A mortgage-backed security is an asset-backed security that represents a claim on the cash flows from mortgage loans through a process known as securitization. Collateralized debt obligations are a type of structured asset-backed securities with multiple risk "tranches" that are issued by special purpose entities and collateralized by debt obligations including bonds and loans. With the real estate market collapse in 2008, many of these investments plummeted and investors lost billions.
The SEC charged Mr. Morales and Commonwealth Advisors with breaching various sections of the Securities Acts of 1933 and the Securities and Exchange Act of 1934 as well as Rule 10b-5. SEC Division of Enforcement Director Robert Khumazi said, "Morales and Commonwealth Advisors concealed significant hedge fund losses from investors, including pension fund investors, instead of owning up to them and facing the consequences." Mr. Khumazi also stated that "investors put their fundamental trust in the hands of their investment adviser, and they deserve better than being manipulated and lied to through deceptive trades and phony documents."
Have you suffered losses in mortgage-backed securities resulting from Commonwealth Advisors' concealment scheme? If so, call Robert Pearce at the Law Offices of Robert Wayne Pearce, P.A. for a free consultation.
The most important of investors' rights is the right to be informed! This Investors' Rights blog post is by the Law Offices of Robert Wayne Pearce, P.A., located in Boca Raton, Florida. For over 30 years, Attorney Pearce has tried, arbitrated, and mediated hundreds of disputes involving complex securities, commodities and investment law issues. The lawyers at our law firm are devoted to protecting investors' rights throughout the United States and internationally! Please visit our website, www.secatty.com, post a comment, call (800) 732-2889, or email Mr. Pearce at email@example.com for answers to any of your questions about this blog post and/or any related matter.