securities fraud attorney

Published on: September 27, 2012

Victim of Stephen B. Blankenship Fraud Could Recover Losses

Investment fraud lawyers are currently investigating claims on behalf of individuals who invested with Stephen B. Blankenship and were, as a result of Blankenship’s actions, victims of securities fraud. A recent announcement by the Securities and Exchange Commission stated that it has charged Blankenship and his company with stealing from customers. These customers, who were persuaded by Blankenship to make withdrawals from their brokerage accounts to invest directly with him, lost at least $600,000 to his fraud. The accounts from which they withdrew these funds were managed by Blankenship but were held at other firms.

Victim of Stephen B. Blankenship Fraud Could Recover Losses

According to the SEC’s allegations, Blankenship lured customers in with assurances of greater rates of return if they would transfer their money to Deer Hill Financial Group, Blankenship’s firm. Furthermore, he claimed to be investing in publicly-traded mutual funds and other established securities but, instead, made no such investments and transferred his customer’s money to his personal bank account. The money was then allegedly used to pay various personal expenses, including travel, grocery bills and mortgage payments.

“Blankenship took advantage of fellow churchgoers and senior citizens who relied on their savings for retirement and placed their trust in him,” says David P. Bergers, director of the SEC’s Boston Regional Office. “He betrayed that trust by using their money to make personal credit card payments and home improvements.”

Published on: September 26, 2012

JP Turner Victims of Churning Could Recover Losses

by InvestorLawyers

Stock fraud lawyers are currently investigating claims on behalf of investors who suffered significant losses as a result of their investment with JP Turner, Ralph Calabro, Jason Konner or Dimitrios Koutsoubos. Earlier in September, the Securities and Exchange Commission charged three brokers, formerly employed at JP Turner & Company in Atlanta, with “churning” accounts, incurring significant fees for themselves and causing significant losses to investors.

JP Turner Victims of Churning Could Recover Losses

In this case, the investors whose accounts were churned had conservative investment objectives. However, securities fraud attorneys say that when “churning” an account, the broker will disregard investment objectives and, instead, excessively trade in the account in order to generate commissions, margin interest, and fees for themselves or the firm at which they are employed. According to the SEC allegations, Calabro, Konner and Koutsoubos engaged in churning between January 2008 and December 2009, while they were employed with JP Turner.

Together, these three brokers generated approximately $845,000 through churning, while their customers suffered significant aggregate losses totaling around $2.7 million. If it can be proven that the firm failed to adequately supervise their brokers, in many cases that firm may be held liable for customer losses regardless of the employees’ ability to reimburse their clients for fraud.

Published on: September 21, 2012

Customers of Ray Lucia Sr. Could Recover Losses Through Arbitration Following SEC Allegations

by InvestorLawyers

Securities fraud attorneys are currently investigating claims on behalf of investors who suffered significant losses as a result of their investment with Ray Lucia Sr. and his affiliated broker-dealers. Reportedly, the Securities and Exchange Commission has charged Lucia and his company, formerly known as Raymond J. Lucia Companies Inc. (RJL), for using misleading information at a series of investment seminars when soliciting for his “Buckets of Money” strategy.

Customers of Ray Lucia, Sr. Could Recover Losses through Arbitration, Following SEC Allegations

According to the allegations issued by the SEC’s Division of Enforcement, Lucia claimed that this wealth management strategy had been thoroughly “backtested” over real bear market periods. He allegedly made these claims while promoting Buckets of Money at seminars where he presented a lengthy slideshow indicating that retires would receive inflation-adjusted income while protecting and increasing savings through his wealth management program. In truth, however, despite publicly made claims, little, if any, backtesting was done by RJL and Lucia on the Buckets of Money strategy.

These seminars were held in hopes of obtaining advisory clients, according to the SEC’s order which instituted administrative proceedings against RJL and Lucia. These clients would then be charged advisory services fees. Lucia’s radio show and personal and company website promoted the seminars.

Published on: September 17, 2012

What Went Wrong with Dividend Capital REIT: What Many Investors Didn’t Know

by InvestorLawyers

Securities fraud attorneys have been investigating claims on behalf of investors who suffered Dividend Capital Trust investment losses, but what exactly went wrong?

