Securities Fraud

Published on: July 30, 2012

Investors of ETR Pasco Fund II Private Placement Could Recover Losses

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 13, 2012

Elder Financial Abuse Targeted by CFPB

by InvestorLawyers

On June 15, coinciding with World Elder Abuse Awareness Day, the Consumer Financial Protection Bureau (CFPB) announced that it would be launching a public inquiry regarding the financial exploitation of elder Americans. The CFPB is a new agency that will be policing consumer financial products, and investment fraud lawyers applaud its choice to focus its attention on elder financial abuse.

Elder Financial Abuse Targeted by CFPB

It is clear to securities fraud attorneys, who regularly file claims on behalf of elderly individuals, that financial abuse against the elderly is a common problem. This sentiment was reflected in the June 15 announcement by the CFPB.

“Older Americans have lost billions of dollars to the silent crime of financial exploitation,” says Richard Cordray, CFPB director. “Our older adult population is growing every year, which makes it even more critical that we study this issue. Today, the Bureau will launch a public inquiry to learn more about financial fraud of older Americans and the credentials of financial advisors who counsel them.”

Published on: July 12, 2012

News: New Pilot Program Launched by FINRA

by InvestorLawyers

According to a recent announcement by the Financial Industry Regulatory Authority (FINRA), the regulator has launched a new pilot program. Securities arbitration lawyers say this program is designed specifically for large arbitration cases, or those cases involving claims of $10 million or more.

News: New Pilot Program Launched by FINRA

Under the terms of the program, parties are able to customize the administrative process in order to better suit the special needs of bigger cases. Furthermore, it allows certain FINRA arbitration rules to be bypassed. The program is open to all cases that meet the monetary requirement. Participation is strictly voluntary. In order to take advantage of the program, however, parties must be represented by counsel, such as an investment fraud attorney, and must pay for any and all additional costs associated with the program.

“In response to the increasing number of very large cases, we wanted to introduce a more formal approach to give parties greater flexibility and more control over the administration of their case,” says FINRA Dispute Resolution President Linda Fienberg.