Customer Complaints Brought Against Andrew Rosenberg, Stuart Horowitz, NFP Securities, and Securities America Concerning Improper Investments

Andrew Rosenberg and Stuart Horowitz have been accused of selling unsuitable illiquid real estate investments through Andrew Stuart Asset Management, while be associated with NFP Securities, Inc. and Securities America Inc.  These real estate investments include the Hennessy Financial Monthly Income Club also known as Capital Solutions Monthly Income Fund (Capital Solutions), Capital Solutions preferred Stock, True North Finance Preferred Stock (Capital Solutions), Warsowe Acquisitions Corp. Series 2 Debentures, Inland America Real Estate Trust, and G REIT, Inc.

The brokers allegedly told their customers that Capital Solutions was a “low risk investment” and it guaranteed a steady return through “short term secured loans.”  The brokers also represented that Capital Solutions fund offered investors 12% returns.  In one complaint, the brokers allegedly made representations that they were offering low risk investments to a 63-year-old father of five.  The brokers went on to say that they too had their investments in Capital Solutions, in order to lure the client to invest.  The client ultimately invested $300,000 into Capital Solutions.

Despite the broker’s statements, the investments were high risk and illiquid.  In fact, the Capital Solutions (a/k/a Hennessey Fund) was a unregistered hedge fund that was involved in risky real estate loans.  In September 2010, the Securities and Exchange Commission (SEC) sued the Hennessey Fund for being a Ponzi Scheme, whereby old investors in the Hennessey Fund were being paid by new investors.  The case is, SEC v. True North Finance Corporation, f/k/a CS Financing Corporation, et al., Case No. 10-3995-DWF/JJK, (D. Minn).

According to the SEC’s complaint, between January 2005 and August 2009 Capital Solutions raised approximately $74 million from around 450 investors throughout the United States.  Investor losses have been staggering.  For instance, investors have allegedly lost $7.9 million in the Warsowe Debentures alone.

The attorneys at Gana LLP are experienced in investigating claims of financial abuse.  Our attorneys can help you detect and uncover suspicious activity in your accounts.  Our consultations are free of charge and the firm is only compensated if you recover.