The White Law Group announces the filing of a FINRA Arbitration claim against Advisory Group Equity Services, Ltd.
Lawsuit Alleges Unsuitable Investing in High-risk Private Placements
The White Law Group filed and submitted a FINRA claim on behalf of an Gloucester, Massachusetts couple alleging claims for violation of common law fraud, breach of fiduciary duty, negligence, and negligent supervision. The claim further alleges that Advisory Group Equity Services, Ltd. unsuitably invested the client in the following high risk private placement investments:
Carter Validus Mission Critical REIT
American Realty Capital
Griffin Capital Essential Asset REIT
United Realty Trust
Resource Royalty Growth & Income IV
First Capital Real Estate Trust
The claim seeks damages between $500,000.01 and $1,000,000.00.
It is alleged Advisory Group Equity Services, Ltd. failed to perform the necessary due diligence on these investments prior to recommending them to these particular investors.
Before recommending an investment, a broker-dealer has a fiduciary duty to adequately disclose the risks involved in the investment and to perform the necessary due diligence to determine whether the investment is suitable for the investor.
According to D. Daxton White, managing partner of The White Law Group, “It is unfortunate, but we believe that many more investors have suffered devastating losses due to the broker-dealer’s failure to supervise and don’t realize they have recovery options.”
“Brokerage firms are required to supervise their advisors to ensure that they are complying with FINRA rules. If it can be determined that the advisor violated FINRA rules and the employers failed to adequately supervise him, these firms can be held responsible for any resulting losses in a FINRA arbitration claim.”
FINRA Dispute Resolution is an arbitration venue for investors with claims against their brokerage firm or financial professional. It provides investors with an opportunity to attempt to recoup their investment losses without filing such claims in court.
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 Franklin, Tennessee.