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Jan/13

31

Tenant-in-Common (TIC)

Comments off · Posted by Securities Lawyer in FINRA

Tenant in Common (TIC) investments, or 1031 exchanges, are a form of real estate ownership in which multiple investors own fractional interests in a property. Many brokers and brokerage firms sold billions of these products to investors across the country allegedly charging high fees, and doing little or no due diligence. They were investments with high risk and highly illiquid, often not suitable for certain investors’ portfolios.

Below is a list of some of the firms who are present or former members of the Real Estate Investment Securities Association (REISA) (previously known as TICA – Tenant in Common Association):

AEI Fund Management Inc
St Paul, MN

American Capital Group
Bellevue, WA

American Investment Exchange
Hermosa Beach, CA

Argus Realty Investors, LP
San Clemente, CA

Ashforth Paradigm Capital Advisors
Boston, MA

Atlas Venture Partners, Inc.
Irvine, CA

B&H Real Estate Holding, LLC
Encino, CA

Behringer Harvard
Dallas, TX

BGK-Integrated Group
Santa Fe, NM

Bluerock Real Estate LLC
New York, NY

Bonaventure Realty Group, LLC
Arlington, VA

Cabot Investment Properties
Boston, MA

Capital Real Estate LLC
Denver, CO

Cole Companies
Phoenix, AZ

Cottonwood Capital, LLC
Salt Lake City, UT

Covington Realty Partners
Chicago, IL

DBSI Group of Companies
Meridian, ID

DeSanto Realty Group
Media, PA

Direct Invest LLC
Linthicum, MD

Dividend Capital
Denver, CO

Eliason 1031 Properties Corporation
Saint Germain, WI

Equitable Companies, LLC
Los Angeles, CA

Evergreen Realty Group, LLC
Pasadena, CA

ExchangePoint Properties, LLC
Beverly Hills, CA

First Guardian Group, LLC
San Jose, CA

FOR 1031/ Spectrus Real Estate Group
Boise, ID

FORT Properties, Inc.
Los Angeles, CA

Franklin 1031 Investments L.L.C.
Oakbrook, IL

Gemini Real Estate Advisors, LLC
New York, NY

Grand Peaks 1031 Properties
Denver, CO

Granite Investment Group, Inc.
Irvine, CA

Griffin Capital Corp.
El Segundo, CA

Inland Real Estate Exchange Corporation
Oak Brook, IL

International Realty Advisor
San Antonio, TX

Investment Properties of America
Richmond, VA

KBS Capital Markets Group, LLC
Newport Beach, CA

Kodiak Capital Partners L.L.C.
Dallas, TX

Meridian Realty Advisors, LP
Dallas, TX

Moody National Companies
Houston, TX

National Exchange Advisors, LLC
Sherman Oaks, CA

Noble Royalties, Inc.
Addison, TX

ORIX Real Estate Capital, Inc.
Dallas, TX

Parthenon Realty 1031 Investors, LLC
Alpheretta, GA

PASSCO Companies, LLC
Irvine, CA

Pennbridge Capital
Lehi, UT

Principle Equity Management
Houston, TX

Rainier Capital Management, LP
Dallas, TX

Real Estate Partners, Inc.
Irvine, CA

Real Estate Value Advisors LLC
Richmond, VA

REEF Oil & Gas Partners
Richardson, TX

Resource Real Estate, Inc.
Philadelphia, PA

RK Properties
Long Beach, CA

Sagebrush Realty Holdings LLC
Denver, CO

SCI Real Estate Investments, LLC
Los Angeles, CA

Sequoia 1031 Companies LLC
Northglenn, CO

Southfork
El Dorado Hills, CA

SRS Investments, LLC
Sarasota, FL

Texas Energy Holdings Inc.
Dallas, TX

The Geneva Organization
Minneapolis, MN

The Woodlark Companies
White Plains, NY

TIC Capital LLC
Boise, ID

TIC Properties, LLC
Greenville, SC

TREC Investment Realty
Las Vegas, NV

Triple Net Properties, LLC
Santa Ana, CA

TSG Real Estate, LLC
Chicago, IL

U.S. Advisors, LLC
Ladera Ranch, CA

Wells Real Estate Funds
Norcross, GA

Western America Equities LLC
Bellevue, WA

1031 Xpress Inc
Bellevue, WA

American Realty Capital
New York, NY

Atel Securities
San Francisco, CA

ATEL Securities Corp
San Francisco, CA

Axxcess Capital LLC
Newport Beach, CA

