Posts tagged ‘DBSI fraud’
Update on the White Law Group’s Investigation into DBSI, Inc. and Broker-Dealers that sold DBSI TIC and/or DBSI REIT investments
The White Law Group is continuing to pursue securities fraud claims against broker-dealers who invested their clients’ funds in DBSI TIC (tenants in common) and DBSI REIT investments. In April, the firm filed a Financial Industry Regulatory Authority (FINRA) arbitration statement of claim involving investment losses in various private placements, oil and gas partnerships, and real estate tenants-in-common investments, including DBSI. The claim, filed against DeWaay Financial Network, seeks recovery of investment losses of over $500,000.
In the cases the firm is investigating, the brokerage firms allegedly represented that the DBSI TIC (tenants-in-common) investments provided a 6-7% guaranteed return and was a perfect investment for investors seeking to do a 1031 exchange. Unfortunately, unbeknownst to the investors, it appears that the brokerage firms failed to perform reasonable due diligence in recommending the DBSI TIC investments to investors.
DBSI filed for bankruptcy protection in late 2008 and many investors in DBSI investments have suffered catastrophic losses.
Although DBSI acted as the sponsor for various properties, the investors actually purchased a percentage interest in specific properties. Upon information and belief, many of those properties are listed below.
If you have questions about investments you made in DBSI or any of the properties listed below the securities attorneys of The White Law Group may be able to help. To speak with a securities attorney, please call the firm’s Chicago office at (312) 238-9650.
DBSI ABBOTTS BRIDGE LEASECO LLC, DBSI ACADEMY PARK LOOP LEASECO LLC, DBSI ALLISON POINTE LEASECO LLC, DBSI ALWORTH LLC, DBSI ANNA PLAZA LEASECO LLC, DBSI ARLINGTON TOWN SQUARE LEASECO LLC, DBSI ARROWHEAD LEASECO LLC, DBSI ATLANTIC BOULEVARD LLC, DBSI AVENUES NORTH CENTER LEASECO LLC, DBSI BANDERA TRAILS LEASECO LLC, DBSI BATTLEFIELD STATION LEASECO LLC, DBSI BAYMEADOWS LEASECO LLC, DBSI BEACON POINT LLC, DBSI BELTON TOWN CENTER LEASECO LLC, DBSI BRECKINRIDGE LEASECO LLC, DBSI BRENDAN WAY LEASECO LLC, DBSI BROADWAY PLAZA LEASECO LLC, DBSI BROOKFIELD PELHAM LEASECO LLC, DBSI CAMBRIDGE PLACE LEASECO LLC, DBSI CAMDEN VILLAGE ASSETCO LLC, DBSI CAROLINA COMMONS LEASECO LLC, DBSI CHATTAHOOCHEE LLC, DBSI CLEAR CREEK SQUARE LEASECO LLC, DBSI CLEAR CREEK SQUARE LLC, DBSI COLONNADE WEST LAKE LEASECO LLC, DBSI COLONNADE WEST LAKE LLC, DBSI COLONY COMMONS LLC, DBSI COPPERFIELD TIMBERCREEK LEASECO LLC, DBSI CRANBERRY LEASECO LLC, DBSI CROSS POINTE LEASECO LLC, DBSI CROSSTOWN WOODS LEASECO LLC, DBSI CURRELL CENTRE LLC, DBSI DEZAVALA CROSSING LEASECO LLC, DBSI DEZAVALA CROSSING LLC, DBSI DRAPER LEASECO LLC, DBSI EAGLE RIDGE LLC, DBSI EAGLES LANDING LEASECO LLC, DBSI EAST 21ST STREET LLC, DBSI EMBASSY TOWER LEASECO LLC, DBSI FAIRLANE GREEN LEASECO LLC, DBSI FAIRLANE GREEN LLC, DBSI FAYETTE TOWN CENTER LEASECO LLC, DBSI FLORISSANT MARKET PLACE LEASECO LLC, DBSI FRIAR’S BRANCH CROSSING LLC, DBSI GADD CROSSING LEASECO LLC, DBSI GOSHEN VILLAGE LLC, DBSI GRANT STREET PORTFOLIO LEASECO LLC, DBSI GREEN STREET COMMONS LEASECO LLC, DBSI GREEN STREET COMMONS LLC, DBSI HAMPTON LEASCO