Recognized in the Industry
Badge - AV Preeminent 2020
Badge - Best Attorneys of America
Super Lawyers
Badge - Badge - Avvo Rating 10.0 Top Attorney
Martindale-Hubbell Client Reviewed
Expertise - Best Employment Lawyers in New York City
Avvo Reviews
NYC Bar Association

Defective Securities Products

  1. What Is a Defective Securities Product?
  2. What Are Some Examples of Defective Securities Products?
  3. What Is a Proprietary Product/Investment?
  4. What Are Cryptocurrencies?
  5. How Do I Know if I Am Invested in a Defective Securities Product?
  6. What Should I Do if I Was Recommended and Purchased Defective Securities Products?

What Is a Defective Securities Product?

In broad terms, a defective securities product is one that is invalid, cancelled, matured, untransferable, or unregistered. Defective securities products are often times highly complex and incredibly risky. These products are typically not in the best interests of any investors.

Back to Top

What Are Some Examples of Defective Securities Products?

Defective securities products come in various forms. One large subsection of such investments is proprietary products. Some other well-known examples include cryptocurrencies, NFTs, collateralized debt obligations, collateralized mortgage obligations, mortgage-backed securities, leveraged ETFs, private placements, closed end funds, and private REITs.

Back to Top

What Is a Proprietary Product/Investment?

Proprietary products are ones that brokerage firms create or package in-house. Since proprietary products are created by brokerage firms, they tend to have very limited, if any, trading histories. A lack of trading history makes it exceedingly difficult for an investor or a broker to evaluate the risks associated with a particular investment.

Back to Top

What Are Cryptocurrencies?

Cryptocurrencies are digital or virtual assets that are unregulated and offered by private actors rather than a central authority, like the U.S. government. Crypto investments are highly speculative and incredibly volatile. Further, the crypto space is rife with scams and fraudulent activity as evidenced by recent SEC enforcement actions. Investors should be hyper vigilant about purported cryptocurrency investment opportunities.

Back to Top

How Do I Know if I Am Invested in a Defective Securities Product?

Defective securities products often times are challenging to track and difficult to understand, even for brokers. These investments also tend to be highly illiquid and can, sometimes, even expose investors to large losses greater than their initial principal investment.

Back to Top

What Should I Do if I Was Recommended and Purchased Defective Securities Products?

If your broker or advisor recommended investments in defective securities products, Malecki Law is eager to hear from you. The highly qualified attorneys at Malecki Law can evaluate the merits of your claims and, potentially, help you recover your losses.

Back to Top

Attorney Advertisement. Prior results do not guarantee a similar outcome.

Testimonials From Former Clients
I highly recommend Jenice and her team at Malecki Law. I had a challenging, and lengthly case. Jenice was professional, very knowledgeable, and a pleasure to work with. She managed to make the process far less stressful during a very difficult time. They care about their clients, and it definitely shows. Mario
Jenice is truly a miracle worker and one of the top securities lawyers. She handled a very difficult case for us, displaying her legal knowledge, intelligence, and savviness throughout the process. I cannot recommend her enough. The quality of work from her team rivals that of corporate law firms. She was always available, extremely professional, and made sure to know all the details of the case. We were very fortunate to have been referred to Jenice and highly recommend her for any securities related legal issues. Nathan A.
An excellent professional who represented us in trial regarding a bank fraud, an unexpected and difficult time. A professional that worked hard, persevering and who stood toe to toe against firms that had a team of excellent lawyers backing them up. Her unflinching determination really stands out, it makes you feel you have someone who really cares about trying to recover what you lost from the people that wronged you. Salomon Levi
It is difficult to thank you in words when gratitude comes from the heart, so I will try to link feelings with writing. It is essential for us to mention your excellence as a professional, your aptitude on legal fields, and your unavoidable persistence. All of these virtues that elevate the profession you exercise in such an admirable way, go hand in hand with your sense of ethics, your human warmth and the transparency in your actions. To sum up, thank you for being a listening ear and for having the right word while transmitting information about the legal process. Having you as our representative during such an adverse situation was a privilege and enough reason for our eternal gratitude. Angeles Aparain
To say that my securities litigation was complex would be a severe understatement. With multiple parties involved and spanning many years, trying to understand the issues was daunting to say the least. Jenice and her team broke down the transactions by segment and by party uncovering every hidden expense. In the end, I was more than happy and could not thank Jenice and her team enough. I would not hesitate to recommend Jenice to anyone. She is highly professional, incredibly knowledgeable, well connected to industry experts, has a tireless work ethic and is so pleasant and easy to communicate with. Five stars for sure! Andrew Loughrane