Posts tagged ‘securities arbitration’
Potential Recovery of Brian A. Bjork Investment Losses through FINRA Arbitration
Have you suffered losses due to your investment with Brian A. Bjork, Select Asset Management and/or his late business partner David Salinas (or his entities)? If you have, The White Law Group may be able to assist you in recovering some of your losses through a Financial Industry Regulatory Authority (FINRA) dispute resolution claim.
In August, the Securities and Exchange Commission (SEC) alleged in documents filed in a Texas district court that “From at least 2004 through the present, Defendant Bjork offered securities in two fraudulent securities schemes, raising approximately $52 million combined…” In addition to Brian A. Bjork, other defendants named were J. David Group of Companies, Inc., J. David Financial Group, Select Asset Management, LLC, Select Capital Management, LLC, Select Asset Fund I, LLC, Select Asset Prime Index Fund, LLC, and the Estate of Joel David Salinas.
According to the SEC, the first of two schemes “defrauded more than 100 investors of approximately $39 million…” It appears, “…Bjork offered investors corporate bonds through Defendants J. David Group and J. David Financial.” It appears Bjork “offered the bonds alongside his business associate,” Mr. Joel David Salinas, who was the president of the J. David Group until his apparent suicide last July. The SEC alleges that they “promised investors safe, fixed income by investing in highly rated corporate and other bonds with annual yields up to 9%,” but that the bonds they offered “…did not exist or that neither J. David Group nor J. David Financial ever acquired as promised.”
The second of the alleged schemes, says the SEC, involved Select Asset Management and Select Asset Capital. The SEC claims that Bjork “offered securities issued by two private funds, Defendants Fund I and Fund II, raising approximately $13 million from at least 52 investors since August 2007” through the two entities. According to the filing, “Bjork controlled Defendant Select Asset, serving as its CEO, and also controlled Defendant Select Capital, serving as one of its three “Principals” named in Fund I and Fund II private-placement memorandums (“PPMs”), which Bjork disseminated to investors.”
At the time of its court filing, the SEC believed that “Defendants participated in fraudulent schemes involving the offer and sale of securities and have violated, and, unless enjoined, will likely continue to violate, anti-fraud provisions of the federal securities laws…”
According to his FINRA CRD, publicly available on FINRA.org, Brian A. Bjork (CRD# 2576087) has not been registered with a member firm since 07/2011. However, his CRD indicates that Mr. Bjork was registered with Securities America, Inc. from 02/1996 – 12/2003, Golden Beneficial Securities Corporation from 12/2003 – 04/2011, and then briefly with World Equity Group, Inc. from 03/2011 – 07/2011.
When a registered broker conducts business outside of the firm he is registered with, that activity may be considered “selling away.” If a registered broker “sells away” from his firm, the firm may still be liable for negligent supervision of their broker agent and may be responsible for investment losses in a FINRA dispute resolution claim.
If you invested with Brian A. Bjork, Select Asset Management and/or his late business partner David Salinas (or his entities) and would like to speak to a securities attorney about your potential to recover the investment losses through FINRA arbitration please call our 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.
Investors Encouraged to Research Financial Advisers and Choose Carefully
The USA Today recently ran a story in which they gave some tips on diligently selecting a financial advisor and encouraged investors to conduct research and ask questions prior to selecting one.
Their article notes that in today’s investment environment where Ponzi Schemes and other frauds are plentiful, there are simple things that investors can do to protect themselves and get sound advice. As Financial Industry Regulatory Authority (FINRA) investor education executive Gerri Walsh was quoted as saying, “The vast majority of investment professionals are hard-working individuals who look out for the interests of their clients and customers.” USA Today offers a few tips that can assist the investing public in ensuring they have found a reputable broker who is likely to look out for their best interest.
Here are a few of the most pertinent points made in the article (full text of the article can be found here: http://www.usatoday.com/money/perfi/retirement/story/2011-12-05/how-to-find-the-best-financial-advisor-for-you/51660088/1):
1. Avoid mistakes that are often made by people in the market for an advisor including, “Failure to check out the background of a financial professional,” “Relying on professional designations,” and “Buying investments you don’t understand.”
