SEC Category Archives — Page 8 of 13 — Investor Lawyers Blog Published by New York, New York Investor Attorneys

Published on: August 1, 2012

Woodlark Capital Investment Private Placement Investors Could Recover Losses

Stock fraud lawyers are currently investigating potential claims on behalf of investors who suffered losses as a result of their investment in Woodlark Capital. Woodlark Capital LLC is, according to its Securities and Exchange Commission Form D filing, a real estate company based in New York. In 2007, the company applied for a Form D Notice of Sale of Securities in order to generate capital. Certain Financial Industry Regulatory Authority (FINRA)-registered broker-dealers offered and sold these private placements.

Woodlark Capital Investment Private Placement Investors Could Recover Losses

According to securities arbitration lawyers, private placements allow smaller companies to use the sale of debt securities or equities to raise capital without it becoming necessary for them to register these securities with the Securities and Exchange Commission. Because these investments are typically more complicated and carry more risk than other traditional investments, they are usually only suitable for sophisticated, high-net-worth investors.

Stock fraud lawyers say that because the creation and sale of private placements often carry high commissions, these investments continue to be pushed by brokerage firms despite the fact that they may be unsuitable for investors. FINRA rules have established that brokers and firms have an obligation to fully disclose all the risks of a given investment when making recommendations, and those recommendations must be suitable for the individual investor receiving the recommendation given their age, investment objectives and risk tolerance.

Published on: July 30, 2012

Investors of ETR Pasco Fund II Private Placement Could Recover Losses

by InvestorLawyers

Securities fraud attorneys are currently investigating claims on behalf of investors who suffered losses as a result of their investment in ETR Pasco Fund II. ETR Pasco Fund II is, according to its Securities and Exchange Commission Form D filing, a real estate company based in Miami, Florida. Sometime between late 2006 and early 2007, ETR Pasco Fund II applied for a Form D Notice of Sale of Securities in order to generate capital. Certain Financial Industry Regulatory Authority (FINRA)-registered broker-dealers then offered and sold these private placements.

Investors of ETR Pasco Fund II Private Placement Could Recover Losses

According to stock fraud lawyers, private placements allow smaller companies to use the sale of debt securities or equities to raise capital without it becoming necessary for them to register these securities with the Securities and Exchange Commission. Because these investments are typically more complicated and carry more risk than other traditional investments, they are usually only suitable for sophisticated, high-net-worth investors.

They also tend to carry high commissions. Securities fraud attorneys say that because the creation and sale of private placements often carry such high commissions, these investments continue to be pushed by brokerage firms despite the fact that they may be unsuitable for investors. FINRA rules have established that brokers and firms have an obligation to fully disclose all the risks of a given investment when making recommendations, and those recommendations must be suitable for the individual investor receiving the recommendation given their age, investment objectives and risk tolerance.

Published on: July 27, 2012

Accoona Corp. Investors Could Recover Losses

by InvestorLawyers

Securities fraud attorneys are currently investigating claims on behalf of investors who suffered losses as a result of their investment in Accoona Corp. Inc. Accoona serves as an online multi-lingual business portal and search engine through its operation as a website, according to its Securities and Exchange Commission Form D filing. It is primarily designed to help chambers of commerce, small- and medium-sized businesses and governments publicize information to other businesses. In order to raise capital, Accoona offered a Regulation D private placement. Reportedly, this private placement was offered and sold by certain broker-dealers that were registered with FINRA.

Accoona Corp. Investors Could Recover Losses

According to securities arbitration lawyers, private placements allow smaller companies to use the sale of debt securities or equities to raise capital without it becoming necessary for them to register these securities with the Securities and Exchange Commission. Because these investments are typically more complicated and carry more risk than other traditional investments, they are usually only suitable for sophisticated, high-net-worth investors.

Securities fraud attorneys say that because the creation and sale of private placements often carry high commissions, these investments continue to be pushed by brokerage firms despite the fact that they may be unsuitable for investors. Financial Industry Regulatory Authority rules have established that brokers and firms have an obligation to fully disclose all the risks of a given investment when making recommendations, and those recommendations must be suitable for the individual investor receiving the recommendation given their age, investment objectives and risk tolerance.

Published on: July 26, 2012

Dividend Capital Total Realty Trust Non-traded REIT Investors Could Recover Losses

by InvestorLawyers

Stock fraud lawyers are currently investigating claims on behalf of investors who suffered losses as a result of their investment in Dividend Capital Total Realty Trust Inc. Dividend Capital Total Realty Trust was formed on April 11, 2005 and is a Maryland corporation, according to its filing with the Securities and Exchange Commission. Dividend Capital is located in Denver, Colorado and was designed to invest in a diverse portfolio of real estate-related and real property investments. The targeted investments of the company include direct investments that consist of high-quality retail, industrial, multi-family and other properties. The properties are primarily located in North America. The company also targets securities investments that include mortgage loans which are secured by income-producing real estate, and those issued by other real estate companies.