Bluerock Capital Markets LLC
Newport Beach, CA

Brennan Investment Group LLC
Des Plaines, IL

Calliance Realty Fund LLC
San Francisco, CA

CM Group
Henderson, NV

Coachman Energy LLC
Denver, CO

Commonwealth Capital Corp
Clearwater, FL

Cottonwood Capital LLC
Salt Lake City, UT

Cypress Capital Corporation
San Francisco, CA

Dividend Capital
Denver, CO

Energy Hunter Securities
Houston, TX

Gemini Real Estate Advisors LLC
New York, NY

Grubb & Ellis Realty Investors LLC
Santa Ana, CA

GWG Holdings
Minneapolis, MN

Hamilton Point Investments LLC
Old Lyme, CT

Healthcare Trust of America
Scottsdale, AZ

Hertz Capital Markets Group
Santa Monica, CA

Hines Real Estate Investments Inc
Houston, TX

Inland Private Capital Corporation
Oak Brook, IL

Inland Real Estate Investment Corporation
Oak Brook, IL

JH Financial Group LLC
Newport Beach, CA

KBR Capital Partners
Irvine, CA

KBS Capital Markets Group
Newport Beach, CA

Lightstone Securities LLC
Mahwah, NJ

MacDonald Realty Group
Desoto, TX

Moody National Companies
Houston, TX

New Start Capital LLC
Dallas, TX

Noble Royalties Inc
Addison, TX

NorthStar Realty Finance Corporation
Greenwood Village, CO

Passco Companies LLC
Irvine, CA

Penneco Oil Company
Delmont, PA

Preferred Apartment Communities Inc
Atlanta, GA

Principle Equity Management
Houston, TX

Rainier Capital Management LP
Dallas, TX

Somerset Partners LLC
New York, NY

Somerset Partners LLC
New York, NY

Steadfast Capital Markets Group
Irvine, CA

Strategic Capital Holdings LLC
Ladera Ranch, CA

Thompson National Properties
Irvine, CA

Time Equities Inc
New York, NY

Vertical Capital Markets Group
Irvine, CA

Waveland Capital Partners LLC
Irvine, CA

Wells Real Estate Funds Inc
Norcross, GA

Wilkinson Capital, LLC
Yakima, WA

Securities Lawyer, Lars K. Soreide, of Soreide Law Group, PLLC, represents clients nationwide in arbitrations before FINRA. Call to speak to an attorney regarding your investment losses. For a free consultation on how to potentially recover those losses call: 888-760-6552, or you may visit our website at: http://www.securitieslawyer.com.

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Jan/13

31

FINRA Wants to Change Public Arbitrator Qualifications

Comments off · Posted by Securities Lawyer in FINRA

The Financial Industry Regulatory Authority Inc., also known as FINRA, is proposing to tighten its definition of “public” arbitrator. FINRA would like to exclude people associated with a mutual fund or hedge fund from its pool of public arbitrators and require others to wait for two years after ending an industry affiliation before being classified as a public arbitrator, writes Dan Jamieson in an article from the InvestmentNews.com.

On the Securities and Exchange Commission’s website, Finra said the change “would improve investors’ perception about the fairness and neutrality of Finra’s public arbitrator roster.”

FINRA is proposing a two-year cooling-off period for attorneys, accountants and others who have done a certain amount of work for securities industry clients, and for those who work for or serve as officers or directors of entities controlled by securities firms. This two-year wait would cover spouses and immediate family members of such individuals as well.

“In one instance, an individual applying to be a public arbitrator had retired one month earlier from a lengthy career at a law firm that represented securities industry clients,” FINRA said in its filing.

FINRA already has a five-year waiting period for former securities industry employees wishing to serve as public arbitrators, and bans those associated with the industry for at least 20 years from ever becoming public arbitrators.

