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Rena Morris Has Complaints Over Tenant-In-Common (TIC) Real Estate Sales Practices

May 6, 2020 | by Staff Attorney

Advisor Rena Morris (Morris), currently employed by Lighthouse Capital Group, LLC (Lighthouse Capital Group, LLC), has been subject to at least two customer complaints during the course of her career. According to a BrokerCheck one of the customer complaints concerns private placement sales of Tenant-in-Common (TIC) real estate products. The attorneys at Gana Weinstein LLP have represented hundreds of investors who suffered losses caused by these types of high-risk products.

In December 2019 a customer complained that Morris violated the securities laws by alleging that Morris engaged in sales practice violations by conducting limited due diligence regarding a DST investment in 2015. The claim alleges $798,350 and is currently pending.

TIC investments have led to devastating investor losses and are in almost all cases unsuitable products. The near certainty of failure of investing in TICs as a whole has led to the product virtually disappearing as an offered investment from most reputable brokerage firms. According to InvestmentNews “At the height of the TIC market in 2006, 71 sponsors raised $3.65 billion in equity from TICs and DSTs…TICs now are all but extinct because of the fallout from the credit crisis.” In fact, TICs recommendations have been a major contributor to bankrupting brokerage firms. For example, 43 of the 92 broker-dealers that sold TICs sponsored by DBSI Inc., a company whose executives were later charged with running a Ponzi scheme, a staggering 47% of firms that sold DBSI are no longer in business.

Stephen Holt Has Complaints Over Tenant-In-Common (TIC) Real Estate Sales Practices

May 4, 2020 | by Staff Attorney

Advisor Stephen Holt (Holt), currently employed by Lighthouse Capital Group, LLC (Lighthouse Capital Group, LLC), has been subject to at least two customer complaints during the course of his career. According to a BrokerCheck those customer complaints concern private placement sales of Tenant-in-Common (TIC) real estate products. The attorneys at Gana Weinstein LLP have represented hundreds of investors who suffered losses caused by these types of high-risk products.

In February 2020 a customer complained that Holt violated the securities laws by alleging that Holt engaged in sales practice violations by conducting limited due diligence regarding a DST investment in 2015. The claim alleges $227,847 and is currently pending.

In December 2019 a customer complained that Holt violated the securities laws by alleging that Holt engaged in sales practice violations by conducting limited due diligence regarding a DST investment in 2015. The claim alleges $168,370 and is currently pending.

TIC investments have led to devastating investor losses and are in almost all cases unsuitable products. The near certainty of failure of investing in TICs as a whole has led to the product virtually disappearing as an offered investment from most reputable brokerage firms. According to InvestmentNews “At the height of the TIC market in 2006, 71 sponsors raised $3.65 billion in equity from TICs and DSTs…TICs now are all but extinct because of the fallout from the credit crisis.” In fact, TICs recommendations have been a major contributor to bankrupting brokerage firms. For example, 43 of the 92 broker-dealers that sold TICs sponsored by DBSI Inc., a company whose executives were later charged with running a Ponzi scheme, a staggering 47% of firms that sold DBSI are no longer in business.

Advisor Darren Oglesby Has Potential Complaint Regarding GPB Capital

April 12, 2020 | by Staff Attorney

Advisor Darren Oglesby (Oglesby), currently employed by Money Concepts Capital Corp. (Money Concepts) has been subject to at least four customer complaints during the course of his career. According to a BrokerCheck report one of the customer complaints that may concern fraudulent GPB Capital Holdings (GPB Capital) related investments.

GPB Capital is facing multiple accusations of being a Ponzi scheme, an ongoing U.S. Securities and Exchange Commission (SEC) and FBI investigations, and even GPB’s chief compliance officier being indicted for illegally obtaining information on the SEC’s investigation. Now even Volkswagen and Toyota are threatening to pull the plug on GPB Capital auto dealerships. While advisors have been telling investors to do absolutely nothing and just hang in there – this is nothing more than just additional poor advice. In November 2019 GPB Capital’s admitted that no financial audit would occur anytime in the near future. The firm has admitted that it has never been profitable and has merely returned investor capital in the past in order to fake a successful business model. In sum, investors now know there is nothing to hang onto. By the day, advisor recommendations to do nothing appear to be completely self-serving, out of the loop, and not in the interest of the investor.

In August 2019 a customer complained that Oglesby violated the securities laws by alleging that Hoidas engaged in sales practice violations related to a claim with FINRA that an investment was an unsuitable product, breach of contract and breach of fiduciary duty. The claim alleges $100,000 in damages and is currently pending.

Advisors Beg Clients to Wait it Out While GPB Capital Collapses

December 16, 2019 | by Staff Attorney

Our firm has been contacted by hundreds of clients that have been defrauded in GPB Capital Holdings (GPB Capital) related investments. One common element in our firm’s contact with GPB Capital investors is the advisor’s recommendation to victims – do absolutely nothing. The advisors recommendation is expressed in phrases like “the audits will come out”, “GPB Capital is a completely transparent company and not a scam”, and sometimes “just hang in there.”

