trades you did not approve;
• blank, incomplete or altered forms;
• misleading statements;
• excessive trading;
• unexplained fees or commissions;
• hidden conflicts of interest;
• inaccurate account information;
• pressure to invest quickly; or
• explanations that changed after you suffered a loss.

We assess both the individual advisor’s conduct and whether the firm responsible for supervising the account may also bear responsibility.

Learn About Financial Advisor Misconduct and Negligence

Private, Gated and Complex Investments

Is your money locked up or tied to a product you do not understand?

Private and alternative investments can be difficult to understand, value and sell. Often they are sold as “not correlated to the markets”, but then move with the markets during major market swings.

Some investors only discover the risks after withdrawals are stopped, distributions are reduced or the reported value of the investment falls.

We review concerns involving:

• private credit;
• private equity;
• exempt-market products;
• private placements;
• mortgage investment products;
• alternative funds;
• structured notes;
• margin and leverage;
• concentrated portfolios; and
• gated, frozen or illiquid investments.

The fact that an investor qualified to purchase a complex product does not automatically mean the product was suitable for that person.

Learn About Private, Gated and Complex Investments

Investment Fraud and Dealer Failures

Were you deceived, or did a financial institution fail to protect your account?

Investment fraud can involve a completely false investment, misleading information about a real product, unauthorized activity or misuse of investor funds.

The person who committed the fraud may not be the only party responsible.

An investment dealer, bank or financial institution may also have failed to:

• supervise an advisor;
• respond to warning signs;
• investigate suspicious activity;
• stop unauthorized transfers;
• conduct proper product reviews; or
• protect a vulnerable investor.

Even if the dealer was not complicit in the fraud, it likely is still responsible for giving you your money back.

We assess both the immediate wrongdoing and whether another party may have contributed to the loss.

Learn About Investment Fraud and Dealer Responsibility

Elder and Vulnerable Investor Claims

Are you worried that an older or vulnerable person was financially harmed?

Financial abuse can involve a family member, caregiver, attorney under a power of attorney, financial advisor, insurance agent or another person in a position of trust.

Warning signs may include:

• unexplained withdrawals or transfers;
• sudden changes to investments;
• unusual gifts or loans;
• changes to beneficiaries;
• pressure to sign documents;
• investments that do not fit the person’s needs;
• missing financial records; or
• another person taking control of financial communications.

Executors and estate trustees may also discover questionable financial activity after someone has died.

Learn About Elder Financial Abuse and Vulnerable Investor Claims

Life Insurance and Insurance Advice Disputes

Was a life insurance claim denied, or was the wrong product sold?

A denied life insurance claim can leave a family facing financial pressure while it is also dealing with a death.

We represent policyholders, beneficiaries and families in disputes involving:

• denied or delayed death benefits;
• alleged non-disclosure or misrepresentation;
• medical information;
• policy lapses;
• missed premiums;
• beneficiary disputes;
• exclusions;
• application errors;
• advisor mistakes; and
• concerns about how an insurance product was recommended or sold.

An insurer’s denial does not necessarily end the matter.

Did you get an unexpected demand for more money to keep your life insurance policy in force?

A demand for further funds can be punishing. These are common in a high-risk type of life insurance known as Universal Life Insurance sold on a Yearly/Annual Renewable Term basis. Complex? Yes, and often toxic. What are your options? Why were you not warned? We can help.

Learn About Life Insurance and Insurance Advice Disputes

What Can You Do to Try to Recover Your Loss?

There is no single recovery process that is right for every investor.

The best path may depend on what happened, who was involved, how much was lost, what evidence is available and whether other investors were affected.

Possible options may include:

A Complaint to the Financial Firm

You may be able to complain directly to the bank, investment dealer, advisor’s firm, insurance company or other financial institution.

The firm may investigate the account, respond to your concerns and make a settlement offer.

While the company will likely delay, cherry-pick, and deny your concerns, if you opt for the OBSI complaint route, then you must first jump through this hoop. Take care, the companies use this process to reduce claims by wearing you out or wearing you down and almost never offer more than token payments, even in the clearest of cases.

An OBSI Complaint

The Ombudsman for Banking Services and Investments, known as OBSI, reviews unresolved complaints involving participating banks and investment firms.

OBSI can be one route to compensation, but it is not always the only option. OBSI lacks binding authority, has limited review abilities, and has a limited monetary threshold for recommending money be paid to you.

Negotiation or Mediation

Some claims can be resolved through direct negotiation or mediation without a full court proceeding. More often, the companies will not enter into good faith negotiations until after they have made you jump through hoops within a court claim.

A negotiated resolution may reduce time, cost and uncertainty.

Arbitration

Some investment agreements or relationships may provide for arbitration.

Arbitration is a private process in which a neutral decision-maker hears the dispute.

