UBS WILLOW FUND LIQUIDATES SHARES LEAVING INVESTORS WITH 20 CENTS ON THE DOLLAR

In October 2012, the UBS Willow Fund, a distressed debt hedge fund, informed investors that the fund would be liquidated after having sustained substantial losses. Formed in 2000, UBS Willow has suffered losses exceeding $300 million, which date back to 2007 - its net asset value (NAV) per share was down 80 percent upon UBS Willow's liquidation announcement. In December 2012, a class action lawsuit was filed against UBS Willow alleging a deviation from the fund's investment strategy. The lawsuit, filed in Manhattan, seeks to recover over $200 million for investors who have lost money in the fund. Meanwhile, the Law Offices of Robert Wayne Pearce, P.A. is currently investigating the broker-dealers and financial advisors that marketed and sold the product to investors. Our attorneys are researching potential claims that will hold broker-dealers and financial advisors liable for recommending UBS Willow and recover additional losses resulting from the investment.
Hedge funds are similar to mutual funds in structure. Investor money is pooled together and invested in an effort to make a positive return. However, hedge funds have more flexible investment strategies than mutual funds. Hedge funds seek to profit in all kinds of markets by utilizing strategies involving leverage, short-selling, and other speculative investment practices that are not typically used by mutual funds. Another factor that distinguishes hedge funds from mutual funds is that hedge funds are not subject to the same regulations designed to protect investors. Depending on the amount of assets in the hedge funds advised by a manager, some hedge funds may not be required to file reports with the SEC. Fortunately, hedge funds are subject to the same prohibitions against fraud as are other market participants. In addition, managers owe a fiduciary duty to the funds under management.
Broker-dealers have a duty to perform adequate due diligence, especially when offering risky investments such as hedge funds, to ensure that the investment is suitable for an individual investor's age, risk tolerance, investment experience, net worth, and investment time horizon. If broker-dealers fail to carry out this duty, they can be liable to investors for damages. In the case of UBS Willow, it is evident that financial advisors made certain misrepresentations about the product's risks and investment strategy. As a result, investors who have suffered losses are encourage to file arbitration claims to recover any losses stemming from UBS Willow.
Have you suffered losses resulting from owning shares in the UBS Willow Fund? If so, call Robert Pearce at the Law Offices of Robert Wayne Pearce, P.A. for a free consultation. Mr. Pearce is actively investigating and accepting clients with valid claims against stockbrokers who misrepresented and sold the UBS Willow Fund to investors.
The most important of investors' rights is the right to be informed! This Investors' Rights blog post is by the Law Offices of Robert Wayne Pearce, P.A., located in Boca Raton, Florida. For over 30 years, Attorney Pearce has tried, arbitrated, and mediated hundreds of disputes involving complex securities, commodities and investment law issues. The lawyers at our law firm are devoted to protecting investors' rights throughout the United States and internationally! Please visit our website, www.secatty.com, post a comment, call (800) 732-2889, or email Mr. Pearce at pearce@rwpearce.com for answers to any of your questions about this blog post and/or any related matter.

MERRILL LYNCH SALIVATING OVER POTENTIAL COMMISSIONS FROM NON-TRADED REIT SALES

Bank of America Merrill Lynch has recently decided to offer non-traded real estate investment trusts (REITs) to its clients, making it the first major wirehouse to offer the alternative investment. Non-traded REITs have traditionally been sold by independent broker-dealers who focus on retail clients, but Merrill Lynch believes the moment is ripe to offer REITs to clients given that "the primary investment objectives are designed to provide attractive current income, preserve and protect invested capital, achieve net asset value appreciation over time and enable stockholders to utilize real estate as a long-term portfolio diversifier," said Merrill Lynch's Keith Glenfield. In fact, the company has already raised $50 million from clients interested in the Jones Lang LaSalle Income Property Trust REIT. However, since the onset of the financial crisis, non-traded REITs have proven themselves to be nothing more than risky and highly illiquid investments that have been the subject of regulatory scrutiny due to misrepresentations about the product. This lends itself to the notion that the only thing that remains certain about the REITs are the high commissions brokers will earn for selling them.
REITs invest in a diversified set of income producing real estate properties and mortgages, and they must distribute 90 percent of net earnings to investors. REITs allow investors to partake in real estate investing without directly owning property, which may lock up large amounts of money for long periods of time. The most popular REITs are publicly traded on a stock exchange such as the New York Stock Exchange (NYSE) - they are relatively transparent in their finances and operations and are covered extensively by investment analysts. Non-traded REITs are not listed or registered with securities regulators and are supposed to be available only to accredited investors - $1 million or more in assets or $200,000.00 in annual income. Non-traded REITs disclose their finances publicly and offer shares to the public, but they do not list their shares on an exchange, which is one of many risk factors associated with them.
There is no doubt that the potential to earn hefty commissions can influence broker-dealers such as Merrill Lynch to ignore duties owed to their clients. Such duties include performing adequate due diligence to better understand a product and evaluating whether the product is suitable for an individual's investment objectives and risk tolerance. As a result, the Financial Industry Regulatory Authority (FINRA) has issued several "Investor Alerts" regarding investing in non-traded REITs. The Alerts were intended to help investors understand the risks, benefits, features and fees associate with investing in non-traded REITs. The Alerts also warned investors about the use of borrowed funds, limited early redemption schemes and fees associated with the sale of the investments. Unfortunately, these Investor Alerts came too late for some investors who purchased non-traded REIT shares that have lost a significant amount of money.
The primary cause of the increased number of telephone calls to our office over the last five years is many elderly and retired investors have been steered into non-traded REITs as yields on other income producing investments have steadily declined. According to many investors, the REITS were recommended as safe, secure, and steady income producing investments which sounded to be exactly what many seniors wanted and needed. When any Wells REIT investor calls our office, we will make a customer specific suitability determination after we learn the "essential facts" concerning that investor. We will ask, just as their stockbroker should have asked, about their age, investment experience, time horizon liquidity needs (length of time they could hold the investment without need for the principal), risk tolerance, other holdings, and financial situation in terms of liquid total net worth, tax status and investment objectives. All of these factors are relevant to suitability determination, and most weigh against the ownership of REIT investments by elderly retired investors. If we believe a brokerage firm or its representatives made an unsuitable recommendation that any person invest in a non-traded REIT, we recommend that they file a FINRA arbitration claim and attempt to recover their losses!
Have you suffered losses resulting from a real estate investment trust sold by Merrill Lynch? If so, call Robert Pearce at the Law Offices of Robert Wayne Pearce, P.A. for a free consultation. Mr. Pearce is actively investigating and accepting clients with valid claims against stockbrokers who misrepresented and sold real estate investment trusts to investors.
The most important of investors' rights is the right to be informed! This Investors' Rights blog post is by the Law Offices of Robert Wayne Pearce, P.A., located in Boca Raton, Florida. For over 30 years, Attorney Pearce has tried, arbitrated, and mediated hundreds of disputes involving complex securities, commodities and investment law issues. The lawyers at our law firm are devoted to protecting investors' rights throughout the United States and internationally! Please visit our website, www.secatty.com, post a comment, call (800) 732-2889, or email Mr. Pearce at pearce@rwpearce.com for answers to any of your questions about this blog post and/or any related matter.