LLC, DBSI HAVERFORD PLACE LLC, DBSI HICKORY PLAZA LEASECO LLC, DBSI HICKORY PLAZA LLC, DBSI HIGHLANDS & SOUTHCREEK LEASECO LLC, DBSI HOLLY HILL LEASECO LLC, DBSI HOUSTON LEVEE GALLERIA LEASECO LLC, DBSI HOUSTON LEVEE GALLERIA LLC, DBSI INVESTORS XIV NORTHGATE LLC, DBSI KEMPER POINTE LEASECO LLC, DBSI KENWOOD CENTER LEASECO LLC, DBSI KEYSTONE COMMERCE LEASECO LLC, DBSI LAKE ELLENOR LEASECO LLC, DBSI LAKE NATOMA LEASECO LLC, DBSI LAKE PARK TOWER LEASECO LLC, DBSI LAKEVIEW SOJOURN LLC, DBSI LANDMARK TOWERS LEASECO LLC, DBSI LANDMARK TOWERS LLC, DBSI LANTERN BEND LLC, DBSI LEGACY COUNTRY LEASECO LLC, DBSI LEGACY MAIN & HIGH LEASECO LLC, DBSI LEGAL TRUST, LLC, DBSI LIFESTYLE CENTER LEASECO LLC, DBSI LINCOLN PARK 10 LEASECO LLC, DBSI MANSELL FOREST LEASECO LLC, DBSI MANSELL PLACE LEASECO LLC, DBSI MANSELL PLAZA LLC, DBSI MCCANN LLC, DBSI MEADOW CHASE APARTMENTS LEASECO LLC, DBSI MEGAN CROSSINGS LEASECO LLC, DBSI MERCY MEDICAL LLC, DBSI METROPOLITAN SQUARE LEASECO LLC, DBSI MISSOURI LEASECO LLC, DBSI NORTH LOGAN RETAIL CENTER LEASECO LLC, DBSI NORTH PARK II LLC, DBSI NORTH PARK III LLC, DBSI NORTH STAFFORD LEASECO LLC, DBSI NORTH STAFFORD LLC, DBSI NORTHGATE LEASECO LLC, DBSI NORTHGATE LLC, DBSI NORTHLITE COMMONS II LEASECO LLC, DBSI NORTHPARK RIDGELAND LEASECO LLC, DBSI NORTHPOINTE TOWER ASSETCO LLC, DBSI NORTHPOINTE TOWER LLC, DBSI OAKWOOD PLAZA LEASECO LLC, DBSI OLD NATIONAL TOWN CENTER LEASECO LLC, DBSI OLYMPIC LLC, DBSI ONE EXECUTIVE CENTER LEASECO LLC, DBSI ONE HANOVER LLC DBSI OWENS PLACE ASSETCO LLC, DBSI OWENS PLACE LLC, DBSI PARK CREEK-GAINESVILLE LEASECO LLC, DBSI PARK PLAZA RETAIL CENTER LLC, DBSI PARK PLAZA RETAIL LEASECO LLC, DBSI PARKWAY III LEASECO LLC, DBSI PEACHTREE CORNERS PAVILION LEASECO LLC, DBSI PEACHTREE CORNERS PAVILION LLC, DBSI PHILLIPS LLC, DBSI PINEHURST SQUARE EAST LEASECO LLC, DBSI PINEHURST SQUARE WEST LEASECO LLC, DBSI PORTOFINO TECH CENTER LEASECO LLC, DBSI RED MOUNTAIN LEASECO LLC, DBSI RED MOUNTAIN LLC, DBSI RENAISSANCE LEASECO LLC, DBSI REPUBLIC LEASECO LLC, DBSI REPUBLIC LLC, DBSI RIVERSIDE LLC, DBSI RIVERSTONE MEDICAL LLC, DBSI ROAD 68 RETAIL CENTER LEASECO LLC, DBSI ROMENCE VILLAGE II & III LEASECO LLC, DBSI ROMENCE VILLAGE II & III LLC, DBSI ROSE GARDEN LEASECO LLC, DBSI ROYAL MONTREAL LLC, DBSI ROYAL MONTREAL MEZZ LLC, DBSI SAM HOUSTON TECH CENTER LEASCO LLC, DBSI SAPPHIRE POINTE LEASECO LLC, DBSI SENTRY STATION ASSETCO LLC, DBSI SENTRY STATION LLC, DBSI SHARPSTOWN COURT LLC, DBSI SHEPHERD’S CROSSING LEASECO LLC, DBSI SHERIDAN LLC, DBSI SHERWOOD PLAZA LEASECO LLC, DBSI SHERWOOD VILLAGE LLC, DBSI SHOPPES AT MISTY MEADOWS LEASECO LLC, DBSI SHOPPES AT TRAMMEL LEASECO LLC, DBSI SHOPPES AT TRAMMEL LLC, DBSI SHOPS @ KATY LLC, DBSI SHOPS EAST WEST CONNECTOR ASSETCO LLC, DBSI SHOPS EAST WEST CONNECTOR LLC, DBSI SHOPS OF TURKEY CREEK LLC, DBSI SILVER LAKES LEASECO LLC, DBSI SILVER LAKES LLC, DBSI SOUTH 75 CENTER LEASECO LLC, DBSI SOUTHPORT PAVILION LEASECO LLC, DBSI SPALDING TRIANGLE LEASECO LLC, DBSI SPRINGVILLE CORNER LEASECO LLC, DBSI SPRINGVILLE CORNER LLC, DBSI ST TOWER LEASECO LLC, DBSI ST TOWER LLC, DBSI ST. ANDREWS PLACE LEASECO LLC, DBSI STONE GLEN VILLAGE LEASECO LLC, DBSI STONE OAK CROSSING LLC, DBSI STONY BROOK SOUTH LEASECO LLC, DBSI STREETSIDE AT TOWNE LAKE LEASECO LLC, DBSI SUMMIT SQUARE LLC, DBSI