Dividend Capital Total Realty Trust Non-traded REIT Investors Could Recover Losses

Securities arbitration lawyers believe that secondary market offers indicate that Dividend Capital Total Realty Trust’s value has appeared to have substantially declined.

Non-traded REIT investments like the Dividend Capital Total Realty Trust typically offer commissions between 7-10 percent, which is significantly higher than traditional investments like mutual funds and stocks. In some cases, the commission generated by these investments can be as high as 15 percent. This higher commission can explain why brokerage firms are motivated to recommend these investments despite their possible unsuitability.

Published on: July 25, 2012

Investors of Patriot Minerals Private Placements Could Recover Losses

by InvestorLawyers

Investment fraud lawyers are currently investigating potential claims on behalf of investors who suffered losses as a result of their investment in Patriot Minerals. Patriot Minerals, according to its Securities and Exchange Commission Form D filing, is a San Antonio, Texas-based oil and gas exploration company. Patriot Minerals has several offerings of Regulation D private placements that are designed to generate capital for its offerings. These private placements include Tri-State Development Program and Patriot Minerals Arapaho. Certain Financial Industry Regulatory Authority (FINRA)-registered broker-dealers offered and sold these private placements and, in some cases, may have done so inappropriately.

Investors of Patriot Minerals Private Placements Could Recover Losses

According to securities arbitration lawyers, private placements allow smaller companies to use the sale of debt securities or equities to raise capital without it becoming necessary for them to register these securities with the Securities and Exchange Commission. Because these investments are typically more complicated and carry more risk than other traditional investments, they are usually only suitable for sophisticated, high-net-worth investors.

Investment fraud lawyers say that because the creation and sale of private placements often carry high commissions, these investments continue to be pushed by brokerage firms despite the fact that they may be unsuitable for investors. FINRA rules have established that brokers and firms have an obligation to fully disclose all the risks of a given investment when making recommendations, and those recommendations must be suitable for the individual investor receiving the recommendation given their age, investment objectives and risk tolerance.

Published on: July 23, 2012

News: David Lerner Associates to Face FINRA Panel in September

by InvestorLawyers

David Lerner Associates is in the spotlight once again as it is threatened by charges alleging that the company and its principle, David Lerner, deceived customers — many of whom were elderly, unsophisticated investors. David Lerner, 75, is surrounded by controversy regarding 20 years of real estate investment sales. As a result of his alleged misdeeds, an abundance of complaints, regulatory sanctions and litigation have been left in his wake. Lerner has used seminars and radio to sell shares of a Virginia-based Real Estate Investment Trust (REIT) that, in turn, invests in extended-stay hotels. Stock fraud lawyers and industry regulators say that David Lerner Associates has sold shares of Apple REIT amounting to almost $7 billion, in 120,000 customer accounts, since 1992. Those sales have generated a staggering $600 million in fees.

News: David Lerner Associates to Face FINRA Panel in September

Furthermore, according to FINRA’s complaint, David Lerner Associates allegedly earns 10 percent from the Apple REIT offerings, and that these fees account for 60-70 percent of the firm’s business since 1996. The complaint also alleges that the firm is “targeting unsophisticated and elderly customers” while making false claims and omissions about market values, investment returns, prospects and performance of the REIT.

Investment fraud lawyers say that sales strategies employed by the 350 or more brokers employed by Lerner include mailings, cold calls and seminars at hotels, restaurants, country clubs and senior centers. Lerner is also known in New York and Florida for his spots on an AM radio station.

Published on: July 19, 2012

NHB Holdings Investors Could Recover Losses

by InvestorLawyers

Investment fraud lawyers are currently investigating claims on behalf of investors who suffered losses as a result of their investment in NHB Holdings. Operating as a bank holding company, NHB Holdings uses its subsidiary, Proficio Bank, to offer banking services. NHB Holdings is based in Jacksonville, Florida, and was founded in 2007.

NHB Holdings Investors Could Recover Losses

Information now available leads stock fraud lawyers to believe that a Regulation D private placement was offered by NHB Holdings in order to raise capital. Certain FINRA registered broker-dealers offered and sold this private placement. Private placements allow smaller companies to use the sale of debt securities or equities to raise capital without it becoming necessary for them to register these securities with the Securities and Exchange Commission. Because these investments are typically more complicated and carry more risk than other traditional investments, they are usually only suitable for sophisticated, high-net-worth investors.