GENSPRING IN THE HOT-SEAT FOR HEDGE FUNDS SOLD AS CONSERVATIVE BOND ALTERNATIVES

The Law Offices of Robert Wayne Pearce, P.A. is currently investigating GenSpring Family Offices (formerly Asset Management Advisors (AMA)), a large wealth management firm that serves high net worth individuals and families, for selling hedge funds to investors as an alternative to bond or fixed income investments. Some of the hedge funds that were sold were "funds of funds" with layers of managers and mixed investment strategies. Some Investor portfolios have lost up to 24 percent of their value between September 2008 and December 2008 - more than two times the amount of downside protection promised by GenSpring to its clients. This comes as no surprise given the amount of misrepresentation and lack of disclosure issues related to high risk investments that investors have been facing recently.
Hedge funds are similar to mutual funds in structure. Investor money is pooled together and invested in an effort to make a positive return. However, hedge funds have more flexible investment strategies than mutual funds. Hedge funds seek to profit in all kinds of markets by utilizing strategies involving leverage, short-selling, and other speculative investment practices that are not typically used by mutual funds. Another factor that distinguishes hedge funds from mutual funds is that hedge funds are not subject to the same regulations designed to protect investors. Depending on the amount of assets in the hedge funds advised by a manager, some hedge funds may not be required to file reports with the SEC. Fortunately, hedge funds are subject to the same prohibitions against fraud as are other market participants. In addition, managers owe a fiduciary duty to the funds under management.
GenSpring has more than $17 billion under management, and it currently caters to some of the wealthiest families in the world. It is a wholly-owned subsidiary of SunTrust and has offices in Florida, Minnesota, Tennessee, Colorado, California, Georgia, Maryland, Connecticut, North Carolina, Arizona, and New York.
Have you suffered losses resulting from an investment misrepresented by GenSpring Family Offices? If so, call Robert Pearce at the Law Offices of Robert Wayne Pearce, P.A. for a free consultation. Mr. Pearce is actively investigating and accepting clients with valid claims against stockbrokers who misrepresented and sold unsuitable investment to investors.
The most important of investors' rights is the right to be informed! This Investors' Rights blog post is by the Law Offices of Robert Wayne Pearce, P.A., located in Boca Raton, Florida. For over 30 years, Attorney Pearce has tried, arbitrated, and mediated hundreds of disputes involving complex securities, commodities and investment law issues. The lawyers at our law firm are devoted to protecting investors' rights throughout the United States and internationally! Please visit our website, www.secatty.com, post a comment, call (800) 732-2889, or email Mr. Pearce at pearce@rwpearce.com for answers to any of your questions about this blog post and/or any related matter.

WHAT CAN I DO TO SELL MY CNL LIFESTYLES PROPERTIES REAL ESTATE INVESTMENT TRUST?

Many investors in the CNL Lifestyles Properties Real Estate Investment Trust have called our office and asked the same question: Is there any way I can sell my CNL Lifestyles Properties REIT? This is due to the fact that CNL Lifestyles Properties Real Estate Investment Trusts are non-traded, which means that they do not trade on any public exchange. Unless real estate investment trust (REIT) companies such as CNL Lifestyles Properties decide to register with the Securities and Exchange Commission (SEC) and make a public offering of its shares, investors will most likely not be able to sell their shares and will remain at the mercy of the REITs' performance. But wagering on better performance by non-traded REITs in the near future does not seem to be a viable option for investors to hold their shares either since many non-traded REITs have ceased their buy-back programs and are no longer making promised monthly or quarterly distributions to investors - a universal sign of ruinous events to come for REIT investors.
Unfortunately, the only way to sell your REIT is privately or through an auction through one of several companies making a secondary market in your REIT. Investors looking to sell or liquidate their CNL Lifestyles Properties REITs might want to investigate the following companies who are offering a secondary market for non-traded REITs:
•· REIT Secondary Exchange
•· SecondMarket
•· Pacific Partnership Group
•· Mackenzie Patterson Fuller LP
•· Central Trade and Transfer
•· Lapis Advisors LP
Please note that the Law Offices of Robert Wayne Pearce, P.A. does not recommend or endorse any of the aforementioned information exchanges. Investors are urged to do their own homework before initiating any business. If you cannot locate these companies, please call our office so that we can provide you with their contact information at no charge.
The primary cause of the increased number of telephone calls to our office over the last five years is many elderly and retired investors have been steered into non-traded REITs as yields on other income producing investments have steadily declined. According to many investors, the REITS were recommended as safe, secure, and steady income producing investments which sounded to be exactly what many seniors wanted and needed. When any CNL Lifestyles Properties REIT investor calls our office, we will make a customer specific suitability determination after we learn the "essential facts" concerning that investor. We will ask, just as their stockbroker should have asked, about their age, investment experience, time horizon liquidity needs (length of time they could hold the investment without need for the principal), risk tolerance, other holdings, and financial situation in terms of liquid total net worth, tax status and investment objectives. All of these factors are relevant to suitability determination, and most weigh against the ownership of REIT investments by elderly retired investors. If we believe a brokerage firm or its representatives made an unsuitable recommendation that any person invest in a non-traded REIT, we recommend that they file a FINRA arbitration claim and attempt to recover their losses!
Have you suffered losses resulting from an investment in CNL Lifestyles Properties Real Estate Investment Trust? If so, call Robert Pearce at the Law Offices of Robert Wayne Pearce, P.A. for a free consultation. Mr. Pearce is actively investigating and accepting clients with valid claims against stockbrokers who misrepresented and sold CNL Lifestyles Properties Real Estate Investment Trusts to investors.
The most important of investors' rights is the right to be informed! This Investors' Rights blog post is by the Law Offices of Robert Wayne Pearce, P.A., located in Boca Raton, Florida. For over 30 years, Attorney Pearce has tried, arbitrated, and mediated hundreds of disputes involving complex securities, commodities and investment law issues. The lawyers at our law firm are devoted to protecting investors' rights throughout the United States and internationally! Please visit our website, www.secatty.com, post a comment, call (800) 732-2889, or email Mr. Pearce at pearce@rwpearce.com for answers to any of your questions about this blog post and/or any related matter.

WHAT CAN I DO TO SELL MY PIEDMONT OFFICE REALTY REAL ESTATE INVESTMENT TRUST?

Many investors in the Piedmont Office Realty Real Estate Investment Trust have called our office and asked the same question: Is there any way I can sell my Piedmont Office Realty REIT? This is due to the fact that Piedmont Office Realty Real Estate Investment Trusts are non-traded, which means that they do not trade on any public exchange. Unless real estate investment trust (REIT) companies such as Piedmont Office Realty decide to register with the Securities and Exchange Commission (SEC) and make a public offering of its shares, investors will most likely not be able to sell their shares and will remain at the mercy of the REITs' performance. But wagering on better performance by non-traded REITs in the near future does not seem to be a viable option for investors to hold their shares either since many non-traded REITs have ceased their buy-back programs and are no longer making promised monthly or quarterly distributions to investors - a universal sign of ruinous events to come for REIT investors.
Unfortunately, the only way to sell your REIT is privately or through an auction through one of several companies making a secondary market in your REIT. Investors looking to sell or liquidate their Piedmont Office Realty REITs might want to investigate the following companies who are offering a secondary market for non-traded REITs:
•· REIT Secondary Exchange
•· SecondMarket
•· Pacific Partnership Group
•· Mackenzie Patterson Fuller LP
•· Central Trade and Transfer
•· Lapis Advisors LP
Please note that the Law Offices of Robert Wayne Pearce, P.A. does not recommend or endorse any of the aforementioned information exchanges. Investors are urged to do their own homework before initiating any business. If you cannot locate these companies, please call our office so that we can provide you with their contact information at no charge.
The primary cause of the increased number of telephone calls to our office over the last five years is many elderly and retired investors have been steered into non-traded REITs as yields on other income producing investments have steadily declined. According to many investors, the REITS were recommended as safe, secure, and steady income producing investments which sounded to be exactly what many seniors wanted and needed. When any Piedmont Office Realty REIT investor calls our office, we will make a customer specific suitability determination after we learn the "essential facts" concerning that investor. We will ask, just as their stockbroker should have asked, about their age, investment experience, time horizon liquidity needs (length of time they could hold the investment without need for the principal), risk tolerance, other holdings, and financial situation in terms of liquid total net worth, tax status and investment objectives. All of these factors are relevant to suitability determination, and most weigh against the ownership of REIT investments by elderly retired investors. If we believe a brokerage firm or its representatives made an unsuitable recommendation that any person invest in a non-traded REIT, we recommend that they file a FINRA arbitration claim and attempt to recover their losses!
Have you suffered losses resulting from an investment in Piedmont Office Realty Real Estate Investment Trust? If so, call Robert Pearce at the Law Offices of Robert Wayne Pearce, P.A. for a free consultation. Mr. Pearce is actively investigating and accepting clients with valid claims against stockbrokers who misrepresented and sold Piedmont Office Realty Real Estate Investment Trusts to investors.
The most important of investors' rights is the right to be informed! This Investors' Rights blog post is by the Law Offices of Robert Wayne Pearce, P.A., located in Boca Raton, Florida. For over 30 years, Attorney Pearce has tried, arbitrated, and mediated hundreds of disputes involving complex securities, commodities and investment law issues. The lawyers at our law firm are devoted to protecting investors' rights throughout the United States and internationally! Please visit our website, www.secatty.com, post a comment, call (800) 732-2889, or email Mr. Pearce at pearce@rwpearce.com for answers to any of your questions about this blog post and/or any related matter.