Civil Litigation

A court claim may be appropriate when the loss is significant, the issues are disputed or another recovery process is not suitable.

Group Claims and Class Actions

When many investors have been affected by the same type of investment, advice or conduct, a coordinated group claim or class action may be more effective than separate claims.

We can help you compare the available processes before you decide what to do.

Explore Investment-Loss Recovery Options

Current Investor Protection Investigations

The Sotos Investor Protection Group reviews potential claims where investors may have experienced similar losses arising from the same type of financial product, advice or conduct.

Our current work includes reviewing claims involving:

• investment losses;
• gated or inaccessible assets;
• life insurance policies that do not pay out or where the premiums demands are not what you were told;
• unsuitable financial advice;
• private and complex investments;
• advisor misconduct;
• inaccurate risk information;
• excessive concentration;
• margin or leverage; and
• possible dealer-supervision failures.

Investment Loss, Gated Assets and Unsuitable Advice Claims Investigation

We are reviewing potential claims involving investors whose money is locked up, has been written down or was placed into products that were riskier than they understood.

The review includes concerns involving private credit, exempt-market products, alternative investments, mortgage investment products, margin, leverage, short selling, concentrated portfolios and other investments that are difficult to redeem.

View Current Investor Protection Investigations

Why Work With Sotos Investor Protection Group?

Two Forms of Experience, One Investor-Focused Team

Financial-loss claims often require more than general litigation experience.

The lawyer must understand how financial advisors, investment firms, insurance companies and complex products operate. The lawyer must also be able to pursue the claim through negotiation, an ombudsman process, litigation or a proceeding involving a larger group of investors.

Harold Geller and Matthew W. Taylor bring these two forms of experience together.

Supported by Sotos’ broader litigation and class action teams, they can assess both individual claims and situations affecting larger groups of investors.

Harold Geller

Partner

Investor Protection and Financial Services Experience

Harold has more than 30 years of experience representing investors, policyholders and beneficiaries in financial-loss claims.

His work includes:

• unsuitable investment advice;
• unsuitable life insurance advice;
• investment losses;
• advisor negligence and misconduct;
• investment dealer and bank responsibility;
• portfolio-manager disputes;
• life insurance claims;
• insurance advisor negligence;
• OBSI complaints; and
• civil litigation.

Harold has assisted more than 1,500 Canadians with financial-loss claims.

He has also served on investor and consumer advisory bodies connected with:

• the Ontario Securities Commission;
• the Investment Industry Regulatory Organization of Canada;
• the Financial Services Regulatory Authority of Ontario; and
• the Ombudsman for Banking Services and Investments.

Harold is known for explaining complicated financial issues clearly and helping clients make informed decisions about their options.

Matthew W. Taylor

Senior Associate

Investment Litigation and Class Action Experience

Matthew represents plaintiffs in complex investment, securities, professional-liability and class action litigation.

His experience includes:

• investment losses;
• securities claims;
• professional negligence;
• financial products;
• multi-party proceedings;
• technical evidence;
• group litigation; and
• class actions.

Matthew has appeared before the Court of Appeal for Ontario, the Ontario Superior Court of Justice and the Commercial List.

He writes about securities law and serves as a supervising lawyer at the Osgoode Hall Law School Investor Protection Clinic.

Matthew’s complex litigation experience strengthens the group’s ability to consider both individual and collective recovery options.

Backed by the Resources of Sotos LLP

Harold and Matthew are supported by Sotos’ broader litigation and class action teams.

This allows the Investor Protection Group to assess different routes to recovery, including:

• complaints to financial firms;
• OBSI proceedings;
• negotiation;
• mediation;
• arbitration;
• individual litigation;
• coordinated group claims; and
• class actions.

Meet the Investor Protection Team

Frequently Asked Questions

Start With What You Know

You do not need to prepare a legal argument, calculate your legal damages or locate every document before contacting us.

Tell us:

• what you think went wrong (if you have a guess);
• the name of the advisor, firm, bank or insurer;
• what investment or insurance product was involved;
• approximately how much you invested or lost;
• whether any of your money is locked up;
• what you were told before you invested;
• what happened afterward;
• when you first became concerned; and
• which documents you currently have.

What Happens After You Contact Us?

1. Tell Us What Happened

You explain what happened in your own words.

You do not need to know the legal terms or have every document ready.

2. We Review the Main Issues

A lawyer from the Sotos Investor Protection Group will review the information you provide.

We may consider the advice, product, account activity, risk information, disclosure, supervision, losses and available records.

If more information is needed, we will explain which documents may be helpful.

3. We Explain the Possible Next Steps

We will explain whether the matter appears to require further assessment and which recovery options may be available.

If further legal work is recommended, we will explain the proposed scope, next steps and fees before you decide whether to proceed.