Category Archives: Alternative Investments

Dominick J. Diorio, Jr.-Aegis Capital Broker-Discloses Settlement of Customer Suit-Melville, NY

June 2018-Melville, New York

The FINRA records of Aegis Capital Corp. broker Dominick J. Diorio, Jr. disclose a pending customer dispute and two prior customer disputes.

The Financial Industry Regulatory Authority (FINRA) is the agency that licenses and regulates stockbrokers and brokerage firms. FINRA requires brokers and brokerage firms to report customer complaints and disputes as well as regulatory sanctions. In addition brokers are required to disclose certain financial matters such as personal bankruptcies, judgments and liens.

In FINRA Case 17-2321 a customer of Aegis Capital residing in Florida alleged that from 12/2012-7/2017 Diorio engaged in unsuitable investment strategy involving real estate securities and alternative investments. The case was settled in 5/2018 for $837,500.

In currently pending FINRA Case 18-408 a customer of Aegis Capital alleges that Diorio made unsuitable investment recommendations and traded the account without authority. The customer is seeking damages of $769,690.

Dominick has been employed by Aegis Capital since 7/2011.

If you have questions about an account handled by Dominick Diorio, contact us for a no charge consultation to learn how you may be able to recover damages through FINRA arbitration.

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

Tom Till-Former ProEquities Broker-Discloses Settlement of Customer Dispute Involving Alternative Investments-Friendswood, TX

May 2018- Friendswood, TX

According to FINRA records,  Thomas  “Tom” A. Till  a stock broker who  is not currently registered and who last was employed in the industry by ProEquities Inc. , discloses the settlement of  FINRA arbitration 13-0021 in which a customer of ProEquities alleged various claims, including breach of fiduciary duty and misrepresentations in regard to his investment in three real estate investment trusts (REITs):

  • Inland Western
  • Behringer Harvard
  • Inland American

That case was settled for $30,000.

The Financial Industry Regulatory Authority (FINRA) is the agency that licenses and regulates stockbrokers and brokerage firms. FINRA requires brokers and brokerage firms to report customer complaints and disputes as well as regulatory sanctions. In addition brokers are required to disclose certain financial matters such as personal bankruptcies, judgments and liens.

Till was employed by ProEquities from 10/2000-7/2017, and discloses a business affiliations with APPS Financial Group and Compass Tax Solutions in Friendswood, TX.

Illiquid alternative investments such as REITs are often sold with the promise of a steady and dependable stream of income and the opportunity for a ‘liquidation event’ in 5-7 years. Many investors purchase alternative investments with the mistaken belief that they are similar to a bond investment.

If you have questions about losses  an account handled  by Tom Till , call for a no charge consultation to learn how you may be able to recover damages through FINRA arbitration.

ProEquities Inc. , headquartered in Birmingham, Alabama, has been a FINRA member since 1985. They have over 1200 brokers in over 600 branch offices nationwide. ProEquities’ FINRA records disclose 60 prior regulatory events.

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

Bradley Freimark-Former ProEquities Broker-Subject of 25 Customer Disputes-Ostego, MN

May 2018- Otsego, MN

According to FINRA records,  Bradley J. Freimark  a stock broker who  is not currently registered and who last was employed in the industry by ProEquities Inc. , discloses 19 prior customer disputes that have been resolved and 6 customer disputes that are currently pending. Most of the customer claims relate to alternative investments such as REITs, equipment leasing investments, oil and gas investments, private placements, annuities and direct investments.

The Financial Industry Regulatory Authority (FINRA) is the agency that licenses and regulates stockbrokers and brokerage firms. FINRA requires brokers and brokerage firms to report customer complaints and disputes as well as regulatory sanctions. In addition brokers are required to disclose certain financial matters such as personal bankruptcies, judgments and liens.

Freimark was employed by ProEquities from 3/2000-8/2015.

Prior settlements for customers of Bradley Freimark total about $2 million and the pending claims seek about $1.5 million. These illiquid alternative investments are often sold with the promise of a steady and dependable stream of income and the opportunity for a ‘liquidation event’ in 5-7 years. Many investors purchase alternative investments with the mistaken belief that they are similar to a bond investment.

If you have questions about losses  an account handled  by Bradley J. Freimark , call for a no charge consultation to learn how you may be able to recover damages through FINRA arbitration.

