No one really wants to bear losses. But, in case you have had a stock loss, then going to a stock loss recovery company may seem the next logical step. And it is not a bad move if you feel that your stock broker has acting in bad faith. However, one of the red flags FINRA lists as a scam is when the recovery firm asks for money up, like Cold Spring Advisory Group does.
After incurring a stock loss, seeking a stock loss recovery firm seems like a good move if you suspect that your stock broker mishandled your account, or deliberating made buy and/or sales for their own gain, not yours. So how can contracting a stock loss recovery specialist be the wrong move? It isn’t unless you contract the wrong company.
According to FINRA in their alerts, the stock loss recovery segment of the industry has seen the rise of scams. The cite warning signs, like high-pressure sales calls, salesmen that find you instead of you reaching out to them. In some cases the very brokers that were barred from the securities industry for fraud, sometimes stealing millions of dollars from unsuspecting clients, are the same guys popping up and now offering to help you recover lost investments due to broker misconduct.
One of the primary telltale signs of less than reputable stock loss recovery firms is when they ask for thousands of dollars up front. They’ll assure you that it’s just for expenses, not for them, and you’ll get it back from winning the case anyway.
We came across a company called Cold Spring Advisory who seems to fit the profile. We’re not categorically telling you that they are a scam, just that they could be. You’ll have to make that decision for yourself. They claim to be the largest stock loss recovery firm in the nation, yet the only place you can find that statement is on their own website, press releases that appear on sites as news articles, but were actually written and published by them.
How does it work?
Companies like this sometimes contact you out of the blue and seem to know a lot about your trading account. At first this may give you a sense that they know their stuff. But in many cases these companies get their access to client lists of brokerage companies they’re targeting. They proceed to give you a high-pressure sales job; they’ll tell you your case is strong and the likely hood of success is high, though they can’t ‘guarantee’ it.
In one case a client claims Cold Spring Advisory Group charged $6,000 in upfront fees, then did nothing. There was another case where the attorney missed appearances and the arbitration fees kept accumulating.
In fact, as it relates to Cold Spring Advisory Group, the lawsuits against them – like the one filed by National Securities alleging that Cold Spring Advisory Group obtained their client list illegally –, are not the most concerning aspect of their business. The owner is Michelle Ottimo, who has no securities background whatsoever, and is the wife of Louis Ottimo, who many surmise is the practical force behind the company’s operations. And his past record in the securities industry is littered with liens, judgements, sanctions, and bankruptcies. In fact, he just filed personal bankruptcy not too long ago.
Cold Spring Advisory Group and Louis Ottimo are not alone. There are many bad investment firms out there, and the bad brokers tend to follow there employment from one failed company to another.
So, if you get a call from out of the blue inquiring into your stock investments, and/or specifically about a loss, beware! When it seems to be too good to be true, it usually isn’t.
Check what firms they’ve gone after to determine if it is a wide variety, or focused in on just a few. That latter may be a tip-off that they may have obtained a client list illegally and targeting just that client base.
A little attentiveness can help you save thousands or tens of thousands of dollars. If you’ve lost money in the securities industry, move slow, find credible lawyers and/or recovery firms — they typically do not ask for upfront fees like Cold Spring Advisory does. No need losing more money on top of your existing loss — because you moved to quickly and bought into an aggressive sales pitch assuring you good and how strong it is!
No one really wants to bear losses. But, in case you have had a stock loss, then going to a stock loss recovery firm may come up in your mind as one of the things to do next. While you do so, it is important to be aware of such stock loss investment recovery firms that make troubled investors bear more losses than what they did before. Although investment recovery scams are not new, but their development and the tactics employed to trap investors are witnessing constant evolution with each passing day.
Here are a few red flags that you may want to be careful about, while putting your trust in a stock loss recovery firm.
- They may make claims that don’t always stand true – Browse the Internet and you will find various claims made by companies that offer help to those who have experienced a stock loss. They claim to bring back their lost money, on the payment of an upfront fee of thousands of dollars. So, they lure investors and take more money from them, without recovering the amount due to them in several cases.
- They have a shady background – A bit of research on the web will bring many complaints in front of you about the companies that appear to be working shrewdly. Find the details about the background of their owners and see if they are barred by the NSDA or FINRA, or sued by previous clients.
- They resort to self-promotion – If a company provides good services, its services get automatically promoted. But, that’s not the case with such companies which deliberately try to come into the limelight with self-published press releases. This reveals a lot about the honesty of such companies and the legitimacy of the services that they provide.
One such company that seems to have been operating in the manners listed above is Cold Spring Advisory Group, especially with the shaky background of its owner, Louis Ottimo working with the backing of his wife, Michelle Ottimo. Allegedly, this firm and its members are ripping off people with their scams and fake promises, and have left many troubled investors much more distressed than what they were before.
Thus, be cautious when you rely on a stock loss recovery firm and remember the above-mentioned warning signs when dealing with one such company that claims to bring back your lost money.
Did you lose your money in the stock market? Are you looking for a reliable stock loss recovery firm? Well, if yes, then do take great care in choosing the right firm, not just any firm, or the first firm. There are many firms of questionable intent operating in the industry, searching for clients like you. One such firm is Cold Spring Advisory, which uses aggressive sales tactics [that FINRA warns about] to lure your in.
In our lives, we all make some wrong decisions. But what is worse is to make them consciously. So, in case you have been searching for an investment recovery firm, then reading this information is absolutely important for you to avoid any wrong decision.
Cold Spring Advisory LLC is a firm that makes tall claims when it comes to stock loss recovery or investment recovery and there are many reasons why you should stay away from this firm.
We’ve been following an interesting case of a former stock broker. he was in the securities industry for many years, and had many sanctions, liens, withheld crucial information in filings, failed to make filings, and was ultimately barred from the industry by FINRA. Now Louis Ottimo of Cold Spring Advisory files Chapter 7 Bankruptcy
Trust, in this day and age, has become a major issue. People have stopped relying on others. And the reason is pretty much valid – existence of companies like Cold Spring Advisory using aggressive sales tactics to lure clients in, charging them up front fees, and then — at times — costing them more money when their case is lost.