Posts tagged ‘DBSI investment losses’

FINRA Arbitration Award Against LPL Financial Involving TIC Investments

The Investment News is reporting that LPL Financial is on the hook for a $1.4 million arbitration award to an elderly couple who bought real estate tenant in common deals.

According to the report, the couple bought two tenant-in-common exchanges, one in 2007 and another in 2008, from former LPL broker David Glenn.

The investors asked for damages of $8 million.

The Finra panel issued the award Friday and, as is typical, gave no explanation for its decision. According to the award, the elderly couple made several allegations, including federal securities fraud and elder abuse.

Tenant in common investments (or TICs) are 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 2002 Internal Revenue Service ruling that allowed investors to defer capital gains on real estate transactions involving the exchange of properties.

Unfortunately, after the real estate bubble burst, many TIC investors saw their properties cut dividends and/or fall in to foreclosure.

One of the biggest TIC sponsors, DBSI Inc., declared bankruptcy in 2008, and broker-dealers that sold those deals have faced dozens of arbitration complaints filed with Financial Industry Regulatory Authority Inc.

The White Law Group has handled many FINRA arbitrations involving TIC investments and have found that in many cases the broker-dealers that recommended these investments failed to perform the necessary due diligence on the investments prior to recommending them for sale to their clients.

TICs can involve high risks and liquidity problems and in many cases brokerage firms misrepresent these risks and instead focus on the income streamed that is promised (and sometimes guaranteed) by these investments.  It is this income stream that often made these TIC investments appealing to retired investors who sought income during retirement, but who also didn’t realize the risks involved with these investments.

If you have questions about a TIC investment you purchased through a financial professional or broker-dealer, please call The White Law Group’s 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 Boca Raton, Florida.

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

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.

Investigation into possible securities fraud involving DBSI, Inc., and the broker-dealers that sold DBSI TIC investments, including Independent Financial Group, Royal Alliance, Steven L. Falk & Associates, Omni Brokerage, Waveland Capital Partners, and others.

We are investigating securities fraud claims on behalf of numerous investors involving recommendations made by their broker-dealer that they invest in DBSI, Inc., and specifically in DBSI TIC (tenants in common) or DBSI REIT investments.

In the cases we are 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.

It appears that many brokerage firms were selling these DBSI investments to their clients (likely because of the commission that DBSI was paying to these firms to sell their products), including Independent Financial Group, Royal Alliance (formerly known as United Securities Alliance), Steven L. Falk & Associates, Private Capital Management (now known as ACAP Financial), Omni Brokerage, Waveland Capital Partners, Harrison Douglas, among others.

Notwithstanding the guarantees made by these brokerage firms, DBSI, Inc. has since filed for bankruptcy and it appears that the investors’ entire investment may be lost.

The bankruptcy court-appointed investigator, Joshua R. Hochberg, in his first report regarding DBSI, paints a picture of a company in disarray. He details the company’s “serious cash flow problems and operating losses” and indicates that its Accounting ledger entries are “confusing and misleading” because they don’t “fully, fairly and accurately reflect the transactions they purport to describe.”

If you have any information that may assist us in our investigation on behalf of this investor, please contact our Chicago office at 312-238-9650.

A preliminary investigation has also turned up that some of the TIC investments were not properly registered as securities. To the extent that investors purchased “unregistered securities” they could be entitled to recover their entire investment loss. In addition, to the extent that any DBSI sales occurred through misrepresentations or omissions, or because of a failure of the salesperson to conduct “due diligence,” investors may have claims against the salesperson and the brokerage firm involved.

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. With over 30 years of securities law experience, including experience working at FINRA (f/k/a the NASD) and the SEC, The White Law Group has the expertise to help investors defrauded in securities, investment and financial business transactions.

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

Investigation of possible securities fraud involving DBSI, Inc. and Royal Alliance

We are investigating a securities fraud claim on behalf of an investor involving a recommendation made by Royal Alliance to invest in DBSI, Inc. In the case we are investigating, Royal Alliance allegedly represented that the DBSI tic (tenants-in-common) investment provided a 6% guaranteed return. Unfortunately, unbeknownst to the investor, DBSI was already in significant financial trouble at the time of the investment in the DBSI TIC and it appears that Royal Alliance failed to perform reasonable due diligence in recommending the investment to this particular investor. Moreover, DBSI, Inc. has since filed for bankruptcy and it appears that the investor’s entire investment has been lost.

Significantly, the bankruptcy court-appointed investigator, Joshua R. Hochberg, in his first report regarding DBSI, painted a picture of a company in disarray. He detailed the company’s “serious cash flow problems and operating losses” and indicated that its Accounting ledger entries are “confusing and misleading” because they don’t “fully, fairly and accurately reflect the transactions they purport to describe.”

The case we are investigating involves former Royal Alliance financial advisor Marvin Remmich in Danville, California, however, it appears from our preliminary investigation that the DBSI TIC investment was being actively marketing throughout Royal Alliance (f/k/a United Securities Alliance).

If you have any information that may assist us in our investigation on behalf of this investor, please contact us at 312-238-9650.

Our preliminary investigation has also turned up that some of the TIC investments were not properly registered as securities. To the extent that investors purchased “unregistered securities” they could be entitled to recover their entire investment loss. In addition, to the extent that any DBSI sales occurred through misrepresentations or omissions, or because of a failure of the salesperson to conduct “due diligence,” investors may have claims against the salesperson and the brokerage firm involved.

Additionally, it appears that DBSI was being marketed and sold by other broker-dealers including, but not limited to, Berthel Fisher and Independent Financial Group.

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. With over 30 years of securities law experience, including experience working at FINRA (f/k/a the NASD) and the SEC, The White Law Group has the expertise to help investors defrauded in securities, investment and financial business transactions. For more information on The White Law Group, please visit our website at http://www.whitesecuritieslaw.com.