THISTLE LANDING LEASECO LLC, DBSI THISTLE LANDING LLC, DBSI TOPSHAM FAIR MALL LEASECO LLC, DBSI TORREY CHASE LEASCO LLC , DBSI TOWER PARK LLC, DBSI TREASURE VALLEY BUSINESS CENTER LEASECO LLC, DBSI TRINITY PLACE LEASECO LLC, DBSI TRINITY RIDGE BUSINESS CENTER LEASECO LLC, DBSI TRINITY RIDGE BUSINESS CENTER LLC, DBSI TWO NOTCH RD. LEASECO LLC, DBSI VALLEY VIEW LLC, DBSI VILLAGE AT OLD TRACE LLC, DBSI VILLAGE TOWNHOMES LLC, DBSI WEST OAKS SQUARE LEASECO LLC, DBSI WILLIAMSBURG LLC, DBSI WILLOW BEND LLC, DBSI WILSON ESTATES LEASECO LLC, DBSI WINCHESTER OFFICE LEASECO LLC, DBSI WINDCOM COURT LEASECO LLC, DBSI WISDOM POINTE LEASECO LLC, DBSI WISDOM POINTE LLC, DBSI WISTAR CENTER LLC, DBSI WOODLANDS MEDICAL OFFICE I LEASECO LLC, DBSI WOODSIDE CENTER LEASECO LLC.
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, please visit our website at http://www.whitesecuritieslaw.com.
Omni Brokerage to close.
According to the Investment News, Omni Brokerage Inc., based in South Jordan, Utah, said at the end of April it would withdraw its registration with the Financial Industry Regulatory Authority Inc., according to its profile on BrokerCheck.
Omni reported a net loss of $356,000 last year on total revenue of $3 million.
In its annual Focus report filed in March with the Securities and Exchange Commission, the firm said it had been named in several arbitration claims before Finra. All in, the firm said, investors were seeking $2.8 million in compensatory damages. According to a lawsuit filed by the DBSI trustee, Omni generated $271,000 in commissions from selling DBSI deals.
Omni, which specialized in real estate investments, had net capital of $142,000, according to the SEC filing.
An official with the firm, however, downplayed any connection to its closing and DBSI — and pointed to the upheaval in the real estate market as the culprit.
The firm’s demise stemmed from its inability to increase its revenue, and not from a specific DBSI product, said Cameron Hellewell, general counsel at Omni, which had about 50 reps and advisers.
The firm’s reps specialized in selling securitized real estate, and the real estate market’s collapse hurt the firm’s effort to increase revenues, he said.
Dozens of independent broker-dealers that sold failed private placements issued by Medical Capital Holdings Inc. and Provident Royalties LLC have gone out of business over the past few years due to increasing expenses from investor lawsuits and litigation.
As with those soured private placements, the offerings from DBSI were sold through independent broker-dealers. DBSI was a leading packager of TICs, or tenant-in-common exchanges.
The vehicle is a form of real estate ownership in which two or more parties have a fractional interest in the property. TICs gained in popularity after a favorable Internal Revenue Service ruling in 2002 that allowed investors to defer capital gains on real estate transactions involving the exchanging of properties.
DBSI defaulted on its payments to investors in 2008. The firm filed for Chapter 11 bankruptcy protection in November of that year.
Late in 2010, the trustee for the DBSI bankruptcy sued more than 90 broker-dealers that sold the failed product, including Omni. The trustee is seeking to claw back about $49 million from 96 broker-dealers.