However, in November GPB Capital’s patience game crumbled and the firm admitted that no financial audit would occur anytime in the near future. In sum, investors now know there is nothing to hang onto. Advisors have no counter talking points to weigh against multiple accusations of being a Ponzi scheme, the ongoing U.S. Securities and Exchange Commission (SEC) and FBI investigations, and even GPB’s chief compliance officer being indicted for illegally obtaining information on the SEC’s investigation. Now even Volkswagen and Toyota are threatening to pull the plug on GPB Capital auto dealerships. By the day, advisor recommendations to do nothing appear to be completely self-serving, out of the loop, and not in the interest of the investor.

Our firm has analyzed the GPB Capital offerings and believe that brokerage firms did not review GPB Capital offerings in any significant detail. Any serious due diligence would have revealed that GPB Capital was a dubious offering destined to fail. In complaints filed with The Financial Industry Regulatory Authority (FINRA) our clients have alleged that GPB Capital’s scam was highly predictable and easy to spot. Nearly every aspect of the offering raised unanswerable questions from GPB Capital’s senior management, fantastical business claims, and intra-fund lending practices.

Advisor Robert Smith Accused of Selling Fraudulent GPB Capital Investments

November 25, 2019 | by Staff Attorney

Our firm represents multiple clients who have collectively lost millions in the sale of fraudulent GPB Capital Holdings (GPB Capital) related investments. Our firm has analyzed the GPB Capital offerings and believe that brokerage firms did not review these offerings in any significant detail. Any serious due diligence would have revealed that GPB Capital was an investment fraud scheme.

Advisor Robert Smith (Smith), according to BrokerCheck records kept by The Financial Industry Regulatory Authority (FINRA), has been accused of selling GPB Capital. Smith is currently registered with member firm Concorde Investment Services, LLC (Concorde Investment). In addition, Smith disclosed four total customer complaints. If you have been a victim of Smith’s alleged misconduct our firm may be able to assist you in recovering funds.

Our firm’s investigation has found that brokerage firms failed to conduct due diligence and investigate multiple aspects of GPB Capital’s business including its senior management, fantastical business claims, and intra-fund lending practices. For instance, with respect to GPB Capital’s senior management the company was founded by David Gentile (Gentile). Had brokerage firms investigated GPB Capital’s senior manager it would have found that prior to founding GPB Capital, Gentile’s experience was as a CPA and company advisor with the accounting practice his family ran at Gentile Pismeny & Brengel, LLP (GP&B) in New York. Nonetheless, GPB’s PPMs claimed expertise in these areas. GPB Holdings II, LP, PPM, pg. 9 (Apr. 13, 2015) (“GPB’s senior management have a great deal of experience investing in the Automotive Retail, Managed IT Services and Life Sciences sectors.”).

Yield Enhancement Strategy (YES) – Did Your Broker Downplay the Risk?

May 22, 2019 | by Staff Attorney

The law offices of Gana Weinstein LLP continue to investigate significant investor losses in a risky options trading strategy employed by several large brokerage houses referred to as a Yield Enhancement Strategy (YES) or Collateral Yield Enhancement Strategy (CYES). These firms include UBS Financial Services, Merrill Lynch, Credit Suisse, and Morgan Stanley. According to marketing materials, the YES strategy seeks to increase returns for investors through the trading of options. These options trading program employ various options trading strategies including the iron condor.

Our firm is investigating whether or not brokers misrepresented the safety of the strategy by pitching a yield enhancement strategy as a safe way to generate additional returns. For instance Rick Selvala (Selvala), CEO and co-founder of Harvest Volatility Management, LLC (Harvest) discussed his firm’s CYES strategy with FINalternatives who claimed the strategy “works particularly well for clients who are running more conservative asset allocations or portfolios.”

The article states that CYES has over 800 separately managed accounts across eight different platforms such as Merrill Lynch, Morgan Stanley, UBS Schwab, Fidelity, and Pershing via independently registered investment advisors.

YES’ “elevator pitch” distilled is less risk more return. The article states that investors in fixed income are being forced to take on more duration or credit risk to increase returns exposing investors to a high degree of risk. The solution pitched is CYES which has the ability to add incremental returns without taking on more equity, duration, or credit risk. Selvala claims that “because we manage risk and keep the maximum loss contained” clients can employ three to four time leverage to generate even larger returns.

Advisor Keith Kordich Subject to Customer Complaints Over Investment Practices

May 21, 2019 | by Staff Attorney

According to BrokerCheck records financial advisor Keith Kordich (Kordich), currently employed by Ameriprise Financial Services, Inc. (Ameriprise) has been subject to at least six customer complaints during the course of his career. According to records kept by The Financial Industry Regulatory Authority (FINRA), Kordich’s customer complaints allege that Kordich recommended unsuitable investments and securities among other allegations.

