December 2016-Denver, Colorado
Brokerage firm Mid Atlantic Capital was ordered to pay a married couple $922,000 by a FINRA arbitration panel for damages they suffered to their brokerage account as a result of the sales of illiquid real estate private placements that were sold to them prior to the 2008 credit crisis. Wellman, et al vs. Mid Atlantic Capital Corporation, FINRA Case#15-0333.
The claims were brought for losses on the following investments:
- Sonoma Ridge Partners real estate investment trust
- KBS real estate investment trust
- Contango Oil and Gas, Inc.
- iShares Silver
- Market Vectors Gold Miners
The claimants alleged breach of fiduciary duty, negligence, negligent misrepresentation, omissions, violation of Colorado Securities Act, common law fraud, negligent supervision and other claims. The claimants alleged that they did not have the required net worth to be considered accredited investors as required by industry rules for the purchase of private placements.
Mid Atlantic Capital, headquartered in Pittsburgh, PA, has been a registered broker dealer since 1982. It employs about 175 registered representatives. Official FINRA records disclose that Mid Atlantic Capital has been involved in 5 prior regulator matters that are final.
FINRA arbitration offers investors a streamlined way to pursue the recovery of damages for investment losses for the negligence and/or fraud of stockbrokers and brokerage firm. If you have questions about your account with Mid Atlantic Capital or any other brokerage firm, call to discuss your legal options.
Rex Securities Law , with offices in Boca Raton, FL, and Austin, TX, provides representation to investors nationwide who are seeking recovery of investment losses due to the negligence or fraud of stockbrokers and broker dealers. If you have questions about how your account has been handled, call to speak with an experienced securities attorney.
Most cases handled on a contingent fee basis meaning that you do not pay legal fees unless we are successful.
Florida-561 391 1900