Publications
Association of Certified Financial Crime Specialists
http://www.acfcs.org/illinois-receives-dubious-honor-of-being-second-state-ever-sued-for-fraud-by-sec/
Earlier this month, Illinois became the second state ever to be the target of a cease and desist order from the US Securities and Exchange Commission for fraud related to its state-backed securities.
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D. Daxton White, an attorney at the White Law Group, a securities law firm in Boca Raton and Chicago, said the SEC seems to be increasing its focus on state securities.
He said, “I believe the SEC’s investigation of Illinois and its sales of municipal bonds may be a strategic shift by the SEC.”
“Given that the SEC has already launched a similar investigation into the State of New Jersey… it appears the (SEC) will be more closely scrutinizing the sale of municipal bonds by various states,” White continued.
Phoenix Business Journal
A Phoenix-based company is tangled in a Massachusetts securities investigation in which regulators slapped a large brokerage with a lawsuit last week, claiming dishonest and unethical business practices in dealing with real estate investment trusts.
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San Diego Reader
http://www.sandiegoreader.com/news/2011/oct/19/citylights1/
Beware nontraded real estate investment trusts. That advice was issued early this month by the Financial Industry Regulatory Authority, the nongovernmental regulator of securities firms.
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Florida-based White Law Group is investigating possible securities claims against brother Ray Lucia. The subject: the appropriateness of a nontraded real estate investment trust recommendation. The sale occurred back while Ray was still in the business. White says that the problem is that such investments “are often illiquid, and investors cannot readily access their money for unforeseen expenses (like medical expenses).”
Financial Advisor Magazine
Pacific Cornerstone REIT Among Those Facing Dramatic Drop in Value
Cornerstone Real Estate Investment Funds sold through Pacific Cornerstone Capital Inc. have joined other REITs in experiencing a drastic drop in value in recent months.
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The White Law Firm in Chicago is investigating the broker-dealers who sold the Cornerstone shares. The firm has received numerous calls from investors who have lost substantial portions of their portfolios because of the drop, says Dax White, managing partner.
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Financial Planning
Investing in TICs? Proceed with Caution
Advisors with clients who want to move money into real estate investments known as tenant-in-common offerings under section 1031 of the Internal Revenue Code need to be wary.
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“TICs can involve high risks and liquidity problems and in many cases brokerage firms misrepresent these risks and instead focus on the income stream that is promised [and sometimes guaranteed]by these investments,” as the White Law Group, a securities fraud litigation and FINRA arbitration investor protection firm, warns on its web site.
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Investment News
http://www.investmentnews.com/article/20120115/REG/301159976
The Securities Industry and Financial Markets Association wants Finra to crack down on deadbeat brokers who have failed to pay back promissory notes.
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Specifically, the trade group wants the Financial Industry Regulatory Authority Inc. to change its rules so that brokers can’t plead poverty to get out of an arbitration repayment order.
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Investment News
Thinkorswim users sue TD Ameritrade for $8.2 million in options losses.
TD Ameritrade Inc. has been hit with an $8 million arbitration claim by a group of options traders who say they lost money last summer during final integration of the thinkorswim trading platform.
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InvestmentNews
Investors in Lerner REITs may find no redemption – InvestmentNews
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Investors who want to redeem their shares in the Apple family of non-traded REITs marketed by David Lerner Associates Inc., which has become the target of a regulatory action, may be out of luck.
Redemption requests for nontraded real estate investment trusts normally are processed at the end of each quarter.
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“My suspicion is that if the Apple REITs have too many requests from clients, that could force a suspension of the redemption program,” said Daxton White, a plaintiff’s attorney. He said that he has spoken to about 10 David Lerner clients who bought the Apple REITs.
Lawyers and Settlements
Securities Suits Still Going Strong at White Law Group
Two years on and a bit more, attorneys like Daxton White are still filing suit or doing FINRA (Financial Industry Regulatory Authority) mediation and arbitration hearings for clients who were bilked, defrauded, led down the garden path and otherwise separated from their money by unscrupulous and indeed sometimes criminal brokers and investment companies.
New York’s Bernie Madoff and his celebrity clients got the headlines, but there were many others out there doing the same.
“We are very busy,” says White from his office in Chicago at the White Law Group. “The only concern we have with our cases is that many of the brokerage firms we are suing are being sued by so many people that a lot of them are on the brink of bankruptcy.”
Las Vegas Review-Journal
Investigation focuses on Henderson-based Desert Capital
Two years on and a bit more, attorneys like Daxton White are still filing suit or doing FINRA (Financial Industry Regulatory Authority) mediation and arbitration hearings for clients who were bilked, defrauded, led down the garden path and otherwise separated from their money by unscrupulous and indeed sometimes criminal brokers and investment companies.
New York’s Bernie Madoff and his celebrity clients got the headlines, but there were many others out there doing the same.
“We are very busy,” says White from his office in Chicago at the White Law Group. “The only concern we have with our cases is that many of the brokerage firms we are suing are being sued by so many people that a lot of them are on the brink of bankruptcy.”
Sun-Sentinel
Your Money Q&A: How long after losing money can I file a claim?
Most investor claims must go through arbitration, rather than through courts. They must be submitted under rules established by the Financial Industry Regulatory Authority, an industry self-regulatory organization. Finra’s code says claims can be made within six years after the event, according to Rose M. Schindler, the former Finra Regional Director in Boca Raton. She is now with The White Law Group.