REIT | Published by Investment News | By Bruce Kelly | Sep 9, 2019 @ 5:53 pm Mr. Schorsch’s firm, American Realty Capital, will kick in $225 million as part of the settlement The company formerly known as American Realty Capital Properties Inc., a real estate investment trust founded by Nicholas Schorsch and rocked by an accounting scandal five years ago, announced a $1 billion settlement Monday. The company, now known as Vereit Inc., will pay $738.5 million of the class action settlement, according to a press release. American Realty Capital, led by Mr. Schorsch, will pay $225 million, with the company’s former chief financial officer Brian Block, who was found guilty of securities fraud in 2017, paying $12.5 million. The auditor for the firm at the time of the scandal, Grant Thornton, will pay $49 million. Vereit has been embroiled in litigation for almost five years. In October 2014, the company, known by its former ticker symbol ARCP, admitted to an accounting error of $23 million, setting off a selling frenzy of the company’s stock. Lawsuits then followed, with attorneys for investors claiming ARCP had misstated financial metrics in order to inflate financial results and fuel acquisitions. The class action settlement will resolve the claims by plaintiffs relating to the accounting disclosure made by ARCP in October 2014 and in March 2015 regarding the restatement of certain of its previously issued financials, Vereit said in a press release. ARCP was the flagship real estate investment trust managed by American Realty Capital, a closely held real estate partnership that was controlled by Mr. Schorsch. ARCP at one time had $20 billion in real estate assets, and the firm at least twice bought REITs controlled by American Realty Capital. “Vereit is pleased to enter into agreements that we expect will bring these litigations to a conclusion,” said the company’s CEO, Glenn J. Rufrano, in a statement. “We are pleased to be able to conclude this matter so we can continue to focus on our core mission of serving the interests of and creating value for the shareholders of the REITs that we manage,” said a spokesman for American Realty Capital. “Grant Thornton is pleased to have this matter resolved,” a spokesman for the firm said via email. This summer, Mr. Schorsch and American Realty Capital agreed to pay $60 million in penalties to settle Securities and Exchange Commission charges that he, the firm and a partner wrongfully obtained millions of dollars in connection with REIT mergers managed by the firm.
FREE Consultation | 504-523-2434Peiffer Wolf Carr & Kane has helped thousands of investors who have suffered substantial losses. If you have Variable Annuities or REITs in your investment portfolio, Contact Us by calling 504-523-2434 or by filling out an online Contact Form for a FREE Consultation. from https://securitieslitigators.com/a-group-of-retirees-sue-metairie-brokers-claiming-they-squandered-savings-to-earn-fees-2/
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Gordon Dalrymple, who retired from his management job at the technology company Zedi nearly five years ago, said the realization that his life savings were being frittered away came slowly. On the advice of a former boss who was also a friend, he had entrusted about $450,000 from his 401(k) savings account to Craig Accardo who, together with Frank Briseno III, runs a Metairie-based investment firm. Both are registered brokers with FSC Securities, a large national broker-dealer network. For several years before his retirement, Dalrymple had invested this money on Accardo’s advice and expected his principal to grow until he was ready to start drawing on it for retirement income. “He had told me, ‘You’re not going to make astronomical amounts of money, but you will be able to draw about 5% retirement income,’ ” said Dalrymple. “But when I started drawing on it, as time went on, I noticed that the principal kept going down. Everytime I called him to explain why the principal was going down, there was always an excuse: Something went wrong in the stock market, and so on. But that wasn’t true because the market was having some of its best years ever.” Eventually, Dalrymple, now 70, had had enough. “When you’re retired, the only way for you to make a living is to draw from the money you spent a lifetime putting away,” he said. “When the principal starts going backwards, you see the writing on the wall. If that money goes away, guess what? You’ll be sleeping under the bridge.” When he sought alternative investment advice, Dalrymple was told that much of his money had been invested in wildly unsuitable securities for a retiree looking to preserve capital, such as risky real estate investment trusts for which there was no market that would allow him to sell and get out. He is now part of a legal claim that has grown over the past few weeks to include 30 retired New Orleans-area investors who have similar stories of investing with the Metairie firm, which trades as Nettworth Financial Group. The lawyer acting for the retirees, Joe Peiffer, said indications are that many more will join the claim, which will be arbitrated by a panel convened by the industry regulator, the Financial Industry Regulatory Authority, under the compulsory arbitration clauses that many people sign — often without realizing it — in broker contracts. As Peiffer explains it, the claim isn’t that the brokers defrauded the investors. “It’s not like their money was stolen and they were wiped out in a Ponzi scheme,” he