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Shepherd Smith Edwards & Kantas LLP Investigates Claims for Clients of H&R Block Financial Advisors in Light of Regulatory Fines for Inadequate Supervision of Reverse Convertible Notes

HOUSTON, Feb. 17, 2010 (GLOBE NEWSWIRE) -- The Securities Law Firm of Shepherd Smith Edwards & Kantas LLP, www.sseklaw.com, is currently investigating claims on behalf of investors who purchased reverse convertible notes (RCNs). The Financial Industry Regulatory Authority, also known as FINRA www.finra.org )">, announced an enforcement action involving the sales of reverse convertible notes. As a result of the action, FINRA fined H&R Block Financial Advisors, Inc., (n/k/a Ameriprise Advisor Services, Inc.) $200,000 for its failures to establish adequate supervisory systems and procedures for supervision in the sales of RCNs to consumers. FINRA also fined and suspended H&R Block broker Andrew MacGill. The firm was ordered to pay $75,000 in restitution to an elderly couple for losses they incurred.

In the enforcement matter, FINRA concluded that H&R Block engaged in sales of RCNs without having procedures in place to effectively monitor customer accounts for potential over-concentrations in RCNs. As a result, it was concluded, that H&R Block failed to detect, and furthermore, failed to respond to indications of potential over-concentration in RCNs in customer accounts. 

At the same time, in an effort to educate consumers about how these products work, FINRA released an Investor Alert entitled, Reverse Convertibles - Complex Investment Vehicles.  FINRA also issued Regulatory Notice 10-09, which reminded firms of their sales practice obligations when recommending or selling these complex instruments to retail investors. If you were an investor in RCNs, regardless of the financial institution, 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 and our clients have recovered more than $100 million through our assistance in negotiation, mediation, arbitration and litigation.

CONTACT:  Shepherd Smith Edwards & Kantas LLP
          Kirk Smith   
            ksmith@sseklaw.com
          Sam Edwards  
            sedwards@sseklaw.com
          800-259-9010