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Greco & Greco's lawyers represent investors to recover losses caused by securities fraud, churning, lack of suitability, negligence, sales of unregistered securities, unauthorized trading, and other misconduct by stock brokers, investment advisors, financial planners and their firms.
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David Lerner Associates Fined by FINRA for sale of Apple Reits
As shown by this FINRA Order, FINRA sanctioned David Lerner and Associates for sales of Apple REIT Ten and markups related to municipal bonds and CMO’s. Of the $14 million in fines and restitution, approximately $12 million is to be paid to affected customers.
The wrongful conduct alleged by FINRA includes the following: 1) failure to do proper due diligence on Apple REIT Ten prior to approving its sale to customers, many of whom were elderly and unsophisticated, 2) misrepresentations of the REITs performance, value, and returns, 3) false statements in sales seminars and letters describing the REITs, 4) improper markups, and 5) supervisory violations.
David Lerner Associates has had a great incentive for the sale of the Apple REITs - it earns 10% on every sale and has sold $7 billion of the REITs since 1996. These revenues account for 60-70% of DLA’s business according to FINRA. As stated by FINRA: “Many of DLAs customers are senior and/or unsophisticated, and DLA solicits customers by general means such as the internet, radio, cold callings, mailings, and open-invitation seminars at senior centers, restaurants, and country clubs.”
Details of the restitution program may be found here. As stated, the remediation plan does not prevent investors from pursuing additional losses through arbitration. If you suffered losses in REITs and you would like to discuss your case for free with one of our attorneys, please contact Greco & Greco.
Posted by W. Scott Greco on 10/30/12.
Arbitration • Brokerage Firms • David Lerner Associates • CMOs / CDOs • FINRA • Fraud • REITs • Securities Fraud • State Regulators • New York • Suitability • Permalink
Insurance and Life Settlement related claims regarding California Broker Winterrowd
Greco & Greco is currently pursuing claims on behalf of investors relating to wrongful conduct in life insurance sales, life settlement sales, and variable annuity withdrawals by Neil Winterrowd. Mr. Winterrowd was formerly a FINRA registered representative of Crown Capital Securities LP and J.P. Turner & Company LLC. According to FINRA’s Brokercheck, J.P. Turner discharged Mr. Winterrowd for “Improper handling of customer funds” related to variable annuities. If you believe that you may have been a victim of the above conduct, please contact one of our attorneys for a free consultation.
Posted by W. Scott Greco on 10/12/12.
Arbitration • Brokerage Firms • Crown Capital • J.P. Turner • Insurance • Life Settlements • Securities Fraud • State Regulators • California • Virginia • Suitability • Variable Annuities • Permalink
Update on Recent TIC Awards in FINRA Arbitration
Back in March of 2012 we listed five recent FINRA arbitration awards to customers who had suffered losses in TIC investments - the post can be found here. FINRA arbitration panels have issued several additional awards to customers based on claims of securities fraud, negligence, lack of suitability, breach of fiduciary duty, etc. in relation to TIC (Tenant In Common) sales by brokerage firms and brokers:
1.DRG Hendersonville TIC 13 LLC, et al. v. Behrends, Capstone Financial, CapWest Securities, et al.
FINRA arbitration #11-01909, Los Angeles, California. This claim related to two TIC investments: Marriott
Renaissance Meadowlands Hotel and the Arbors on Main Apartments. The Panel issued an award to Claimants for $338,000 plus interest against Capwest and two individuals. Unfortunately, Capwest is no longer licensed with FINRA so the collectibility of the award is questionable.
2.Castro v. Capwest Securities, et al.
, FINRA Arbitration # 10-02633, Los Angeles, California. This is another LA FINRA arbitration against CapWest and invididuals. The TICs involved were Water Song Apartments (CWC Water Song S&H LP), and Cabot Turfway Ridge Acquisition, LLC. The panel awarded $156,250 plus interest to the Claimants against Capwest and the individual Respondents.
3.McLean v. Great Northern Financial Securities, Inc.
, FINRA Arbitration #11-03787, Seattle Washington. Once again, another customer award but against a defunct Brokerage Firm. This case involved a DBSI TIC as well as other private placement investments. The panel awarded $424,553 which included damages, interest, treble damages, and attorneys fees.
Greco & Greco is currently pursuing multiple TIC claims against Broker-Dealers and registered representatives in FINRA Arbitration. To read more about the duties of brokers selling TIC’s, please click here through to our website. If you wish to speak to one of our attorneys about a possible claim, please contact us for a free consultation.
Most recent entries
- Prudential Fined for Failure to Supervise Fraudulent Withdrawals From Variable Annuity
- Washington DC Investment Advisor Dawn Bennett Barred by SEC
- Virginia Broker Andrew Corbman Suspended by FINRA
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- SEC and FINRA FINE UBS OVER PUERTO RICO BOND FUNDS
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- First FINRA Arbitration Award Against UBS of Puerto Rico Regarding Bond Funds
- H.D. Vest Charged With Failures Related to Supervision
- Norfolk Virginia Financial Advisor Charged with Fraud
- Vienna Virginia Financial Advisor Pleads Guilty to Defrauding Customers
- Virginia Regulators Require License Surrender and Fines over sale of 54 Freedom Products
- Brokers barred for stealing from elderly widow
- FINRA fines JP Turner for Leveraged and Inverse ETF sales
- State Securities Regulators release new list of top investor threats
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