WHAT CAN I DO TO SELL MY CORPORATE PROPERTIES ASSOCIATES REAL ESTATE INVESTMENT TRUST?

Many investors in the Corporate Properties Associates Real Estate Investment Trust have called our office and asked the same question: Is there any way I can sell my Corporate Properties Associates REIT? This is due to the fact that Corporate Properties Associates Real Estate Investment Trusts are non-traded, which means that they do not trade on any public exchange. Unless real estate investment trust (REIT) companies such as Corporate Properties Associates decide to register with the Securities and Exchange Commission (SEC) and make a public offering of its shares, investors will most likely not be able to sell their shares and will remain at the mercy of the REITs' performance. But wagering on better performance by non-traded REITs in the near future does not seem to be a viable option for investors to hold their shares either since many non-traded REITs have ceased their buy-back programs and are no longer making promised monthly or quarterly distributions to investors - a universal sign of ruinous events to come for REIT investors.
Unfortunately, the only way to sell your REIT is privately or through an auction through one of several companies making a secondary market in your REIT. Investors looking to sell or liquidate their Corporate Properties Associates REITs might want to investigate the following companies who are offering a secondary market for non-traded REITs:
•· REIT Secondary Exchange
•· SecondMarket
•· Pacific Partnership Group
•· Mackenzie Patterson Fuller LP
•· Central Trade and Transfer
•· Lapis Advisors LP
Please note that the Law Offices of Robert Wayne Pearce, P.A. does not recommend or endorse any of the aforementioned information exchanges. Investors are urged to do their own homework before initiating any business. If you cannot locate these companies, please call our office so that we can provide you with their contact information at no charge.
The primary cause of the increased number of telephone calls to our office over the last five years is many elderly and retired investors have been steered into non-traded REITs as yields on other income producing investments have steadily declined. According to many investors, the REITS were recommended as safe, secure, and steady income producing investments which sounded to be exactly what many seniors wanted and needed. When any Corporate Properties Associates REIT investor calls our office, we will make a customer specific suitability determination after we learn the "essential facts" concerning that investor. We will ask, just as their stockbroker should have asked, about their age, investment experience, time horizon liquidity needs (length of time they could hold the investment without need for the principal), risk tolerance, other holdings, and financial situation in terms of liquid total net worth, tax status and investment objectives. All of these factors are relevant to suitability determination, and most weigh against the ownership of REIT investments by elderly retired investors. If we believe a brokerage firm or its representatives made an unsuitable recommendation that any person invest in a non-traded REIT, we recommend that they file a FINRA arbitration claim and attempt to recover their losses!
Have you suffered losses resulting from an investment in Corporate Properties Associates Real Estate Investment Trust? If so, call Robert Pearce at the Law Offices of Robert Wayne Pearce, P.A. for a free consultation. Mr. Pearce is actively investigating and accepting clients with valid claims against stockbrokers who misrepresented and sold Corporate Properties Associates Real Estate Investment Trusts to investors.
The most important of investors' rights is the right to be informed! This Investors' Rights blog post is by the Law Offices of Robert Wayne Pearce, P.A., located in Boca Raton, Florida. For over 30 years, Attorney Pearce has tried, arbitrated, and mediated hundreds of disputes involving complex securities, commodities and investment law issues. The lawyers at our law firm are devoted to protecting investors' rights throughout the United States and internationally! Please visit our website, www.secatty.com, post a comment, call (800) 732-2889, or email Mr. Pearce at pearce@rwpearce.com for answers to any of your questions about this blog post and/or any related matter.

WHAT CAN I DO TO SELL MY INLAND WESTERN REAL ESTATE INVESTMENT TRUST?

Many investors in the Inland Western Real Estate Investment Trust have called our office and asked the same question: Is there any way I can sell my Inland Western REIT? This is due to the fact that Inland Western Real Estate Investment Trusts are non-traded, which means that they do not trade on any public exchange. Unless real estate investment trust (REIT) companies such as Inland Western decide to register with the Securities and Exchange Commission (SEC) and make a public offering of its shares, investors will most likely not be able to sell their shares and will remain at the mercy of the REITs' performance. But wagering on better performance by non-traded REITs in the near future does not seem to be a viable option for investors to hold their shares either since many non-traded REITs have ceased their buy-back programs and are no longer making promised monthly or quarterly distributions to investors - a universal sign of ruinous events to come for REIT investors.
Unfortunately, the only way to sell your REIT is privately or through an auction through one of several companies making a secondary market in your REIT. Investors looking to sell or liquidate their Inland Western REITs might want to investigate the following companies who are offering a secondary market for non-traded REITs:
•· REIT Secondary Exchange
•· SecondMarket
•· Pacific Partnership Group
•· Mackenzie Patterson Fuller LP
•· Central Trade and Transfer
•· Lapis Advisors LP
Please note that the Law Offices of Robert Wayne Pearce, P.A. does not recommend or endorse any of the aforementioned information exchanges. Investors are urged to do their own homework before initiating any business. If you cannot locate these companies, please call our office so that we can provide you with their contact information at no charge.
The most common misrepresentation and misleading statement claims that the Inland Western REITs have been making relate to the risk associated with the non-traded REITs. Many investors have complained that the Inland Western REITs were not adequately represented before purchase and that they did not know the real truth about the valuations, performance, prospects, liquidity, or distribution and redemption practices of management relating to their investment. Many elderly investors seeking income were overconcentrated in Inland Western REITs because they needed income. Sadly they learned too late that there were no guarantees that distributions would be made. Some REIT investors have just learned that they would no longer be receiving distributions or that the distributions they actually received were derived from loans and not the true cash flow of the REIT. Brokerage firms and their financial advisors were eager to push REIT investments on their clients for the high commissions compared to other products. Unfortunately, many investors are locked in and unable to sell their REIT investments without selling into deeply discounted secondary markets. If you are an Inland Western REIT investor with the same complaints, we believe we can help you recover your REIT losses!
Have you suffered losses resulting from an investment in an Inland Western Real Estate Investment Trust? If so, call Robert Pearce at the Law Offices of Robert Wayne Pearce, P.A. for a free consultation. Mr. Pearce is actively investigating and accepting clients with valid claims against stockbrokers who misrepresented and sold Inland Western Real Estate Investment Trusts to investors.
The most important of investors' rights is the right to be informed! This Investors' Rights blog post is by the Law Offices of Robert Wayne Pearce, P.A., located in Boca Raton, Florida. For over 30 years, Attorney Pearce has tried, arbitrated, and mediated hundreds of disputes involving complex securities, commodities and investment law issues. The lawyers at our law firm are devoted to protecting investors' rights throughout the United States and internationally! Please visit our website, www.secatty.com, post a comment, call (800) 732-2889, or email Mr. Pearce at pearce@rwpearce.com for answers to any of your questions about this blog post and/or any related matter.

WHAT CAN I DO TO SELL MY HINES REAL ESTATE INVESTMENT TRUST?

