Securities Lawyer Blog | Victim of Fraud?

TAG | DBSI

Feb/12

23

Did You Invest in These TICs?

Comments off · Posted by Securities Lawyer in FINRA

ATTENTION Tenant-in-Common (“TIC”) Investors.
 
If you have sustained losses in the following Tenant-in-Common (“TIC”) investments, call attorney Lars K. Soreide of the Soreide Law Group today at 1 (888) 760-6552 or visit securitieslawyer.com:
  • DBSI Tenant In Common (TIC) Investment
  • TSG Tenant in Common (TIC) Investment
  • Evergreen Tenant in Common (TIC) Investment
  • US Advisors Tenancies in Common TIC securities
  • NNN Tenancies in Common investments
  • Core Tenancy in Common
  • Grubb & Ellis Tenancy in Common Investment
  • Moody’s Tenancy in Common investment
  • Eliason Tenant in Common investment
  • Cottonwood Tenant in Common TIC investment
  • Cabot Tenancy in Common investment
  • Gemini Tenancy in Common investment
  • Oil and gas tenancies in common TICs from Striker Petroleum and Ridgewood Energy
 

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Jan/12

17

Did You Invest in These Oil and Gas Offerings?

Comments off · Posted by Securities Lawyer in FINRA

Soreide Law Group, PLLC, is currently investigating the following oil and gas deals:

KBS REIT, DBSI, BDA Bradford Drilling, United Development Fund, Leaf Equipment Leasing Fund, Cypress Equipment Fund, Net REIT, REEF Income and Development Fund, and Waveland Drilling Partners.

Investors can file arbitration claims, as an option if they have been victimized by these products, if the investments were recommended by a financial advisor at a brokerage firm.

There were massive commissions involved in oil and gas deals, and the commissions often provided an incentive for the broker to recommend these products. In many cases, these were not appropriate or suitable investment recommendations for their clients. Often, an unsuitable and inappropriate amount of the client’s portfolio was placed into these investments. Brokers and financial advisors have a duty to only recommend investments that are appropriate for their client.
 
If you or a family member have sustained losses in any of these oil and gas investments due to your stock broker or financial advisor’s recommendation, call 888-760-6552, or visit www.securitieslawyer.com.
 
Soreide Law Group, PLLC., representing investors nationwide before FINRA the Financial Industry Regulatory Authority.

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Dec/11

8

DeWaay Financial Network Facing Bankruptcy Because of DBSI Lawsuits

Comments off · Posted by Securities Lawyer in FINRA

In an InvestmentNews.com article by Bruce Kelly, he writes that failed private placements issued by Medical Capital Holdings Inc. and Provident Royalties LLC have forced dozens of broker-dealers to close, be sold or seek bankruptcy protection.

Failed real estate tenant-in-common syndicator DBSI Inc. is threatening to have the same result, with DeWaay Financial Network LLC claiming in federal court last month that bankruptcy looms, due to lawsuits by clients who bought DBSI securities.

Kelly writes that DeWaay Financial Network asked a federal judge in Delaware in October for a temporary injunction to halt eight arbitration claims that investors have filed with the Financial Industry Regulatory Authority Inc. stemming from DBSI losses.

DeWaay Financial Network “lacks sufficient funds to satisfy the claims in eight arbitration claims pending against it — let alone the potential claims of 304 other customers that have not yet brought suit. The threat posed by these mounting costs and the attendant potential for liability hangs over defendant’s limited funds like the Sword of Damocles,” according to the firm’s memorandum, which was filed in U.S. District Court in Delaware on Oct. 19.

“Absent injunctive relief, that sword’s descent is imminent and in all likelihood would force defendant to declare bankruptcy,” according to the memo.

DeWaay’s request for an injunction is part of its strategy to create a settlement with investors, president Matt Stahr said.

“We still feel like we’re in the right,” as the firm did its due diligence on the DBSI products, but the costs of defending the firm in individual arbitration claims are prohibitive, he said. The firm has made substantial progress toward reaching a settlement but hasn’t had a hearing yet regarding its request for an injunction, Mr. Stahr said.

