oreide Law Group has filed a FINRA arbitration on behalf of their client (Claimant) against: INDIANA SECURITIES, LLC, & their registered representative, FRANK NEESE (Respondents).
The Claimant is a 79 year-old retiree from Indiana currently living in Florida. The lawsuit alleges that the Claimant was looking for a moderate to low risk investment strategy to help generate income to sustain him through retirement. The Claimant had approximately $1.4 million in total liquid assets to invest. On or about 2014, and continuing through 2016, the lawsuit alleges that INDIANA SECURITIES’ broker, FRANK NEESE solicited approximately $1,349,000 in investments into one mezzanine loan fund called Mainstreet Property Group, LLC. The lawsuit alleged that the Client was promised that the investment in Mainstreet Property Group LLC would pay 14% to its investors. It has not paid any money at all to any investor in almost two years.
According to Bloomberg, Mainstreet Property Group LLC engages in the acquisition and development of real estate properties. The Company invests in properties that demonstrate cash flow potential and health care properties, as well as, college housing, apartment buildings, and build-to-suit properties and complexes. Mainstreet Property Group serves clients in the State of Indiana. They were founded in 2008 and are located in Carmel, Indiana.On Mainstreet Property’s website, it states that Mainstreet Property Group real estate development team, “resides within Mainstreet Property Group (MPG). Identifying investment opportunities and providing real estate services, MPG delivers turn-key, special-purpose development properties in which health care operators can offer their models of care. This is a product-based solution to defined needs in the marketplace. MPG serves both third-party health care operators and Mainstreet Health. MPG is also the development engine behind Mainstreet Student Living. The student communities built and managed by Mainstreet Student Living are created with the same precision and attention to detail as our award-winning health care properties.” Also on the Mainstreet Property website listed under investment opportunity,” Mainstreet offers a variety of investment vehicles that historically earn attractive returns. No matter your risk or return profile, you’ll find an option with Mainstreet. And, at the same time, you’ll help to transform the lives around you for the better. An investment with Mainstreet is an investment in the future.”
The lawsuit alleges that recently Mainstreet properties has failed to make the payments promised to their investors for at least the past year. It is also unclear to the investors if the payments will ever start again or if the investors will ever be able to get their principal back. Non public real estate investments can be high risk and unsuitable for retirees.
These securities were offered through INDIANA SECURITIES to the Claimant. The lawsuit alleges that INDIANA SECURITIES, LLC, & their registered representative, FRANK NEESE, acted with disregard for the Claimant’s life savings by investing all of his money into one high risk private placement investment. Sadly, as the lawsuit states, this 79 year-old retiree has lost the majority of his life savings in this investment.
The lawsuit alleges: negligence, breach of fiduciary duty, negligent supervision, and breach of contract.
According to FINRA’s BrokerCheck, available to the public on FINRA’s website, FRANK NEESE, has two Disclosures on his report, both are Customer Disputes, which include this lawsuit. In commenting on the Customer Dispute on BrokerCheck, Neese states, in part, that it “was an appropriate investment for an individual such as this and we intend to fully defend this case on its merits.”
The other Customer Dispute was settled in 2010 for $50,000 following allegations that the, “Customer purchased corp debt in 2001 ($100,000) & 2003 ($123,000). Housing market and economy decline and issuing corporation closed in 1/2008. Customer claims breach of contract and breach of duties owed to a client.”
FRANK NEESE has been registered in the securities industry for 39 years and was registered with the following firm since 10/16/1998:
INDIANA SECURITIES, LLC
1705 N MERIDIAN STREET
INDIANAPOLIS, IN 46202
If you also invested in Mainstreet Property Group LLC with broker Frank Neese of Indiana Securities of Inaianapolis, Indiana, or any other broker/dealer, and experienced losses, contact Soreide Law Group and speak to an experienced securities lawyer at no cost regarding the possible recovery of your investment losses through a FINRA arbitration at: 888-760-6552.
Soreide Law Group represents clients nationally before FINRA on a contingency fee basis.