2. Be wary of tactics which are sometimes used by some of the less reputable elements of the investment business including: “affinity fraud” – where fraudsters attempt to gain trust by way of relating to investors’ race, religion, or other group, “reciprocity” – a tactic where investors are offered something small, like a lunch, with the hope that the investors will feel indebted and invest in the particular investment deal which may or may not be suitable, and also “scarcity” – where investors are encouraged to act fast in order to avoid missing out.
3. The article also encourages people to research advisors, ask a lot of questions about their credentials/investment strategies, and make sure to know your own investment goals. One way to check the credentials of an adviser is by using the finra.org Broker Check.
If you are concerned that you have been the victim of investment fraud or believe that your financial professional’s actions have otherwise resulted in damages and would like to speak to a securities attorney about your potential to recover investment losses please contact our 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.
Latest on Potential Recovery of IMH Secured Loan Fund Investment Losses
Have you suffered investment losses as a result of the recommendation that you purchase units of the IMH Secured Loan Fund? If you have, The White Law Group may be able to assist you in recovering those losses in the IMH Secured Loan Fund, LLC (now known as IMH Financial Corporation) through a FINRA arbitration claim. The White Law Group first wrote about the IMH Secured Loan Fund, LLC in 2010 and has been continuing to investigate and monitor its performance on behalf of investors as well as research how best to represent investors in claims to recover IMH losses through FINRA.
The IMH Secured Loan Fund, LLC changed its name to IMH Financial Corporation in 2010. According to IMH Financial Corporation latest 10-K annual report published in April 2011, from 2003 until 2008 The IMH Secured Loan Fund, LLC “raised $875 million of equity capital.” Unfortunately things have not been smooth for investors, especially since the real estate market started experiencing significant troubles around 2008.
IMH notes in their 10-K that “As a result of the unprecedented disruptions in the general real estate and related markets and the rapid decline in the global and U.S. economies, on October 1, 2008, pursuant to its operating agreement, the Fund suspended member redemption requests.” This decision made the investments nearly completely illiquid and many investors have struggled with the inability to access their investment funds. IMH also noted that they “suspended regular monthly distributions to members in the second quarter of 2009.”
IMH has been attempting to regain its footing and to work to improve the condition of the investment, including positioning themselves “to become a publicly traded corporation listed on the NYSE.” The fund also made distribution payments for the first time since 2009 in July of 2011. Additionally, investors received a letter in late August of 2011 which expressed optimism amongst troubles, the letter stated, “As difficult as the last few years have been, we are proud of the fortitude our management team has exhibited and the decisions that have been made in navigating through what has been a treacherous real estate and lending environment. Over the last two years we have had to cut through many weeds; however, we are encouraged by the pathway we have now cleared. We see opportunity ahead for our Company and our shareholders.”
While this news may be encouraging to some investors, their latest 10-K annual report and 10-Q quarterly report point to an investment that is valued as a serious loss for investors and continues to struggle financially.
The 2010 annual report stated that “based on our pro forma net tangible book value of approximately $201.4 million as of December 31, 2010, the estimated book value per share for the shares issued in connection with the Conversion Transactions is $11.98 per share.” These estimated values for the investment represent serious losses for investors. This is clear based on the fact that IMH originally raised $875 million in capital.
IMH Financial Corporation’s most recent quarterly report (10-Q) for the period ending June 2011 also had some information that may concern investors. It states, “…we have acquired or originated real estate assets as of June 30, 2011 with an original investment basis of $676.6 million and a current carrying value of $210.2 million consisting of commercial real estate mortgage loans with a carrying value of $117.2 million and owned property with a carrying value of $92.9 million. We believe the decline in the carrying value of our real estate assets is reflective of the deterioration of the commercial real estate lending market and the sustained decline in pricing of residential and commercial real estate in the last two to three years together with the continuing downturn in the commercial real estate markets and general economy.”
