It’s interesting to discover winning a monetary award against an investment bank might not actually yield that award in its fullness. Recently an article covers ground where just such situations have taken place. An investor won a settlement through attorney Brian McDonough. It was $664,217. This win came more than a year ago. He was told, after winning this settlement, that if he didn’t accept a deeply discounted settlement that he would not recover the award in its fullness. The evidence? Apparently there are a number of other claims against Sands Brothers & Company, and if their awards were also won, in the end what was left might not be much. Wisely, McDonough refused this and his client collected the full amount. This took months, and Sands Bros. appealed the award. But the client did receive it in the end.
Apparently Sands Bros.’ “we’re paying so many settlements we can’t pay you what we owe you” argument is still being circulated by Sands Bros. attorneys. Poor investment practice does seem to be having its effect, however. Sands Brothers withdrew from being broker-dealers recently. A year and a half ago, they pulled out of the NYSE.
The article goes on to point out the shaky nature of Sands Brothers and Company right now. Though it seems clients do receive their just awards in the end, it’s only after a long battle against the attorneys at Sands Brothers.
They’ve since pulled out to the UK, and are now called Laidlaw & Company. Matthew Eitner and James Ahern are the principle leaders of this company that seems to be steeped in fraud and deception. Millions have been lost at their hands, and in London millions more may be. It’s important to take solid looks at cases like this and learn from them so that similar schemes which have yet to be vetted may be avoided. Wall Street is chock full of them. Laidlaw and Company is just another iteration of Sands Bros., and will essentially function with the same deceptive aim: to promise the world and then steal the money of investors.