CNL Lifestyle Properties Prepares for Liquidity Event

Friday, September 12th, 2014

According to InvestmentNews, in a filing with the SEC, CNL Lifestyle Properties recently announced that the company is seeking a liquidity event in which the company will sell the REIT or shares in the REIT on the stock exchange. In addition, the company announced that it was suspending its distribution reinvestment plan and share redemption plan.

The non-traded REIT was launched in 2003 and sold for $10 per share. At the end of last year, CNL REIT was valued at $6.85 per share with approximately $2.7 billion in assets. Investment News reports the REIT signed an agreement to sell its golf portfolio of properties which account for 19% of the REIT’s holdings.

Many brokers pitched non-traded REIT’s, like CNL, as low risk and relatively safe products. In many cases, these brokers failed to adequately disclose the risks and liquidity problems often associated with non-traded REITs.

Brokerage firms have a fiduciary duty to their clients to perform adequate due diligence on an investment prior to recommending it for sale, as well as to ensure that any investment recommended is appropriate in light of the investor’s age, investment experience, net worth, and investment objectives.

Brokerage firms that do not perform adequate due diligence on an investment and/or make unsuitable recommendations can be held accountable for investment losses through FINRA dispute resolution claim.

To determine whether you may be able to recover investment losses incurred as a result of your purchase of CNL Lifestyle Properties, please contact The White Law Group at 312-238-9650.

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 Vero Beach, Florida.

For more information on The White Law Group, visit www.WhiteSecuritiesLaw.com.

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Gemini Real Estate Advisors Internal Feud

Friday, September 12th, 2014

According to InvestmentNews, internal disputes between the owners of Gemini Real Estate Advisors could potentially endangers million in loans and investors equity. What started out as a request to reconstruct the company by one owner, William Obeid, has reportedly turned into a federal case.

The dispute appears to have escalated when owners Christopher La Mack and Dante Massaro sued Obeid in North Carolina for alleged abuse of power as the companys operating manacher and for acting outside his authority. Obeid then filed a complaint in New York federal court against Massaro and La Mack.

InvestmentNews reports that Gemini Real Estate Advisors and its partners oversee a real estate portfolio valued at $1 billion. The pending lawsuit could potentially endanger millions of dollars of investor equity. The company was known for tenant-in-common or TICs, and has since focused on private placements.

The foregoing information, which is all publicly available on the InvestmentNews website, is being provided by The White Law Group.

The White Law Group is a national securities fraud, securities arbitration, and investor protection law firm with offices in Chicago, Illinois and Vero Beach, Florida.

For a free consultation with a securities attorney, please call The White Law Group at (312)238-9650. For more information on the firm, visit www.WhiteSecuritiesLaw.com.

 

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Securities Fraud in Port St. Lucie

Wednesday, September 10th, 2014

The White Law Group is following a local securities fraud case in the neighboring town of Port St. Lucie.

According to TCPalm, securities broker, Paul Elvidge was sentenced to prison for wire fraud and aggravated identity theft. Authorities allege that from 2010 to 2012, Elvidge forged his clients’ signatures to authorize wire transfers from client’s brokerage accounts to his own personal accounts. Allegedly, Elvidge used the money to pay personal and business expenses as well as day trading on the stock market.

Elvidge was ordered to pay $1.3 million in restitution. However, it is unclear if he has the money to repay investors. As such, The White Law Group is investigating other avenues to recover investment losses.

Brokerage firms have a responsibility to adequately monitor the activities of their employees. When a broker is imprisoned for violating securities laws, the brokerage firm may be liable for negligent supervision and responsible for investment losses.

According to BrokerCheck, Elvidge worked in Port St. Lucie with Seacoast Investor services from 10/1988 through 05/2012 and with Cape Securities from 08/2011 through 10/2012.

If you invested with Paul Elvidge and have questions about your investments, please call The White Law Group’s Vero Beach office at (772)242-9330 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 Vero Beach, Florida.

For more information on The White Law Group, visit www.WhiteSecuritiesLaw.com.

 

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SEC Investigation into F-Squared Investments

Monday, September 8th, 2014

The White Law Group is currently following the Securities and Exchange Commission’s investigation into F-Squared Investments Inc.

According to InvestmentNews, the SEC announced legal action against the largest manager of exchange traded funds (ETFs), F-Squared Investments Inc., for allegedly misrepresenting past returns. It appears the SEC sent out a Wells notice — a letter notifying the firm that they are planning on bringing an enforcement action against them.

A Wells notice is not required but is a common practice among securities regulators. The notice allows the recipient an opportunity to provide information as to why the enforcement action should not be pursued.

Reports indicate that F-Square notified clients last October that they were under investigation by the SEC over advertised performance records. The alleged securities violation occurred between April 2001 through September 2008. Allegedly, regulators found errors and calculations that were not based on actual client assets.

According to InvestmentNews, F-square is among the most prominent firms that specialize in managing ETFs and oversees approximately $27.7 billion. It’s unclear if the potential civil suit will have a negative impact on the firm. However, an unnamed source told InvestmentNews, that certain national brokerage firms have instructed their representatives to pull back on the amount of new business they do with F-square.

The foregoing information, which is all publicly available on the InvestmentNews website, is being provided by The White Law Group.

The White Law Group is a national securities fraud, securities arbitration, and investor protection law firm with offices in Chicago, Illinois and Vero Beach, Florida.

For a free consultation with a securities attorney, please call The White Law Group at (312)238-9650. For more information on the firm, visit www.WhiteSecuritiesLaw.com.

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Triple Leveraged Inverse ETF’s

Monday, September 8th, 2014

Have you suffered losses investing in a leveraged or inverse ETF’s such as a Direxion triple leveraged inverse ETF? If so, the White Law Group may be able to help recover your losses.

Exchange-traded funds (ETF) are registered investment companies whose shares are comprised of a portfolio of securities, often described as a “basket.” They are designed to mirror the performance of the underlying index such as the S&P. ETF’s trade just like a stock and their value can fluctuate throughout the day. Traditional ETF’s are often compared to mutual funds to appeal to investors. The same cannot be said about leveraged and inverse ETF’s.

Leveraged ETF’s aim to produce returns in multiples. Their daily performance objectives attempt to deliver two or more times the returns of the underlying index. Inverse ETF’s, like the name implies, seek to deliver returns the opposite of the performance of the index they track.

Many investors are unaware that the risks associated with leveraged and inverse ETF’s are often considerably greater compared to normal ETF’s. These types of investments reset daily and are not designed to be held for an extended length of time. In addition, inverse and leveraged ETF’s should be monitored daily.

In order to meet their objectives, leveraged and inverse ETF’s use a number of investment strategies, such as swaps, futures contracts and other derivative instruments, to meet their objectives. Unfortunately the complexities associated with these product, are not only misunderstood by many investors, but the brokers that sell them.

Brokers have a responsibility to perform adequate due diligence in order to determine suitable investment recommendations. Recommendations should be inline with the clients risk tolerance, investment objectives, liquidity needs and investment experience. Brokers that make unsuitable investment recommendations may be liable for investment losses.

If you invested in an leveraged or inverse ETF’s, like those offered by Direxion, and would like to speak to a securities attorney about your potential to recover your investment through FINRA arbitration, please call our Chicago office 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 Vero Beach, Florida.

For more information on The White Law Group, please visit our website at www.whitesecuritieslaw.com.

 

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