Many investors in the Hines Real Estate Investment Trust have called our office and asked the same question: Is there any way I can sell my Hines REIT? This is due to the fact that Hines Real Estate Investment Trusts are non-traded, which means that they do not trade on any public exchange. Unless real estate investment trust (REIT) companies such as Hines decide to register with the Securities and Exchange Commission (SEC) and make a public offering of its shares, investors will most likely not be able to sell their shares and will remain at the mercy of the REITs' performance. But wagering on better performance by non-traded REITs in the near future does not seem to be a viable option for investors to hold their shares either since many non-traded REITs have ceased their buy-back programs and are no longer making promised monthly or quarterly distributions to investors - a universal sign of ruinous events to come for REIT investors.
Unfortunately, the only way to sell your REIT is privately or through an auction through one of several companies making a secondary market in your REIT. Investors looking to sell or liquidate their Hines REITs might want to investigate the following companies who are offering a secondary market for non-traded REITs:
•· REIT Secondary Exchange
•· SecondMarket
•· Pacific Partnership Group
•· Mackenzie Patterson Fuller LP
•· Central Trade and Transfer
•· Lapis Advisors LP
Please note that the Law Offices of Robert Wayne Pearce, P.A. does not recommend or endorse any of the aforementioned information exchanges. Investors are urged to do their own homework before initiating any business. If you cannot locate these companies, please call our office so that we can provide you with their contact information at no charge.
The primary cause of the increased number of telephone calls to our office over the last five years is many elderly and retired investors have been steered into non-traded REITs as yields on other income producing investments have steadily declined. According to many investors, the REITS were recommended as safe, secure, and steady income producing investments which sounded to be exactly what many seniors wanted and needed. When any Hines REIT investor calls our office, we will make a customer specific suitability determination after we learn the "essential facts" concerning that investor. We will ask, just as their stockbroker should have asked, about their age, investment experience, time horizon liquidity needs (length of time they could hold the investment without need for the principal), risk tolerance, other holdings, and financial situation in terms of liquid total net worth, tax status and investment objectives. All of these factors are relevant to suitability determination, and most weigh against the ownership of REIT investments by elderly retired investors. If we believe a brokerage firm or its representatives made an unsuitable recommendation that any person invest in a non-traded REIT, we recommend that they file a FINRA arbitration claim and attempt to recover their losses!
Have you suffered losses resulting from an investment in Hines Real Estate Investment Trust? If so, call Robert Pearce at the Law Offices of Robert Wayne Pearce, P.A. for a free consultation. Mr. Pearce is actively investigating and accepting clients with valid claims against stockbrokers who misrepresented and sold Hines Real Estate Investment Trusts to investors.
The most important of investors' rights is the right to be informed! This Investors' Rights blog post is by the Law Offices of Robert Wayne Pearce, P.A., located in Boca Raton, Florida. For over 30 years, Attorney Pearce has tried, arbitrated, and mediated hundreds of disputes involving complex securities, commodities and investment law issues. The lawyers at our law firm are devoted to protecting investors' rights throughout the United States and internationally! Please visit our website, www.secatty.com, post a comment, call (800) 732-2889, or email Mr. Pearce at pearce@rwpearce.com for answers to any of your questions about this blog post and/or any related matter.

WHAT CAN I DO TO SELL MY BEHRINGER HARVARD REAL ESTATE INVESTMENT TRUST?

Many investors in the Behringer Harvard Real Estate Investment Trust have called our office and asked the same question: Is there any way I can sell my Behringer Harvard REIT? This is due to the fact that Behringer Harvard Real Estate Investment Trusts are non-traded, which means that they do not trade on any public exchange. Unless real estate investment trust (REIT) companies such as Behringer Harvard decide to register with the Securities and Exchange Commission (SEC) and make a public offering of its shares, investors will most likely not be able to sell their shares and will remain at the mercy of the REITs' performance. But wagering on better performance by non-traded REITs in the near future does not seem to be a viable option for investors to hold their shares either since many non-traded REITs have ceased their buy-back programs and are no longer making promised monthly or quarterly distributions to investors - a universal sign of ruinous events to come for REIT investors.
Unfortunately, the only way to sell your REIT is privately or through an auction through one of several companies making a secondary market in your REIT. Investors looking to sell or liquidate their Behringer Harvard REITs might want to investigate the following companies who are offering a secondary market for non-traded REITs:
•· REIT Secondary Exchange
•· SecondMarket
•· Pacific Partnership Group
•· Mackenzie Patterson Fuller LP
•· Central Trade and Transfer
•· Lapis Advisors LP
Please note that the Law Offices of Robert Wayne Pearce, P.A. does not recommend or endorse any of the aforementioned information exchanges. Investors are urged to do their own homework before initiating any business. If you cannot locate these companies, please call our office so that we can provide you with their contact information at no charge.
The primary cause of the increased number of telephone calls to our office over the last five years is many elderly and retired investors have been steered into non-traded REITs as yields on other income producing investments have steadily declined. According to many investors, the REITS were recommended as safe, secure, and steady income producing investments which sounded to be exactly what many seniors wanted and needed. When any Behringer Harvard REIT investor calls our office, we will make a customer specific suitability determination after we learn the "essential facts" concerning that investor. We will ask, just as their stockbroker should have asked, about their age, investment experience, time horizon liquidity needs (length of time they could hold the investment without need for the principal), risk tolerance, other holdings, and financial situation in terms of liquid total net worth, tax status and investment objectives. All of these factors are relevant to suitability determination, and most weigh against the ownership of REIT investments by elderly retired investors. If we believe a brokerage firm or its representatives made an unsuitable recommendation that any person invest in a non-traded REIT, we recommend that they file a FINRA arbitration claim and attempt to recover their losses!
Have you suffered losses resulting from an investment in Behringer Harvard Real Estate Investment Trust? If so, call Robert Pearce at the Law Offices of Robert Wayne Pearce, P.A. for a free consultation. Mr. Pearce is actively investigating and accepting clients with valid claims against stockbrokers who misrepresented and sold Behringer Harvard Real Estate Investment Trusts to investors.
The most important of investors' rights is the right to be informed! This Investors' Rights blog post is by the Law Offices of Robert Wayne Pearce, P.A., located in Boca Raton, Florida. For over 30 years, Attorney Pearce has tried, arbitrated, and mediated hundreds of disputes involving complex securities, commodities and investment law issues. The lawyers at our law firm are devoted to protecting investors' rights throughout the United States and internationally! Please visit our website, www.secatty.com, post a comment, call (800) 732-2889, or email Mr. Pearce at pearce@rwpearce.com for answers to any of your questions about this blog post and/or any related matter.

WHAT CAN I DO TO SELL MY WELLS REAL ESTATE INVESTMENT TRUST?

Many investors in the Wells Real Estate Investment Trust have called our office and asked the same question: Is there any way I can sell my Wells REIT? This is due to the fact that Wells Real Estate Investment Trusts are non-traded, which means that they do not trade on any public exchange. Unless real estate investment trust (REIT) companies such as Wells decide to register with the Securities and Exchange Commission (SEC) and make a public offering of its shares, investors will most likely not be able to sell their shares and will remain at the mercy of the REITs' performance. But wagering on better performance by non-traded REITs in the near future does not seem to be a viable option for investors to hold their shares either since many non-traded REITs have ceased their buy-back programs and are no longer making promised monthly or quarterly distributions to investors - a universal sign of ruinous events to come for REIT investors.
Unfortunately, the only way to sell your REIT is privately or through an auction through one of several companies making a secondary market in your REIT. Investors looking to sell or liquidate their Wells REITs might want to investigate the following companies who are offering a secondary market for non-traded REITs:
•· REIT Secondary Exchange
•· SecondMarket
•· Pacific Partnership Group
•· Mackenzie Patterson Fuller LP
•· Central Trade and Transfer
•· Lapis Advisors LP
Please note that the Law Offices of Robert Wayne Pearce, P.A. does not recommend or endorse any of the aforementioned information exchanges. Investors are urged to do their own homework before initiating any business. If you cannot locate these companies, please call our office so that we can provide you with their contact information at no charge.
The primary cause of the increased number of telephone calls to our office over the last five years is many elderly and retired investors have been steered into non-traded REITs as yields on other income producing investments have steadily declined. According to many investors, the REITS were recommended as safe, secure, and steady income producing investments which sounded to be exactly what many seniors wanted and needed. When any Wells REIT investor calls our office, we will make a customer specific suitability determination after we learn the "essential facts" concerning that investor. We will ask, just as their stockbroker should have asked, about their age, investment experience, time horizon liquidity needs (length of time they could hold the investment without need for the principal), risk tolerance, other holdings, and financial situation in terms of liquid total net worth, tax status and investment objectives. All of these factors are relevant to suitability determination, and most weigh against the ownership of REIT investments by elderly retired investors. If we believe a brokerage firm or its representatives made an unsuitable recommendation that any person invest in a non-traded REIT, we recommend that they file a FINRA arbitration claim and attempt to recover their losses!
Have you suffered losses resulting from an investment in Wells Real Estate Investment Trust? If so, call Robert Pearce at the Law Offices of Robert Wayne Pearce, P.A. for a free consultation. Mr. Pearce is actively investigating and accepting clients with valid claims against stockbrokers who misrepresented and sold Wells Real Estate Investment Trusts to investors.
The most important of investors' rights is the right to be informed! This Investors' Rights blog post is by the Law Offices of Robert Wayne Pearce, P.A., located in Boca Raton, Florida. For over 30 years, Attorney Pearce has tried, arbitrated, and mediated hundreds of disputes involving complex securities, commodities and investment law issues. The lawyers at our law firm are devoted to protecting investors' rights throughout the United States and internationally! Please visit our website, www.secatty.com, post a comment, call (800) 732-2889, or email Mr. Pearce at pearce@rwpearce.com for answers to any of your questions about this blog post and/or any related matter.