said. “But in some ways, this is even more unscrupulous. It’s a long con. This kind of misconduct can be hard to detect, but the reverberations can linger.” The investors’ claim is filed against FSC Securities, with Briseno and Accardo cited in the suit as “nonparty representatives” of the Atlanta-based firm. Peiffer said broker-dealer firms typically organize so as to try to put distance between them and their operatives, but that it is well established that such claims are brought against the parent companies. Gregory Curley, a lawyer for both Advisor Group and its subsidiary, FSC Securities, said via email: “FSC will be defending the claim against it, and as is our standard practice we decline to comment on pending litigation.” Frank Briseno wrote in an email: “Craig and I are able to respond as follows: We take our clients’ well-being and suitability very seriously and are proud of our history of serving clients’ needs. These allegations are baseless, and we intend to defend them vigorously.” Neither FSC Securities nor the Nettworth brokers would comment further about the specific claims. The crux of the investors’ claim is that the brokers misrepresented investments and sold the retirees high-risk securities to generate high commissions for the brokers, even though they knew their clients wanted low-risk investments that would protect their capital. The claim, if found to be true, would violate FINRA rules, including the requirement that investment advisers must not mislead investors about the risks of an investment. Part of the claim says the brokers “concealed from claimants material information regarding the investments, and actively, unreasonably and illegally induced claimants to invest their money in a way that led to guaranteed and unearned profit” for the brokers. Many of the claimants, like Donald Diggs, worked for AT&T and met the brokers at an event organized through their former employer. Diggs, a retired area manager who invested more than $750,000 of his savings with Nettworth, said he became uneasy with all the obfuscations. “Frank (Briseno) never wanted you to write him, and that kind of bothered me,” Diggs said. “He would say, ‘If you send an email, I have to send it to corporate and corporate has to look over it before I respond.’ ” Like Dalrymple, Diggs felt he was being misinformed and getting the runaround. “I talked to him and said, ‘Frank, one of the main things I told you when I came here is I want to protect my principal,’ ” Diggs said. “I’ve had times when I’ve looked at my account and overnight it’s tens of thousands of dollars down when the market was going up. He kept telling us not to compare with the market because my investments were safer. But they were not.” One of the investments that many of the claimants’ money was put in was American Finance Trust Inc., which was a nontraded real estate investment trust until it was listed on the Nasdaq exchange last year, ostensibly to give investors a way to sell and finally realize their gains. Its value has dropped by more than half since it was listed, and that company itself is being sued for allegedly misleading investors. The case represents a broader issue that has dogged the consumer financial services industry, which is notoriously hard to regulate. It was only in June that the Securities and Exchange Commission, which oversees FINRA, adopted a package of rules to protect regular investors after talking about it “for nearly two decades,” as SEC Chairman Jay Clayton put it. The new rules explicitly say brokers and advisers now have to work in their clients’ best interest rather than their own. The claim against the Nettworth brokers includes the allegation that they deliberately concealed the way they were being compensated, which was allegedly through high commissions on unsuitable investments. The new “best interest” rule will not come into effect until next year, though, and that will be too late for any investors lodging a complaint before that, according to Jessica Forbes, a securities lawyer at the Fried, Frank firm in New York. Consumer advocates have also argued that the only remedy process that is available to investors — a compulsory arbitration by FINRA — is inadequate. “Self-regulation is a problem for any industry that is interested in making money,” said Sally Greenberg, head of the Washington, D.C.-based National Consumer League, a consumer advocacy group. She notes that compulsory arbitration — which has spread since the 1980s to cover most contracts that affect people’s lives, such as employment, telecom, credit cards and others — has tended to favor industry rather than the consumer. “The companies are repeat players, so they tend to use the same arbitrators, and they are paying the bills,” she said. “So, there is a temptation for arbitrators to side with industry.” Peiffer, the claimants’ lawyer, said he has been calling for years for rule changes that would enhance investors’ rights. But he said the FINRA process, when it is done right, can produce a satisfactory result more quickly than investors might expect if they could go through regular courts. “I feel hopeful that we’ll get a fair arbitration,” said Diggs. Dalrymple, too, is putting his faith in the process, which he was previously unaware of. “I’m hoping that the arbitrators can see that these are legitimate, hardworking people who trusted in these people, and they’ve gotten taken,” he said. While the retirees were seeing their nest eggs dwindle, the brokers “were the ones making the money. They were the ones getting rich.”
