Category Archives: Business Development Company (BDC)

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

 

Jonathan T. Pyne-Update on Investigation-Minneapolis, MN

October 2017-Minneapolis, MN

Jonathan Todd Pyne (aka Jon Pyne )  ,  a  stockbroker who is currently registered with Berthel Fisher & Co. Financial Services discloses 2 pending customer disputes and 3 prior final customer disputes on his FINRA record.

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 of the currently  pending  disputes, received in 7/2017 , a customer of Berthel Fisher alleges damages in excess of $5,000 and claims that she was misled by Pyne into purchasing a real estate investment that she did not know was illiquid.

In another currently pending matter received in 9/2016, a Berthel Fisher customer is upset with the overall performance of the account which was invested in oil & gas, real estate securities and a business development company. Damages are not specified, but exceed $5,000.

In September 2016 Berthel Fisher settled a complaint brought by one of Pyne’s customers alleging that oil and gas and real estate securities purchased in 2008 and 2009 were unsuitable and misrepresented. That matter was settled for $48,175.

In FINRA arbitration 14-0952 a customer of Pyne’s alleged damages of $250,000 in connection with the sale of unsuitable investments sold to her in 2007 and 2008 in equipment leasing, oil and gas and real estate securities. That case was settled in 11/2015 for $110,000.

Pyne has been employed by Berthel Fisher & Co.   since 2/2007. Pyne discloses a business affiliation with Evergreen Financial Group.

See this for our prior investigation of Jonathan T. Pyne over the sale of the following alternative investments:

  • Gulf Coast Rig & Equipment
  • Reef Income & Development
  • Leaf Equipment Leasing Fund
  • Inland American
  • Cornerstone Properties (now Summit Health Care)
  • Columbia Properties

If you have questions about an account  handled by Jonathan T. Pyne , contact us to discuss your options.

Alternative investments include non publicly traded real estate investment trusts (REITS) , equipment leasing, oil and gas, hedge funds, real estate, commodities and derivatives contracts and, managed futures.  These investments tend to be complex, illiquid, nontransparent, hard to value and expensive. Many of the alternative investments sold over recent years are not traded on any public market making them difficult to value and even more difficult to liquidate if cash is needed.

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

VSR Financial Services Ordered to Pay Couple $307,000 For Recommendation of Alternative Investments

February 17, 2016

A FINRA (FInancial Industry Regulatory Authority) arbitration panel recently ordered VSR Financial Services to pay  a Louisiana couple  over $300,000 in damages for losses on non-traded real estate investment trusts (REITs), promissory note programs, limited partnerships and private oil drilling programs. FINRA Case # 15-00834.

Some of the specific investments at issue in this case were:

  • MPF Senior Note Program
  • Atlas America Series #25-2004B
  • AmREIT Monthly Income & Growth II
  • Cole Credit Property Trust
  • ArciTerra Note Fund II

The claimants alleged that VSR Financial and broker Michael Shaw, committed fraud, breached their fiduciary duty, were negligent, misrepresented the investments and other claims.

In May 2013, VSR Financial was sanctioned by FINRA in connection with the sale of alternative investments. See this for more details on that regulatory matter. 

If you have losses in your account at VSR Financial Services, contact us for more information.

For more information on VSR Financial and its brokers in the Plano, Texas area and elsewhere, see this. 

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

Purshe Kaplan Sterling Investments and Broker Vungarala Named In Regulatory Complaint

February 4, 2016- Boca Raton, Florida

The Financial Industry Regulatory Authority (FINRA) filed a disciplinary proceeding against brokerage firm Purshe Kaplan Sterling Investments and broker Gopi Krishna Vungarala alleging that from June 2011-January 2015 Vungarala regularly lied to his customer, a Native American tribe, about the investments he was recommending to them.

According to the complaint Vungarala convinced the tribe to invest hundreds of millions of dollars in non-traded real estate investment trusts (REITs) and business development companies (BDCs)  , also known as alternative investments, generating over $11 million dollars in commissions.

The complaint seeks disgorgement and other relief. FINRA Disciplinary Proceeding 2014042291901.

 

According to FINRA records Vungarala has been registered with Purshe Kaplan Sterling Investments since 12/2007.

Purshe Kaplan Sterling Investments has been a FINRA member since 1994. They have about 1,250 registered persons in 460 branch offices.

Alternative investments include non publicly traded real estate investment trusts (REITS) , hedge funds, real estate, commodities and derivatives contracts and, managed futures. It may also include art, wine, antiques, coins or stamps. These investments tend to be complex, illiquid, nontransparent, hard to value and expensive. Many of the alternative investments sold over recent years are not traded on any public market making them difficult to value and even more difficult to liquidate if cash is needed.

If you have losses in an account handled by  Purshe Kaplan Sterling Investments , contact us to discuss how you may be able to recover damages for those 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

National Planning Corp. Fined by Regulators for Excessive Sales Charges

August 25, 2015- El Segundo, California

National Planning Corporation , entered into a Letter of Acceptance Waiver and Consent (AWC) with the Financial Industry Regulatory Authority (FINRA) to resolve allegations that from April 2009 to April 2014 they failed to apply volume discounts to certain customers’ purchases of non-traded real estate investment trusts (REITs) and business development companies (BDCs).

As a result those affected customers paid excessive sales charges.

AWC No. 2014042567801

National Planning Corporation was censured , fined $30,000 and ordered to pay restitution of over $16,000.

National Planning Corporation has been a FINRA member since 1992, and  has  about 1800 brokers in 900  branch offices .

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