FINRA Arbitration filed against Crown Capital Securities to recover DBSI TIC losses

March 7, 2012 - PRLog -- The claim, filed against Crown Capital Securities, seeks recovery of investment losses of between $100,000 and $500,000.

The claim filed by The White Law Group was submitted on behalf of a California investor and alleges claims for fraud, breach of fiduciary duty, negligence, and negligent supervision. The claim specifically alleges that the investor was unsuitably invested in two DBSI TIC investments and that Crown Capital only selected these investments because of the commission generated as a result of the recommendation.  The claim further alleges that Crown Capital failed to perform the proper due diligence on the DBSI TIC investments prior to offering them for sale to its client.  

Broker-dealers have a fiduciary duty to research investments prior to recommending them for sale to its clients and to ensure that the investments in recommends are appropriate for the client in light of the clients age, investment experience, net worth, and investment objectives.

The claim alleges that the losses were incurred in the following DBSI TIC properties:  Village at Old Trace, a retail property in Marietta, Georgia; and Haverford Place, a residential property in Georgetown, Kentucky.

On November 10, 2008, DBSI filed for chapter 11 bankruptcy in the United States Bankruptcy Court for the District of Delaware.  The bankruptcy trustee’s report details a company riddled with problems.  According to the report, not only did DBSI commit countless acts of fraud, but it commingled investors’ funds and misrepresented company profits.    DBSI has also subsequently been the subject of an investigation into fraud and gross mismanagement by the Securities and Exchange Commission.

For more information on the claim filed by The White Law Group, please contact the firm’s Chicago office at 312-238-9650.

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The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm.

For more information on The White Law Group, visit http://www.whitesecuritieslaw.com.