FREE Consultation | 504-523-2434Peiffer Wolf Carr & Kane has helped thousands of investors who have suffered substantial losses. If you have Variable Annuities or REITs in your investment portfolio, Contact Us by calling 504-523-2434 or by filling out an online Contact Form for a FREE Consultation. from https://securitieslitigators.com/a-group-of-retirees-sue-metairie-brokers-claiming-they-squandered-savings-to-earn-fees/ Published by KTBS Shreveport By Brandpoint (BPT) PUBLISHED JUL 24, 2019 AT 9:01 AM | UPDATED JUL 30, 2019 AT 2:44 AM (BPT) – Financial advisors are supposed to help you achieve your financial goals by providing expert guidance and strategic recommendations. Most truly want to see their clients succeed and work hard in your interest. But what about when they put their interests ahead of your own? Unfortunately, unscrupulous behavior from financial advisors and brokers is more common than you might think. This results in not only financial hardship for victims, but it can undermine confidence in those entrusted to protect our most important assets. How common is investment fraud and broker misconduct?Experts estimate that 50 percent of people are taken advantage of financially every year. This could be anything from being sold bogus weight loss products to receiving counterfeit checks. But in a recent survey, 16.5 percent of victims attributed their losses to investment fraud. Investment fraud doesn’t necessarily mean that an advisor emptied a client’s accounts and left them with nothing. Broker misconduct can mean that clients are given misleading advice, charged exorbitant commissions or have their assets managed in a way that benefits the financial advisor more than the client. For example, in the Gulf South, the law firm of Peiffer Wolf Carr & Kane filed a Financial Industry Regulatory Authority (FINRA) arbitration claim on behalf of a group of investors and is currently investigating additional claims against Frank Briseno III, Frank Briseno IV and Craig Accardo, registered brokers with FSC Securities Corporation and Nettworth Financial. Dozens of blue-collar workers say they were lured in with lavish Christmas parties, crawfish boils and other events. Once in the door, the alleged victims claim they were given one-size-fits-all investment advice and steered towards two financial products: variable annuities and real estate investment trusts (REITs). Both of those products come with high commissions and fees, putting money in the advisors’ pockets and hindering the clients’ ability to provide security for their families. Why is investment fraud and broker misconduct so common?There are many factors that allow unscrupulous behavior to flourish. For one, financial advisors providing unsuitable investment advice often count on market volatility and a lack of financial literacy to cover their tracks. Investors know there’s a chance they will lose money on their investments. But because they often lack a detailed understanding about the markets and specific financial products, advisors can skew information or otherwise deceive investors to hide their bad behavior. Not all cases of investment fraud or broker misconduct make headlines because they don’t all involve millions of dollars in assets. Most cases fly under the public radar, and financial advisors who face sanctions because of past behavior can get rehired at different brokerage firms. This allows advisors with a checkered past to remain in the industry, potentially impacting even more victims. What should victims of investment fraud or broker misconduct do?In most cases, the best recourse for someone who feels they have been duped by their financial advisor is to seek legal advice. Bringing a case against a brokerage firm, or even an individual advisor or broker, can be daunting. Investors suspecting misconduct or fraud should consult an experienced securities attorney about possible next steps. Investors should also register complaints to the Financial Industry Regulatory Authority (FINRA) or the U.S. Securities and Exchange Commission (SEC). For local advice and support, visit www.brokerwatch.com or contact the securities attorneys at Peiffer Wolf Carr & Kane (504) 523-2434. This content may be deemed attorney advertising. Prior results do not predict a similar outcome. For more information, visit www.brokerwatch.com. FREE Consultation | 504-523-2434Peiffer Wolf Carr & Kane has helped thousands of investors who have suffered substantial losses. If you have Variable Annuities or REITs in your investment portfolio, Contact Us by calling 504-523-2434 or by filling out an online Contact Form for a FREE Consultation. from https://securitieslitigators.com/unscrupulous-financial-advisors-undermine-public-trust-2/ Published by The Advocate By Brandpoint (BPT) PUBLISHED JUL 24, 2019 AT 9:01 AM | UPDATED JUL 30, 2019 AT 2:44 AM (BPT) – Financial advisors are supposed to help you achieve your financial goals by providing expert guidance and strategic recommendations. Most truly want to see their clients succeed and work hard in your interest. But what about when they put their interests ahead of your own? Unfortunately, unscrupulous behavior from financial advisors and brokers is more common than you might think. This results in not only financial hardship for victims, but it can undermine confidence in those entrusted to protect our most important assets. How common is investment fraud and broker misconduct?Experts estimate that 