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Zamansky LLC Files Long-Term Bond Investment Fraud Arbitration Claim against Vanguard for a 79 Year-Old Investor

December 13, 2022 Alternative Investment Lawyer

On behalf of a 79 year-old college professor, we filed a FINRA arbitration investment fraud claim to recover $150,000 in losses against Vanguard Marketing Corporation (Vanguard). The investment fraud claim alleges that the investor sought prudent investment advice from Vanguard on “very conservative” investments, and was provided with an Investment Plan that was aggressive. It alleges that Vanguard’s Investment Plan steered the investor to invest 95% of the investor’s portfolio in long-term bond funds. The long-term bond funds had substantial risk of immediate principal loss due to the known threat of interest rates increases which made them unsuitable and inappropriate for the investor, the claim alleges.

The investment fraud claim alleges that Vanguard breached its fiduciary duty and its duty under SEC Regulation Best Interests (Regulation BI). Under SEC Regulation BI, a broker-dealer can only recommend financial products to their customers that are in their customers’ best interests, and must clearly identify both the material risks and any potential conflicts of interest and financial incentives the broker-dealer has for the sale of those products.

If you have investment fraud losses, please call investment fraud attorney Jake Zamansky at (212) 742-1414 or email jake@zamansky.com for a free evaluation of your potential legal rights.

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