Articles Tagged with ICON Leasing

shutterstock_159036452The securities lawyers of Gana Weinstein LLP are investigating customer complaints filed with The Financial Industry Regulatory Authority (FINRA) against broker Daniel Dunn (Dunn).  According to BrokerCheck records Dunn has been subject to at least five customer complaints.  The customer complaints against Dunn allege securities law violations that including unsuitable investments, and misrepresentations among other claims.   Many of the complaints involve direct participation products (DPPs) and private placements including ICON Leasing, variable annuities, and tenant-in-common trusts (TICs).

Our firm has represented many clients in these types of products.  All of these investments come with high costs and historically have underperformed even safe benchmarks, like U.S. treasury bonds.  For example, products like variable annuities, ICON, and other DPPs are only appropriate for a narrow band of investors under certain conditions due to the high costs, illiquidity, and huge redemption charges of the products, if they can be redeemed.  However, due to the high commissions brokers earn on these products they sell them to investors who cannot profit from them.  Further, investor often fail to understand that they have lost money until many years after agreeing to the investment.  In sum, for all of their costs and risks, investors in these programs are in no way additionally compensated for the loss of liquidity, risks, or cost.

Brokers have a responsibility treat investors fairly which includes obligations such as making only suitable investments for the client.  In order to make a suitable recommendation the broker must meet certain requirements.  First, there must be reasonable basis for the recommendation the product or security based upon the broker’s investigation and due diligence into the investment’s properties including its benefits, risks, tax consequences, and other relevant factors.  Second, the broker then must match the investment as being appropriate for the customer’s specific investment needs and objectives such as the client’s retirement status, long or short term goals, age, disability, income needs, or any other relevant factor.

shutterstock_45316696The investment lawyers of Gana Weinstein LLP are investigating customer complaints against broker Robert Bragg (Bragg). There are at least 4 customer complaints against Bragg. The customer complaints against Bragg allege a number of securities law violations including that the broker made unsuitable investments, misrepresentations, negligence, fraud, and breach of fiduciary duty among other claims. The claims appear to relate to allegations regard direct participation products and limited partnerships such as equipment leasing and non-traded real estate investment trusts (Non-Traded REITs). Our firm has written numerous times about investor losses in these types of programs such as equipment leasing programs like LEAF Equipment Leasing Income Funds I-IV and ICON Leasing Funds Eleven and Twelve. Investors are destined to lose money in these investments because the costs and fees associated with these investments make significant returns virtual impossibility. Yet for all of their costs investors are in no way compensated for the additional risks of these products.

The most recent complaint was filed in February 2015 and alleged unsuitable investments for investments made between 2005 though August 2013 causing $460,488 in damages. Another complaint filed in November 2014 alleged breach of fiduciary duty among other claims for investments made in October 2007 though September 2010 causing $322,432.

Bragg entered the securities industry in March 2004. Since March 2004, Bragg has been registered with VSR Financial Services, Inc. out of the firm’s Colorado Springs, Colorado office location.

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