WHAT CAN I DO TO SELL MY KBS REAL ESTATE INVESTMENT TRUST?

Many investors in the KBS Real Estate Investment Trust have called our office and asked the same question: Is there any way I can sell my KBS REIT? This is due to the fact that KBS Real Estate Investment Trusts are non-traded, which means that they do not trade on any public exchange. Unless real estate investment trust (REIT) companies such as KBS decide to register with the Securities and Exchange Commission (SEC) and make a public offering of its shares, investors will most likely not be able to sell their shares and will remain at the mercy of the REITs' performance. But wagering on better performance by non-traded REITs in the near future does not seem to be a viable option for investors to hold their shares either since many non-traded REITs have ceased their buy-back programs and are no longer making promised monthly or quarterly distributions to investors - a universal sign of ruinous events to come for REIT investors.
Unfortunately, the only way to sell your REIT is privately or through an auction through one of several companies making a secondary market in your REIT. Investors looking to sell or liquidate their KBS REITs might want to investigate the following companies who are offering a secondary market for non-traded REITs:
•· REIT Secondary Exchange
•· SecondMarket
•· Pacific Partnership Group
•· Mackenzie Patterson Fuller LP
•· Central Trade and Transfer
•· Lapis Advisors LP
Please note that the Law Offices of Robert Wayne Pearce, P.A. does not recommend or endorse any of the aforementioned information exchanges. Investors are urged to do their own homework before initiating any business. If you cannot locate these companies, please call our office so that we can provide you with their contact information at no charge.
The primary cause of the increased number of telephone calls to our office over the last five years is many elderly and retired investors have been steered into non-traded REITs as yields on other income producing investments have steadily declined. According to many investors, the REITS were recommended as safe, secure, and steady income producing investments which sounded to be exactly what many seniors wanted and needed. When any KBS REIT investor calls our office, we will make a customer specific suitability determination after we learn the "essential facts" concerning that investor. We will ask, just as their stockbroker should have asked, about their age, investment experience, time horizon liquidity needs (length of time they could hold the investment without need for the principal), risk tolerance, other holdings, and financial situation in terms of liquid total net worth, tax status and investment objectives. All of these factors are relevant to suitability determination, and most weigh against the ownership of REIT investments by elderly retired investors. If we believe a brokerage firm or its representatives made an unsuitable recommendation that any person invest in a non-traded REIT, we recommend that they file a FINRA arbitration claim and attempt to recover their losses!
Have you suffered losses resulting from an investment in KBS Real Estate Investment Trust? If so, call Robert Pearce at the Law Offices of Robert Wayne Pearce, P.A. for a free consultation. Mr. Pearce is actively investigating and accepting clients with valid claims against stockbrokers who misrepresented and sold KBS Real Estate Investment Trusts to investors.
The most important of investors' rights is the right to be informed! This Investors' Rights blog post is by the Law Offices of Robert Wayne Pearce, P.A., located in Boca Raton, Florida. For over 30 years, Attorney Pearce has tried, arbitrated, and mediated hundreds of disputes involving complex securities, commodities and investment law issues. The lawyers at our law firm are devoted to protecting investors' rights throughout the United States and internationally! Please visit our website, www.secatty.com, post a comment, call (800) 732-2889, or email Mr. Pearce at pearce@rwpearce.com for answers to any of your questions about this blog post and/or any related matter.

WHAT CAN I DO TO SELL MY INLAND AMERICAN REAL ESTATE INVESTMENT TRUST?

Many investors in the Inland American Estate Investment Trust have called our office and asked the same question: Is there any way I can sell my Inland American REIT? This is due to the fact that Inland American Real Estate Investment Trusts are non-traded, which means that they do not trade on any public exchange. Unless real estate investment trust (REIT) companies such as Inland American decide to register with the Securities and Exchange Commission (SEC) and make a public offering of its shares, investors will most likely not be able to sell their shares and will remain at the mercy of the REITs' performance. But wagering on better performance by non-traded REITs in the near future does not seem to be a viable option for investors to hold their shares either since many non-traded REITs have ceased their buy-back programs and are no longer making promised monthly or quarterly distributions to investors - a universal sign of ruinous events to come for REIT investors.
Unfortunately, the only way to sell your REIT is privately or through an auction through one of several companies making a secondary market in your REIT. Investors looking to sell or liquidate their Inland American REITs might want to investigate the following companies who are offering a secondary market for non-traded REITs:

• REIT Secondary Exchange
• SecondMarket
• Pacific Partnership Group
• Mackenzie Patterson Fuller LP
• Central Trade and Transfer
• Lapis Advisors LP

Please note that the Law Offices of Robert Wayne Pearce, P.A. does not recommend or endorse any of the aforementioned information exchanges. Investors are urged to do their own homework before initiating any business. If you cannot locate these companies, please call our office so that we can provide you with their contact information at no charge.
The most common misrepresentation and misleading statement claims that the Inland American REITs have been making relate to the risk associated with the non-traded REITs. Many investors have complained that the Inland American REITs were not adequately represented before purchase and that they did not know the real truth about the valuations, performance, prospects, liquidity, or distribution and redemption practices of management relating to their investment. Many elderly investors seeking income were overconcentrated in Inland American REITs because they needed income. Sadly they learned too late that there were no guarantees that distributions would be made. Some REIT investors have just learned that they would no longer be receiving distributions or that the distributions they actually received were derived from loans and not the true cash flow of the REIT. Brokerage firms and their financial advisors were eager to push REIT investments on their clients for the high commissions compared to other products. Unfortunately, many investors are locked in and unable to sell their REIT investments without selling into deeply discounted secondary markets. If you are an Inland American REIT investor with the same complaints, we believe we can help you recover your REIT losses!
Have you suffered losses resulting from an investment in an Inland American Real Estate Investment Trust? If so, call Robert Pearce at the Law Offices of Robert Wayne Pearce, P.A. for a free consultation. Mr. Pearce is actively investigating and accepting clients with valid claims against stockbrokers who misrepresented and sold Inland American Real Estate Investment Trusts to investors.
The most important of investors' rights is the right to be informed! This Investors' Rights blog post is by the Law Offices of Robert Wayne Pearce, P.A., located in Boca Raton, Florida. For over 30 years, Attorney Pearce has tried, arbitrated, and mediated hundreds of disputes involving complex securities, commodities and investment law issues. The lawyers at our law firm are devoted to protecting investors' rights throughout the United States and internationally! Please visit our website, www.secatty.com, post a comment, call (800) 732-2889, or email Mr. Pearce at pearce@rwpearce.com for answers to any of your questions about this blog post and/or any related matter.

WHAT CAN I DO TO SELL MY COLE REAL ESTATE INVESTMENT TRUST?

