Frankowski Firm Investigating Raymond James MLP Recommendations

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Frankowski Firm Investigating Raymond James MLP Recommendations

The Frankowski Firm, LLC is investigating Raymond James’ potentially inappropriate recommendations of oil and gas and commodities related investments. Investors may have legal recourse because of unsuitable recommendations by their broker to invest in this speculative and volatile area. Raymond James has served as an underwriter for many master limited partnership (MLP) deals, and their analysts have given high ratings to these investments.

Jeff Saut, chief investment strategist for Raymond James, claimed that his favorite MLP investments included Yorkville High Income LLP ETF (YMLP) and Yorkville High Income Infrastructure MLP ETF (YMLI). These two funds have dropped substantially since this claim.

Linn Energy (LINE) and LinnCo (LNCO) were other individual MLP investments that were recommended by Raymond James, experienced substantial drops, and are now facing potential bankruptcy. Over the last year, both stops have dropped in value by roughly 98%. Over a number of years, Raymond James analyst Keven Smith maintained a “Strong Buy” rating on Linn Energy. Only after the stock dropped 50% in value without any signs of improvement did Smith downgrade the stock to “Outperform” and the price target to $9 from $15. Only when Linn Energy reached to verge of bankruptcy did Raymond James drop the stock to “Underperform.”

Brokers that have recommended MLP products to investors may have made unsuitable recommendations based upon the yields of these investments rather than the risk to principal. Over the past year MLPs have been hammered due to weaknesses in oil and gas and commodities markets.

Financial advisors must ensure that the oil and gas and commodities related investments being recommended to their clients is appropriate for the investors and conduct due diligence on the company before making the recommendation. Unfortunately, sometimes adivsors fail to conduct sufficient research or understand the risks and prospects of the company. Oil and gas and commodities related investments have been recommended by brokers under the assumption that commodities prices would continue to go up. However, brokers who sell oil and gas and commodities products are obligated to understand the risks of these investments and convey them to clients.

If you or someone you know has lost money as a result of being sold unsuitable investments, please contact Richard Frankowski at 888-741-7503 to discuss your potential legal remedies or complete the contact form.

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