What Went Wrong with Dividend Capital REIT: What Many Investors Didn't Know

According to investment fraud lawyers, while most REITs experience value changes every day because they are traded on stock exchanges, “non-traded,” “private,” or “unlisted” REITs were not traded on exchanges with regulations. Furthermore, these investors of non-traded REITs paid additional layers of fees because the investments were mostly sold by brokers. Generally, investors were promised stable prices and healthy income generation from these investments, but the decline in the commercial real estate market and management problems have resulted in a significant decline in the value of many non-traded REITs.

Many brokers unsuitably recommended non-traded REITs; after all, they were extremely profitable to them thanks to the hefty fees associated with the investment. Many brokers told investors that the REITs values would remain the same while providing income, but many non-traded REITs have temporarily — or indefinitely — suspended payments to investors. That said, securities fraud attorneys note that most public REITs that have been responsibly managed are providing reliable income to their investors.

Published on: September 14, 2012

Cole Credit Property Trust II May be Following in the Footsteps of Other Non-traded REITs

by InvestorLawyers

Investment fraud lawyers are currently investigating claims on behalf of investors who were improperly sold various non-traded REIT investments and suffered significant losses as a result. Reportedly, Cole Credit Property Trust II is currently in the process of executing its “exit event.” In this event, a non-traded Real Estate Investment Trust either performs an initial public offering or sells its assets.

Cole Credit Property Trust II May be Following in the Footsteps of other Non-Traded REITs

In recent events, other non-traded REITs have gone through this process and securities fraud attorneys say that, in most cases, the event does not go well for investors. As a result of the exit event, many REITs have experienced a significant decline in the offering — often amounting to 30 percent or more of the investment’s value.

As the seventh-largest non-traded REIT in the industry, Cole Credit Property Trust II has invested assets amounting to nearly $3.4 billion. Reportedly, Morgan Stanley and UBS Investment Bank have been hired by Cole Credit Property Trust II to explore their options for the exit event. Investment fraud lawyers encourage Cole Credit Property Trust II investors to closely monitor the REIT’s valuation as, despite an estimated valuation of $9.35 per share, the trend in previous non-traded REITs indicates that the market may not be so kind to the per share valuation.

Published on: September 12, 2012

Victims of Clinton D. Fraley Could Recover Losses

by InvestorLawyers

Securities fraud attorneys are currently investigating claims on behalf of former clients of Northwestern Mutual Investment Services LLC, MML Investors Services LLC, Wealth By Design Inc. and Clinton D. Fraley. In August, an emergency law enforcement action was filed by the Colorado Securities Commissioner to enjoin Wealth by Design and Clinton Fraley from violating the Colorado Securities Act. According to the allegations, Fraley violated the Colorado Securities Act by accessing investors’ mutual fund accounts without authorization, converting their securities into cash illegally and forging checks in order to access funds for personal use.

Victims of Clinton D. Fraley Could Recover Losses

“Fraley, who was a licensed securities professional employed with licensed broker-dealers until he was terminated in 2011, solicited hundreds of thousands of dollars from Colorado investors, promising the investors that their money would be invested in ‘a well-balanced portfolio of investments’ consisting of Roth IRAs, traditional investments such as stocks and bonds, mutual funds and non-qualified investments,” says the statement from Colorado enforcement officials. However, “Fraley gained unauthorized access to the investors’ accounts, forged the investors’ signatures on checks, deposited the money in a Wealth bank account and converted the money for his own personal benefit, including the purchase of a house.”

Stock fraud lawyers say Fraley was registered from March 2007 to May 2011 with Northwestern Mutual Investment Services, a FINRA-registered broker-dealer. Fraley was registered with another FINRA-registered broker-dealer, MML Investors Services, from May 2011 to October 2011. All FINRA-registered broker dealers are, according to securities fraud attorneys, required to properly supervise the activities of their brokers during the time in which they are registered with the firm. As a result, these firms may be held liable for failing to adequately supervise Fraley.

Published on: September 7, 2012

Defrauded Investors of James Ryan Lanier, Recently Arrested Merrill Lynch Financial Advisor, Could Recover Losses

by InvestorLawyers

Securities fraud attorneys are currently investigating claims on behalf of victims of James Ryan Lanier, a financial advisor for Merrill Lynch. Reportedly, Lanier was arrested on fraud, identity theft and money laundering related to embezzlement. Allegedly, Lanier, 33, embezzled over $800,000 from Merrill Lynch clients and was arrested in San Diego, California.