Many investors in the Cole Real Estate Investment Trust have called our office and asked the same question: Is there any way I can sell my Cole REIT? This is due to the fact that Cole Real Estate Investment Trusts are non-traded, which means that they do not trade on any public exchange. Unless real estate investment trust (REIT) companies such as Cole decide to register with the Securities and Exchange Commission (SEC) and make a public offering of its shares, investors will most likely not be able to sell their shares and will remain at the mercy of the REITs' performance. But wagering on better performance by non-traded REITs in the near future does not seem to be a viable option for investors to hold their shares either since many non-traded REITs have ceased their buy-back programs and are no longer making promised monthly or quarterly distributions to investors - a universal sign of ruinous events to come for REIT investors.
Unfortunately, the only way to sell your REIT is privately or through an auction through one of several companies making a secondary market in your REIT. Investors looking to sell or liquidate their Cole REITs might want to investigate the following companies who are offering a secondary market for non-traded REITs:
•· REIT Secondary Exchange
•· SecondMarket
•· Pacific Partnership Group
•· Mackenzie Patterson Fuller LP
•· Central Trade and Transfer
•· Lapis Advisors LP
Please note that the Law Offices of Robert Wayne Pearce, P.A. does not recommend or endorse any of the aforementioned information exchanges. Investors are urged to do their own homework before initiating any business. If you cannot locate these companies, please call our office so that we can provide you with their contact information at no charge.
The primary cause of the increased number of telephone calls to our office over the last five years is many elderly and retired investors have been steered into non-traded REITs as yields on other income producing investments have steadily declined. According to many investors, the REITS were recommended as safe, secure, and steady income producing investments which sounded to be exactly what many seniors wanted and needed. When any Cole REIT investor calls our office, we will make a customer specific suitability determination after we learn the "essential facts" concerning that investor. We will ask, just as their stockbroker should have asked, about their age, investment experience, time horizon liquidity needs (length of time they could hold the investment without need for the principal), risk tolerance, other holdings, and financial situation in terms of liquid total net worth, tax status and investment objectives. All of these factors are relevant to suitability determination, and most weigh against the ownership of REIT investments by elderly retired investors. If we believe a brokerage firm or its representatives made an unsuitable recommendation that any person invest in a non-traded REIT, we recommend that they file a FINRA arbitration claim and attempt to recover their losses!
Have you suffered losses resulting from an investment in a Cole Real Estate Investment Trust? If so, call Robert Pearce at the Law Offices of Robert Wayne Pearce, P.A. for a free consultation. Mr. Pearce is actively investigating and accepting clients with valid claims against stockbrokers who misrepresented and sold Cole Real Estate Investment Trusts to investors.
The most important of investors' rights is the right to be informed! This Investors' Rights blog post is by the Law Offices of Robert Wayne Pearce, P.A., located in Boca Raton, Florida. For over 30 years, Attorney Pearce has tried, arbitrated, and mediated hundreds of disputes involving complex securities, commodities and investment law issues. The lawyers at our law firm are devoted to protecting investors' rights throughout the United States and internationally! Please visit our website, www.secatty.com, post a comment, call (800) 732-2889, or email Mr. Pearce at pearce@rwpearce.com for answers to any of your questions about this blog post and/or any related matter.

RETIREES SUFFER MASSIVE LOSSES IN WARSOWE ACQUISITION CORP. DEBENTURES

The Law Offices of Robert Wayne Pearce is currently investigating NFP Securities for recommending Warsowe Acquisition Corp. Debentures, which caused many of their clients to lose money. Andrew Rosenberg and Stuart Horowitz, former stockbrokers with NFP Securities, recommended Warsowe Acquisition to clients in 2007 along with other risky and illiquid investments such as the Hennessey Financial Monthly Income Fund (also known as Capital Solutions) and Inland American Real Estate Trust. Warsowe Acquisition began winding down operations as early as March 2008, which caused investors to lose a significant amount of principal in addition to the income they were promised but never received.
A debenture is type of debt instrument that is not secured by physical assets or collateral. Debentures are backed only by the general creditworthiness and reputation of the issuing entity. Both corporations and governments frequently issue this type of bond in order to secure capital. Bond buyers typically purchase debentures based on the belief that the bond issuer is unlikely to default on the repayment. An example of a government debenture would be any government-issued Treasury bond (T-bond) or Treasury bill (T-bill). Warsowe Acquisition is a Florida corporation that offered investments secured by collateral assignments and corresponding mortgages. NFP Securities marketed and sold the Warsowe Acquisition debentures as safe and secure investments because they were "asset-backed," when the mortgages sold through Warsowe were really subordinate to other mortgages, which made them higher risk investments.
Broker-dealers have a duty to perform due diligence on an investment before offering and selling it to their clients. This consists of examining whether a specific fund will meet an investor's investment horizon, risk tolerance and investment strategy. Financial advisors also have a duty take an individual investor's age, investment experience, and net worth into consideration before making a recommendation. If broker-dealers and financial advisors fail to carry out their duties, investors have the right to file arbitration claims to hold them liable and recover monetary losses.
Have you suffered losses resulting from an investment in Warsowe Acquisition Corp. Debentures? If so, call Robert Pearce at the Law Offices of Robert Wayne Pearce, P.A. for a free consultation. Mr. Pearce is actively investigating and accepting clients with valid claims against stockbrokers who misrepresented and sold the Warsowe Acquisition Corp. Debentures to investors.
The most important of investors' rights is the right to be informed! This Investors' Rights blog post is by the Law Offices of Robert Wayne Pearce, P.A., located in Boca Raton, Florida. For over 30 years, Attorney Pearce has tried, arbitrated, and mediated hundreds of disputes involving complex securities, commodities and investment law issues. The lawyers at our law firm are devoted to protecting investors' rights throughout the United States and internationally! Please visit our website, www.secatty.com, post a comment, call (800) 732-2889, or email Mr. Pearce at pearce@rwpearce.com for answers to any of your questions about this blog post and/or any related matter.

THE HIGHLAND FLOATING RATE ADVANTAGE FUND FRAUD

If a stock brokerage firm or any of its advisors represented the Highland Floating Rate Advantage Fund (the "Highland Fund") to be a "safe" investment or an investment where you could obtain a "high level of current income, consistent with preservation of capital," then you were defrauded. The Highland Fund was anything but a safe conservative income producing investment. It was a highly speculative investment that utilized leverage to invest in "junk" bank loans. The combination of leverage with less than investment grade bank loans was a recipe for disaster. There have been too many investors complaining about how they were lulled into making unsuitable investments in the Highland Fund.
All bank loan funds are risky. But the problem with the Highland Fund was its marketing materials and the fact that its managers utilized more leverage and invested in more bank loans carrying greater risk than other bank loan funds. The Highland Fund used 25% more leverage than other bank loan funds. Generally, bank loan funds invest in loans that are rated BB or B by Standard & Poors, which is just below investment-grade. The Highland fund had twice as much of its holdings in the lower B rated loans and nearly seven times as much of its assets in the highly speculative CCC rated loans. There was no reasonable basis for characterizing the Highland fund as having an investment objective "consistent with preservation of capital" other than to mislead investors.
The Financial Industry Regulatory Authority (FINRA) has issued an Investor Alert to caution investors about the high returns promised by floating rate bank funds. FINRA is concerned and so should you be concerned about stockbrokers who downplayed the risks and emphasized the higher returns of these bank loan fund investments.
Have you suffered losses resulting from an investment in any of the Highland Funds? Those symbols are HFRCX, HFRBX, HFRAX, and HFRZX. If so, call Robert Pearce at the Law Offices of Robert Wayne Pearce, P.A. for a free consultation. Mr. Pearce is actively investigating and accepting clients with valid claims against stockbrokers who fraudulently offered and sold the Highland Fund to investors.
The most important of investors' rights is the right to be informed! This Investors' Rights blog post is by the Law Offices of Robert Wayne Pearce, P.A., located in Boca Raton, Florida. For over 30 years, Attorney Pearce has tried, arbitrated, and mediated hundreds of disputes involving complex securities, commodities and investment law issues. The lawyers at our law firm are devoted to protecting investors' rights throughout the United States and internationally! Please visit our website, www.secatty.com, post a comment, call (800) 732-2889, or email Mr. Pearce at pearce@rwpearce.com for answers to any of your questions about this blog post and/or any related matter.

HAVE YOU LOST MONEY IN A SUNLIFE OR AIG LIFE INSURANCE-DEDICATED FUND?

