Have you suffered losses investing in a True North offering? If so, the securities attorneys of The White Law Group may be able to help you recover your losses through a FINRA arbitration claim against the brokerage firm that sold you the investment.
True North Finance Corporation (f/k/a CS Financing Corporation) is a SEC-registered real estate finance company based in Minneapolis. From November 2006 to November 2008, it issued notes registered with the SEC. It filed a Form S-1 registration statement in late 2009 and two subsequent amendments in early 2010 for the issuance of $89,870,000 in notes.
In 2010, the SEC sued True North Finance Corporation (and other related individuals and entities) for alleged fraud. According to the SEC’s complaint, True North overstated its revenue by as much as 99% in its filings with the SEC in 2008 and 2009. The SEC further alleged that True North engaged in transactions, acts, practices or courses of business which constitute violations of 13(b)(2)(A), 13(b)(2)(B), and 15(d) of the Exchange Act and Rules 12b-20, 13a-1, and 13a-13 thereunder. The SEC also alleged that True North overstated its revenue on the only two investments it ever made – a purchase of unsecured notes issued by Assured Financial, a real estate lender affiliated with Hennessey Financial, and a line of credit to Real Equity Solutions, a Marin County, California real estate lender.
The White Law Group is investigating the liability that brokerage firms may have for recommending True North investments.
Brokerage firms have a fiduciary duty to their clients to provide adequate due diligence on any investment offered. Additionally, brokerage firms are required to only recommend investments that appropriate for a particular client in light of that clients age, investment experience, investment objectives, and net worth. Based on what is now known about the True North fund, it appears that the firms that sold the investment failed to perform adequate due diligence on the offering.
In a November court filing, the SEC said that NFP Securities, a FINRA registered broker-dealer, “brought in a majority” of the investors in the True North fund.
If you invested in the True North fund or another investment offered by True North Financial Corporation and would like to speak with a securities attorney regarding your litigation options, please call The White Law Group at 312/238-9650 for a free consultation.
The White Law Group is a national securities fraud, securities arbitration, and investor protection law firm with offices in Chicago, Illinois and Boca Raton, Florida.
For more information on The White Law Group, visit http://www.whitesecuritieslaw.com.