This information indicates that while IMH has been attempting to position for and is cautiously optimistic about the future, they still appear to be in a difficult position. In the meantime investors are stuck in an investment that appears to have depreciated significantly in value and are unable to access any capital that remains.
The White Law Group is investigating how broker dealers sold and represented the IMH Secured Loan Fund investments to customers. Financial professionals and brokerage firms have a fiduciary duty to perform due diligence on any investment and to insure that an investment is appropriate in light of the investor’s age, investment experience, and investment objectives. Financial professionals and brokerage firms that do not live up to this responsibility may be in violation of FINRA regulatory rules and liable for claims to recover the investment losses.
If you invested in IMH Secured Loan Fund, LLC (now known as IMH Financial Corporation) and would like to speak to a securities about your potential to recover your investment through FINRA arbitration please call our 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.
Securities Regulators Reach Settlement with E*TRADE over Auction Rate Securities
According the nasaa.org, The North American Securities Administrators Association (NASAA) announced recently “that a settlement in principle has been reached between E*TRADE Securities LLC and state securities regulators to return approximately $100 million to the firm’s clients who have had their funds frozen in the auction rate securities (ARS) market since 2008.”
In addition to the payments E*TRADE will make to customers, they will also be required to pay a fine of $5 million.
The collapse of the auction rate securities market in 2008 has led to “the largest return of funds to investors in history.” The NASAA reports that “securities regulators have secured settlements calling for firms to repurchase from investors more than $61 billion in auction rate securities.”
This settlement that E*TRADE has agreed to was spearheaded by Colorado state securities officials. It has been alleged “that the firm misled clients by falsely assuring them that auction rate securities were a safe, liquid alternative to cash, certificates of deposit and money market funds.”
According to the NASAA announcement, the settlement is not limited to Colorado E*TRADE customers, but will cover those who were stuck in ARS with E*TRADE nationwide. E*TRADE will apparently make rescission payments to all customers who purchased ARS before February 2008 for the par value of their investments.
In addition, among other stipulations, E*Trade will “[c]onsent to a special, public arbitration process to resolve claims of consequential damages suffered by individual investors who were unable to access their funds.”
If you are an investor who invested in auction rate securities with E*TRADE and would like to speak to a securities attorney to ensure that you are properly compensated for your damages, please call our 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.
Investigation into the Potential to Recover Thinkorswim Losses Continues
In August TD Ameritrade took the final steps to integrate the accounts from the acquired Thinkorswim into their trading network. When what was reported to be the final 250,000 customer accounts were integrated, TD Ameritrade admitted that they experienced some “issues.” A later report, also confirmed by TD Ameritrade, seems to indicate that issues related to the integration continued beyond a single incident.
The White Law Group has been working with damaged investors over the last several months to investigate potential securities fraud claims related to the integration problems. We have spoken to many traders who have experienced serious issues with their accounts resulting in significant losses.
Many of the damaged investors were trading in Thinkorswim’s Portfolio Margin Accounts. They report to have experienced difficulty on the Thinkorswim platform executing certain trades. Another common complaint has been that some traders have had issues with margin calls.
Many of these problems seemed to have happened in a similar time period, in early August, but reports indicate that problems with the integration of Thinkorswim into TD Ameritrade aren’t limited to just one period of time.
On September 30th a TD Ameritrade representative told Bloomberg that “We encountered some issues just after market open this morning that impacted some of our clients, particularly those on our Thinkorswim downloadable trading platform…”
TD Ameritrade emphasized that the problems were fixed by later that same morning, but some clients were not pleased. One trader told Bloomberg, “I’m going to have to look at alternatives because this is not reliable.” It is understandable for traders that need a reliable trading platform in order to make a living to be concerned with these issues.
The White Law Group continues to gather details related to these Thinkorswim and TD Ameritrade platform issues in order to best determine how to represent clients in recovering their losses suffered as a result of the problems.
If you are a Thinkorswim client that has experienced difficulties since the August integration with TD Ameritrade and would like to speak to a securities attorney about your potential to recover losses or have information that may help us better represent other traders please call our 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.