An elderly couple who lost a €12,000 bond investment in a bailed-out bank are accusing their financial brokers All Invest of "gross negligence."
In a judicial protest, Raymond Vidal, 59, and his 60-year-old wife Maria said they were sold two high‐risk bonds, a Commerzbank bond with a value €30,000 and an SNS Bank bond with a value of €12,000.
By "good fortune," the €30,000 Commerzbank bond was sold without any losses, but the €12,000 investment was lost when SNS Bank, which has already been bailed out in the past, was unable to keep up with its repayments and had its bond expropriated by the Dutch government in February 2013.
The couple said that the risk behind these investments was not adequately explained to them by All Invest.
They accused the company of total abandonment of the principles of honesty and professionalism, as well as gross negligence for not conducting a proper due diligence on the banks in question.
The couple said the bonds were sold to them on the insistence of All Invest's 29‐year‐old investor Wallace Falzon.
They said Mr Falzon made them sign off on certain contract clauses they did not fully understand.
The couple filed a complaint with the Malta Financial Services Authority in May 2013, and after a lengthy investigation the regulator found negligence on the part of All Invest.
The MFSA said that All Invest failed to comply with its recommendations for a remedy.
The judicial protest was signed by lawyer Stefano Filletti.
from The Malta Independent http://ift.tt/1KU1LUN
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