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Zamansky LLC Investigates Harvest Volatility Management CYES Investments

September 18, 2019 Blog

Zamansky LLC: Investment Fraud Attorneys for Claims Involving Collateral Yield Enhancement Strategy (CYES) Investments

Our attorneys are currently investigating claims that Harvest Volatility Management Collateral engaged in fraudulent sales of collateral yield enhancement strategy (“Harvest CYES”) investments to clients of Merrill Lynch Wealth Management (“Merrill Lynch”). Merrill Lynch is the broker-dealer division of Bank of America Corporation. Our investigation is targeting allegations that Harvest Volatility Management sold its Harvest CYES investments based on material misrepresentations and omissions regarding the risks associated with the Harvest CYES. Investors who relied on these misrepresentations and omissions may have suffered substantial losses due to making unsuitable investments, and these investors may be entitled to recover their losses through FINRA arbitration.

How CYES Investments Create Substantial Risks for Individual Investors

Although yield enhancement strategies are often touted as low-risk, high-reward investment options, the reality behind YES investments is that they create substantial risks for investors while virtually guaranteeing substantial returns for the firms that sell them. The Harvest CYES is a particularly complex (and particularly risky) option that is unsuited for individual investors who are targeting stable returns. As attorney Jake Zamansky explains:

“The Harvest CYES strategy involved trading ‘Iron Condor’ options positions which seek to generate premium income from hedged short put and call options. This is an aggressive and highly speculative strategy which can suffer substantial losses from volatility or downturns in the stock market. It is not suitable or appropriate for investors who are not seeking this type of risk.”

As we have previously discussed, the Iron Condor is an investment structure that involves purchasing multiple uncovered (or “naked”) options, each of which has the potential to result in a total loss for the investor, and each of which generates a fee for the selling broker regardless of the outcome for the investor. While professional investors who have a comprehensive understanding of the options market may be able to make informed decisions about utilizing Iron Condors and other yield enhancement strategies, “mom and pop” investors who rely on their brokerage firms do not stand a chance. This is especially true when the information they receive is incomplete or unreliable.

Our Firm Is Actively Representing Numerous Clients in Arbitration to Recover CYES Losses

In addition to investigating Harvest Volatility Management Collateral, our firm is actively representing numerous clients in FINRA arbitration to recover YES losses. This includes claims against UBS and other firms. If you have suffered substantial portfolio losses as a result of investing in Harvest CYES or any other YES investment product, we encourage you to contact us promptly for a free case evaluation.

Speak with a Investment Fraud Lawyer for Concerns Regarding Your CYES  Investment from Harvest Volatility and Merrill Lynch

Did you invest in Harvest CYES through Merrill Lynch Wealth Management? Have you suffered losses with any other type of YES investment? To find out if you are eligible to recover your losses through FINRA arbitration, call Zamansky LLC at 212-742-1414 or request a free case evaluation online