50 percent of people are taken advantage of financially every year. This could be anything from being sold bogus weight loss products to receiving counterfeit checks. But in a recent survey, 16.5 percent of victims attributed their losses to investment fraud. Investment fraud doesn’t necessarily mean that an advisor emptied a client’s accounts and left them with nothing. Broker misconduct can mean that clients are given misleading advice, charged exorbitant commissions or have their assets managed in a way that benefits the financial advisor more than the client. For example, in the Gulf South, the law firm of Peiffer Wolf Carr & Kane filed a Financial Industry Regulatory Authority (FINRA) arbitration claim on behalf of a group of investors and is currently investigating additional claims against Frank Briseno III, Frank Briseno IV and Craig Accardo, registered brokers with FSC Securities Corporation and Nettworth Financial. Dozens of blue-collar workers say they were lured in with lavish Christmas parties, crawfish boils and other events. Once in the door, the alleged victims claim they were given one-size-fits-all investment advice and steered towards two financial products: variable annuities and real estate investment trusts (REITs). Both of those products come with high commissions and fees, putting money in the advisors’ pockets and hindering the clients’ ability to provide security for their families. Why is investment fraud and broker misconduct so common?There are many factors that allow unscrupulous behavior to flourish. For one, financial advisors providing unsuitable investment advice often count on market volatility and a lack of financial literacy to cover their tracks. Investors know there’s a chance they will lose money on their investments. But because they often lack a detailed understanding about the markets and specific financial products, advisors can skew information or otherwise deceive investors to hide their bad behavior. Not all cases of investment fraud or broker misconduct make headlines because they don’t all involve millions of dollars in assets. Most cases fly under the public radar, and financial advisors who face sanctions because of past behavior can get rehired at different brokerage firms. This allows advisors with a checkered past to remain in the industry, potentially impacting even more victims. What should victims of investment fraud or broker misconduct do?In most cases, the best recourse for someone who feels they have been duped by their financial advisor is to seek legal advice. Bringing a case against a brokerage firm, or even an individual advisor or broker, can be daunting. Investors suspecting misconduct or fraud should consult an experienced securities attorney about possible next steps. Investors should also register complaints to the Financial Industry Regulatory Authority (FINRA) or the U.S. Securities and Exchange Commission (SEC). For local advice and support, visit www.brokerwatch.com or contact the securities attorneys at Peiffer Wolf Carr & Kane (504) 523-2434. This content may be deemed attorney advertising. Prior results do not predict a similar outcome. For more information, visit www.brokerwatch.com. FREE Consultation | 504-523-2434Peiffer Wolf Carr & Kane has helped thousands of investors who have suffered substantial losses. If you have Variable Annuities or REITs in your investment portfolio, Contact Us by calling 504-523-2434 or by filling out an online Contact Form for a FREE Consultation. from https://securitieslitigators.com/unscrupulous-financial-advisors-undermine-public-trust/ Merrill Lynch pays $40 million to Cabletron co-founder after broker allegedly churned account7/30/2019 Published by CNBC by Dawn Giel PUBLISHED FRI, JUL 19 2019 10:54 AM EDT The recipient of the settlement is Robert Levine, co-founder of one-time network equipment maker Cabletron Systems, according to the sources. They said the case went to a final hearing in front of an arbitration panel before Merrill decided to settle. A second complaint also seeking about $40 million in damages and involving the same broker is pending. The advisor involved is Charles Kenahan, according to FINRA’s BrokerCheck. The complaint was filed in March 2018 for allegations of “unsuitable investment recommendations, excessive trading and misrepresentation from February 2012 until December 2017.” This practice is commonly called churning. Kenahan, who started working at Merrill Lynch in Boston in 2007, was dismissed by the firm last week, according to the BrokerCheck report. FINRA arbitration is not a public forum and is used as an alternative to litigation or mediation in order to resolve a dispute. In this case, Merrill Lynch decided to settle after the final hearing. Kenahan and Levine could not immediately be located for comment. A second complaintFINRA’s BrokerCheck system data indicates that the settlement is the largest involving an individual claimant out of over 29,000 in the last decade, according to Craig McCann, the founder and principal of Securities Litigation and Consulting Group. Kenahan has two pending arbitration claims listed on his BrokerCheck report, including one that has more than $42 million in alleged damages listed. That complaint was brought by Craig Benson, the former governor of New Hampshire and co-founder of Cabletron with Levine, according to sources familiar with the case. Benson alleges Kenahan made similar churning violations, a FINRA public disclosure says. That arbitration case was filed