Posts tagged ‘securities losses’
FINRA Arbitration Panel Rules Against Wedbush Morgan Securities and a Former Advisor
According to multiple media outlets, a FINRA arbitration panel recently ruled against Wedbush Morgan Securities and their former Advisor Debbie Michelle Saleh. Between Wedbush Morgan Securities and Debbie Michelle Saleh, they were ordered to pay more than $2.5 million in total.
The case involved the handling of an account of an elderly client. Advisorone.com cited the panel’s decision when it described that Saleh’s actions “included ‘forging the client’s signature on various documents, making gross misrepresentations about the securities in the client’s account and the value of those securities, providing the client with false monthly account statements and executing unauthorized redemptions and/or partial withdrawals in the client’s annuities in violation of her fiduciary duties.”
According to her FINRA broker report (CRD), Debbie Michelle Saleh was employed at Wedbush Securities at the time this case was filed. She was previously employed with Wells Fargo Advisors/Wachovia.
If you have questions about investments you made with Debbie Michelle Saleh while she was employed at Wedbush Morgan Securities, 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.
Potential Issues with Investments in Non-traded REITs
Non-traded REITs are a legitimate investment option for the right investor. REITs capitalize on tax law and often provide the smaller investor with an opportunity to invest in commercial real estate.
However, non-traded REITs are not for everyone. There are a few problems with these investments that make them unsuitable for retired investors or investors needing an income stream.
Non-traded REITs are not traded on any stock exchange and are generally illiquid – making them difficult to sell if needed. Additionally, non-traded REITs are less regulated than other types of investments like stocks, bonds, or mutual funds, increasing the likelihood of fraud with respect to the REITs themselves.
Further, non-traded REITs often pay a high commission to the financial professional – up to as much as 15%, which may sometimes explain the broker’s motivation in recommending the product. Finally, non-traded REITs invest entirely in one sector (real estate), exposing an investor to the risks of the real estate market if the investor is not well diversified in his or her other investments
The White Law Group is currently representing investors in many claims involving non-traded REITs. The firm is currently investigating the manner in which brokerage firms have sold non-traded REITs.
We have compiled a list of upon investigation and belief are many of the available Non-traded REITs:
American Realty Capital Healthcare Trust, American Realty Capital New York Recovery REIT, Inc., American Realty Capital Trust, Apple REIT Six Inc., Apple REIT Seven, Inc., Apple REIT Eight, Inc., Apple REIT Nine, Inc., Behringer Harvard REIT I, Inc., Behringer Harvard Multifamily REIT I, Behringer Harvard Opportunity REIT I, Behringer Harvard Opportunity REIT II, Carey Watermark Investors Incorporated, CNL Lifestyle Properties, Inc. , CNL Macquarie Global Growth Trust, Inc., Cole Credit Property Trust, Inc., Cole Credit Property Trust II, Inc., Cole Credit Property Trust III, Inc., Corporate Property Associates 15, Corporate Property Associates 16 – Global, Inc., Corporate Property Associates 17 – Global, Inc., Healthcare Trust of America, Inc., Hines Global REIT, Inc., Hines REIT, Inc., Inland American Real Estate Trust, Inc., Inland Diversified Real Estate Trust, Inc., Inland Western Retail Real Estate Trust, Inc., INREIT Real Estate Investment Trust, KBS Legacy Partners Apartment REIT, Inc., KBS Real Estate Investment Trust I, Inc., KBS Real Estate Investment Trust II, Inc., KBS Strategic Opportunity REIT, Inc., Macquarie CNL Global Income Trust, Inc., Phillips Edison – ARC Shopping Center REIT, Steadfast Income REIT, Inc., Wells Real Estate Investment Trust II, Wells Timberland REIT, Inc.
If you have invested in any of these non-traded REITs and are concerned about your investment, the securities attorneys of The White Law Group may be able to help. For a free consultation, 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.
