April 8, 2014 Comments (0) Blog, Securities Fraud

Berthel Fisher Settles DBSI Lawsuit

(Last Updated On: July 17, 2015)

According to InvestmentNews, broker-dealer Berthel Fisher & Co. Financial Services Inc., “one of the biggest seller of DBSI TICs,” recently settled a lawsuit with the DBSI Private Action Trust. According to the report, “The trustee in 2010 sued Berthel Fisher and almost 100 other broker-dealers that sold DBSI TICs, seeking to claw back about $49 million in commissions from the broker-dealers.” Approximately 47% of the broker-dealers that sold tenant-in-common (TIC) investments sponsored by the now bankrupt real estate company DBSI are no longer in business. 

DBSI filed for chapter 11 bankruptcy following the market crash in 2008. The CEO of DBSI and three top executes are currently on trial for 89 criminal counts, including several counts of conspiracy and securities fraud. Additional information on the current trial is available, here.

Tenant-in-commons are a type of structured real estate investment that allows a group of investors to co-own a piece of commercial property together. Unfortunately, the risks and liquidity problems associated with TICs were not adequately disclosed to many investors. Furthermore, many broker-dealers targeted retired investors, often misrepresenting the potential income stream the property could generate.

Brokers-dealers that make unsuitable investment recommendations and/or mislead clients regarding DBSI may be in violation of securities law enforced by the Financial Industry Regulatory Authority (FINRA). If you purchased a DBSI TIC under fraudulent conditions the broker-dealer may be liable for investment losses through FINRA arbitration.

To determine if your broker-dealer may be liable for your investment losses in DBSI TIC, please call the securities attorneys of The White Law Group at (312)238-9650 for a free consultation.

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.

To learn more about The White Law Group, visit http://www.whitesecuritieslaw.com.

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