Tag Archives: exploitation of seniors

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

 

Jim Clark-Worth Finanical Group Broker-Discloses Settlement of Customer Suit For Mishandling Account-Dallas, TX

April 2018 -Dallas, Texas

According to publicly available records James  (Jim) Williard Clark ,  a  stockbroker who currently is employed by Worth Financial Group, disclose 4 prior regulatory issues, and  2 arbitration awards in favor of customers and a recently settled customer arbitration.

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 4/2018 a customer of Worth Financial Group alleged that Clark made an unsuitable investment recommendation to invest in income streams from veterans pensions. That case was settled for $180,000.

In 2013 a customer of Worth Financial was awarded $30,435 to resolve allegations that Clark caused  losses due to the account as a result of over concentration of the customer’s account in life settlement policies.

James W. Clark has been employed by Worth Financial Group since 2001.

Brokers have a duty to make recommendations that are suitable, taking into account the age, risk tolerance, health and level of financial sophistication of the customer.

If you have losses  in an account handled by James W. “Jim” Clark contact us for a no charge consultation 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

Brian Berger-Former Newbridge Securities Broker-Sentenced for Fraud-Boca Raton, FL

April 2018-Boca Raton, FL

The FINRA records of former stockbroker Brian M. Berger disclose a pending regulatory matter and two prior regulatory matters, a criminal conviction, 4 customer disputes and a termination from employment.

In 7/2015 Berger  entered into a Letter of Acceptance Waiver and Consent (AWC) with the Financial Industry Regulatory Authority (FINRA) to resolve allegations that he failed to cooperate with a FINRA investigation into allegations that he had misappropriated funds from elderly customers while registered with Wells Fargo Advisors and MetLife Securities.As a result, Berger   was  barred from the securities industry.

There is an SEC administrative proceeding pending in connection with the misappropriation of funds.

In 2/2017, in the U.S. District Court for the Southern District of Florida in Miami, Berger pleaded guilty to wire fraud and was sentenced to 18 months and ordered to pay restitution of $372,643.

Over $300,000 has been paid in settlements to former customers of Berger.

According to FINRA records, Berger was registered with Wells Fargo Advisors in Boca Raton from 7.2010-7/2014 and with MetLife Securities from 7/2014-4/2015. After that he was briefly registered with Newbridge Securities from 4/2015-6/2015.

If you have questions about an account handled by Brian Berger, 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

Cryptocurrency Offerings Targeted by Texas Securities Regulators

April 2018- Austin, Texas

The Texas State Securities Board (TSSB) found widespread fraud in cryptocurrency offerings that were tied to virtual currencies and has issued a 14 page report which can be found here: Enforcement Report:Widespread Fraud Found in Cryptocurrency Offerings. 

Since September 1, 2017, the TSSB Enforcement Division has opened over 60 investigations related to cryptocurrency investments.

If you are considering such an investment, you would be wise to read the TSSB report.

A few highlights from the report:

  • Investigators found that most promoters of cryptocurrencies were not providing investors with their physical address. If you invest in a mystery company, particularly one located overseas, you’re at great risk of never recouping your money if the investment is a scam.
  • None of the 32 promoters being investigated by the TSSB were registered to sell securities in Texas.
  • Instead of relying on registered professionals to sell the investments, some promoters recruit investors to pitch the investment to friends and family by offering a finders fee. This is a multi-level marketing scheme exposing the recruits to civil and criminal enforcement actions.

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

Scott Palmer- Former Janney Montgomery Broker-Subject of Numerous Customer Suits Involving Energy Sector Investments-Hackensack, NJ

April 2018-Hackensack, New Jersey

The FINRA records of  Scott W. Palmer  ,  a currently unregistered broker who last worked for Janney Montgomery Scott disclose 5 pending and 6 prior customer disputes. Many of these customer disputes allege an overconcentration of energy sector investments.

In April 2018, Palmer refused a FINRA request to appear for testimony in connection with a FINRA investigation into potential suitability violations related to investment recommendations made to customers of Janney Montgomery Scott.  As a result of his refusal to cooperate with the investigation he was barred from the securities industry by FINRA.

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 one of the currently pending FINRA arbitrations-# 18-0413,  a customer of Janney Montgomery Scott alleges that Palmer made unsuitable investments and over concentrated their accounts with energy investments. Damages of $500,000 are alleged.

Palmer was employed by Janney Montgomery from 3/2007-6/2017. In 5/2017 Palmer was permitted to resign from Janney Montgomery Scott due to a loss of confidence related to complaint disclosure history.

If you have losses in an account in an account handled by Scott W. Palmer , contact us for a no charge consultation to discuss how you may be able to recover damages for those losses through FINRA arbitration.

Brokers have a duty to make suitable recommendations to their customers taking into account the age, health, and risk tolerance of the customer.

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