The Firm Continues to Closely Monitor the Sale of REITs
Brokerage firms have a fiduciary duty to recommend investments that are appropriate for the investor in light of the investor’s age, net worth, investment experience, and investment objectives. One of the types of investments we often see abused, are REITs (real estate investment trusts) – likely due to the high commission REITs generally pay to the financial professional that sells them. The following is a list of some of the REITs whose sale we are closely monitoring:
Acadia Realty Trust, Agree Realty Corporation, Alexandria Real Estate Equities, Inc., American Assets Trust, American Campus Communities, Inc., American Capital Agency Corp., American Realty Capital Healthcare Trust, American Realty Capital New York Recovery REIT, Inc., American Realty Capital Properties, Inc. , American Realty Capital Trust, American Tower Corporation, Americold Realty Trust, Anderson-Tully Company, Annaly Capital Management, Inc., Apartment Investment & Management Company, Apollo Commercial RE Finance, Inc., Apollo Residential Mortgage Inc., Apple REIT Eight, Inc., Apple REIT Nine, Inc., Apple REIT Seven, Inc., Apple REIT Six, Inc., Arbor Realty Trust, Inc., Archstone, ARMOUR Residential REIT, Ashford Hospitality Trust, Inc., Associated Estates Realty Corporation, AvalonBay Communities, Inc., Behringer Harvard Multifamily REIT I, Behringer Harvard Opportunity REIT I, Behringer Harvard Opportunity REIT II, Behringer Harvard REIT I, Inc., Berkshire Income Realty BioMed Realty Trust, Inc., Blackstone Real Estate Advisors, Boardwalk REIT, Boston Properties, Inc., Brandywine Realty Trust, BRE Properties, Inc., Broadstone Net Lease, Inc., Brookfield Office Properties, Camden Property Trust, Campus Crest Communities, Capital Trust, Inc., CapLease, Inc., Capstead Mortgage Corporation, Care Investment Trust, Inc., Carey Watermark Investors Incorporated, CBL & Associates Properties, Inc., Cedar Shopping Centers, Inc., Chatham Lodging Trust, Chesapeake Lodging Trust, Chimera Investment Corporation, CNL Lifestyle Properties, Inc., CNL Macquarie Global Growth Trust, Inc., Cogdell Spencer Inc., Cole Credit Property Trust II, Inc., Cole Credit Property Trust III, Inc., Cole Credit Property Trust, Inc., Colonial Properties Trust, Colony Financial, Inc., CommonWealth REIT, CoreSite Realty Corporation, Corporate Office Properties Trust, Corporate Property Associates 15, Corporate Property Associates 16 – Global, Inc., Corporate Property Associates 17 – Global, Inc., Cousins Properties Incorporated, CREXUS Investment Corp., Cypress Sharpridge Investments, Inc., DCT Industrial Trust Inc., Derwent London Plc, Developers Diversified Realty Corporation, DiamondRock Hospitality Company, Digital Realty Trust Inc., Duke Realty Corporation, DuPont Fabros Technology, Inc., EastGroup Properties, Inc., Education Realty Trust, Inc., Electric Infrastructure Alliance of America, LLC, Entertainment Properties Trust, Equity Lifestyle Properties, Inc., Equity One, Inc., Equity Residential, Essex Property Trust, Inc., Excel Trust, Inc., Extra Space Storage, Inc., Fair Value REIT-AG, Federal Capital Partners, Federal Realty Investment Trust, FelCor Lodging Trust Incorporated, First Industrial Realty Trust, Inc., First Potomac Realty Trust, First REIT of New Jersey, Forest Capital Partners LLC, Forest City Enterprises, Inc., Franklin Street Properties Corp., Gables Residential Trust, General Growth Properties, Inc., Getty Realty Corp., Gladstone Commercial Corporation, Glimcher Realty Trust, Global Logistic Properties, Government Properties Income Trust, Gramercy Capital Corp., Hammerson PLC, Hatteras Financial Corp, HCP, Inc., Health Care REIT, Inc., Hersha Hospitality Trust Highwoods Properties, Inc., Hines Global REIT, Inc, Hines Real Estate Investment Trust, Inc., Home Properties, Inc., Hospitality Properties Trust, Host Hotels & Resorts, Inc., Hudson Pacific Properties, Inc., Independence Realty Trust, Inland American Real Estate Trust, Inc., Inland Diversified Real Estate Trust, Inc., Inland Real Estate Corporation, Inland Western Retail Real Estate Trust, Inc., INREIT Real Estate Investment Trust, Invesco Mortgage Capital Inc., IStar Financial Inc., Japan Retail Fund Investment Corporation, KBS Legacy Partners Apartment REIT, Inc., KBS Real Estate Investment Trust I, Inc., KBS Real Estate Investment Trust II, Inc., KBS Strategic Opportunity REIT, Inc., Kenedix Realty Investment Corporation, Kilroy Realty Corporation, Kimco Realty Corporation, Kite Realty Group Trust, Land Securities Group PLC, LaSalle Hotel Properties, Lexington Realty Trust, Liberty Property Trust, LTC Properties, Inc., MAA, Macerich, Mack-Cali Realty Corporation, Macquarie CNL Global Income Trust, Inc., MCR Development LLC, Medical Properties Trust Inc., MFA Financial, Inc., MHI Hospitality Corporation, Monmouth Real Estate Investment Corporation, MPG Office Trust, Inc., National Retail Properties, Inc., Newcastle Investment Corporation, NorthStar Realty Finance Corporation, Omega Healthcare Investors, Inc., One Liberty Properties, Inc., Pacific Office Properties Trust, Parkway Properties, Inc., Pebblebrook Hotel Trust, Pennsylvania Real Estate Investment Trust, Phillips Edison – ARC Shopping Center REIT, Piedmont Office Realty Trust, Inc., Plum Creek Timber Company, Inc., Post Properties, Inc., Potlatch Corporation, Prologis, PS Business Parks, Inc., Public Storage, RAIT Financial Trust, Ramco-Gershenson Properties Trust, Rayonier Inc., Realty Income Corporation, Regency Centers Corporation, Resource Capital Corp., RioCan, RREEF America REIT II, Inc., RREEF America REIT