investment fraud lawyers

Published on: August 17, 2012

Investors of ArciTerra National REIT Could Recover Losses

Investment fraud lawyers are currently investigating claims on behalf of investors who suffered significant losses as a result of their investment in ArciTerra National REIT. According to ArciTerra National REIT’s Form D filing with the Securities and Exchange Commission, ArciTerra is a real estate investment trust based in Phoenix, Arizona.

Investors of ArciTerra National REIT Could Recover Losses

REIT Investments like the ArciTerra National REIT 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.

Stock fraud lawyers are investigating the possibility that brokerage firms may be held liable for the recommendation of ArciTerra National REIT. 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. Non-traded REITs are illiquid and inherently risky and, therefore, not suitable for many investors.

Published on: August 16, 2012

Penneco Drilling Associates Investors Could Recover Losses

by InvestorLawyers

Securities fraud attorneys are currently investigating claims on behalf of investors who suffered significant losses as a result of their investment in a private placement offered by Penneco Drilling Associates. Penneco Drilling Associates is, according to its Form D filing with the Securities and Exchange Commission, an oil and gas development company.

Penneco Drilling Associates Investors Could Recover Losses

Penneco Drilling Associates began offering the private placements as a means to raise capital. Certain broker-dealers registered with the Financial Industry Regulator Authority then sold the private placements. Reportedly, the following private placements have been offered and sold:

Penneco Drilling Associates 2009-1

Published on: August 9, 2012

Investors of Whitestone REIT 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 Whitestone REIT. Whitestone REIT was previously known as Hartman Commercial Properties REIT, and was a non-traded, publicly offered REIT. Shares of Hartman REIT were first offered to investors in 2004 through stock brokerage firms. A 2009 statement informed investors that Whitestone REIT’s value had declined by around 50 percent. Many investors were unaware of any problems with their investment until this 2009 announcement.

Investors of Whitestone REIT Could Recover Losses

Whitestone REIT started trading on the New York Stock Exchange in 2010, but securities arbitration lawyers say the shares are still trading at significantly lower prices than what most investors paid. Non-traded REIT investments like the Whitestone REIT 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.

Investment fraud lawyers are investigating the possibility that brokerage firms may be held liable for the recommendation of Whitestone REIT. 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. Non-traded REITs like this one are illiquid and inherently risky and, therefore, not suitable for many investors.

Published on: August 6, 2012

Investors of Chase Strategic Portfolio, other JPMorgan Chase Proprietary Mutual Funds Could Recover Losse

by InvestorLawyers

Securities fraud attorneys are currently investigating claims on behalf of the customers of JPMorgan Chase, specifically investors of Chase Strategic Portfolios and JPMorgan Chase proprietary mutual funds. Reportedly, when JPMorgan acquired Washington Mutual, the firm’s advisors may have engaged in improper mutual fund switching.

Investors of Chase Strategic Portfolio, other JPMorgan Chase Proprietary Mutual Funds Could Recover Losses

Last month, the Financial Industry Regulatory Authority, the Securities and Exchange Commission and other regulators reportedly initiated inquiries into the fund sales practices of JPMorgan. A recognized fund researcher, Morningstar, reported that around 42 percent of JPMorgan’s funds did not surpass the average performance of similar funds over the past three years. Furthermore, a New York Times article published last month stated that JPMorgan financial advisors were allegedly “encouraged, at times, to favor JPMorgan’s own products even when competitors had better-performing or cheaper options.” Investment fraud lawyers’ investigations will establish whether the firm or its advisors can be held responsible for investor losses that resulted because of improper sales practices.

The Chase Strategic Portfolio is reportedly one of the main products that has been pushed by JPMorgan. The investment is made up of a combination of around 15 mutual funds. Some of these funds are developed by JPMorgan. Securities fraud attorneys say the Chase Strategic Portfolio is designed to allow ordinary investors access to holdings in stocks and bonds, with varying levels of risk, accomplished through the use of six main models. The fund was launched in 2008 and reportedly has around $20 billion in assets. Chase Strategic Portfolio carries an annual fee on assets of 1.6 percent, but also includes a fee on underlying JPMorgan funds. The aforementioned New York Times article also stated that the actual annual return of the fund after fees was 13.87 percent per year, which trailed the hypothetical 15.39 percent return included in the marketing materials.

Published on: August 2, 2012

Investors Beware: Structured Products Not Suitable for All Investors

by InvestorLawyers

Securities fraud attorneys are currently investigating potential claims on behalf of investors who suffered losses in a variety of structured product investments. Wall Street has marketed structured notes and other products as safe and secure, but what does that really mean? One thing is certain, safe and secure does not mean risk-free. According to a study recently conducted by the nonpartisan policy center Demos and The Nation Institute, $113 billion has been lost by investors as a result of purchasing these “safe” instruments.

Investors Beware: Structured Products Not Suitable for All Investors

Furthermore, the study concluded that over $52 billion in structured notes were sold in 2010 alone. Investment fraud lawyers are concerned about what this increase in structured product sales means. Structured products have previously been sold only to sophisticated institutional investors. However, recent years have seen a repackaging of these products as a principal protection tool that is then sold to retail investors, who are often senior citizens. The study also stated that these products are among the most popular for pitching to income-oriented investors.

Structured products combine a zero-coupon bond and an option with a payoff that is linked to an index, benchmark, basket of benchmarks or an underlying asset. The notes can provide upside potential and reasonable returns when they pay off based on the linked index’s performance. Securities fraud attorneys say that this method of payoff can be very attractive given today’s market, but structured products can be extremely complex. A Financial Industry Regulatory Authority (FINRA) and Securities and Exchange Commission alert warned investors that these products often come with low guarantees, confusing terms and, in some cases, can keep money tied up in the investment for up to a decade.

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 20, 2012

Investors Could Recover Texas Energy Exoro Private Placement Losses

by InvestorLawyers

Investment fraud lawyers are currently investigating claims on behalf of investors who suffered losses as a result of their investment in Texas Energy Exoro. Texas Energy Exoro’s Securities and Exchange Commission Form D filing states that it is an offering of Texas Energy Holdings, an oil and gas drilling company based in Dallas, Texas. The company offered the Regulation D private placement to raise capital, and certain Financial Industry Regulatory Authority (FINRA)-registered broker-dealers offered and sold the private placement.

Investors Could Recover Texas Energy Exoro Private Placement Losses

According to securities fraud attorneys, 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 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 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.”