with FINRA in February 2018 and is pending. Benson declined to comment to CNBC. FINRA did not respond to a request for comment, while a spokesman for Bank of America Merrill Lynch declined to comment. The once-public Cabletron, a competitor to Cisco, had annual revenues at one point of more than $1 billion. It was sold in 1998 to a private company. FREE Consultation | 585-310-5140Peiffer Wolf Carr & Kane has helped thousands of investors who have suffered substantial losses. If you were a client of Charles Kenahan, Contact Us by calling 585-310-5140 or by filling out an online Contact Form for a FREE Consultation. from https://securitieslitigators.com/merrill-lynch-pays-40-million-to-cabletron-co-founder-after-broker-allegedly-churned-account/ Charles Kenahan was a Boston, Massachusetts broker for Merrill Lynch until his July 2019 employment separation after allegations of unauthorized trading, unsuitable investment recommendations and excessive trading. Bank of America Merrill Lynch paid $40 million to settle “churning” allegations involving Charles Kenahan, according to the filings. “It’s the largest such settlement in at least a decade,” according to CNBC. According to FINRA’s BrokerCheck, there are two additional pending disputes with requested damages amounts of $42,218,702 and $700,000. Peiffer Wolf Carr & Kane is currently investigating claims against Charles Kenahan, a previously registered broker with Merrill Lynch, Peirce, Fenner, and Smith Inc. in Boston, Massachusetts. In addition to the recent historic settlement, Charles Kenahan is being investigated for “unsuitable investment recommendations, excessive trading, and misrpepresentation from February 2012 until December 2017” and “unsuitable investments, unauthorized trading and excessive trading from December 2007 to February 2018.” If you were a client of Charles Kenahan, Contact Us Today by calling 585-310-5140 or by filling out an online contact form for a FREE Consultation. According to FINRA’s BrokerCheck website for Public Disclosures, Charles Kenahan has been the subject of 5 disclosures. July 9, 2019: Employment Separation After Allegations – Discharged: Allegations “Customers’ allegations of unauthorized trading, unsuitable investment recommendations and excessive trading.” May 3, 2018: Customer Dispute Pending – Damage Amount Requested $700,000: Allegations “The Customer alleges excessive trading and unsuitable investment recommendations from 2012 until 2017.” March 3, 2018: Customer Dispute – Settlement Amount of $40,000,000: Allegations “The Customer alleges excessive trading and unsuitable investment recommendations from 2012 until 2017.” February 2, 2018: Customer Dispute Pending – Damage Amount Requested $42,218,702: Allegations “The customer alleges unsuitable investments, unauthorized trading and excessive trading from December 2007 to February 2018.” August 8, 2009: Customer Dispute Denied – Damage Amount Requested $148,353: Allegations “The Customer alleges unsuitable investment recommendations and misrepresentation from December 2007 until February 2008.” To review Charles Kenahan’s Brokercheck report, click here: https://brokercheck.finra.org/individual/summary/1351974 Financial advisors (brokers) have a legal obligation and regulatory obligation to recommend only suitable investments that are appropriate for their individual clients. Their broker-dealer (employing brokerage firm) has a legal obligation and regulatory obligation to supervise the financial advisor’s sales practices and dealings with clients. To the extent that any of these duties are breached, the customer may be entitled to a recovery of his or her investment losses. Before starting at Merrill Lynch, Charles Kenahan has worked at multiple firms over the years for various lengths of time: Morgan Stanley & Co, Morgan Stanley DW Inc, Smith Barney Inc, Bear Stearns & Co, and Thomson McKinnon Securities. FINRA maintains a database of investor complaints and disciplinary and employment history for registered representatives and publishes some of this information on its BrokerCheck website, www.brokercheck.finra.org. FREE Consultation | 585-310-5140Peiffer Wolf Carr & Kane has helped thousands of investors who have suffered substantial losses. If you were a client of Charles Kenahan, Contact Us by calling 585-310-5140 or by filling out an online Contact Form for a FREE Consultation. from https://securitieslitigators.com/william-ellis-lawsuit-broker-misconduct-2/ Published by The HILL by Joe Peiffer 03/27/15 10:00 AM EDT The “fiduciary duty” of financial professionals sounds like some hopelessly dry and technical legal concept. But it isn’t. When I hear that phrase, I think about the New York retiree who lost 75 percent of the life savings he entrusted to a disreputable broker and was left with so little to live on that he couldn’t afford a $15 fishing license, much less the cost of a trip to visit his grandchildren. I have represented over 500 investors in claims against their brokerage firms. All of these cases have two things in common. First, the investors, who often have trusted a broker with their life savings, believe it when they are told the financial professional will take good care of their nest egg. Second, the brokerage firms always deny that any such “fiduciary duty” to avoid conflicted advice exists. It is one thing to be uninformed as an investor and it’s another thing to assume that what you are hearing is truthful. Surveys show what you would expect: Consumers mistakenly believe