Tag Archives: texas securities fraud lawyer

Recovery Options for Investors with Losses in Cornerstone Core Properties REIT, Inc.

March 28, 2012

According to the Investment News, investors in Cornerstone Core Properties REIT were told in March 2012 that shares had plunged 72% in value, from $8 to $2.25. This reduction in estimated value is attributed to the recent global economic downturn which has negatively impacted the small business tenant base, according to the company, which says occupancy rates are down to 69% compared to 92% at the end of 2008.

FactRight, a due diligence firm that covers managers of alternative investmentsrecommended last year that broker dealers pull Cornerstone Core
Properties REIT from their sales platforms. Pacific Cornerstone Capital, Inc was the sponsoring broker-dealer. Pacific Cornerstone also sold another troubled product, CIP Leveraged Fund Advisors, see our prior blog post.

Cornerstone Core Properties REIT is following in the footsteps of other REITs who have seen their values plummet recently. Behringer Harvard Short-Term Opportunity Fund I, LP went from $6.48 to $.40. Behringer Harvard Opportunity REIT I, Inc fall to $4.12 from $7.66 a year earlier.

Other REITs like Cole Credit Property Trust II, Lerner Apple REITs,
Hines REIT, Inland American, KBS, Inland Western Retail Real Estate (now  Retail Properties of America) and the Wells and Wells Timberland REITs have faced similar issues resulting in reduced estimated values and/or termination of distributions.

Many REITs were sold with the promise of regular and dependable
distributions of income. In many cases these distributions were funded with debt or a return of capital and were not really distributions  of income. Investors who relied on these representations when making the decision to invest may have legal rights entitling them to the recovery of a portion or all of their losses.

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

Securities Regulator Bars Tyler, Texas, Broker for Selling Exchange Traded Funds (ETFs)

March 21, 2012

We have warned investors in the past to be wary when buying ETF’s (Exchange Traded Funds). This is because many contain risks that are not apparent and not always explained and may not be suitable for retired persons and unsophisticated investors.

The FInancial Regulatory Authority (FINRA)  barred permanently Michael Venable, a broker from Tyler, Texas, for putting 10 of his middle class clients in unsuitable and highly leveraged ETFs.

FINRA found that these investments were not suitable for unsophisticated clients with conservative investment objectives and risk profiles. The clients were put into Direxion ETFs. Some of the Direxion ETFs invested by shorting parts of the market and trading on margin. Investors were not made aware of these risks when they purchased them. The investors ranged in age from 40 to 91 and had incomes frm $25,000 to $50,000 a year.

In addition, FINRA found that the broker traded the account excessively, an abuse we see all too often. One account with a $17,000 balance had commissions of $9,600 making it impossible for the account to ever realize any profit.

If you have losses in Direxion or have questions about the way your brokerage account is being handled, call to discuss your legal options with an experienced securities attorney.

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

Stockbroker Jailed for Selling Annuity to 83 Year Old Woman

The Wall Street Journal reports that California’s insurance commissioner had independent insurance agent Glenn Neasham arrested for selling a complex annuity to an 83 year old woman. The jury in Lake County, CA, found the lady had dementia and  convicted the broker of felony-theft and ordered him to spend 90 days in jail.

Steve Poizner,  the former insurance commissioner was quoted as saying agents “who steal from vulnerable seniors will not get away with their shameful tricks”.

We have warned investors to be wary when making annuity purchases for many years given the fact that there are often steep penalties if money is withdrawn early. Some annuities define “early” as a decade or more. In addition commissions on indexed annuities are very high, sometimes 12% or more.

In the case cited, the broker earned a $14,000 commission (8%) and the penalty to pull the money out of the annuity in the first year was 12.5%.

We are not aware of another case where the regulators have taken such a strong stance. Perhaps this will have some chilling effect on the sale of these products to the elderly, however you can’t ask too many questions about the suitability  of any annuity proposed to you by your broker.

If you have questions about the way your brokerage account is being handled or have unexplained losses in your stock market account, 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.

Nationwide Representation

Rex Securities Law

TollFree: 877-224-3199

Florida-561 391 1900 

Texas-512-329-2870

 

Lehman Note Investors-Stilll Time For Investors Suffering Losses to Make Claim

Lehman Brothers has emerged from bankruptcy and is scheduled to begin making distributions in April 2012 to its creditors, which include investors in the Lehman Brothers 100% Principal Protected, Partial Protection, Step Up Callable, Return Optimization and Absolute Return Barrier Notes.

It is anticipated that investors will only recover about 20% of their losses through the bankruptcy. You may be able to recover the balance of your losses by filing an arbitration claim with FINRA (Financial Industry Regulatory Authority). Many investors have already done so and have been successful  in recovering a substantial portion of their losses.

It is important to act quickly to avoid having your right to pursue the arbitration expire.

If you have questions about the way your brokerage account is being handled or have lost money in the Lehman Principal Protected Notes, please do not hesitate to contact us.

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

 

Securities Regulators Offer “Scam Meter” to Help Investors Avoid Making Bad Decision

The Financial Industry Regulatory Authority ( FINRA) has a Scam Meter on their website which might help keep investors from making a bad decision.

It starts with the age old warning “If it sounds too good to be true, it probably is.”

And then it asks a series of four questions.

1-The scam meter asks if the investment is one of the following:

  • Promissory note
  • A stock selling for under $5
  • A high yield investment, “bank guarantee’ or “Prime Bank” investment
  • “Risk Free” or “Guaranteed”

2-Question two asks how you learned about the investment.  Was it a free seminar, from unsolicited materials sent in the mail, from a spam email or through a “cold call”.

3-What have you been told about the investment?

Does it offer high returns and low risk? Guaranteed? A limited time only? One of only a few left? Has it been purchased by many other successful investors?

4-Who is selling the investment?

An unregistered person? Someone you recently met? A member of your church or other organization?

Pretty basic stuff, but probably worth the effort if you are looking for another source to help evaluate a potential investment and avoid becoming a victim of financial exploitation.

Anytime you are investing you need to research the person selling the investment and the company he or she works for. Try to get references from people you know and respect before doing business. We see all too many situations where our clients could have avoided a disastrous financial situation had they been a bit more wary.

If you have questions about the way your brokerage account is being handled or investment losses you have suffered, 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.

Nationwide Representation

Rex Securities Law

TollFree: 877-224-3199

Florida-561 391 1900 

Texas-512-329-2870

Allen Stanford Guilty – Ponzi Scheme

Texas financier Allen Stanford was convicted on 13 of the 14 counts for bilking investors out of $7 billion plus in one of the largest Ponzi schemes on record. The jury deliberated 4 days before finding him guilty of all charges but a single count of wire fraud.

Rex Securities Law , located in Boca Raton, FL, provides representation to  investors  in Texas and 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