Defrauded Investors of James Ryan Lanier, Recently Arrested Merrill Lynch Financial Advisor, Could Recover Losses

According to the allegations listed in the 65-count indictment against Lanier, while he was working for Merrill Lynch as a financial advisor between 2008 and 2010, Lanier forged client signatures on fraudulent letters of authorization to Merrill Lynch client associates. These client associates were responsible for processing client funds through wire transfers. Purportedly, these letters also contained misleading and false statements that were intended to persuade the client associates to transfer funds from the investment accounts of clients to bank accounts under Lanier’s control.

According to the indictment, stock fraud lawyers say that Lanier deliberately sought out assistance from client associates who were not familiar with his clients to direct funds transfers. Lanier allegedly claimed Merrill Lynch clients had given voice approval on a recorded telephone conversation, though no such approval was given. Choosing client associates who were unfamiliar with his clients aided Lanier in his scheme.

Published on: September 5, 2012

Behringer Harvard Strategic Opportunity Fund I 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 Behringer Harvard Strategic Opportunity Fund I. Reportedly, this investment is in serious trouble, with its assets being far outweighed by its liabilities. Behringer Harvard Strategic Opportunity Fund I was initially offered in 2005 and, since then, has raised $65 million. Six properties were involved in the fund’s investing, including a hotel in Los Angeles and an office building in Amsterdam. It has been reported that, around the middle of August, Behringer Harvard informed brokers of the fund’s problems.

Behringer Harvard Strategic Opportunity Fund I Investors Could Recover Losses

Allegedly, many brokers recommended Behringer Harvard Strategic Opportunity Fund I to their clients, misrepresenting the investment as low risk and safe. Furthermore, investment fraud lawyers say some brokers unsuitably placed an overconcentration of client assets in the product.

Chief executive of the funds of which Behringer Harvard’s opportunity platform consist, Michael O’Hanlon, stated that Behringer Harvard Strategic Opportunity Fund I’s “liabilities are greater than its assets.” O’Hanlon also stated that a “swing issue” is in effect over the Los Angeles hotel and the fund is currently negotiating with banks on the issue.

Published on: August 30, 2012

Unregistered Securities: Inofin 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 an Inofin promissory note or Inofin offering. A recent announcement by the Securities and Exchange Commission (SEC) stated that on July 23 and 24, final judgments were entered in a civil injunctive action against Michael J. Cuomo and Kevin Mann Sr. This action was filed in the United States District Court of Massachusetts.

Unregistered Securities: Inofin Investors Could Recover Losses

Allegations included in the SEC complaint were that Inofin and Inofin executives illegally raised money from investors in 25 states and the District of Columbia totaling at least $110 million. These funds were raised through unregistered note sales. Furthermore, Inofin allegedly materially misrepresented the company’s financial performance as well as how it was using investors’ money. Thomas K. Keough and David Affeldt, two sales agents, were also charged by the SEC. Allegations against Affeldt and Keough stated that they offered and sold the aforementioned unregistered securities.

Stock fraud lawyers say Keough’s FINRA Broker Report stated that he was registered with FINRA during a significant portion of the time that he sold these unregistered securities. As a result, investors who, in accordance with Keough’s recommendation, purchased an Inofin investmentvcould be able to recover losses through securities arbitration.

Published on: August 27, 2012

Retail Properties of America, Formerly Inland Western, Faces More Problems

by InvestorLawyers

For quite some time now, securities fraud attorneys have been investigating claims on behalf of investors who suffered significant losses as a result of their investments in Retail Properties of America REIT, formerly known as Inland Western. Reportedly, the chief executive of Inland Real Estate Group of Cos. Inc., Daniel Goodwin, recently expressed criticism about the Retail Properties of America Inc.’s IPO timing. A new lawsuit states that in January 2011, the REIT told investors before the offering that they could expect a value of $17.25 per share. However, at the time of the offering, the REIT’s shares, adjusted for the stock split, were actually only valued at $3.20 a share. This also was significantly lower than the $10 price which the majority of investors paid per share.

Retail Properties of America, Formerly Inland Western, Faces More Problems

According to Goodwin, Inland Real Estate Group of Cos. Inc. has no control over Retail Properties of America. Furthermore, when asked if Inland would join in the lawsuit filed in the U.S. District Court for the Northern District of Illinois — which is seeking class action status — Goodwin said, “We have discussed various potential actions but haven’t reached a conclusion. Our interests are clearly aligned with the shareholders.”

Investment fraud lawyers say Retail Properties of America is the third-largest shopping center REIT in the nation. In April 2012, Retail Properties of America was converted to a publicly traded New York Stock Exchange company from a non-traded REIT.