Stockbroker Found Liable For Peddling Unsuitable Mortgage Backed Investments To Unsophisticated Investors

In West Palm Beach, Florida, The Miami Herald reports:

• A civil jury has found Hillsboro Beach stockbroker Jamie Solow liable for running a fraudulent bond trading scheme that led to the collapse of two brokerages and caused millions of dollars in losses to hundreds of small investors. [...] The verdict, following a nine-day trial in federal court in West Palm Beach, is the latest wrinkle in the sweeping national credit crisis that is best known for costing investment banks billions in losses and putting many mortgage holders at risk of losing their homes. This time, the losers were individual investors who bought mortgage-backed investments for their retirement accounts.

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• Solow, 46, who lives in a $7 million oceanfront home on a stretch of A1A known as Millionaires' Row, got into trouble peddling arcane investments called inverse floating collateralized mortgage obligations (CMOs). Those so-called inverse floaters are highly volatile bonds typically intended for institutional investors like banks.

For more, see Jury: Stockbroker liable for fraud scheme (The SEC said it will ask a judge to take steps to kick a Hillsboro Beach stockbroker out of the securities industry) (if link expires, see if this link works.).