ProEquities Inc. , headquartered in Birmingham, Alabama, has been a FINRA member since 1985. They have over 1200 brokers in over 600 branch offices nationwide. ProEquities’ FINRA records disclose 60 prior regulatory events.

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

Cryptocurrency Promoters Shut Down by Texas Regulator-Austin, TX

May 2018-Austin, TX

The Texas State Securities Board (TSSB) entered emergency orders against the following unregistered promoters who are fraudulently offering high-return investments in cryptocurrencies:

  • Bitcoin Trading & Cloud Mining, Ltd. -also known as BRCRUSH-also named in the Cease and Desist Order are Jaylon Cross, Bruce Rodgerson, and Robin Lozinski, all of  London, UK, and Thomas A. Johnson of Panama City, Panama.
  • Forex EA & Bitcoin Investment LLC.-also named in the Cease and Desist Order are James Butcher and Richard Dunn of New York City.

According to the TSSB these companies are violating the Texas Securities Act by failing to disclose any material information about their principals, strategies, finances, and the extensive technical and regulatory risks of cryptocurrency-related offerings.

The TSSB issued an Investor Alert warning of the dangers of fraud found in cryptocurrency offerings. Link to the April 10, 2018 alert. 

Losses on cryptocurrency investments recommended by your registered stockbroker? 

Call for a no charge consultation to discuss your 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

Want to Sell Your Alternative Investments? Want to Recover Losses on REIT Investments?

April 2018

Investors owning non publicly traded alternative investments, such as real estate investment trusts (REITs) and oil and gas partnerships may not have been aware of the meaning of illiquid when  the investments were recommended to them by a financial advisor or stockbroker.

These  investments generated high commissions for the firm and broker and were typically sold to unsuspecting with the promise of a steady dependable stream of income, a promise of steady or increasing value and with little discussion of the fact that the investment cannot be sold on any conventional exchange should a need for cash arise.

Many investors made the decision to purchase these investments without a clear understanding of the risks associated with them. Many purchased them not aware that they are illiquid.

If you have watched the value of your investments in alternative investments decline and wonder how you can get out of these investments that cannot be sold on any conventional exchange, you may be pleased to know that there are several secondary markets that have developed over the years which provide investors the opportunity to dispose of these investments.

Here are two popular market makers. Each has its own set of procedures for buying and selling alternative investments. Visit their sites for details.

Central Trade & Transfer

www.CTTAuctions.com

CFX Markets

www.CFXtrading.com

Recent (April 2018)  trading ranges quoted by CTT Auctions  for some of the most popular non publicly traded alternative investments.

ALTERNATIVE  INVESTMENT                    Recent Price

ARC New York City REIT                                 $13.00-13.28

Black Creek Diversified Prop.                      $6.85-7.00
Business Dev. Corp. (BDCA)                         $6.50-6.75
Carter Validus Mission Critical REIT       $5.50-5.75
CNL Healthcare                                                    $8.61-8.90
Cole Credit Prop Tr. IV                                      $7.65-8.00
Cole Credit V                                                          $18.55-18.85
Corporate Prop 17                                              $9.50-9.65

Corporate Prop 18                                             $7.95-8.17

Healthcare Trust (ARC II)                                $13.96-14.01

Highland REIT (InvenTrust spinoff)          $.21-.22
Hines Global REIT                                               $7.85-8.00

HMS Income Fund                                               $7.20-7.35
Inven Trust (Inland American)                      $1.84-1.90
KBS Legacy Prnrs Apt REIT                           $3.65-3.80
KBS II                                                                           $4.13-4.05

KBS REIT III                                                             $9.85-9.95
KBS Strategic Opp REIT II                             $7.75-8.00

Lightstone Value Plus REIT V                      $5.80-6.01
Northstar Healthcare Income                     $6.50-6.71
Phillip Edison Grocery Center REIT I      $9.25-9.50

Strategic Realty Trust (TNP)                         $4.50-4.55
United Development Fund III                      $2.50-2.65

HAVE YOU SUFFERED A LOSS ON ALTERNATIVE INVESTMENTS?

If you have losses on your alternative investments, you may be able to recover damages from the brokerage firm that recommended the investments to you. Call for a no obligation consultation with an experienced securities attorney to learn about you 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