August 13, 2013

Soreide Law Group Files Two More FINRA Arbitrations Against National Securities Corporation for the Sale of Roundstone Healthcare Capital Funds X and XI.

business man holding his head with text asking questions about stock broker misconduct

National Securities Corporation financial advisor, Brian Folland, who has over 30 reported customer complaints on his broker check report, is being named along with National Securities for the sale of the Roundstone Healthcare Capital. It is alleged that Roundstone was a high risk private placement that was being marketed as a conservative income producing investment. What wasn't alledgedly disclosed to investors was that Roundstone:

a. Relies only upon one strategic vendor to collect and buy the hospital receivables that they intend to resell with no formal agreement which exponentially compounded the risk;

b. The hospital receivables market is illiquid and there is a likelihood that the purchased receivables will not even sell;

c. The General Partner of the fund has an inherent conflict of interest with the limited partners (the investors) because the company will be in competition with its other funds as to securing and selling receivable portfolios;

d. The funds track record begins in 2007;

e. The market is incredibly competitive;

f. Most of the debt being purchased to sell is likely to never be collected;

g. The General Partner receives 50% carried interest in distributions while the limited partners receive between 8-12%, and due to this structure the General Partner has an incentive to make management decisions that are riskier or more speculative than if there were no such compensation arrangements;

h. Investors have virtually no voting rights and the General Partner makes all the decisions;

I. There is no diversification in the Fund;

j. There is a lot of uncertainty about how healthcare reform will affect the business;

k. 3rd party vendors may violate HIPAA laws and other regulations in trying to collect on the previously written off debt.

If you purchased Roundstone Healthcare Capital from Brian Folland of National Securities or other high risk private placements or investments through Brian Folland call (888) 760-6552 or visit https://www.securitieslawyer.com. Representing investors Nationwide before FINRA.

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