Claims for InterNotes Losses

Get Seasoned Help Recouping InterNotes Losses

In late 2007, as the stock market became increasingly volatile, smart investors started looking for safe places to park their money, such as high-quality corporate bonds. Unfortunately, banks stopped lending at about the same time, and institutional investors did not trust troubled companies with their money.

As a result, it was becoming increasingly difficult to find bond offerings for everyday investors. Incapital LLC floated the idea of offering access to bonds of major companies, such as GMAC, Bank of America and Lehman Brothers to smaller investors through the CIT InterNotes.

An investor could buy the securities at face value, enjoying a steady income stream until they matured, when the investor could recover the full face value. Investors were also offered a “survivor’s option”, so that a surviving spouse gets the face value of the securities if and when they are ever needed.

What Went Wrong?

The basic assumption behind this financial product was flawed. InterNotes were created and sold, because the institutional investors refused to invest any more money in troubled major companies. So they turned to smaller investors through the sale of CIT InterNotes.

The brokers who sold CIT InterNotes had a responsibility to the investors. We believe they should have recognized the fatal flaw in the sale, and advised investors that CIT InterNotes are not safe or secure investments.

If you have lost money in CIT InterNotes, contact the Cleveland, Ohio, law offices of Hermann, Cahn & Schneider. Our attorneys are experienced in securities law, investment fraud and investment losses, and will pursue recovery.

Pursuing the “Survivor’s Option”

The “survivor’s option” was a big selling point to many investors, because it guaranteed liquidity in case of premature death. The family or surviving spouse could access the face value of the funds, supposedly, and enjoy a safe, secure nest egg.

Unfortunately, the brokers did not tell many investors that CIT InterNotes limited the amount of “death puts” per year. If more than $2 million had already been paid out that year, the family would not be able to access their CIT InterNotes funds.

Contact Us for Aggressive Advocacy

If you have suffered investment losses due to an InterNotes investment, contact a skilled losses lawyer here at Hermann, Cahn & Schneider. We can help you protect your rights, and pursue recovery of funds, due to financial misconduct by your broker.

Call us for a confidential consultation at 877-215-0593. The initial consultation is free, and we work on contingency, so you pay attorney fees only if we recover funds.