Easterly ROCMuni High Income Municipal Bond Fund (Easterly Fund) Investors May Be Entitled to Recover Their Losses

Did you lose money investing in the Easterly ROCMuni High Income Municipal Bond Fund (the “Easterly Fund”)? If so, you may be entitled to recover your investment losses.

Many Easterly Fund investors are facing substantial losses after the fund began plummeting in value in June. On June 12, shares in the Easterly Fund were worth $6.15. Now, they are worth just $2.95.

While investigations remain ongoing, it appears that this sudden and significant drop in the value of Easterly Fund shares was due to the high-risk nature of the investments that the fund purchased on behalf of investors. Our attorneys have also uncovered evidence to support allegations that brokers failed to adequately disclose these risks to their clients. For a detailed breakdown of the case and recovery process, visit our Easterly Fund Investment Losses page.

This includes specifically brokers at Osaic Wealth and Stifel Nicolaus & Co.

Stockbroker Fraud Lawyer Jake Zamansky Quoted By Investment News

Stockbroker fraud lawyer Jake Zamansky, our firm’s founder, was quoted yesterday by Investment News in an article discussing the Easterly Fund’s collapse. As Mr. Zamansky told the publication:

“The Easterly Fund was a speculative high-risk ‘junk bond’ fund that should never have been recommended to retail clients. . . . Many of the bonds in the fund lacked a liquid market. And when the fund collapsed, investors were left holding the bag.”

Our firm is already representing one investor and is well aware of others, including an 84-year-old widow who lost 35 percent of her savings as a result of investing in the Easterly Fund. It appears that she made the investment based on a recommendation from her financial advisor at Osaic Wealth.

The Easterly Fund is Not a Normal Municipal Bond Fund

Preliminary findings from our investigative efforts suggest that brokers at Osaic Wealth and Stifel Nicolaus & Co. could be liable for investors’ losses as a result of failing to adequately explain the nature of the Easterly Fund. While the Easterly Fund is a municipal bond fund—and while municipal bond funds are usually relatively low-risk investments—the Easterly Fund is uniquely risky in various respects.

Among other issues, the Easterly Fund invested in bonds that were below investment grade. These are commonly referred to as “junk bonds,” as Mr. Zamansky told Investment News. This means that they carry extremely high levels of risk that are not suitable for most retail investors—and certainly not elderly investors who cannot afford to lose 35 percent of their portfolio.

If Osaic Wealth and Stifel Nicolaus & Co. are responsible for investors’ losses, they deserve to be held fully accountable. Investors who have suffered fraudulent losses may be able to pursue their claims through FINRA arbitration, which means that they will not need to go to court.

Do You Have Easterly Fund Losses? Contact Us for a Free Consultation Today

Have you suffered losses as a result of investing in the Easterly Fund? If so, our lawyers may be able to help you. To learn more in a free, no-obligation consultation with a skilled investment fraud lawyer, call 212-742-1414 or tell us how we can reach you online today.