Have you Suffered Losses in Fannie Mae or Freddie Mac Preferred Stocks?
You are not alone, and many investors in Fannie Mae and Freddie Mac preferred stocks are filing claims against their brokers and brokerage firms as a result of the sales practices related to these products.
For years, investment salespeople have pitched preferred stocks and Fannie Mae and Freddie Mac investment products to elderly clients, retirees, and clients nearing retirement. The products are often pitched and misrepresented as safe, risk, secure, insured, and CD alternatives. In addition to claims that clients cannot lose money or investment principal, Fannie Mae and Freddie Mac products are often pitched with the added assurance that the Fannie Mae and Freddie Mac are implicitly backed or guaranteed by the federal government, or, gasp, that Fannie Mae and Freddie Mac are the federal government.
It was well known in the securities industry as early as 2006 that the mortgage industry was in turmoil in America. Unfortunately, in 2007 and 2008, numerous brokerage firms and banks ignored the warning signs, including widespread reports regarding the financial instability of Fannie Mae and Freddie Mac, and continued to sell Fannie Mae and Freddie Mac preferred stocks as safe investments. In some instances, investors were never warned of the true risks associated with the products or they were told that the products were protected with some sort of governmental backing.
Preferred stocks are not debt instruments, and Fannie Mae and Freddie Mac preferred shareholders are not afforded the same implied governmental protections afforded to bondholders, regardless of the representations to the contrary erroneously made by many brokerage firms and their salespeople. Preferred shareholders are not afforded any such protection. Whether investors were told the risks to these investments were minimal or the true risks were not disclosed, investors in these products suffered substantial losses.
If you wish to discuss your investment in Fannie Mae or Freddie Mac preferred stocks or have questions about securities fraud and want to know if you have a case, please contact us at (727) 461-7474 or visit our Investor FAQs page and fill out the Do I Have a Case form at www.colemanlaw.com.
For more information about Securities fraud, or estate planning, particularly if you are in Clearwater, Palm Harbor, Tarpon Springs or the Tampa Bay, Florida area, go to our website www.colemanlaw.com.
