By staff writer Matthew Daneman
Democrat & Chronicle - Rochester N.Y.

Leveraged exchange-traded funds – involving the trading of securities representing mutual funds – are one of those risky, high-payout-if-you-get-it-right investments that aren't for the novice stock picker and generally not for holding long term.
They also are a centerpiece of a legal fight involving a Southern Tier investment counselor and financial commentator and a variety of investors.
A complaint filed in June with the Financial Industry Regulatory Authority alleges that William L. Tatro put investors' money into high-fee, high-commission investments including variable annuities, real estate investment trusts and leveraged exchange-traded funds.
"Regardless of customers' needs, Tatro undertook a course of conduct that generated excessive commissions... READ THE FULL ARTICLE HERE

Bill Tatro/ Caprice Mallett investors may contact The Pearl Law Firm, P.A., 1159 Pittsford Victor Road, Suite 220, Pittsford, New York 14534, for a free evaluation of their situation at 585-381-3820 or 239-653-9330.

 

Bill Tatro and his wife, Caprice Mallett, hit with lawsuit by Morgan Stanley

The following represents an excerpt of a complaint filed against Tatro & Mallett by  Morgan Stanley Smith Barney on April 28, 2011.



MORGAN STANLEY SMITH BARNEY LLC vs. MARY HELEN CAPRICE MALLETT and WILLIAM TATRO
Maricopa County Superior Court, Arizona, Index No. CV2011-009184; Case filed April 28, 2011
VERIFIED COMPLAINT AND APPLICATION FOR PROPVISIONAL REMEDIES WITH NOTICE (ATTACHMENT AND GARNISHMENT)

Morgan Stanley Smith Barney LLC ("MSSB" or the "Company"), for its Verified Complaint and Application for Issuance of Provisional Remedies with Notice (Attachment and Garnishment) against defendants Mary Helen Caprice Mallett ("Mallett") and William Tatro ("Tatro), alleges as follows:
GENERAL ALLEGATIONS
1. Plaintiff MSSB is a Delaware Corporation with its principal place of business located in New York.
2. Defendant Mallett is and was a resident of Maricopa County, Arizona at all times relevant herein.
3. On information and belief, Defendant Tatro, Mallett's husband...READ THE FULL DOCUMENT HERE

Tatro/Mallett investors may contact The Pearl Law Firm, P.A. for a free evaluation of their situation at 585-381-3820 or 239-653-9330.

 

Arbitration award of over $ 1/2 million against Bill Tatro's firm

Below is an excerpt from the Arbitrator's decision on February 22 , 2010 to award claimant over $530,000 as a result of Tatro's misconduct. A link to the full document is also provided below.

The events of December 2006 are particularly telling.  Mr. Tatro testified that in December 2006 he reduced his position in inverse funds (Tr. 965), but Exhibit 1 reveals that he dramatically increased his holdings in Proshares QID during that month.  Mr. Tatro went on to claim that he sold Rydex in that month because he wanted cash, but offered no explanation as to why he sold Rydex and no some other securities. (Tr. 964-66) Furthermore, Mr. Tatro’s emails from December 2006 belie his testimony, which sought to explain his purported long-term strategy.  On December 22, 2006, Mr. Tatro sent an email newsletter explaining that he anticipated a year-end market correction because traders would be selling off before December 31.  See, Exhibit 503 at 897.  That very day, December 22, Mr. Tatro purchased 3,500 shares of Proshares Ultra Short (QID).  This purchase was not part of any long-term strategy, but rather, was a bet that he could make up for some of his 2006 losses by taking advantage of an anticipated year-end correction... READ THE FULL DOCUMENT HERE

Bill Tatro/Caprice Mallett investors may contact The Pearl Law Firm, P.A. for a free evaluation of their situation at 585-381-3820 or 239-653-9330.

 

Bill Tatro's sales of leveraged ETF's called into question

According to a release by the Financial Industry Regulatory Authority(FINRA) in 2009, EFT's (sold by Tatro/Mallett) were unsuitable for retail investors. See the below excerpt from this regulatory notice.