SunLife Insurance Company (SunLife) and AIG Life Ins. Co. (AIG), and other insurance companies have been engaged in the offer and sale of variable annuities and variable life insurance policies that are really investments in highly speculative hedge funds and private equity funds. These hedge funds and private equity funds are known as "insurance-dedicated funds." The manner in which these insurance-dedicated funds have been sold could be viewed as a false and misleading sales practice. Many investors may have been misled as to the relative safety of their investment when they bought what appeared to be a safe insurance type product that had been fully vetted by an insurance company.
Stockbrokers who offered and sold the SunLife and AIG insurance-dedicated funds were under a duty to only recommend these highly speculative funds to investors who were suitable to make the investment in light of their investment objectives and financial condition. Retail investors who had an objective of seeking an insurance type product would not be suitable investors in highly speculative hedge funds or private equity funds. The fact that these products were sponsored by insurance companies does not mean they were safe and suitable investments. We would not be surprised in learning that many investors were misled by their stockbrokers into purchasing insurance-dedicated funds.
Similarly, we would not be surprised to learn that SunLife, AIG and other insurance companies failed to do their due diligence in investigating the funds that were included in their variable annuities and variable insurance policies. Investors purchasing insurance policies are typically lulled into believing that the insurance company has done its job and is only offering safe products to investors with low risk tolerance. Many investors would be shocked to learn that insurance companies have failed to do their job when it comes to insurance-dedicated funds.
One example of an insurance dedicated fund disaster that was held in variable annuity contracts and variable life insurance policies purchased through SunLife, AIG and other insurance companies was the Strategic Stable Return Fund L. P. (SSR Fund). This was supposed to be a low risk capital preservation fund. However the SSR Fund lost over $100 million of investors' capital as a result of an investment in an affiliate run by an individual who was charged by the SEC with fraud. The SSR Fund also made other investments in feeder funds that invested in a Ponzi scheme.
Have you suffered losses resulting from an investment in a variable annuity contract or variable life insurance policy invested in an insurance-dedicated fund? Have you suffered losses as a result of an investment in a SunLife, AIG or other insurance company product that invested in the SSR Fund? If so, call Robert Pearce at the Law Offices of Robert Wayne Pearce, P.A. for a free consultation. Mr. Pearce is actively investigating and accepting clients with valid claims against SunLife, AIG and other insurance company affiliated stockbrokerage firms who fraudulently offered and sold the fund to investors.
The most important of investors' rights is the right to be informed! This Investors' Rights blog post is by the Law Offices of Robert Wayne Pearce, P.A., located in Boca Raton, Florida. For over 30 years, Attorney Pearce has tried, arbitrated, and mediated hundreds of disputes involving complex securities, commodities and investment law issues. The lawyers at our law firm are devoted to protecting investors' rights throughout the United States and internationally! Please visit our website, www.secatty.com, post a comment, call (800) 732-2889, or email Mr. Pearce at pearce@rwpearce.com for answers to any of your questions about this blog post and/or any related matter.

WAS THE OPPENHEIMER GLOBAL RESOURCE PRIVATE EQUITY FUND, L. P. MISREPRESENTED?

The Oppenheimer Global Resource Private Equity Fund, L.P. (the "Global Resources Fund") was launched by Oppenheimer Holdings, Inc. (Oppenheimer) in April 2008. Oppenheimer raised over $200 million for the Global Resources Fund from investors throughout the United States. Over the life of the fund, Oppenheimer has reported valuations and performance to existing and new investors. The question recently raised by the United States Securities and Exchange Commission (SEC) is whether Oppenheimer misrepresented the valuation and performance of the Global Resources Fund to retain old investors, to avoid lawsuits, and attract new investors. The SEC and Massachusetts Attorney General's office have been actively investigating Oppenheimer and the Global Resources Fund.
It has been reported that the investigation of Oppenheimer is focused on its overvaluation of a single holding within the Global Resource Fund. Apparently, the overvaluation transforms the fund's actual loss of 6.3% in 2009 into a profit of over 38%. If that is what Oppenheimer did, then the overstatement is nothing short of a gross misrepresentation of the fund's performance.
During the relevant period, Oppenheimer continued to market and sell investments in the Global Resource Fund. It appears that Oppenheimer raised an additional $55 million from investors with false and misleading information during the same period. If true, investors relying on the false and misleading performance information would have a good claim for fraudulent misrepresentations and omissions, breach of fiduciary duty, negligence and breach of contract.
Have you suffered losses resulting from an investment in the Global Resources Fund? If so, call Robert Pearce at the Law Offices of Robert Wayne Pearce, P.A. for a free consultation. Mr. Pearce is actively investigating and accepting clients with valid claims against Oppenheimer and it's stockbrokers who fraudulently offered and sold the fund to investors.
The most important of investors' rights is the right to be informed! This Investors' Rights blog post is by the Law Offices of Robert Wayne Pearce, P.A., located in Boca Raton, Florida. For over 30 years, Attorney Pearce has tried, arbitrated, and mediated hundreds of disputes involving complex securities, commodities and investment law issues. The lawyers at our law firm are devoted to protecting investors' rights throughout the United States and internationally! Please visit our website, www.secatty.com, post a comment, call (800) 732-2889, or email Mr. Pearce at pearce@rwpearce.com for answers to any of your questions about this blog post and/or any related matter.

VIATICAL SETTLEMENTS - LIFE PARTNERS OR DEATH PARTNERS?

One must wonder if Life Partners Holdings Inc., a Waco, Texas company that has arranged sales of several billion dollars of life-insurance policies to investors through broker-dealers and investment advisors is your life partner or death partner. Yes, they partner in life with ill life individuals needing immediate cash to take care of themselves, but they are death partners with many investors who expected to profit from these viatical settlement contracts many years ago.
Since investors are on the hook for premium payments until the insured dies, a short mortality estimate would result in the investor anticipating less cost and a higher return on the investment. The company's mortality estimates suggested annual returns of 10% or 15%, which has not been the case. Investors have faced much higher costs and lower returns because Life Partner's mortality estimates were unrealistically short. Many of the insureds are living well beyond the company's estimates.
How did the company derive its mortality estimates, which are critical for investors, is the burning question? The company apparently derived its mortality estimates from a Reno, Nevada, physician, Dr. Cassidy, who provided his data to the United States Securities and Exchange Commission (SEC). Upon review, the SEC concluded Dr. Cassidy was using an "unrealistic" approach that tended to produce inaccurately short life expectancies.
Based on data Life Partners filed with the Texas Department of Insurance, for policies sold from 2002 through 2005, its insureds (many of whom were HIV positive) outlived the company's projections approximately 90% of the time.
Between January 2004 and July 2009, the SEC took legal action against 27 U.S. life-settlement funds and advisers, according to Leslie Scism and Larry Light in their Feb. 6, 2010 Wall Street Journal article, "Grim Risks of Reaping Death's Rewards." Life settlements are on the North American Securities Administrators Association's top-10 list of "investor traps." In 2008, Life Partners reportedly settled a fraud action filed by Colorado regulators, agreeing to repurchase policies sold to Colorado investors.
Life Partners appears to be doing better than its clients, who often buy pieces of multiple policies. The company has sold 6,400 policies with a face value of $2.8 billion to 27,000 clients since 1991, and it extracted fees averaging $308,000 per policy sold in its most recent fiscal year, according to the article. Life Partners reported earnings of $29.4 million on $113 million of revenue for its fiscal year ended Feb. 28, 2010.
In sum, life settlements may benefit the sellers and promoters, but are a risky gamble that is unsuitable for most investors. Are you still holding a viatical settlement contract purchased through a broker from Life Partners or any other viatical settlement company? If so, call Robert Pearce at the Law Offices of Robert Wayne Pearce, P.A. for a free consultation. Mr. Pearce is actively investigating and accepting clients with valid claims against brokers who failed to do their due diligence and/or who made unsuitable recommendations of viatical settlement contracts when they sold these products to investors.
The most important of investors' rights is the right to be informed! This Investors' Rights blog post is by the The Law Offices of Robert Wayne Pearce, P.A., located in Boca Raton, Florida. For over 30 years, Attorney Pearce has tried, arbitrated, and mediated hundreds of disputes involving complex securities, commodities and investment law issues. The lawyers at our law firm are devoted to protecting investors' rights throughout the United States and internationally! Please visit our website, www.secatty.com, post a comment, call (800) 732-2889, or email Mr. Pearce at pearce@rwpearce.com for answers to any of your questions about this blog post and/or any related matter

LPL FINANCIAL SUED FOR REIT SALES PRACTICES

The Commonwealth of Massachusetts Securities Division has recently charged LPL with "dishonest and unethical business practices." The Massachusetts complaint focused on seven Real Estate Investment Trust (REIT) products:

• Inland American
• Cole Credit Property Trust II, Inc.
• Cole Credit Property Trust III, Inc.
• Cole Credit Property 1031 Exchange
• Wells Real Estate Investment Trust II, Inc.
• W.P. Carey Corporate Property Associates 17
• Dividend Capital Total Realty