Many feel Finra needs to go further and eliminate anyone who has had any connection with the industry as an arbitrator.

Securities Lawyer, Lars K. Soreide, of Soreide Law Group, represents clients nationwide before FINRA. If you or a loved one have sustained investment losses due to your stock broker or financial advisor’s recommendations, call for a free consultation on how to potentially recover your losses. To speak with an attorney call 888-760-6552, or visit our website at: http://www.securitieslawyer.com.

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Jan/13

30

Reverse Convertibles Investors Linked to Apple Common Stock–Got Burned

Comments off · Posted by Securities Lawyer in FINRA

Reverse convertibles, are often called “trigger notes,” “phoenixes,” or “auto-callables.” These structured products promised high yields of 6% to 12% or more, but trigger a conversion to Apple common stock if the price falls, usually on average 15% to 20%. With Apple down more than 25% from its high of last fall in 2012, many of these instruments may already converted and have handed their investors severe losses.

The price of Apple has dropped from over $700 to below $500 per share. Brokers sold a lot of structured notes based on the price when Apple was north of $700.

Many brokers represented to their clients that the structured notes were “safe and guaranteed,” and presented it as a way to benefit from the Apple’s rise without the risk. Unfortunately, the price of Apple plummeted, the notes converted and many conservative investors looking for a safe yield ended up with a lot of falling shares of Apple’s common stock.

$241 million of structured notes tied to Apple Inc. face losses after a 27 percent drop in the stock of the world’s most valuable company eroded built-in cushions that protect investors. Banks issued 76 US notes linked to Apple stock during the seven weeks starting August 20th. when the company was valued at $650 a share or more. In total, banks issued $1.66 billion of such notes, making Apple the most popular underlying company in such high commission structured products.

If you were a conservative investor who was seeking yield and ended up with a bunch of falling Apple common stock after buying Apple-linked reverse convertibles in 2012, Soreide Law Group would like to speak with you about your potential claim. Call 888-760-6552 or visit http://www.securitieslawyer.com.

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Jan/13

29

Former Broker Charged by SEC with Defrauding Investors in Mortgage Backed Securities (MBS)

Comments off · Posted by Securities Lawyer in FINRA

The Securities and Exchange Commission (SEC) today, January 29th., 2013, on it’s website announced that it has charged a former managing director of Jefferies & Co., Inc. (Jefferies), a New York-based broker-dealer, with making misrepresentations and engaging in misleading conduct while he sold mortgage-backed securities (MBS) in the wake of the financial crisis.

The SEC alleges that Jesse Litvak, a senior trader on Jefferies’ MBS Desk who worked at Jefferies’ office in Stamford, Connecticut, where he bought and sold MBS from and to his customers. From 2009 to 2011, Litvak allegedly lied to, or otherwise misled, those customers about the prices that Jefferies had purchased the MBS before selling it to another customer and the amount of his firm’s compensation for arranging the trades. Litvak also misled his customer into believing that he was arranging a MBS trade between customers, when Litvak really was selling the MBS out of Jefferies’ inventory. Litvak also misled customers about how much money they were paying in compensation to Jefferies. These customers included investment funds established by the United States government in the wake of the financial crisis to help support the market for MBS as well as other investment funds, including hedge funds.

It was also noted in the article on the SEC website that according to the SEC’s complaint filed in U.S. District Court for the District of Connecticut, Litvak engaged in misconduct on over 25 trades. When Litvak offered his customers MBS, he lied to them about how much Jefferies had paid (or was paying) for the securities. On some occasions, Litvak also pretended to be actively negotiating with an outside party to buy a security that he would then re-sell to his customer. But none of these negotiations were taking place; instead, Litvak fabricated the existence of the seller and every detail about active negotiations with it. In fact, as Litvak knew, Jefferies had purchased these bonds days before and already held them in its inventory.

The SEC’s complaint charges Litvak with violating the antifraud provisions of the federal securities laws. The complaint seeks a final judgment permanently enjoining Litvak from future violations of the federal securities laws, ordering him to disgorge his ill-gotten gains plus prejudgment interest, and order him to pay civil penalties.