exactly what all of those attractive television ads suggest about trustworthy brokers allowing them to sleep peacefully at night, with no worry about their life savings. The consequences for trusting investors can be devastating. I’ve had clients that retired, received conflicted advice, and ran out of money in their 60s leaving them just above the poverty line with little more than Social Security to rely upon. The price these investors pay is often harsh. Clients have been forced to move in with their children or relocate from their house to a trailer in a friend’s backyard. In one of the worst cases I’ve seen, a wiped-out investor had to resort to renting a room in the home of an ex-wife. In every one of these cases, the brokerage firms denied that they had any duty to refrain from giving conflicted advice. These examples illustrate the larger national problem identified by the White House Council of Economic Advisers, which concluded that conflicted advice costs American investors $17 billion a year. Since the Dodd-Frank financial reforms became law in July 2010, the Securities and Exchange Commission (SEC) has been studying this issue without action. And, while the SEC studies the issue and the industry fights any rule that would force it to put investors’ interests ahead of their own, investors have lost almost $80 billion as a result of brokerage firms’ conflicted advice. The good news here is that SEC took a big step in the right direction this month when Commission Chair Mary Jo White called for a new regulation that would make brokers put the interests of their clients ahead of their own. The Department of Labor is also working on rules that would force brokerage firms to put investors’ interests first when providing advice about retirement funds. The suggestion that brokers should be held accountable to a “fiduciary duty” is not some radical, wild-eyed notion. It is supported by mainstream industry leaders such as John Bogle, the well-known and highly regarded founder of the investment management company Vanguard. As Bogle notes: “Fiduciary duty is the highest duty known to the law,” ensuring that “the client … must be king.” And is that too much to expect when an individual’s life savings hang in the balance? Acting now won’t save the investors who already have been skewered by conflicted advice, but it will spare tens of thousands of Americans from the same dire financial fate. Even if you are not cleaned out, the cost can be high: The Council of Economic Advisors study concluded that conflicted advice causes investors to run out of money five years before they otherwise would have. That is the kind of thing that can put a huge dent in a retiree’s “golden years.” I’ve seen this happen and know what it’s like for a blue-collar worker, who, after receiving conflicted advice from his broker, retired from his $80,000-a-year job at a major corporation. He was out of money before he was eligible for Social Security and had to take a job for $10 an hour stocking vending machines at his former employer’s offices. That is the kind of fate no one should have to suffer in America. And, if the SEC and DOL force brokerage firms to put their clients’ interests first, we can make sure it doesn’t happen again. FREE Consultation | 585-310-5140Peiffer Wolf Carr & Kane has helped thousands of investors who have suffered substantial losses. If you have Variable Annuities or Life Insurance Products in your investment portfolio, Contact Us by calling 585-310-5140 or by filling out an online Contact Form for a FREE Consultation. from https://securitieslitigators.com/brokers-should-be-required-to-live-up-to-their-tv-ads/ Published by The Philadelphia Inquirer Updated: July 16, 2019- 4:36 PM The SEC charged Jenkintown scrap metal heir Schorsch with stealing millions of dollars in two separate mergers between real estate investment trusts (REITs) managed by his company, AR Capital. They agreed to a penalty of more than $60 million in disgorgement, interest and civil penalties. According to the SEC’s complaint, between late 2012 and early 2014, AR Capital arranged for American Realty Capital Properties, a publicly traded REIT, to merge with two publicly held, non-traded REITs. The SEC alleges that AR Capital, Schorsch, and Block inflated an incentive fee in both mergers, which allowed them to obtain about 2.92 million additional partnership units as part of their compensation. “REIT managers and their professionals have an obligation to tell the truth when making disclosures to shareholders about their compensation,” said Marc P. Berger, director of the SEC’s New York Regional Office in a news release. “As we allege in our complaint, AR Capital and its partners Schorsch and Block failed to do so and benefited themselves greatly at the expense of shareholders.” The SEC’s complaint, filed in federal district court in Manhattan, charges AR Capital and Block with violating anti-fraud provisions and falsifying books and records. Without admitting or denying the allegations, AR Capital, Schorsch, and Block consented to a final judgment of more than $39 million, which includes cash and the return of the wrongfully obtained ARCP operating partnership units; and civil penalties of $14 million against AR Capital, $7 million against Schorsch, and $750,000 against Block. The settlements are subject to court approval. In 2016, Schorsch was also sued by Malvern investment giant Vanguard Group. That lawsuit alleged “a multiyear fraud and attempted cover-up” after Schorsch