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FINRA Arbitration filed against Independent Financial Group to recover TIC losses
The White Law Group announces that it has filed a Financial Industry Regulatory Authority (FINRA) arbitration statement of claim this week involving investment losses in real estate tenants-in-common investments (TICs).
The claim filed by The White Law Group was submitted on behalf of Idaho investors and alleges claims for fraud, breach of fiduciary duty, negligence, and negligent supervision. The claim specifically alleges that the investor was unsuitably invested in four TIC investments and that Independent Financial Group only selected these investments because of the commission generated as a result of the recommendation. The claim further alleges that Independent Financial Group failed to perform the proper due diligence on the TIC investments prior to offering them for sale to its clients.
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 TIC investments:
DBSI was one of the largest TIC sponsors. 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.
Moreover, on January 27, 2014, the Substitute Trustee filed in Nebraska state court a notice of default, declaring that the DBSI North Park II TIC was allegedly in default of its loan obligation and that the Substitute Trustee was electing to sell the property to satisfy the Trustor’s obligations.
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, 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.
The White Law Group