In February 2019 a customer filed a complaint alleging that Kordich violated the securities laws by, among other things, made unsuitable investments from 2012 through 2015. The claim alleges damages of $300,000 and is currently pending.

In April 2013 a customer filed a complaint alleging that Kordich violated the securities laws by, among other things, that from May 2011 through September 2012 the advisor traded excessively in the client’s accounts. The claim alleged $150,000 in damages and resulted in a settlement of $43,000.

Advisor Mark Lamkin Subject to Complaints Over REIT Investments

May 8, 2019 | by Staff Attorney

Advisor Mark Lamkin (Lamkin), currently employed by Calton & Associates, Inc. (Calton & Associates) has been subject to at least three customer complaints and two terminations for cause. According to a BrokerCheck report some of the customer complaints concern alternative investments and direct participation products (DPPs) such as non-traded real estate investment trusts (REITs), oil & gas programs, annuities, and equipment leasing programs. The attorneys at Gana Weinstein LLP have extensive experience handling investor losses caused by these types of products.

In August 2018 Lamkin’s then employer, LPL Financial LLC (LPL) terminated Lamkin claiming that advisor received and/or benefited from loans from firm customers, failed to disclose and inadequately disclosed outside business activities, and personally engaged in and solicited other investors to participate in private investments without obtaining Firm approval.

In January 2019 a customer filed a complaint alleging that Lamkin violated the securities laws by making misrepresentations concerning an annuity product. The claim is currently pending.

In April 2019 another customer filed a complaint alleging that Lamkin violated the securities laws by making misrepresentations and an unsuitable investment in a REIT security. The claim is currently pending.

Raymond James Advisor William Council Alleged to Have Recommended Unsuitable Energy Securities

May 6, 2019 | by Staff Attorney

According to BrokerCheck records financial advisor William Council (Council), currently employed by Raymond James & Associates, Inc. (Raymond James), has been subject to at least three customer complaints and eight financial disclosures during the course of his career. According to records kept by The Financial Industry Regulatory Authority (FINRA) Council has been accused by multiple customers of unsuitable investment advice concerning various investment products including energy stocks most likely including master limited partnerships (MLPs). The law offices of Gana Weinstein LLP continue to report on investor related losses and potential legal remedies due to recommendations to investor in oil and gas and commodities related investments.

In February 2019 a customer filed a complaint alleging that Council violated the securities laws by purchasing unsuitable securities causing $334,000 in damages. The claim is currently pending.

In December 2018 a customer filed a complaint alleging that Council violated the securities laws by purchasing unsuitable securities, breach of fiduciary duty, negligent misrepresentation, negligence from February 2015 through October 2015 causing $105,000 in damages. The claim settled for $28,000.

Our firm handles claims and is also investigating securities claims against brokerage firms over sales practices related to the recommendations of oil & gas and commodities products such as exchange traded notes (ETNs), structured notes, private placements, master limited partnerships (MLPs), leveraged ETFs, mutual funds, and individual stocks.

Is GBP Capital A Ponzi Scheme? – FBI Now Investigating Firm

March 31, 2019 | by Staff Attorney

The law offices of Gana Weinstein LLP continue to report and update investors on their investigation into GPB Capital Holdings (GPB Capital). The firm currently represents multiple clients who have been recommended GPB Capital by brokers who were paid large commissions to sell the investment.

GPB Capital has been plagued with issues since last year when the firm stopped raising new money, lost an auditor, and engaged in a lawsuit with a former business partner Patrick Dibre (Dibre). GPB Capital complained that Dibre reneged on the sale to GPB Capital of certain auto dealerships causing the fund to lose $40 million according to GPB’s complaint. Dibre counterclaimed that GPB Capital is nothing more than “a very complicated and manipulative Ponzi scheme.” Then it was reported that the Financial Industry Regulatory Authority Inc. (FINRA) and the Securities and Exchange Commission (SEC) launched investigations in to GPB Capital.

Now, according to newsources, GBP Capital is being investigated by the FBI who made an unannounced visit to GPB Capital’s offices in early March 2019. None of this information is good news for investors who relied upon the due diligence efforts of their brokers in agreeing to invest in GBP Capital offerings.

Brokerage firms are unfortunately all too willing to subject their clients to the risks of investing in GPB due to the hefty fees and commissions these firms earn. When GPB Capital’s Automotive portfolio raised a total of $369.2 million from more than 3,800 investors it paid out $43.4 million, or 11.75%, in commissions. 7% of that amount goes directly to the recommending broker’s pocket. There are as many as 60 brokerage firms that sold these funds and among the largest of those firms are Royal Alliance Associates Inc., Sagepoint Financial Inc., FSC Securities Corp. and Woodbury Financial Services Inc.