According to investment fraud lawyers, because the creation and sale of private placements often carry high commissions, these investments continue to be pushed by brokerage firms despite the fact that they may be unsuitable for investors. Financial Industry Regulatory Authority rules have established that brokers and firms have an obligation to fully disclose all the risks of a given investment when making recommendations, and those recommendations must be suitable for the individual investor receiving the recommendation given their age, investment objectives and risk tolerance.

Published on: July 18, 2012

TNP Strategic Retail Trust Investors Could Recover Losses

by InvestorLawyers

Securities fraud attorneys are investigating potential claims on behalf of investors who suffered losses in the TNP Strategic Retail Trust. Declared effective on August 7, 2009 by the SEC, TNP Strategic Retail Trust is a non-traded REIT that, according to REIT Wrecks, raised only $21 million through the end of Q3 2010.

TNP Strategic Retail Trust Investors Could Recover Losses

Reportedly, the money raised by the investment was used to acquire the 94,574 sq ft. Moreno Valley Marketplace in Rancho Belago, California, and the 170,000 sq ft. Waianae Mall, which sits on the North Shore of Oahu. Additionally, TNP Strategic Retail Trust reportedly suffered a net loss and had a negative operating cash flow throughout the first nine months of 2010. Given this information, stock fraud lawyers question whether TNP Strategic Retail Trust will be able to move forward.

Securities fraud attorneys are investigating the possibility that brokerage firms may be held liable for the recommendation of this and other TNP investments. Financial Industry Regulatory Authority rules have established that brokers and firms have an obligation to fully disclose all the risks of a given investment when making recommendations, and those recommendations must be suitable for the individual investor receiving the recommendation given their age, investment objectives and risk tolerance. Furthermore, brokerage firms must, before approving an investment’s sale to a customer, conduct a reasonable investigation of the securities and issuer. The firms that recommended this investment to clients may have done so improperly, based on information now available about the investment.

Published on: July 16, 2012

Thompson National Properties 12 Percent Note Investors Could Recover Losses

by InvestorLawyers

Securities arbitration lawyers are currently investigating potential claims on behalf of investors who suffered significant losses as a result of their investment in the Thompson National Properties 12 Percent Notes Program. Many investors of this program, also known as TNP 12 Percent Notes, are concerned about the recent announcement which stated that interest payments on TNP 12 Percent Notes have been suspended, and what this announcement may indicate about the value of the investment.

Thompson National Properties 12 Percent Note Investors Could Recover Losses

TNP 12 Percent Notes were designed to raise capital for the tenant-in-common, or TIC, real estate operations of Thompson National Properties. A Securities and Exchange Commission filing states that the program, in 2008 and 2009, raised $21.5 million from 418 investors. The filing also states that the investment required a $50,000 minimum investment, and agreements to sell the notes were held by 22 independent broker-dealers. Reportedly, a recent announcement informed investors that the TNP 12 Percent Notes Program LLC would cease interest payments, but that it intends to restart payments in 2013.

Since its 2008 launch, TNP has launched 16 investment programs in addition to the TNP 12 Percent Notes. The largest of these investments was TNP Strategic Retail Trust, a non-traded real estate investment trust (REIT). Reportedly, this REIT has acquired necessity-anchored and grocery retail shopping centers. Its investments are valued at $200 million and the REIT raised nearly $91 million from investors. For more on this REIT, see the blog post “TNP Strategic Retail Trust Investors Could Recover Losses.”

Published on: July 5, 2012

More Trouble for Investors of Behringer Harvard

by InvestorLawyers

Stock fraud lawyers have been investigating claims on behalf of investors of Behringer Harvard Holdings LLC for several months, but recent news shows even more trouble may be ahead for these investors. Apparently, Behringer Harvard is having significant difficulty making loan payments on two of its offerings. As a result, Behringer is losing real estate assets.

More Trouble for Investors of Behringer Harvard

Securities fraud attorneys say that earlier this month, several properties related to the nontraded Behringer Harvard Opportunity REIT I went into bankruptcy protection after negotiations over debt, amounting to $48.3 million, failed. Furthermore, the Behringer Harvard Short-term Opportunity Fund I LP, a private placement, entered into a “deed in lieu of foreclosure agreement.” This agreement was entered into in June 2012 and transferred properties to the lender.

At the end of 2011, Behringer Harvard Opportunity REIT I suffered an estimated value decline of 46 percent. According to stock fraud lawyers, this decline represents a reduction from $7.66 per share a year earlier to $4.12 at the end of 2011. In addition, as of December 31, 2011, Behringer Harvard Short-term Opportunity Fund I LP investors saw their investment drop in value from $6.48 per share on December 31, 2010 to a staggering 40 cents per share. The Short-term Opportunity Fund I had total assets amounting to around $130 million. To make matters worse, the Opportunity REIT I has total assets amounting to $524.4 million, with an additional $68.4 million in debt that will mature this year.