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FINRA arbitration filed against Questar Capital Corporation to recover investment losses
The White Law Group announces the filing of a FINRA arbitration claim against Questar Capital Corporation to attempt to recover investment losses in DBSI.
The claim, filed by The White Law Group, was submitted to FINRA Dispute Resolution on behalf of a Georgia investor alleging claims for violation of common law fraud, breach of fiduciary duty, negligence, and negligent supervision. The claim further alleges that Questar Capital Corporation unsuitably invested the client in DBSI.
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 dating back to well before Respondent solicited Claimant’s investment in DBSI. According to the report, not only did the company commit countless acts of fraud, but also 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.
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 Questar Capital Corporation failed to perform the necessary due diligence on these investments prior to recommending them to this particular investor.
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.
The White Law Group