The claim, filed by The White Law Group, was submitted to FINRA Dispute Resolution on behalf of three retired California investors alleging claims for violation of common law fraud, breach of fiduciary duty, negligence, and negligent supervision. The claim further alleges that First Allied Securities unsuitably invested the clients in KBS REIT, Wells REIT, and Hines REIT.
Before recommending an investment, a broker-dealer has a fiduciary duty to adequately disclose the risks involved in the investment and to perform the necessary due diligence to determine whether the investment is suitable for the investor. It is alleged that First Allied Securities failed to perform the necessary due diligence on these investments prior to recommending them to this particular investor.
It is further alleged that First Allied Securities failed to adequately supervise a financial advisor currently being investigated by the SEC. On September 5, 2012, the Securities and Exchange Commission (the “SEC”) charged Ray Lucia, Sr., a former financial advisor with First Allied Securities, with spreading misleading information about his “Buckets of Money” strategy at a series of investment seminars that he and his company hosted for potential clients. The claim against First Allied Securities alleges that these three investors are victims of Mr. Lucia's misleading "Buckets of Money" strategy.
FINRA Dispute Resolution is an arbitration venue for investors with claims against their brokerage firm or financial professional. It provides investors with an opportunity to attempt to recoup their investment losses and is an alternative to filing such claims in court.
For more information on the claim filed by The White Law Group, please contact the firm's Chicago office at 312-238-9650.
The White Law Group is a national securities fraud, securities arbitration, and investor protection law firm with offices in Chicago, Illinois and Boca Raton, Florida. For more information on The White Law Group and its representation of investors in FINRA arbitration claims, visit http://www.whitesecuritieslaw.com.