Hollander & Geller, of Doucet McBride LLP, pursue investor claims against Trapeze Asset Management Inc. and Trapeze Capital Corporation

OTTAWA, May 4, 2012 /CNW/ - The importance of consumer protection is highlighted in recent rulings by two financial industry regulators against Trapeze Asset Management Inc., Trapeze Capital Corporation (Trapeze), and their executives, Herbert Abramson and Randall Abramson. John Hollander & Harold Geller, the Financial Loss Recovery arm of Ottawa law firm Doucet McBride LLP, currently represent clients in 11 claims in the GTA and Ottawa against Trapeze, the Abramsons and related companies.

On April 27, 2012, following an investigation in response to complaints from investors, the Ontario Securities Commission (OSC) announced that Trapeze and their executives breached regulation by "inadequate collection of some clients' investment needs, objectives and risk tolerance." Also, they "inaccurately assessed the risk associated with many of the investments purchased on behalf of clients in managed accounts."

Trapeze and the Abramsons signed an agreement acknowledging these breaches, and admitted that many clients saw their investment portfolios decline in value by 50% to 90%.

http://www.osc.gov.on.ca/documents/en/Proceedings-SET/set_20120419_trapeze.pdf

The Investment Industry Regulatory Organization of Canada (IIROC) announced on April 27 that it came to the same conclusion.  Both regulators ordered Trapeze to conduct account reviews with all of their clients, "because of concerns regarding understatement of risk arising from (their) failure… to adequately consider factors such as price volatility risk."   Trapeze and the Abramsons admitted their sales literature understated the risk associated with their investment strategies and recommendations, and signed an acknowledgement of these breaches.

http://docs.iiroc.ca/DisplayDocument.aspx?DocumentID=D497C7384F6F4A05A4AEB93FFA3D6D53&Language=en

The OSC and IIROC rulings suggest a systemic failure in the advice provided to investors and in the compliance obligations of Trapeze.  In some cases, communication with clients was handled by relationship managers, including Jack Hayden, Michael Vinokur, and the late Richard Hermon. The Abramsons were the responsible portfolio managers and advisors. Clients who suffered losses due to this systemic failure may have the right to sue Trapeze and its executives.  No class action lawsuit has been initiated as of this date.

John Hollander & Harold Geller have extensive experience in the investigation and resolution of investor claims against financial advisors. For a free consultation, call toll-free: 1-888 460-4474 or e-mail: [email protected] or [email protected].

visit: www.financialloss.ca.