Exchange-traded funds (ETFs) that offer leverage or that are designed to perform inversely to the index or benchmark they track or both are growing in number and popularity. While such products may be useful in some sophisticated trading strategies, they are highly complex financial instruments that are typically designed to achieve their stated objectives on a daily basis. Due to the effects of compounding, their performance over longer periods of time can differ significantly from their stated daily objective. Therefore, inverse and leveraged ETFs that are reset daily typically are unsuitable for retail investors who plan to hold them for
longer than one trading session, particularly in volatile markets... READ THE FULL DOCUMENT HERE

Bill Tatro/Caprice Mallett investors may contact The Pearl Law Firm, P.A. for a free evaluation of their situation at 585-381-3820 or 239-653-9330.

 

By staff writer Lauren Stanforth
Democrat & Chronicle - Rochester N.Y.

The winner of one of Monroe County's largest lottery jackpots has filed a $6.3 million complaint against a Penfield stockbroker accusing him of losing most of her savings.
On Nov. 25, Greece resident Shirley Begy filed a claim for arbitration with the National Association of Securities Dealers against Penfield financial adviser William L. Tatro IV, president of Eagle Steward Ltd.
Begy, 74, says Tatro went against her direction and invested $3.2 million of her money in high-risk ventures - and moved her money around so he could profit off commissions. Begy says she lost $2 million. She is seeking $6.3 million dollars in compensatory and punitive damages. ''I can understand now why people who win the lottery go broke '' Begy said.
Tatro said he invested Begy's money in those ventures because she had other money stashed elsewhere and that l Begy lost her money when the stock market plunged between 2000 and 2002. Begy's complaint comes as a federal case is being heard in Rochester in which four former clients say Tatro also mismanaged...READ THE FULL ARTICLE HERE

Bill Tatro/Caprice Mallett investors may contact The Pearl Law Firm, P.A. for a free evaluation of their situation at 585-381-3820 or 239-653-9330.

 

By staff writer Frank Bilovsky
Democrat & Chronicle - Rochester N.Y.

Three others have joined a Pittsford woman's class-action lawsuit against a local financial adviser. The suit, filed in March 2003, alleges that William L. Tatro IV, president of Penfield's Eagle Steward Ltd., subjected the plaintiffs to heavy losses in the stock market by exposing their assets to inappropriate risks and misrepresented his qualifications.
Joining Deborah Souter in the complaint filed in federal court in Rochester are Ronald Conley of Rochester Rosemary l Spratt of Brighton and Nancy Burton of Rochester.
They claim Tatro lost hundreds of thousands...READ THE FULL ARTICLE HERE

Bill Tatro/Caprice Mallett investors may contact The Pearl Law Firm, P.A. for a free evaluation of their situation at 585-381-3820 or 239-653-9330.

 

By staff writer Richard Mullins
Democrat & Chronicle - Rochester N.Y.

Penfield stockbroker William L. Tatro IV fired back at a former client who has sued him in federal court for stock fraud, saying her suit is a personal vendetta.
"This is a willful attempt to destroy my business," said Tatro, president of the investment firm Eagle Steward Ltd., at a press conference at the Henrietta Baptist church, where he is a member. Tatro said he believes Deborah Souter's actions are a "conspiracy" with one of his former employees. Souter claimed in a March suit that Tatro exposed her financial assets and those of other, unnamed plaintiffs inappropriate risks, misrepresented his qualifications and made 174 unauthorized trades from her account. On Thursday, Tatro denied all those claims and said Souter's lawsuit stems from a failed relationship they had from 1996 to 1998, while he was separated from his wife. "Every transaction was authorized," Tatro said of Souter's investments, handing out documents detailing her accounts...READ THE FULL ARTICLE HERE

Bill Tatro/Caprice Mallett investors may contact The Pearl Law Firm, P.A. for a free evaluation of their situation at 585-381-3820 or 239-653-9330.