FINRA arbitration claim:
Sanford C. Bernstein & Co., LLC and Bernstein Global Wealth Management, a unit of Alliance Bernstein
A wealthy investor has filed an arbitration claim against Sanford C. Bernstein & Co., LLC and Bernstein Global Wealth Management, a unit of Alliance Bernstein as a result of his account executives continuous solicitation to invest funds into the Bernstein Global Diversified Plus Hedge Fund L.P., and Alliance Bernstein Global Diversified Strategies, L.P.
According to the Respondents' literature, hedge funds can fare well in some broad stock market declines. However, hedge funds have often suffered when the financial system experiences a sudden disruption. Whether geopolitical or more limited in scope, these so-call systemic shocks tend to impact hedge funds in a far greater percentage than the market as a whole. This claimant was invested in the market during the systemic failures discussed by the President in some of his speeches at the end of 2007 and the beginning of 2008. During the period of systemic shocks, instead of suggesting to the claimant that he withdraw his money from the funds, the respondents solicited his further investment of money. Consequently, this claimant suffered damages of in excess of $2,000,000.
