Easterly ROCMuni High Income Municipal Bond Fund

If you recently suffered losses after investing in the Easterly ROCMuni High Income Municipal Bond Fund, you may have a case for a securities fraud attorney. Kurta Law securities attorneys have experience representing investors who have lost money on “high yield” bonds, otherwise known as junk bonds.

Easterly ROCMuni Fund share prices recently decreased by nearly 60%. As of August 22, 2025, shares of Easterly ROCMuni are worth $2.95. Your broker may have violated securities industry rules by making an overly risky bond recommendation.

According to the Easterly ROCMuni Fund website, the Fund sought “to provide long-term, yield driven total return relying mostly on fundamental credit analysis by building a diversified high-yield portfolio focusing on overlooked and underappreciated sectors of the high-yield municipal bond market.” These investments may have been “overlooked” and “underappreciated” because they posed high risk. Junk bond schemes often use these types of euphemisms to lure in unsuspecting investors. Investors may have also found the bonds’ payments, or coupons, especially attractive because of their higher-than-average payouts. But higher payouts always come with higher risk, and investors should have been warned of these risks by their brokers.  

Alleged Securities Industry Rule Violations

Kurta Law believes brokers from Stifel, Nicolaus & Company as well Osaic may have recommended shares of Easterly ROCMuni Municipal Bond Fund.

Brokers who recommended shares of Easterly ROCMuni Municipal Bond Fund should have abided by Regulation Best Interest, which includes the Duty of Care. According to the Duty of Care, representatives must provide their clients a clear assessment of the risks associated with an investment. High-yield bonds always come with an especially high risk.

These brokers may have had financial incentives – i.e., hefty commissions – to recommend these high-risk bonds. Regulation Best Interest imposes the Disclosure Obligation, which obligates brokers to inform their investors of any conflicts of interest.

Why Did the Easterly RocMUNI Fund Decline in Value?

• Unfortunately for Easterly ROCMuni investors, the Fund allegedly invested in much higher risk investments than it originally represented.
• The Fund also allegedly did not invest in appropriately diversified assets.
• Furthermore, the share prices of the bonds depended on asset valuations, and former investors have alleged that the fund overstated individual asset valuations and historical performance.

What is a Municipal Bond?

Municipal bonds are issued by state and local governments and are typically backed by a revenue stream like highway tolls. These revenue streams are generally reliable and make municipal bond funds relatively unlikely to default, especially when compared with bonds issued by small companies. Investors who purchased shares of Easterly ROCMuni may have been seeking regular income payments that are not subject to income tax. Instead, the Fund allegedly invested in small companies that posed much higher risk.

Contact Kurta Law Today

Kurta Law provides free case evaluations, and our attorneys do not collect a fee unless we win your case. Our attorneys have successfully represented investors who lost money in junk bond schemes. With over $200 million of investor funds recovered, we have extensive experience winning cases against dishonest brokerage firms. Call (877) 600-0098 or email info@kurtalawfirm.com.