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Compliance October 21, 2008
Lawyer Sues Alliance Global Wealth Management after Losing $200,000
Divorce lawyer Raoul Felder is suing Alliance Global Wealth Management for $5.2 million, alleging that his financial advisers abused his trust.
Reported by Ellie Behling
In a lawsuit filed Monday, he alleges that the investment firm lost $200,000 of his money by ignoring his instructions and investment goals, the Associated Press reported. Felder has represented celebrities, including former New York Mayor Rudy Giuliani.
The suit alleges that Alliance Global Wealth Management officials persuaded Felder to put his money into risky investments, even though he expressed his desire for relatively conservative securities. He began to experience “significant losses,’ according to the news report.
Felder’s court papers say the Alliance financial advisers abused his trust and acted out of “greed and self-interest.’ The papers also say Felder wanted out of the fund in April, but was induced to stay until June, according to the Associated Press.