DBSI raised $1 billion from investors by selling real estate deals through independent broker-dealers. The real estate firm declared bankruptcy in 2008, writes Kelly.

The InvestmentNew.com article said that according to court filings, the eight DeWaay Financial Network clients suing the firm in Finra arbitration bought $2.9 million in DBSI securities. DeWaay Financial Network so far has spent $46,000 defending those claims and expects to spend another $1.1 million in defense costs. Beyond those investors, DeWaay Financial Network sold DBSI securities to an additional 304 clients, and the firm’s total exposure exceeds $24 million.

Securities Attorney, Lars Soreide, of Soreide Law, PLLC, has represented clients nationwide. If you or a family member have experienced losses with DeWaay Financial Network LLC, and/or were sold DBSI TICs, through DeWaay or other broker/dealers, call a Securities Arbitration Lawyer for a free consultation on how to potentially recover your losses. To speak with an attorney, call 888-760-6552, or visit www.securitieslawyer.com.

Soreide Law Group, PLLC., representing investors nationwide before FINRA the Financial Industry Regulatory Authority.

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Dec/11

7

Pacific West Securities to Close in 2012, Reps Moving to Multi-Financial Securities

Comments off · Posted by Securities Lawyer in FINRA

Pacific West Securities, Inc., a sizable independent broker-dealer with about 290 affiliated reps and advisers, is shutting down due to thin margins and high costs of doing business, with the reps moving to a broker-dealer in Cetera Financial Group, writes Bruce Kelly in a Dec. 6, 2011, ariticle for InvesmentNews.com.

Kelly writes that Pacific West Securities Inc. generated $46 million in fees and commission last year and is on track to see $54 million in gross revenue in 2011. The B-D will inform its brokers of the closing, according to Tony Pizelo, CEO. Multi-Financial Securities Corp. has struck a recruitment deal with Pacific West, Mr. Pizelo said.

These two firms are collaborating on how best to move the brokers, Pizelo said. “We anticipate a very enthusiastic response, and expect well over 50% to move,” he said.

High cost of business is pushing firms like Pacific West to the exit, he said. “The margins we are up against are getting thinner and thinner,” he said. “I’m in agreement with Ric Edelman, the model is broken.”

The InvestmentNews.com article states that in October, Mr. Edelman, co-chief executive of the Edelman Financial Group, said the independent broker-dealer channel was “severely flawed” and that independent broker-dealers faced steep economic challenges.

“This is a tough industry right now” for all but the big players, Mr. Pizelo said.

There will be business as usual at the firm for the next couple of months as the brokers move, Mr. Pizelo said, with an anticipated shut down date of March 1.

Multi-Financial Securities, a subsidiary of Cetera Financial Group, said in a news release that it had entered an agreement with Pacific West Financial Group, the broker-dealer’s holding company, to bring over select advisors from Pacific West. The agreement is subject to approval by the Financial Industry Regulatory Authority Inc.

It was noted in the article that dozens of thinly capitalized independent broker-dealers have gone out of business or been sold over the past few years due to the rising tide of litigation costs stemming from investor lawsuits. Most of those complaints stemmed from sales of three products: Medical Capital Holdings Inc. notes, Provident Royalties LLC preferred stock, and real estate deals by DBSI Inc. Mr. Pizelo said Pacific West did not sell any of those products.

Pacific West has been facing increasing legal costs due to customer arbitrations. Over the last two years, the firm has lost Finra arbitration awards totaling $969,000, according to the firm’s profile on Finra BrokerCheck.

Securities Attorney, Lars Soreide, of Soreide Law, PLLC, has represented clients nationwide. If you or a family member have experienced losses with these or other stockbrokers/brokerages, call a Securities Arbitration Lawyer for a free consultation on how to potentially recover your losses. To speak with an attorney, call 888-760-6552, or visit www.securitieslawyer.com.

Soreide Law Group, PLLC., representing investors nationwide before FINRA the Financial Industry Regulatory Authority.

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