Rex Investigates CIP Leveraged Fund Advisors, LLC

Cornerstone Ventures, Inc. is the managing partner of CIP Leveraged Fund Advisors, LLC. The firms that solicited sales of this investment, according to SEC records are:

Pacific Cornerstone Capital, Inc.
Investors Capital Corp.
Private Consulting Group, Inc.
Cullum & Burks Securities, Inc.
Sammons Securities Company, LLC
USAllianz Securities, Inc.
American Investors Company
Equity Services, Inc.
Sigma Financial Corporation
Intervest International Equities Corporation
Cascade Financial Management Inc.
Investment Management Corporation
Royal Securities Company
Financial West Group
RBC Dain Rauscher Inc.
Harvest Capital LLC
Northland Securities, Inc.
Ameritas Investment Corp.
Advisory Group Equity Services, Ltd.
Capital Financial Services, Inc.

It may be possible that other firms not included in the list sold this
investment whose performance was tied to the performance of three other Cornerstone funds:

  • Cornerstone Healthcare Plus REIT (CHP)
  • Cornerstone Healthcare Real Estate Funds (CHREF)
  • Meadowbrook Healthcare Properties (MHP)

The company recently reported that CLFA units have no value, only slim hopes for the future. In February 2010, Pacific Cornerstone Capital Inc. and its former CEO Terry Roussel were fined a total of $750,000 for failing to include full and complete information in private placement offerings of CIP Leveraged Fund Advisors, LLC. Investors were promised 18% rate of return and maturity of the investment in two to four years. Roussel was also suspended.

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

Harbinger & Falcone-Trouble With Investors & SEC

Philip Falcone and the hedge fund he manages Harbinger Capital received Wells Notices from the Securities and Exchange Commission in December 2011. A Wells Notice from the SEC is notice to the recipients that the government is considering filing civil fraud charges for manipulative trading during the period from 2006 to 2008.

Wells Notice is a recommendation from the enforcement division and while the SEC can decline to follow it, in practice the SEC generally does follow the action suggested by enforcement.

Falcone borrowed over $100 million from Harbinger in October 2009, and although it has been repaid, news sources indicate that the SEC may be investigating whether investors were apprised in a timely manner about the loan.

This fund, which once oversaw $26 billion in assets has experienced large losses and client withdrawals and now manages about $5 billion.  Of that amount nearly half is invested in LightSquared, a controversial company thatis making plans to build a wireless network using new technology that opponents claim interferes with current global positioning systems.

Earlier in February 2011, a disgruntled investor filed a class action against Falcone and Harbinger. Falcone had made big investments in LightSquared Inc., whose conditional license was revoked in February.

Harbinger Capital Partners LLC lost 47% as a result. Most of this loss was in Harbinger Capital Partners Offshore Fund I following a reduction of 59% in the value of the fund’s stake in LightSquared.

Harbinger had invested $3 billion of the $4 billion in LightSquared, according to recent Bloomberg news.

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 Regulator, FINRA, Warns to Deal Fairly With Senior Investors

In FINRA Regulatory Notice 11-52, issued in November 2011, the Financial  Industry Regulatory Authority reminded brokerage firms of their supervisory obligations regarding the use of certifications and designations that imply expertise or specialty in advising senior investors.

FINRA conducted a survey and found that 89% of retail broker-dealers have brokers who use senior designations. FINRA is concerned that senior investors will not be able to differentiate between designations that represent an enhanced level of proficiency in dealing with matters relevant to senior investors versus designations that are simply used as marketing tools.

We have been answering questions about investment accounts and recovering investment losses for over 20 years. Call us if you have a question.

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

Rex Investigates Lyon Capital Management Ltd. Losses

In February 2011 Massachusetts securities regulator William Galvin subpoenaed Bank of America in a case involving local investors who lost $150 million in two collateralized loan obligations. Bank
of America bought commercial loans worth $400 million in 2006 and 2007 to be packaged into securities for sale to investors.

The State of Massachusetts wants to see documents related to two CLO’s (collateralized loan obligations) that were structured and sold to investors during 2007 :

  • Bryn Mawr CLO II
  • LCM VII Ltd.

Galvin wants to determine if the issuer knowingly overvalued the assets in the portfolio to get them off the books by passing them on the unsuspecting investors. In early Feburary 2012, a FINRA panel awarded $1.4 million to a claimant who had invested in Lyon Capital CLO .

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

 

Rex Securities Law Investigates Inland American REIT

Have you or your loved ones suffered losses as a result of purchasing INLAND AMERICAN REIT ?

In a December 2011 the company estimated the value of shares to be $7.22. Since non-traded REITs like Inland American are not traded on ay public market, they can only be sold on a secondary market where they trade at discounts of 10-20% less than the estimated value.

REITs attracted unsophisticated investors who were promised steady, dependable distributions of income. Many investors were not made fully aware of the risks associated with these investments.

If you have losses we may be able to help you recover some or all of your losses.

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

 

Nationwide representation of victims of stockbroker fraud and the malpractice of investment professionals.

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