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So companies selling complex products often do not compete on quality and price.
LPL brokers have been penalized for selling complex investments to unsophisticated investors, for speculative trading in customer accounts, and, in a few cases, for outright stealing from clients.
BROKERS selling complex securities that they once contended were safe and sound have saddled individual investors with billions in losses since the credit bubble burst.
A month later, LPL agreed to pay $2.5 million after the state of Massachusetts accused the firm of improperly selling complex real estate investments to unsophisticated investors.
Wall Street investment banks are marketing and selling complex schemes meant to allow foreign investors, including offshore hedge funds, to avoid paying billions of dollars in dividend taxes illegally, according to a Senate subcommittee report released Wednesday.
In September 2008, a Senate subcommittee issued a scathing report, "Dividend Tax Abuse," that accused Wall Street banks of marketing and selling complex swaps intended to evade taxes on dividend payments.
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The S.E.C. is also examining how Wall Street banks sold complex mortgage investments.
I.B.M. used to sell complex hardware, software and services packages to chief executives and their ilk.
Moreover, banks are re-assessing the way they sell complex retirement products.
Ask Selectica, a San Jose, Calif., company that makes software to help businesses sell complex products over the Internet.
But it turned out that many banks had also sold complex insurance policies on the mortgage debt.
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