The White Law Group announces the filing of a FINRA Lawsuit against Regal Securities & First Allied Securities
The White Law Group announces filing of a FINRA Arbitration lawsuit today. The claim, submitted on behalf of a Palm Desert, California resident, alleges claims for violation of common law fraud, breach of fiduciary duty, negligence, and negligent supervision.
The claim further alleges the two firms unsuitably invested the client in the following high-risk alternative investments:
Commonwealth Income & Growth Fund IV
Steadfast Income REIT
First Allied Securities
New York City REIT
Carter Validus Mission Critical REIT
The FINRA claim seeks damages between $100,000 and $500,000.
It is alleged that both First Allied Securities and Regal Securities failed to perform the necessary due diligence on these investments prior to recommending them to this particular investor.
It is further alleged that the financial advisor that was involved with the accounts at issue is Neil S. Fineman. According to the Financial Industry Regulatory Authority, Fineman has been the broker of record for at least four (4) customer disputes. FINRA reportedly barred Fineman from working in the securities industry in December 2017 after other allegations.
Brokerage firms are required to supervise their financial 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.
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.
FINRA Dispute Resolution
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 is a national securities fraud, securities arbitration, and investor protection law firm with offices in Chicago, Illinois and Franklin, Tennessee.
For more information The White Law Group and the lawsuit filed against First Allied Securities and Regal Securities, please contact the firm at 1-888-637-5510 or visit https://www.whitesecuritieslaw.com.