sent out seven quarters of false earnings reports to shareholders and the SEC. Two Schorsch lieutenants were later convicted of fraud; Schorsch was not charged. Vereit Inc., successor to the former real estate investment company American Realty Capital Partners Inc. set up by Schorsch, agreed to pay Vanguard $90 million to settle. Vanguard’s 150-page complaint alleged that fraud “was orchestrated by the top executives” at Schorsch’s company, which was at one time among the nation’s largest REITs, with more than $30 billion of real estate at its height in the early 2010s. Other Schorsch-backed companies employed brokers such as Austin Dutton, who pushed Schorsch-backed real estate stocks and closed-end funds. Pennsylvania state securities officials levied their highest-ever fines against brokerage Newbridge Securities of Boca Raton, Fla., and Dutton of Doylestown, for selling risky real estate funds set up by Schorsch that were “unsuitable” for Philadelphia police officers and other city workers for their retirement funds. Schorsch bought thousands of commercial properties, from blocks of stores whose mortgages had been controlled by GE Capital to Red Lobster restaurants and other chain eateries. Schorsch and his supporters said Schorsch had developed a new way to invest in real estate, sharing future profits rather than up-front fees. But “the true primary purpose in Schorsch’s buying spree” was “to rob from shareholders and give to himself and his friends,” according to Vanguard’s suit. According to the suit, Schorsch “transferred hundreds of millions of dollars to entities controlled by him and by other senior insiders” in 2013 and 2014. According to Vanguard, Schorsch and his helpers reported sharply rising earnings through those years, persuading Vanguard and other professional investors to buy the stock, after certifying that the company had solid financial controls and honest financial reporting.
FREE Consultation | 585-310-5140Peiffer Wolf Carr & Kane has helped thousands of investors who have suffered substantial losses. If you have Variable Annuities or Life Insurance Products in your investment portfolio, Contact Us by calling 585-310-5140 or by filling out an online Contact Form for a FREE Consultation. from https://securitieslitigators.com/philly-real-estate-investor-nicholas-schorsch-his-former-cfo-and-company-settle-with-sec-for-more-than-60m/ Joseph William Ellis aka William Ellis is a Georgia broker. William Ellis is currently registered with Ameriprise Financial Services in LaGrange, Georgia. Additionally, William Ellis works with Robert Ellis at Ellis and Ellis Investment Management in the LaGrange, Georgia. William Ellis was previously registered with 3 additional firms for various periods of time: Commonwealth Financial Network, LPL Financial, and Edward Jones. Ellis currently has 2 FINRA Brokercheck Disclosure for a Customer Disputes regarding allegations of Unauthorized Trading and placing a customer in an Unsuitable and Illiquid Investment. Peiffer Wolf Carr & Kane is currently investigating claims against William Ellis, a registered broker with Ameriprise Financial and Ellis and Ellis Investment Management in LaGrange, Georgia. According to our research and analysis of Ellis’ clients, we have found that William Ellis has been placing investors in Real Estate Investment Trusts (REITs) and Variable Annuities. If you are a client of William Ellis and your investment portfolio consists of REITs or Variable Annuities, Contact Us Today. According to FINRA’s BrokerCheck website for Public Disclosures, William Ellis has been the subject of 2 disclosures. 2019: Customer Dispute – Pending with Damage Amount Requested of $250,000: Allegations “Claimants allege advisor placed them in unsuitable, illiquid investments.” 2002: Customer Dispute – Settled for $1000: Allegations “THE CUSTOMER ALLEGED THAT ALL OF THE STOCK SALES MADE IN HER ACCOUNT IN LATE 2001 AND 2002 WERE UNAUTHORIZED. SHE ALSO INDICATED THAT SHE DID NOT APPROVE THE PURCHASE OF MUTUAL FUNDS WITH THESE PROCEEDS. “ To review William Ellis’ Brokercheck report, click here: https://brokercheck.finra.org/individual/summary/2427967 Financial advisors (brokers) have a legal obligation and regulatory obligation to recommend only suitable investments that are appropriate for their individual clients. Their broker-dealer (employing brokerage firm) has a legal obligation and regulatory obligation to supervise the financial advisor’s sales practices and dealings with clients. To the extent that any of these duties are breached, the customer may be entitled to a recovery of his or her investment losses. Before starting at Ameriprise Financial, William Ellis has worked at multiple firms over the years for various lengths of time: Commonwealth Financial Network, LPL Financial, and Edward Jones. FINRA maintains a database of investor complaints and disciplinary and employment history for registered representatives and publishes some of this information on its BrokerCheck website, www.brokercheck.finra.org. William Ellis of Ellis & Ellis | William Ellis LawsuitBased on our experience, we believe that there are more investors who have been the victim of William Ellis’ alleged broker misconduct and investment fraud. If you’ve worked with or invested with William Ellis, Ameriprise Financial, or Ellis & Ellis Investment Management, you should contact Peiffer Wolf Carr & Kane immediately for a FREE Consultation. Peiffer Wolf Carr & Kane is currently investigating William Ellis’ practices, as well as the products he recommended to individual investors. Concerns about possible broker misconduct and investment fraud are serious, and we are committed to fighting on behalf of investors. Contact Us Today for a FREE Consultation. 