June 8, 2010 Comments (0) Blog, Securities Fraud

Investigation of possible securities fraud involving DBSI, Inc. and Royal Alliance

(Last Updated On: July 17, 2015)

We are investigating a securities fraud claim on behalf of an investor involving a recommendation made by Royal Alliance to invest in DBSI, Inc. In the case we are investigating, Royal Alliance allegedly represented that the DBSI tic (tenants-in-common) investment provided a 6% guaranteed return. Unfortunately, unbeknownst to the investor, DBSI was already in significant financial trouble at the time of the investment in the DBSI TIC and it appears that Royal Alliance failed to perform reasonable due diligence in recommending the investment to this particular investor. Moreover, DBSI, Inc. has since filed for bankruptcy and it appears that the investor’s entire investment has been lost.

Significantly, the bankruptcy court-appointed investigator, Joshua R. Hochberg, in his first report regarding DBSI, painted a picture of a company in disarray. He detailed the company’s “serious cash flow problems and operating losses” and indicated that its Accounting ledger entries are “confusing and misleading” because they don’t “fully, fairly and accurately reflect the transactions they purport to describe.”

The case we are investigating involves former Royal Alliance financial advisor Marvin Remmich in Danville, California, however, it appears from our preliminary investigation that the DBSI TIC investment was being actively marketing throughout Royal Alliance (f/k/a United Securities Alliance).

If you have any information that may assist us in our investigation on behalf of this investor, please contact us at 312-238-9650.

Our preliminary investigation has also turned up that some of the TIC investments were not properly registered as securities. To the extent that investors purchased “unregistered securities” they could be entitled to recover their entire investment loss. In addition, to the extent that any DBSI sales occurred through misrepresentations or omissions, or because of a failure of the salesperson to conduct “due diligence,” investors may have claims against the salesperson and the brokerage firm involved.

Additionally, it appears that DBSI was being marketed and sold by other broker-dealers including, but not limited to, Berthel Fisher and Independent Financial Group.

The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm with offices in Chicago, Illinois and Boca Raton, Florida. With over 30 years of securities law experience, including experience working at FINRA (f/k/a the NASD) and the SEC, The White Law Group has the expertise to help investors defrauded in securities, investment and financial business transactions. For more information on The White Law Group, please visit our website at http://www.whitesecuritieslaw.com.

-->