NEW YORK, April 10, 2012 (GLOBE NEWSWIRE) -- The Securities Law Firm of SHEPHERD SMITH EDWARDS & KANTAS LLP, www.sseklaw.com, has recently filed a claim on behalf of a client of WELLS FARGO ADVISORS, LLC. It is alleged that the client lost a substantial portion of his life savings when he was convinced to invest in several low price stocks, commonly referred to as "penny stocks." Specifically, shares of Blue Earth, Camac Energy, and Tombstone Exploration were sold to the client.
According to the claim, these stocks were sold based upon statements that the research department of Wells Fargo was recommending them, and that they were good investments even for investors who did not want to be aggressive. These stocks, in reality, were very high risk investments and investors lost huge sums of money when they fell. Also, the broker was recommending these stocks because of research done by a 3rd party analyst named Liviakis, not because of any research or recommendation by Wells Fargo. (No claim of misconduct is being made against Liviakis.)
It is believed, based upon the sales methods used by the broker or brokers involved, that many other investors could have been defrauded in a similar way. If you are or were a client of Wells Fargo and you lost money after being convinced to invest in low priced stocks or unfamiliar stocks, we would like to hear from you.
Shepherd Smith Edwards & Kantas LLP has a team of attorneys, consultants and staff with more than 100 years of combined experience in the securities industry and in securities law. Since 1990, we have represented thousands of investors nationwide to recover losses. We have represented clients in Federal and state courts and in arbitration through the Financial Industry Regulatory Authority (FINRA), the New York Stock Exchange Inc. (NYSE), the American Arbitration Association (AAA) and in private arbitration actions. Collectively, we have represented over 1,000 investors over the last 18 years in negotiation, mediation, arbitration and litigation.