SEC News
- SEC Charges Chicago-Area Father and Son Conducted Cherry-Picking Scheme at Investment Firm May 16, 2013FOR IMMEDIATE RELEASE2013-90 Washington, D.C., May 16, 2013 — The Securities and Exchange Commission today charged a father and son and their Chicago-area investment advisory firm with defrauding clients through a cherry-picking scheme that garnered them nearly $2 million in illicit profits, which they spent on luxury homes, vehicles, and vacations. Addition […]
- SEC Names Keith F. Higgins as Director of Division of Corporation Finance May 15, 2013FOR IMMEDIATE RELEASE2013-89 Washington, D.C., May 15, 2013 — The Securities and Exchange Commission today named Keith F. Higgins as the new director of the agency’s Division of Corporation Finance. Mr. Higgins comes to the SEC from the law firm of Ropes & Gray LLP where he is a partner in its Boston office with 30 years of experience advising public com […]
- SEC Names Lona Nallengara as Chief of Staff May 15, 2013FOR IMMEDIATE RELEASE2013-88 Washington, D.C., May 15, 2013 — The Securities and Exchange Commission today announced that Lona Nallengara has been named the agency’s chief of staff. Mr. Nallengara came to the SEC in March 2011 and served as deputy director for legal and regulatory policy in the Division of Corporation Finance until he was appointed in Decemb […]
- SEC Charges China-Based Executives in Scheme to Overstate Revenues and Divert Money for Personal Use May 15, 2013FOR IMMEDIATE RELEASE2013-87 Washington, D.C., May 15, 2013 — The Securities and Exchange Commission today charged husband-and-wife executives at a China-based company with engaging in a scheme to overstate the company’s revenues and divert proceeds from a securities offering for their personal use. Additional Materials SEC Complaint The SEC alleges that RIN […]
- SEC, FINRA Issue Investor Alert On Pension or Settlement Income Streams May 9, 2013FOR IMMEDIATE RELEASE2013-86 Washington, D.C., May 9, 2013 — The Securities and Exchange Commission and the Financial Industry Regulatory Authority (FINRA) today issued an investor alert entitled Pension or Settlement Income Streams – What You Need to Know Before Buying or Selling Them. The investor alert informs investors about the risks involved when selli […]
TAG | DBSI lawsuits
- 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
broker-dealer selling TICs · broker-dealers selling DBSI TICs · brokers recommending risky investments · Cabot Tenancy in Common investment · Core Tenancy in Common · Cottonwood Tenant in Common TIC investment · DBSI · DBSI Inc · DBSI lawsuits · elder abuse in investments · Eliason Tenant in Common investment · Evergreen Tenant in Common (TIC) Investment · failure to supervise brokers · Financial Industry Regulatory Authority · FINRA · fort lauderdale securities fraud lawyer · Gemini Tenancy in Common investment · Grubb & Ellis Tenancy in Common Investment · high risk investments · Lars Soreide · Moody's Tenancy in Common investment · NNN Tenancies in Common investments · Oil and gas tenancies in common TICs from Striker Petroleum and Ridgewood Energy · risky investments · securities arbitraton lawyer · securities lawyer · Soreide Law Group PLLC · targeting elderly investors · tenant in common DBSI · Tenant-in-common exchanges · TIC · TIC loss · TIC losses Lawyer · TICs · TSG · TSG TIC Investments · US Advisors Tenancies in Common TIC securities
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.
b-d seeking bankruptcy protection · b-d selling TICs from DBSI · bankrupt DBSI · broker-dealers forced to close · broker-dealers selling DBSI TICs · brokers recommending risky investments · DBSI · DBSI Inc · DBSI lawsuits · DeWaay Financial Network LLC · DeWaay Financial selling DBSI TICs · elder abuse in investments · Financial Industry Regulatory Authority · FINRA · finra securities arbitration · finra securities arbitration lawyer · fort lauderdale securities fraud lawyer · high risk investments · high-risk private placements · Lars Soreide · MedCap · Medical Capital Holdings Inc · private placements · Provident Royalties LLC · real estate deals by dbsi · risky investments · securities lawyer · Soreide Law Group PLLC · Stock fraud lawyer · Sword of Damocles · tenant in common DBSI · Tenants in Common · TIC · TICs from DBSI