Securities Lawyer, Lars K. Soreide, of Soreide Law Group, represents clients nationwide before FINRA. If you or a loved one have sustained investment losses due to your stock broker or financial advisor’s recommendations, call for a free consultation on how to potentially recover your losses. To speak with an attorney call 888-760-6552, or visit our website at: http://www.securitieslawyer.com.

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Jan/13

24

Alison Janke, Port Richey, FL, Fined and Suspended by FINRA

Comments off · Posted by Securities Lawyer in FINRA

The following information is from FINRA’s website under “Disciplinary and Other FINRA Actions, January, 2013.”

Alison Marie Janke (CRD #4409155, Registered Representative, Port Richey, Florida)

was fined $11,600, which includes the disgorgement of financial benefit received of $6,600, and suspended from association with any FINRA member in any capacity for three months.

Without admitting or denying the findings, Alison Janke consented to the described sanctions and to the entry of findings that she had participated in a private securities transaction without providing prior written notice to her member firm.

Ms.Janke referred a customer who was seeking alternative investments to a registered representative at a different firm, where the customer invested $200,000 in a real estate investment trust (REIT) through the other registered representative. Alison Janke not only referred the customer to another representative, but also attended the meeting with the customer and the other representative, and assisted with the completion of the purchase transaction.

The findings stated that a limited liability company Janke owned received a $6,600 payment in connection with the sale of the REIT.

The suspension is in effect from December 3, 2012, through March 2, 2013.
(FINRA Case #2011030660801)
This ends the information from FINRA’s website.

Securities Lawyer, Lars K. Soreide, of Soreide Law Group, PLLC, has represented clients nationwide. If you find yourself in this situation, or a similar situation with your broker or financial advisor, call for a free consultation with an attorney, 888-760-6552, or visit our website at: http://www.securitieslawyer.com.

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Jan/13

24

Did You Invest in UBS Willow Fund?

Comments off · Posted by Securities Lawyer in FINRA

Soreide Law Group is currently investigation the UBS Willow Fund. This distressed debt hedge fund was formed in 2000. In October, 2012, its investors were informed that the fund would be liquidated after having sustained substantial losses. Willow Fund’s net asset value declined over $300 million.

In December, 2012, a class action lawsuit was filed against the UBS Willow Fund. The class action lawsuit may result in a recovery of some losses for UBS Willow Fund investors, however, we are investigating the liability that the brokerage firms and financial advisors potentially have for selling the UBS Willow Fund.

Securities Lawyer, Lars K. Soreide, of Soreide Law Group, who represents clients nationwide before FINRA. If you invested in the UBS Willow Fund, call for a free consultation with an attorney on how to potentially recover your losses, at 888-760-6552, or visit our website at: http://www.securitieslawyer.com.

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Jan/13

23

FINRA to Focus on BDCs and Leveraged ETFs in 2013

Comments off · Posted by Securities Lawyer in FINRA

The Financial Industry Regulatory Authority Inc. (FINRA) released its 2013 regulatory and examination priorities letter. The annual letter alerts the broker-dealer community to what Finra examiners will be looking for in the coming year. FINRA will continue to watch yield-oriented products this year but FINRA also will be focusing on business development companies (BDCs), exchange-traded funds (ETFs) and products that use leverage and the use of automated investment advice writes Dan Jamieson in an article for InvestmentNews.com.

FINRA is “particularly concerned about sales practice abuses, yield-chasing behaviors and the potential impact of any market correction, external stress event or market dislocation on market prices,” FINRA said in the letter.

With reference to BDCs, FINRA warned that they have “significant market, credit and liquidity risks” and risk over-leveraging illiquid portfolios with low-cost financing. Leveraged loans are relatively illiquid and hard to value, while CMBS and high-yield often carry higher risks than normal, given their historically low yields, Finra said. High distribution rates on closed-end funds attract investors who may not understand that some of these funds are returning capital, the letter warned.

FINRA’s notice also expressed concern about a “proliferation” of ETFs and ETNs that use leverage or track volatility measures, emerging markets and currencies.

For the first time this year, FINRA examiners will be looking at the use of automated investment advice.

