American Realty Capital Investigation

Wednesday, April 29th, 2015

The investigation into American Realty Capital and Nicholas Schorsch REIT empire continues. What started out as a $24 million dollar accounting error has led to investigations by the U.S Justice Department, Securities Exchange Commission, and some state investigators.

According to Bloomberg Business, a class action alleges a hidden scheme to generate more than $900 million in managers’ fee and bonuses. “In their class action, begun in January, teachers’ pension funds that lost money on American Realty shares accused managers of manipulating cash-flow data to inflate the stock for takeovers. Those deals were “designed” to generate fees for the executives and didn’t deliver the promised benefits to REIT or its shareholders, the funds says.”

Furthermore, reports indicate that recent court documents accuse Ex-chairman Nicholas Schorsch of adding $20 billion of assets and charging for services rendered by 47 entities he controlled.

REITs are generally considered complex, high-risk securities products. As such, many states have set guidelines specific to REIT sales. Broker dealers that sell REITs have a responsibility to make investment recommendations that are consistent with the investors risk tolerance, financial objectives, investment experience and net worth. When broker dealers fail to make suitable investment recommendations they may be liable for investment losses.

The White Law Group continues to investigate potential claims on behalf of individual investors to recover losses in ARCP and other REITs. If you own interests in REITs and would like to discuss your litigation options, please call the securities attorneys of The White Law Group at 312-238-9650 for a free consultation.

For more information on The White Law Group, please visit the firm’s website at www.WhiteSecuritiesLaw.com.

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FINRA Expels Aaeon Parthemer From Securities Industry

Friday, April 24th, 2015

According to Investment News, the Financial Industry Regulatory Authority (FINRA) has barred Wells Fargo broker and Miami socialite Aaeon Parthemer for failure to disclose his involvement in various outside businesses. FINRA rules require brokers to disclose outside business activity to the brokerage firm where they work.

FINRA alleged that from 2009 to 2013 Parthemer failed to disclose his involvement in the night club Club Play. He also was allegedly involved in a tequila marketing operation and an internet branding startup. In addition, FINRA alleged Parthemer loaned almost $400,000 to the three owners of the night club. The loans violated the firms policy regarding loans.

Furthermore, according to reports, Parthemer falsely represented himself on compliance questioners he provided to Morgan Stanley and Wells Fargo. When Finra began to request more information regarding his outside businesses he again allegedly provided false information.

If you suffered losses investing with Aaeon Parthemer and would like to discuss your potential to recover your losses through a FINRA arbitration claim, please call the securities attorney 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 Vero Beach, Florida.

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

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Investigation into Broker Michael Oppenheim

Wednesday, April 22nd, 2015

Have you been defrauded by JPMorgan Chase & Co broker Michael Oppenheim? If so, the securities attorneys of The White Law Group may be able to help.

According to 12News, Michael Oppenheim was arrested for allegedly stealing approximately $20 million from clients and using some of the money for personal investments and expenses. The United States Attorney’s Office for the Southern District of New York has charged Oppenheim with wire, securities, and investment adviser fraud, as well as embezzlement.

In addition to criminal charges, the Securities and Exchange Commission (SEC) has filed a complaint against Oppenheim alleging he abused his position and convinced some clients to withdraw millions from their accounts on false promises that he would invest their funds in safe and secure investment.

Furthermore, the SEC alleges that Oppenheim took illicit steps to conceal his fraud by creating false statements for clients. In one instance, the SEC alleged he transferred money from one client’s account to replenish the funds he had stolen.

Brokerage firms have a responsibility to adequately monitor their employees. When a broker commits fraud and steals from clients, the firm may be liable for negligent supervision and held liable for investment losses.

If you invested with Michael Oppenheim and would like to speak to a securities attorney about your potential to recover losses through Financial Industry Regulatory Authority (FINRA) arbitration, please call the firm’s Chicago office 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, please visit our website at www.whitesecuritiesfraud.com.

 

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Recovery of Losses in Gulf Coast Rig & Equipment

Wednesday, April 22nd, 2015

Have you suffered investment losses in Gulf Coast Rig & Equipment? If so, The White Law Group may be able to help.

Unfortunately for many investors the risks associated with private placements may have been understated and misrepresented by their broker. While these types of investments can be lucrative, they are extremely speculative investments and are not suitable for most retail investors.

The White Law Group continues to investigate potential FINRA arbitration claims involving private placement investments. Financial advisors and broker-dealers have a duty to their clients to perform the necessary due diligence on an investment before offering it for sale to their clients and to ensure that any investment recommendation that is made is suitable in light of the client’s age, investment experience, net worth, and investment objectives.

To determine whether you may be able to recover investment losses incurred as a result of your purchase of Gulf Coast Rig & Equipment, 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, please visit our website at www.whitesecuritieslaw.com.

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Investigation into Griffin-American Healthcare REIT II

Tuesday, April 21st, 2015

According to Griffincapital.com, as of December 3, 2014 Griffin-American Healthcare REIT II completed a $4 billion merger and is now part of Northstar Realty Finance Corporation.

Foxbuisness reported that shareholder would receive $7.75 per share in cash and $3. 75 per share in NorthStar common stock for their shares of the REIT.

The White Law Group continues to investigate potential securities fraud claims involving broker-dealers’ improper recommendation that investors purchase risky non-traded REIT investments.

REITs are complex products that are inherently risky. Unfortunately some brokers emphasized the potential for relatively high dividends and downplayed the risks associated these products. Until recent regulation changes, non-traded REITs could go five years without evaluating net asset value (NAV). Investors had no way of knowing the value of their shares.

Brokerage firms have a fiduciary duty to make investment recommendations that are suitable for clients given their age, net worth, risk tolerance and investment objectives. Firms that overlook suitability requirements can be liable for investment losses.

If you suffered losses in a non-traded REIT, such as Griffin-American Healthcare REIT II, and would like to discuss your litigation options, please call the securities attorneys of 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 Vero Beach, Florida.

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

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