Indiana Broker, Lynn Simon, Pleads Guilty to Securities Fraud

Tuesday, August 26th, 2014

According to www.theindychannel.com, Indiana broker, Lynn A. Simon plead guilty to charges stemming from allegations that he defrauded investors of more than $1 million.

The report said that law enforcement agents began investigating Simon after his wife reported him missing. In addition the Indiana Secretary of State’s Office received complaints about Simon.

According to BrokerCheck, Simon was a registered representative with CDF Investments from 09/2008 – 05/2013. However, the report states he operated a satellite office under the name Financial Security Planning, as well as another business, The Insurance Shoppe.

Allegedly, Simon sold promissory notes through Financial Security Planning that were not registered with the Indiana States Securities Department as required by law.

Brokerage firms have a responsibility to monitor the business transactions of their employees, including transactions that occur outside of the firm. When a broker sells an investment product that is not approved by the firm, the act can be considered selling away. If a broker is convicted of selling away, the brokerage firm may be liable for negligent supervision and responsible for investment losses.

If you were a client of Lynn A. Simon and would like to discuss your potential to recover your losses, 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/compliance law firm with offices in Chicago, Illinois and Vero Beach, Florida.

To learn more about The White Law Group, visit www.WhiteSecuritesLaw.com.

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DBSI President Sentenced to Federal Prison

Monday, August 25th, 2014

According to the Associated press, the president of DBSI, David Swenson, was sentence to 20 years in federal prison by District Judge B. Lynn Winmill. The company’s former legal counsel, Mark Ellison, was sentenced to five years.

“Winmill said Wednesday that he didn’t believe the defendants set out to defraud their clients, but he said they concealed the company’s financial problems and continued to accept new investments when they knew the company was failing.”

Earlier this year, Swenson and his two sons were convicted of 44 counts of securities fraud and 34 counts of wire fraud. Ellison was also convicted of 44 counts of securities fraud.

According to the report, before DBSI filed for bankruptcy the company managed 280 commercial buildings in 34 states. “More than $102 billion in claims were filed in bankruptcy court.”

Although a restitution amount has not been set, prosecutors have said they will seek at least $75 million.However, it is unclear if DBSI or the convicted executives have the money. As such, The White Law Group continues to investigate other avenues for investors to recover their losses, including looking at the brokerage firms that sold these investments.

Brokerage firms that sold DBSI had a fiduciary duty to make investment recommendations that were suitable for each individual investor. They also had an obligation to adequately disclose all the risks associated with the investment.

Furthermore, brokerage firms are expected to perform due diligence to ensure that the investment had a reasonable likelihood for success. Brokerage firms that failed to adhere to federal securities law and FINRA regulations can be liable for investment losses.

If you would like to discuss your litigation options to recover investment losses in DBSI, please call (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.

 

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TNP Attempts to Restructure Debt

Friday, August 22nd, 2014

Have you purchased investments with Thompson National Properties (TNP)? If so, the following information may be of value to you.

According to InvestmentNews,Tony Thompson and his company are offering to exchange TNP notes for a new stock venture. Last month, TNP pitched the idea to investors as part of a plan to restructure $50 million of debt and avoid potential bankruptcy.

According to the offering memorandum, InvestmentNews wrote, “TNP ‘has determined that it does not have the capacity to remain in business under its significant current debt load and believes it is in the best interest’ of TNP and the note holders to restructure the debt to exchange the notes for preferred equity.”

While this may provide investors an opportunity to get their money back, The White Law Group continues to investigate the liability some brokerage firms may have for recommending TNP notes to clients. Brokerage firms are required to perform adequate due diligence to ensure that the investment has a reasonable likelihood of success and that the investment is suitable for each individual. When brokerage firms fail to uphold their fiduciary duty or misrepresent an investment they may be liable for investment losses.

If you feel that your broker-dealer misrepresented your TNP investment, the securities attorneys of The White Law Group may be able to help you recover your losses. For a free consultation please call 312-238-9650.

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.

To learn more about The White Law Group, visit www.WhiteSecuritiesLaw.com.

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Recovery of Investment Losses in Catalyst Energy

Thursday, August 21st, 2014

Have you suffered financial losses as a result of your purchase of a Catalyst Energy Limited Partnership? If so, The White Law Group may be able to recover some of your losses in a FINRA arbitration claim against the brokerage firms that recommended the investment.

According to there website, Catalyst Energy, Inc. specializes in the development of oil and natural gas resources in the Appalachian region of northwestern Pennsylvania. In recent years, Catalyst Energy has offered multiple limited partnerships.

Unfortunately, certain brokerage firms may have failed to adequality disclose the risks associated with the investment. Limited partnerships, especially oil and gas interests, are complex high risk products that often lack liquidity. It appears that some brokers downplayed the risk and mislead investors into thinking these were “safe” investments.

Compared to exchanged traded investments such as stocks or bonds, limited partnerships offer extremely high sales commission. Often this provides some brokers with enough incentive to overlook suitability requirements when selling partnership units. Broker dealers that sold Catalyst Energy 2012-1 earned a sales commission of approximately 5%, according to the SEC files.

Broker dealers that overlook the FINRA suitability requirements or mislead investors regarding risks can be liable for investment losses through FINRA dispute resolution.

To determine whether you may be able to recover investment losses incurred as a result of your purchase of a Catalyst Energy limited partnership, please contact 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.WhiteSecuritiesLaw.com.

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Recovery of Geneva Exchange Fund TIC Losses

Wednesday, August 20th, 2014

Have you suffered investment losses in a Geneva Exchange Fund tenant-in-common (TIC)? If so, The White Law Group may be able to help you recover your losses through a FINRA arbitration claim against the brokerage firm that recommended the investment.

According to SEC filings, there are multiple Geneve Exchange Funds that offered tenant in common interests. The Minnesota based limited liability companies (LLC) provided investors the opportunity to invest in residential and commercial real estate.

Many investors are attracted to the potentially high returns offered by TICs, especially retired investors seeking a source of income. Unfortunately, TICs are high risk, speculative investments and arguably unsuitable for most investors since the TICs performance and ability to make distributions to investors is dependent on the underlying real estate property and the overall health of the real estate market.

Brokerage firms that sell TICs, like Geneva Exchange Fund, have a fiduciary duty to recommend investments that are in line with the client’s investment objectives, risk tolerance, age, net worth, investment experience, and liquidity needs. In addition, brokerage firms are required to adequately disclose all the risks associated with any given investment, and to perform adequate due diligence to determine if the investment has a reasonable likelihood of success.

To determine whether you may be able to recover investment losses incurred as a result of your purchase of a risky TIC investment, 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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