504-523-2434 FREE Consultation | 504-523-2434If you believe you were a victim of predatory lending, investment fraud, or broker misconduct, it is imperative to take action. Peiffer Wolf Carr & Kane has represented thousands of victims, and we remain committed to fighting on behalf of investors. We focus on identifying parties that are not only liable but have the financial ability to compensate victimized investors. Our goal is to put money back into our clients’ pockets. Contact Peiffer Wolf Carr & Kane today by filling out a Contact Form on our website or by calling 504-523-2434 to schedule a FREE Case Evaluation. from https://securitieslitigators.com/william-ellis-lawsuit-broker-misconduct/ Gilbert Briseno Lawsuit | Gilbert Briseno Broker MisconductGilberto Briseno aka Gilbert Briseno is a Louisiana broker. Gilbert Briseno is currently registered with Arkadios Capital in Boutte, Louisiana. Additionally, Briseno is affiliated with Briseno Financial Services and Peak Retirement Group in the Greater New Orleans area. Briseno was previously registered with 6 additional firms for various periods of time: LPL Financial, FSC Securities Corporation, Intersecurities, PW Securities, Metlife Securities, and Metropolitan Life Insurance Company. Briseno currently has 1 FINRA Brokercheck Disclosure for a Customer Dispute regarding allegations of Misrepresentation of a Variable Universal Life Insurance Policy. Peiffer Wolf Carr & Kane is currently investigating claims against Gilbert Briseno, a registered broker with Arkadios Capital and Peak Retirement Group in the Greater New Orleans area. According to FINRA records and the Louisiana Secretary of State, Briseno maintains a presence in Kenner, LA; Boutte, LA; and the Greater New Orleans area. According to our research and analysis of Briseno’s clients, we have found that Gilbert Briseno has been placing investors in Variable Universal Life Insurance products and Variable Annuities. If you are a client of Gilbert Briseno and your investment portfolio consists of REITs, Variable Annuities, or Life Insurance Products, Contact Us Today. According to FINRA’s BrokerCheck website for Public Disclosures, Gilbert Briseno has been the subject of 1 disclosure. 2002: Customer Dispute – Settled for $30,320.00: Allegations “REGARDING THE FEBRUARY 2000 PURCHASE OF A VARIABLE UNIVERSAL LIFE INSURANCE POLICY, THE CUSTOMER ALLEGES THE POLICY WAS MISREPRESENTED AT THE TIME OF THE SALE AND DID NOT KNOW THERE WERE ANNUAL PREMIUMS.” To review Gilberto Briseno’s Brokercheck report, click here: https://brokercheck.finra.org/individual/summary/1939355 Financial advisors (brokers) have a legal obligation and regulatory obligation to recommend only suitable investments that are appropriate for their individual clients. Their broker-dealer (employing brokerage firm) has a legal obligation and regulatory obligation to supervise the financial advisor’s sales practices and dealings with clients. To the extent that any of these duties are breached, the customer may be entitled to a recovery of his or her investment losses. Before starting at Arkadios Capital, Gilbert Briseno has worked at multiple firms over the years for various lengths of time: LPL Financial, FSC Securities Corporation, Intersecurities, PW Securities, Metlife Securities, and Metropolitan Life Insurance Company. FINRA maintains a database of investor complaints and disciplinary and employment history for registered representatives and publishes some of this information on its BrokerCheck website, www.brokercheck.finra.org. Gilbert Briseno Nettworth Financial | Gilbert Briseno LawsuitBased on our experience, we believe that there are more investors who have been the victim of Briseno’s alleged broker misconduct and investment fraud. If you’ve worked with or invested with Gilbert Briseno, Arkadios Capital, or Peak Retirement Group, you should contact Peiffer Wolf Carr & Kane immediately for a FREE Consultation. Peiffer Wolf Carr & Kane is currently investigating Gilbert Briseno’s practices, as well as the products he recommended to individual investors. Concerns about possible broker misconduct and investment fraud are serious, and we are committed to fighting on behalf of investors. Contact Us Today for a FREE Consultation. 504-523-2434 FREE Consultation | 504-523-2434If you believe you were a victim of predatory lending, investment fraud, or broker misconduct, it is imperative to take action. Peiffer Wolf Carr & Kane has represented thousands of victims, and we remain committed to fighting on behalf of investors. We focus on identifying parties that are not only liable but have the financial ability to compensate victimized investors. Our goal is to put money back into our clients’ pockets. Contact Peiffer Wolf Carr & Kane today by filling out a Contact Form on our website or by calling 504-523-2434 to schedule a FREE Case Evaluation. from https://securitieslitigators.com/gilbert-briseno-lawsuit-broker-misconduct/ |
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We have helped thousands of investors recover money they lost as a result of investment fraud, Ponzi schemes, broker misconduct, unsuitable investment recommendations, abusive practices by financial institutions, or corporate misconduct. ArchivesNo Archives Categories |