Lawsuit filed against First Allied Securities and Securities America to recover REIT losses

POWAY, Calif. - Oct. 23, 2014 - PRLog -- The White Law Group announces that it has filed another Financial Industry Regulatory Authority (FINRA) arbitration statement of claim against First Allied Securities and Securities America.  This claim seeks to recover losses between $50,000 and $99,999.

The claim, filed by The White Law Group, was submitted to FINRA Dispute Resolution on behalf of two California investors alleging claims for violation of common law fraud, breach of fiduciary duty, negligence, and negligent supervision. The claim further alleges that the two brokerage firms unsuitably invested the clients in Hines REIT, Wells REIT II and KBS 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 and Securities America 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 and Securities America failed to adequately supervise a financial advisor 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.  In July 2013, an administrated-law judge ruled that Mr. Lucia misrepresented for years “the validity of purported back-testing in seminars for prospective investors” interested in his Buckets of Money strategy for retirement savings. Additionally, Mr. Lucia was fined $50,000 and had his adviser registration revoked.

The claim against First Allied Securities and Securities America alleges that these investors are victims of Mr. Lucia's misleading "Buckets of Money" strategy.

When asked about the claim, D. Daxton White, the firm's managing partner, stated "This claim bears striking similarities to other claims we have filed against these firms involving Mr. Lucia, his Buckets of Money strategy, and these firms alleged failure to supervise this particular financial advisor."

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 Vero Beach, Florida.  For more information on The White Law Group and its representation of investors in FINRA arbitration claims, visit http://www.whitesecuritieslaw.com.