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Follow on Google News | FINRA Arbitration Filed Against Investors Capital to Recover Investment LossesThe White Law Group announces the filing of a FINRA arbitration claim against Investors Capital to recover investment losses in DBSI and SCI.
By: The White Law Group, LLC The claim, filed by The White Law Group, was submitted to FINRA Dispute Resolution on behalf of two Florida retirees alleging claims for violation of common law fraud, breach of fiduciary duty, negligence, and negligent supervision. The claim further alleges that Investors Capital unsuitably invested the clients DBSI and SCI (two now defunct real estate investments) On November 10, 2008, just a few short months after these investors purportedly purchased their DBSI investment, 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 the company 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. In February 2011, SCI also declared bankruptcy and the investment appears to be a total loss. 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 Investors Capital failed to perform the necessary due diligence on these investments prior to recommending them to these particular investors. 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. End
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