Just because FINRA doesn’t include something in a current letter doesn’t mean examiners won’t be looking into it.

Securities Lawyer, Lars K. Soreide, of Soreide Law Group, who represents clients nationwide before FINRA. For a free consultation with an attorney on how to potentially recover your losses, call 888-760-6552, or visit our website at: http://www.securitieslawyer.com.

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Jan/13

23

Complaint Filed Against Florida Rep for Misappropriation of Funds Against Elderly

Comments off · Posted by Securities Lawyer in FINRA

The following information is from FINRA’s website under “Disciplinary and Other FINRA Actions, January, 2013.”

Kenneth Andrew Mauchin (CRD #2366345, Registered Principal, Sanford, Florida)

was named a respondent in a FINRA complaint alleging that he misappropriated $23,750 from elderly customers’ accounts by converting their funds to cashier’s checks and depositing those checks into a bank account of an entity he controlled.

FINRA’s complaint alleges that Mauchin did so without the customers’ knowledge or authorization. The complaint also alleges that Mauchin prepared a customer’s application for a variable annuity and falsely listed his bank branch office address as the customer’s mailing address, which he knew to be false.

Also, a customer applied for a premiere select IRA brokerage account with Mauchin’s firm and, without the customer’s knowledge or authorization, he falsely listed his bank branch office address as the customer’s mailing address, which he knew to be false. These applications became part of the firm’s books and records, causing his firm’s books and records to be false.

This complaint further alleges that Mauchin failed to appear for FINRA testimony.
(FINRA Case #2011028452701)

This ends the information from FINRA’s website.

Securities Lawyer, Lars K. Soreide, of Soreide Law Group, represents clients nationwide before FINRA. If you or a loved one have sustained investment losses due to your stock broker or financial advisor’s recommendations, call for a free consultation on how to potentially recover your losses. To speak with an attorney call 888-760-6552, or visit our website at: http://www.securitieslawyer.com.

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Jan/13

23

FINRA Awards Investor $1.3mill From Sale of ETF’s by Wells Fargo

Comments off · Posted by Securities Lawyer in FINRA

Moshar v. Wells Fargo, FINRA ID # 11-00556 (Los Angeles, CA, 1/9/2013)
A couple was recently awarded $1,333,300 in compensatory damages through a FINRA arbitration. The claimants charged Wells Fargo with the following: breach of fiduciary duty, breach of written contract, fraud by misrepresentation and omission, failure to supervise and control, and violation of federal and state securities laws and statutory and common law as well as NASD Rules of fair practice and NYSE Rules.
The causes of the action related to multiple investments in Exchange Traded Funds or ETF’s.

Securities Attorney, Lars Soreide, of Soreide Law Group, PLLC, has represented clients nationwide. If you have sustained investment losses due to your stock broker or financial advisor’s recommendations regarding ETFs, call for a free consultation on how to potentially recover your losses. To speak with an attorney call 888-760-6552, or visit our website at: http://www.securitieslawyer.com.

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Jan/13

22

Boca Raton Rep Suspended by FINRA

Comments off · Posted by Securities Lawyer in FINRA

The following information is from FINRA’s website under “Disciplinary and Other FINRA Actions, January, 2013.”

Steven Jay Oshinsky (CRD #2339197, Registered Principal, Boca Raton, Florida)

was suspended from association with any FINRA member in any capacity for one year.

Without admitting or denying FINRA’s allegations, Oshinsky consented to the described sanction and to the entry of findings that he failed
to timely respond to FINRA requests for documents and information to investigate his potential failure to disclose tax liens and outside business activities on his Form U4.

FINRA’s findings stated that Oshinsky’s failure to timely respond impeded FINRA’s investigation.

The suspension is in effect from December 17, 2012, through December 16, 2013.

(FINRA Case #2012030894301)

This ends the information from FINRA’s website.

Securities Lawyer, Lars K. Soreide, of Soreide Law Group, represents clients nationwide before FINRA. If you or a loved one have sustained investment losses due to your stock broker or financial advisor’s recommendations, call for a free consultation on how to potentially recover your losses. To speak with an attorney call 888-760-6552, or visit our website at: http://www.securitieslawyer.com.

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