Safeguards Are Scant as Registered Advisers Increase 39%
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Arnold and Cheryl Levy were a year away from retiring when Jeffrey Liskov, acting as their registered investment adviser, took a large position during July 2009 in a speculative fund with Arnold’s retirement money.
The Levys were dealing with an ill family member at the time and the trade escaped their notice until December of that year when Liskov alerted them to losses on the fund, the Levys said in a telephone interview. According to court filings they lost about $85,000 on the ProShares UltraShort MSCI Emerging Markets exchange-traded fund, which placed bets that foreign stocks would drop.