Haselkorn & Thibaut, P.A., (InvestmentFraudLawyers.com) continue their investigations into the Harvest Volatility Management Collateral Yield Enhancement Strategy (“Harvest CYES”) that Merrill Lynch Wealth Management customers have purchased. Merrill Lynch is a division of Bank of America Corp. (NYSE: BAC) which offers broker-dealer services. Harvest CYES was sold to brokerage clients of Merrill Lynch as a managed option trading account strategy. Our investigation will focus on the legal claims submitted by Merrill Lynch customers for their losses in the CYES harvest bordering on false risk statements, material omissions and recommendation of an unsuitable investment by Merrill Lynch.
What is Harvest CYES and “Iron Condor”
The Harvest CYES strategy involved trading in “Iron Condor” options in order to earn premium income from short put and call covered options. According to InvestmentFraudLawyers.com, a strategy like this is speculative and aggressive with the potential to lead to losses in the event of a recession or stock market volatility. Investors who do not seek this type of risk should not invest in Harvest CYES. If there is an investor who has suffered a loss in Harvest CYES, this investor should contact us to allow us to review our portfolio.
On August 23, 2019, the Wall Street Journal published a report on an investor arbitration attempt to recover a loss of $750,000 they suffered in the UBS Yield Enhancement Strategy (YES). According to the article, the investor’s financial advisor not only did not disclose the risks of YES, but he also deceived her about her resume and her security.
What can CYES Harvest investors do?
Individual investors who have lost money in “performance improvement strategies” can benefit from financial compensation. For a free and confidential review of the case, investors should call 888-628-5590.
According to Palm Beach, Florida investment fraud lawyer, Matthew Thibaut, Esq., the Harvest Volatility Management LLC (“Harvest Volatility”) strategy may have involved potential misrepresentations to investors who incurred unexpected significant investment losses, the Harvest Volatility options overlay strategy, which is also referred to as a Collateral Yield Enhancement Strategy, or CYES, was represented to many investors as a purportedly low-risk and low-volatility strategy that would generate an incremental yield for investors, but in reality, investors found the level of risk and volatility significantly higher than what was represented or disclosed and for some investors it resulted in significant unexpected losses.
If you are an investor who has information about suspected sales practices related to performance improvement strategies at Merrill Lynch or any other company, or if you have suffered losses in relation to YES strategies, contact Haselkorn & Thibaut, PA, 888- 628- 5590 for a free consultation. Haselkorn & Thibaut, P.A. manage cases nationally.
Robert Thomas has over 14 years experience in the investments on the institutional side of markets and has an “insider” view on the markets. In addition, he is an futures day trader that focuses on analyzing fundamentals, specifically earnings reports and technical levels. He has a Masters Degree in Business and Economics.