III, Inc., Sabra Health Care REIT, Inc., Saul Centers, Inc., SEGRO PLC, Senior Housing Properties Trust, Shaftesbury PLC, Simon Property Group, Inc., SL Green Realty Corp., Societe De La Tour Eiffel, Sovran Self Storage, Inc., Spirit Finance Corporation, Stag Industrial, Inc., Starwood Property Trust, Inc., Steadfast Income REIT, Strategic Hotels & Resorts, Inc., Summit Hotel Properties Inc., Sun Communities, Inc., Sunstone Hotel Investors, Inc., Supertel Hospitality, Inc., Tanger Factory Outlet Centers, Inc., Taubman Centers, Inc., The Community Development Trust, Thomas Properties Group Inc., UDR, Inc., UMH Properties, Inc., Urstadt Biddle Properties, Inc., U-Store-It Trust, Ventas, Inc., Verde Realty, Vornado Realty Trust, W. P. Carey & Co. LLC, Washington Real Estate Investment Trust, Watson Land Company, Weingarten Realty Investors, Wells Real Estate Investment Trust II, Inc., Wells Timberland REIT, Inc., Wereldhave USA, Inc., Westfield, LLC, Weyerhaeuser, Winthrop Realty Trust
If you have invested in any of these REITs and are concerned about your investment, the securities attorneys of The White Law Group may be able to help. For a free consultation, 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 www.whitesecuritieslaw.com.
The Difficult Balance Between a Financial Advisors’ Fiduciary Duty and Pushing Their Own Products
Andrew Haigney recently wrote an interesting article for businessinsider.com where he called investment advice “one of the greatest scams of our time.”
His motivation for writing his article was to expand on the theme of Yale University’s Chief Investment Officer David Swensen’s August NY Times Opinion piece about mutual funds where he called for an increase in investor education and “call[ed] for retail brokers to be held to a fiduciary standard.” Swensen expressed his concern that retail brokers selling mutual funds failed to show investors how the funds they were selling matched up against low-cost index funds.
Haigney feels the problem of fiduciary duty to the client versus a desire to sell products that are favorable to the broker’s firm and bank accounts extends beyond just mutual funds. He says that the problem is that “Investment advice has become a ‘product,’ and investment advisers steer prospective clients right into their own products.” This is a huge issue according to Haigney because “the point of sale” is where investors get their investment information and advice. He cites a 2008 SEC study that “found that 95 percent of investment advisory firms with individual clients also provide proprietary portfolio management services for individuals” and says, “firms make their money through portfolio management services, not dispensing investment advice.”
A firm giving investment advice has a fiduciary responsibility to give advice in the best interest of the client. But, as Haigney notes, “how often at the end of a sales presentation do you think investment advisors…tell a potential client that they may be better off going to a larger firm with more experience…or, as Mr. Swensen suggests, explain to a prospective lucrative client that their investment objectives can be better met by investing in a low cost index fund?” Haigney makes the obvious point that it is extremely difficult to fulfill fiduciary obligations and please your employer when the “name of the game in asset management is to get money in the door and start generating fees.”
Under securities regulations, registered advisors and brokers are required to uphold a fiduciary standard and advise their clients to invest in products that are suitable for each investors’ unique circumstances. If a financial professional fails in these duties to their clients, those failures may be actionable under current securities regulations and the investors may be able to recover losses.
For the full text of Mr. Haigney’s article visit http://www.businessinsider.com/investment-advice-is-one-of-the-greatest-scams-of-our-time-2011-9
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 www.whitesecuritieslaw.com
Alternative Investments on the Rise, Increased Litigation Likely to Follow
According to the Investment News, more than three-quarters of retail advisers are now using alternative investments in their client’s portfolios.
Alternative investments include venture capital investments, private equity investments, hedge funds, structured products and other such investments.
While alternative investments can be appropriate in small amounts as part of a larger diversification strategy, as the amount of money pouring into alternative investments increases, so has the amount of litigation.
The downside to alternative investments is that they are often extremely complex, they are generally less liquid than traditional investments (stock, bonds, mutual funds, etc.), and they usually pay a high commission to the broker that recommends them (increasing the risk of abuse by unscrupulous brokers).
In our experience, independent advisers are the heaviest users of alternatives in part because the supervision and compliance is less stringent that at larger, more traditional brokerage firms like Morgan Stanley Smith Barney and Merrill Lynch.
If your financial advisor recommended that you invest a large percentage of your net worth in alternative investments, this may be a sign of a problem. If you are concerned about an alternative investment recommended to you by your financial professional, please feel free to 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 Boca Raton, Florida.
For more information on The White Law Group, please visit our website at www.whitesecuritieslaw.com.