In that lawsuit, which was filed in federal bankruptcy court in Delaware, trustee James Zazzali claimed that TICs from DBSI were actually part of a $600 million Ponzi scheme.
If you have questions about investments you made with Omni Brokerage, the securities attorneys of The White Law Group may be able to help. To speak with a securities attorney, 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 Boca Raton, Florida.
For more information on The White Law Group, please visit our website at http://www.whitesecuritieslaw.com.
CapWest Securities Hanging On By A Thread?
According to the Investment News, another independent broker-dealer that sold high-risk private placements is hanging on by a thread, with the firm’s management stating grave concerns about the B-D’s future.
CapWest Securities Inc. reported in its most recent filing with the Securities and Exchange Commission that a number of events — including three straight years of losses, a decline in net capital and a raft of lawsuits — “raise substantial doubt about the company’s ability to continue as a going concern.”
CapWest reported its audited financials as part of its annual Focus report to the SEC on March 1.
CapWest is not alone in its struggles. The Financial Industry Regulatory Authority Inc. put the total number of broker-dealers at 4,557 as of March 31. That’s 9% fewer than five years ago.
Indeed, a number of broker-dealers that sold private placements have gone bust in recent months, including QA3 Financial Corp. in February. As a result, securities cops have hiked their oversight of sales of illiquid private placements.
Like many small to midsize broker-dealers that were rocked by the market crash, CapWest’s fundamental dilemma is a lack of capital. According to the SEC filing, the firm had net capital of $80,420 at the end of last year.
According to court documents, CapWest brokers sold about $22 million of private placements issued by Provident Royalties LLC, which the SEC charged with fraud in 2009. CapWest also sold an unknown amount of DBSI Inc., a packager of real estate deals that was popular among independent broker-dealers. DBSI is now in bankruptcy court.
CapWest is working with its insurance company to settle several outstanding legal actions against the firm, and faces other claims in Finra arbitration this year, it said in the filing. It also faces five pending civil actions in court.
If you have questions about investments you made CapWest Securities, the securities attorneys of The White Law Group may be able to help. To speak with an attorney, please contact 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 Boca Raton, Florida.
For more information on The White Law Group, please visit our website at http://www.whitesecuritieslaw.com.
Recovery of Private Placement and DBSI Losses
The White Law Group announces that it has filed a Financial Industry Regulatory Authority (FINRA) arbitration statement of claim this week involving investment losses in various private placements, oil and gas partnerships, and real estate tenants-in-common investments. The claim, filed against DeWaay Financial Network, seeks recovery of investment losses of over $500,000.
The claim filed by The White Law Group was submitted on behalf of two farmers in Iowa (both in their 70′s) and alleges claims for fraud, breach of fiduciary duty, negligence, and negligent supervision. The claim further alleges that the investors were unsuitably invested in various private placements, oil and gas partnerships, and tenants-in-common real estate investments and that DeWaay Financial Network only selected these investments because of the commission generated as a result of the recommendation.
Broker-dealers have a fiduciary duty to research investments prior to recommending them for sale to its clients and to ensure that the investments in recommends are appropriate for the client in light of the clients age, investment experience, net worth, and investment objectives.
The claim alleges losses incurred in the following investments: DBSI, Waveland Oil and Gas, Bradford Energy, Cole REIT, Behringer Harvard REIT, and Ridgewood Fund.
For more information on the claim filed by The White Law Group, please contact 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. For more information on the firm, visit the firm’s website at http://www.whitesecuritieslaw.com.
Securities Fraud Investigation Involving Oil and Gas Partnerships and Private Placements
The White Law Group is investigating potential securities fraud claims on behalf of investors involving broker-dealers recommending that investors invest in inappropriate oil and gas / energy partnerships and highly speculative private placement investments.
Oil and gas partnerships and private placements are generally risky ventures that are only appropriate for sophisticated investors. Unfortunately, because of the high commissions these products pay to brokers, they are often sold to unsophisticated and retired investors.
The White Law Group’s investigation into the improper sales of oil and gas partnerships and private placements includes, but is not limited to, recommendations to invest in the following: DBSI, Medical Capital, Waveland Oil and Gas, Bradford Energy, Ridgewood Oil and Gas fund, and Black Diamond Energy
If you have any information that may assist The White Law Group in its investigation or are concerned about your investments in oil and gas partnerships or private placements like DBSI, Medical Capital, Waveland Oil and Gas, Bradford Energy, Ridgewood Oil and Gas fund, and Black Diamond Energy, please contact the firm’s Chicago, Illinois 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 Boca Raton, Florida.
For more information on The White Law Group, please visit our website at http://www.whitesecuritieslaw.com.