IMS Securities Inc. to pay $500,000 FINRA Award
The White Law Group today announces a FINRA Arbitration panel has awarded a Texas couple over $500,000 in compensatory damages in a FINRA lawsuit filed against IMS Securities in February 2018, alleging unsuitable investments in high risk, non-traded REITs.
The retired couple alleged unsuitability, violation of common law fraud, failure to supervise, breach of fiduciary duty, negligent failure to supervise, and negligence. According to the claim, IMS recommended investments in ARC New York City REIT, ARC Realty Finance Trust, Phillips Edison Grocery Center REIT II, ARC Global Trust II, Steadfast Apartment REIT, and NorthStar Real Estate Income II, which were unsuitable given claimants’ risk tolerance and investment objectives, causing them to suffer significant losses.
Michael D. Kennedy, Partner with The White Law Group, represented the claimants at the hearing. After considering the pleadings, the testimony and evidence, the Panel found IMS is liable for and shall pay to Claimants the sum of $532,343.55 in compensatory damages plus interest.
“We are pleased that this panel ruled in favor of our clients and awarded damages,” says D. Daxton White, Esq, managing partner for The White Law Group, “Non-traded REITs are extremely high-risk and are only appropriate for sophisticated investors. In my experience, broker-dealers often highlight the income potential of the investments in their sales pitches which makes them appealing to retired investors. Unfortunately, retired investors are the investors who can least afford the investments’ risks.”
The White Law Group is a national securities fraud, securities arbitration, and investor protection law firm with offices in Chicago, Illinois and Franklin, Tennessee. The firm represents investors in claims against their brokerage firm throughout the country.
For more information on the award, please contact the firm’s offices at 888-637-5510.
For more information on The White Law Group and its FINRA arbitration practice, please visit https://www.whitesecuritieslaw.com.