brokersXpress to close?
Thursday, May 17th, 2012According to reports, brokersXpress will have a call with its 300 financial advisors and announce that it is shutting down operations.
The Charles Schwab Corp. last year bought optionsXpress Holdings Inc., the parent company of brokersXpress. It is unclear why brokersXpress would be shutting its doors now.
brokersXpress has attracted independent financial advisors by offering (according to its website) (1) high payouts, low ticket charges and no hidden fees, (2) expert support, (3) trading convenience, and (4) true independence.
If the news about brokersXpress’ closing is true, the reps with brokersXpress will be looking for a new platform for their business.
The foregoing information has been provided by The White Law Group. The White Law Group is a national securities fraud, securities arbitration, securities regulation and investor protection law firm with offices in Chicago, Illinois and Boca Raton, Florida.
For more information on the firm, visit http://www.whitesecuritieslaw.com.
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Montford Associates fined by SEC
Wednesday, May 16th, 2012The U.S. Securities and Exchange Commission recently announced that it has ordered Montford Associates, an Atlanta investment advisory firm, to pay a penalty of $650,000 for failing to disclose payments the firm allegedly received from a hedge fund to which it steered clients.
According to reports, Montford failed to disclose the payments and specifically represented to its clients that the firm did not receive any compensation in connection with giving advice to their clients.
The White Law Group is investigating the legal liability that Montford has to its clients for failing to disclose the payments it received.
For information on the firm’s investigation, please call the firm at 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 Boca Raton, Florida.
For more information on The White Law Group, visit http://www.whitesecuritieslaw.com.
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Recovery of Inland American REIT Losses
Saturday, May 12th, 2012Have you suffered investment losses in Inland American REIT? If so, the REIT fraud attorneys of The White Law Group may be able to help you recover your losses through FINRA arbitration.
The SEC recently announced that it is looking at activity of Inland American REIT to determine if the REIT committed violations related to management fees, the timing and amount of distributions paid to investors, and transactions with affiliates. It is unclear at this time what the investigation will mean for the value of Inland American REIT but obviously this is not good news.
The White Law Group is investigating potential securities fraud claims involving broker-dealers’ improper recommendation that investors purchase risky non-traded REIT investments, including Inland American REIT.
FINRA has stepped up its regulation of the sale of REITs and, in particular, the ways in which broker/dealers marketed and sold the products to investors. In many cases, and notwithstanding the risk of REIT investments, broker-dealers marketed these investments as safe and secure.
REITs typically pay a high commission – often as much as 15% (which often explains the stockbroker’s motivation in recommending the REIT investment to the investor).
Due to the relatively high interest or dividend offered by non-traded REITs like Inland American REIT, retired investors are often attracted to these products. Unfortunately, in addition to be risky investments, non-traded REITs are also illiquid (limiting investors ability to access their own money for unforeseen expenses).
Another problem with non-traded REITs is that broker-dealers are not required to frequently update the current price of the investment. This often leads investors to believe that there REIT investment is doing well even though the widespread real estate market collapse would indicate otherwise.
To determine whether you may be able to recover investment losses incurred as a result of your purchase of a risky REIT 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 Boca Raton, Florida.
For more information on The White Law Group, visit http://www.whitesecuritieslaw.com.
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SEC Investigating Inland American REIT
Thursday, May 10th, 2012According to the Wall Street Journal, the Securities and Exchange Commission is investigating Inland American Real Estate Trust (Inland American REIT) for potential violations of federal securities laws.
According to the report, the SEC is looking at activity of Inland American REIT to determine if the REIT committed violations related to management fees, the timing and amount of distributions paid to investors, and transactions with affiliates.
Inland American is the largest of the nontraded REITs currently available and the investigation casts a large shadow on the nontraded REIT market.
The White Law Group continues to investigate the liability that brokerage firms have for recommending nontraded REITs like Inland American REIT.
Brokerage firms have a fiduciary duty to perform adequate due diligence on any investment that they recommend and to ensure that the investments recommended are appropriate in light of the client’s age, investment experience, net worth, and investment objectives.
The problems we see involving nontraded REITs generally relates to the financial advisor’s failure to adequately disclose the risks and illiquidity of these investments (as well as the high commission he/she earned for selling the REIT).
One of the other main complaints we continually hear relates to the problems in the valuation of these investments. Finra rules currently mandate that sponsors of nontraded REITs establish an estimated per-share valuation within 18 months after the REIT stops raising money from investors. The problem with this language is that fund raising often lasts for years which results in the per-share valuation potentially remaining unchanged for years.
The White Law Group’s investigation into the improper sales of non-traded REITs includes, but is not limited to, recommendations to invest in the following REITs: Behringer Harvard REIT I, Inland America Real Estate Trust, Inland Western Retail Real Estate Trust, Wells Real Estate Investment Trust II, Piedmont Office Realty Trust, Desert Capital REIT, Apple REIT, Crystal River REIT, and KBS REIT.
To determine whether you may be able to recover investment losses incurred as a result of your purchase of Inland American REIT, 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 Boca Raton, Florida.
For more information on The White Law Group, visit http://www.whitesecuritieslaw.com.
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Recovery of TVIX ETF Losses
Thursday, May 10th, 2012Have you suffered losses in the TVIX ETF? If so, the securities attorneys of The White Law Group may be able to help.
The White Law Group is currently investigating the liability that brokerage firms may have for recommending complicated and high risk ETF’s like TVIX.
The VelocityShares Daily 2x VIX Short-Term ETN (TVIX) offers leveraged exposure to VIX contracts; the note is linked to an index comprised of front month futures with a 200% leverage on the movements in volatility. TVIX is clearly a risky investment. However, because it is an ETF, many unsophisticated investors may have confused it with the more traditional (and conservative) ETFs that have become so popular.
On March 22, 2012, TVIX lost 29.3% of its total share price as investors scrambled to sell off their positions. The following trading day saw losses that were even more severe, 29.8%, as the fund was then trading at $7.16 per share. The net losses of the two days (after closing at $14.43 on Wednesday) totaled just over 50%, a massive swing that left many with big losses in a matter of hours.
FINRA and the SEC are beginning to step up their efforts to regulate nontraditional ETFs and ETNs live TVIX ETF and to monitor the manner in which these products are marketed and sold to the investing public.
FINRA and the SEC published a joint investor alert in 2009 warning that leveraged and inverse ETFs are complicated investments that focus on meeting daily performance goals. The agencies said long-term performance is likely to be very different than the investment’s stated daily objectives, and recommended that investors discuss the products with an investment professional.
If you have suffered losses in the TVIX ETF, the securities attorneys of The White Law Group may be able to help. For a free consultation, please call the firm at 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 Boca Raton, Florida. The firm exclusively represents investors in FINRA arbitration claims against their brokerage firm or financial professional.
For more information on The White Law Group, visit http://www.whitesecuritieslaw.com.
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