Behringer Harvard-Want to Sell Your Shares?

Cheap?
I mean really cheap.
According to the Investment News, there have recently been a couple of unsolicited tender offers for Behringer Harvard Short-Term Opportunity Fund I, a limited partnership and Behringer Harvard REIT I, Inc. a nontraded real estate investment trust.

Investors purchased most of the shares and units at $10.

In one minitender, Peachtree Partners is offering twelve, yes $.12, cents per share for the Short-Term Opportunity Fund I. In another, CMG Legacy Income Fund LLC is offering $1.80 per share for Behringer Harvard REIT I. Both of these offers are only a fraction of the fund’s most recently report valuations.

Behringer Harvard suspended their redemption program some time ago and investors needing liquidity have few options, if any, if they need to dispose of the investment to raise cash. A websearch for “REIT secondary market” will yield a number of companies who help investors dispose of illiquid investments not traded on exchanges.

Many investors purchased nontraded REITs with the belief that distributions would be consistent and unaware of the fact that no market existed should they need to dispose of the investment to raise cash. Stockbrokers have a duty to warn investors of risks and to make recommendations that are suitable.

If you have questions about the way your brokerage account is being handled or investment losses you have suffered, please do not hesitate to contact us.

Rex Securities Law , located in Boca Raton, FL, 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.

Rex Securities Law

561 391 1900

 

Exchange Traded Funds-Use Caution

Exchange-traded funds (ETFs) have become very popular over recent years and many investors are led to believe they are conservative and risk free.

This is not always the case.

An ETF is and investment that holds assets (stocks, bonds and/or commodities) which trades on stock exchanges, much like a stock. The fair market value is generally close to the net asset value of the investment it holds, at the end of each day. It is designed to combine the features of a mutual fund or unit investment trust.

Last year, the Florida Office of Financial Regulation (OFR) cautioned retail investors about ETFs. They stated in their release:

“While ETFs are often compared to mutual funds and marketed to investors seeking safe, stable investments, not all ETFs are the same. OFR’s advisory notes that some traditional ETFs may be appropriate for long-term holders, but others, including exotic leveraged and inverse ETFs, may require daily monitoring.”

ETF’s contain risks related to liquidity, fees and tax consequences that investors should understand before investing. Most importantly, if you are a retiree on fixed income, you need to understand whether the ETF your broker is suggesting is right for you and can you sell it quickly if you need cash?

UNG, USO and DBA are ETF’s that were designed to track the price of an underlying commodity, however have not succeded so well. Many brokers sold these investments without adequately disclosing risk issues. Direxion Funds, ProShares and Rydex also offered ETF’s that may not be suitable to retail investors, especially if you are retired.

If you have questions about the way your brokerage account is being handled or investment losses you have suffered, please do not hesitate to contact us .

Rex Securities Law , located in Boca Raton, FL, 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.

Rex Securities Law

561 391 1900

 

 

Brookstreet- Risky CMO’s Lead to $10MM Fine

The SEC’s case against the former CEO of Brookstreet Securities Corp., Stanley C. Brooks, has led to a fine of 10 million dollars. A federal judge recently entered this penalty, which was the maximum allowable, for selling risky mortgage-backed securities to investors whose goals were conservative.

Rex Securities Law represented a number of these victims. Most were retirees, living on fixed income who could ill afford to take the risks associated with these products. Unfortunately the brokers told the customers that the products were safe and secure and that they would provide steady income, at rates substantially higher than more traditional investments.

This is another case of If It Looks Too Good to be True, It Probably Is.

When the economy faltered, these illiquid & risky investments plummeted in value, millions were lost and the lives of thousands of retirees were altered drastically as they came to grips with the fact that they could no longer afford their living expenses.

Further misfortune ensued, when unable to provide restitution to the victims, the company collapsed.

Tragedy continued when Clifford Popper, one of Brookstreet’s local salesmen who was being sued by the SEC for his participation, committed suicide in 2011.

Moral of the story is to question any investment that is paying a return inordinately higher than the other conservative investments. Wall Street will continue to pump out these products despite regulatory attempts to stop it.

Currently we are seeing potential similar issues with REITs (Real Estate Investment Trusts) and CLO’s (collateralized loan obligations).

Rex Securities Law , located in Boca Raton, FL, 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.

Rex Securities Law

561 391 1900

 

Securities & Exchange Commission Warns Investors to be Wary of Unauthorized Trading In Stock Brokerage Accounts

The SEC recently released an alert telling brokers and investment advisers to pay closer attention to unauthorized trading in customer brokerage accounts.

In the risk alert issued by the nation’s top securities watchdog, the SEC says firms should watch for:

  • Changes in trading patterns
  • High volume of trade cancellations or corrections
  • Manual trade changes
  • Unexplained profits for a particular broker
  • Rogue trades
  • Trades that exceed risk tolerance for a particular client

Brokers, traders, assistants, portfolio managers, risk managers and advisers are all potential perpetrators. The alert went on to warn firms to review their supervisory procedures to determine if improvements could be made to address the concerns.

Over the years we have seen a multitude of cases involving retirees whose brokerage accounts were traded without their authority. Unless you have granted discretionary authority, which must be done in writing, to your broker, the broker is required to obtain your authority before buying or selling in your account.

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.

Nationwide Representation

Rex Securities Law

TollFree: 877-224-3199

Florida-561 391 1900 

Texas-512-329-2870

FINRA BrokerCheck Website Provides Background Information on Stockbrokers

Before entrusting a financial advisor with your Nest Egg wouldn’t you like to know if that broker has a history of customer complaints , sanctions by securities regulators or has been fired by a firm for cause?

Of course you would. FINRA maintains a public website where investors can access this critically valuable information.

Regulatory Notice 12-10, recently published by The Financial Industry Regulatory Authority ( FINRA) , seeks public comment on ways to facilitate and increase investor use of the BrokerCheck information.

BrokerCheck is designed to help investors make informed choices about the individual stockbrokers and firms with which they currently conduct or are considering conducting business by supplying information  about the educational, employment and disciplinary history of registered stockbrokers and brokerage firms. This is an extremely valuable tool that many investors are unaware exists.

You can find out quickly by visiting BrokerCheck on the FINRA website and inputting the name of your broker or brokerage firm.

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.

Nationwide Representation

Rex Securities Law

TollFree: 877-224-3199

Florida-561 391 1900 

Texas-512-329-2870

Grubb & Ellis Seeks Bankruptcy Protection

The  Investment News recently reported that Grubb & Ellis Co. is selling most of its assets to BGC Partners and blaming on the 2007-2009 downturn in US real estate markets, and has filed for bankruptcy protection.

It is not presently known what impact this bankruptcy filing may have on the Grubb & Ellis REITs , such as Grubb & Ellis Healthcare REIT or Grubb & Ellis Apartment REIT.

We are presently investigating claims on behalf of REIT investors, including Grubb & Ellis REITs.

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.

Nationwide Representation

Rex Securities Law

TollFree: 877-224-3199

Florida-561 391 1900 

Texas-512-329-2870

 

Investment Loss Recovery-Information on recovery of investment losses due to the negligence or fraud of stockbrokers. Nationwide representation.