The individual brokers and advisors who sold non traded REITs are not targets of this investigation. According to securities attorney Robert Pearce, "the brokers weren't targeted because the regulators believed the problem stems from LPL's faulty training and mass marketing of these illiquid investments to LPL Financial sales representatives who then blindly sold them to their unsuspecting and trusting clients. The result was excessive quantities of these unsuitable investments in too many LPL Financial client accounts without regard to their financial needs and condition."
For most investors, liquidity, income and risk tolerance are a concern, but if you are elderly and retired they are paramount! If you have limited resources and no ability to generate income from other sources to meet your liquidity and income needs then a non-traded REIT is an unsuitable investment. Likewise, if you cannot afford a total risk of loss, then speculative non-traded REITs are unsuitable investments. The suitability problem is compounded when any investor's portfolio is concentrated in non-traded REIT investments. A rule of thumb is that no more than 10% of anyone's investment portfolio should be concentrated in real estate investments, including REIT investments, and that percentage should be far less as a person reaches retirement and advances in age, perhaps zero!
Every brokerage firm has the responsibility of "knowing the customer" and making a customer specific "suitability" determination for every investment recommendation. The "Suitability Rule," Financial Industry Regulatory Authority (FINRA) Rule 2111, requires that a firm or associated person "have a reasonable basis to believe that a recommended transaction or investment strategy involving a security or securities is suitable for the customer, based on the information obtained through the reasonable diligence of the member or associated person to ascertain the customer's investment profile." This is a new rule, but it contains the core features of the previous National Association of Securities Dealers ("NASD") and New York Stock Exchange ("NYSE") suitability rules and codifies well-settled interpretations of those rules. Brokerage firms and their associated persons have always had the responsibility to make suitable recommendations in light of an individual's stated investment objectives and financial condition, tax status, and other relevant factors. According to FINRA, some non-traded Real Estate Investment Trust investments ("REITs") aren't suitable for anyone based on the offering terms, misrepresentations and unreasonable projections by the promoters (see FINRA News Release "FINRA Issues Investor Alert on Public Non-Traded REITs").
The primary cause of the increased number of telephone calls to our office over the last five years is many elderly and retired investors have been steered into non-traded REIT investments as the yields on other income producing investments have steadily declined. According to many investors, the REITS were recommended as safe, secure, and steady income producing investments which sounded to be exactly what many seniors wanted and needed. But these products offer little liquidity for investors who at this stage of their life are likely to need to dip into their investment savings to support their lifestyle or for medical and other emergencies. There is no public market for REITs, and early redemption of shares in REITs is often very limited. In addition, the fees associated with the sales of these products can be high and erode the total return, if they can be sold at all. Further, many of these investments do not truly generate income but make distributions with borrowed money, with newly raised capital, or by a return of principal rather than a return on investment, which can stop at any time. Although non-traded REITs may offer some diversification benefits as part of a balanced portfolio, they all have underlying risk characteristics that make them unsuitable for certain investors, particularly the elderly retired investor with limited financial resources.
Have you suffered losses resulting from an investment in any REIT purchased from LPL Financial? If so, call Robert Pearce at the Law Offices of Robert Wayne Pearce, P.A. for a free consultation. Mr. Pearce is actively investigating and accepting clients with valid claims against LPL Financial who fraudulently offered and sold the REITs to investors.
The most important of investors' rights is the right to be informed! This Investors' Rights blog post is by the Law Offices of Robert Wayne Pearce, P.A., located in Boca Raton, Florida. For over 30 years, Attorney Pearce has tried, arbitrated, and mediated hundreds of disputes involving complex securities, commodities and investment law issues. The lawyers at our law firm are devoted to protecting investors' rights throughout the United States and internationally! Please visit our website, www.secatty.com, post a comment, call (800) 732-2889, or email Mr. Pearce at pearce@rwpearce.com for answers to any of your questions about this blog post and/or any related matter.

WHY WOULD YOU WANT TO INVEST IN HEDGE FUNDS?

Warren Buffett has called hedge funds "manager compensation schemes." According to a recent article in The Economist, "Rich Managers, Poor Clients," investors pay for manager expertise, but controlling costs is a better way of having a successful investment than betting on a manager's track record. Some hedge funds charge performance fees of 20% of the gains plus another fixed 2-3% management fee regardless of whether the fund is profitable - a total of 22% in fees. In other words, the hedge fund would have to gain over 22% for investors just to breakeven. The only way to achieve those types of returns is to take extraordinary risk with your investment capital. As The Economist article stated: "It is easy to think of people who have become billionaire's by managing these hedge funds; it is far harder to think of any of their clients who have got as rich."
It is not only the costs associated with hedge funds that trouble me. The reality is they have performed poorly over the last 10 years, while they have made hedge fund managers very wealthy. As measured by the HFRX Indices (widely used benchmarks for hedge fund performance), hedge funds returned just 3% in 2012 compared to an 18% return of the S & P 500 stock Index. The major problem all hedge funds suffer these days is that they have attracted so much money that they cannot invest as they did in the past. There are too many dollars chasing too few market opportunities. And now, hedge funds are "going retail" and becoming widely available to small investors in Funds of Funds and becoming embedded in variable annuities, pension funds, endowments, foundations and other retirement plans. There are nearly 8000 hedge funds on the market and more coming online every day.
The biggest problem we have with hedge funds is a lack of transparency and the lack of due diligence that many brokers perform prior to offering and selling these investments to their biggest and best clients. The complexity and lack of transparency of hedge funds makes them the vehicle of choice for fraudsters. The United States Securities and Exchange Commission (SEC) has become especially concerned and set up a special unit "The Market Abuse Unit" to investigate the problems and abuses in the hedge fund industry. The SEC and the attorneys at our law firm are concerned about unregistered investment advisers engaging in general solicitations to unaccredited investors to put their capital in unregistered hedge funds. Too many retired, income-oriented investors, in search of higher yields have been misled into a number of hedge fund frauds such as the MAT/ASTA funds offered by Smith Barney and Citibank advisers.
Have you suffered losses resulting from an investment in any hedge fund? If so, call Robert Pearce at the Law Offices of Robert Wayne Pearce, P.A. for a free consultation. Mr. Pearce is actively investigating and accepting clients with valid claims against hedge fund salespersons who fraudulently offered and sold the fund to investors.
The most important of investors' rights is the right to be informed! This Investors' Rights blog post is by the Law Offices of Robert Wayne Pearce, P.A., located in Boca Raton, Florida. For over 30 years, Attorney Pearce has tried, arbitrated, and mediated hundreds of disputes involving complex securities, commodities and investment law issues. The lawyers at our law firm are devoted to protecting investors' rights throughout the United States and internationally! Please visit our website, www.secatty.com, post a comment, call (800) 732-2889, or email Mr. Pearce at pearce@rwpearce.com for answers to any of your questions about this blog post and/or any related matter.

THE SYNERGY INVESTMENT GROUP LACKS SUPERVISION

The Synergy Investment Group, LLC ("Synergy"), a securities broker-dealer headquartered in Charlotte, North Carolina with 37 branch offices has been the subject of numerous disciplinary actions brought by the Financial Industry Regulatory Authority ("FINRA") F/K/A the National Association of Securities Dealers ("NASD"). The recent complaints have focused on Synergy's inability to manage its branch offices and their offer and sale of private placement investments without management's knowledge and/or adequate due diligence.
At the beginning of this year, FINRA censored and fined Synergy and two of its representatives, including its Director of Compliance, in connection with the offer and sale of securities issued by Medical Provider Funding Corporation VI, a subsidiary of Medical Capital Holdings, Inc. (Medcap). FINRA found that Synergy failed to conduct reasonable due diligence in connection with a Medcap offering and that the brokerage firm's written supervisory procedures (WSPs) were inadequate and failed to protect public investors. Further, FINRA found that the firm's Compliance Director did not even follow the existing WSP's in approving the offering for sale to customers. The failure of Synergy to follow FINRA and long-standing NASD rules allowed the selling broker to misrepresent and conceal important facts from investors.
Recently, FINRA charged Synergy and another one of its branch office's representatives with fraud and other violations of FINRA and NASD rules relating to the prior approval of any securities to be sold by the brokerage firm's representatives. The securities involved were issued by Surety Partners, LLC, The Broyhill All-Weather Fund, LP, and Broyhill Asset Management (F/K/A Broyhill DW Capital Advisors).
FINRA requires all of its members to conduct due diligence and approve all securities beforehand. When a brokerage firm's representatives skirt around the rules and offer securities that have not been approved, those individuals engage in a violation known as "selling away". This practice is the product of a brokerage firm's failure to enact and enforce supervisory procedures.
Apparently, supervision is a major problem at the Synergy brokerage firm, and the FINRA regulators are pursuing an investigation of all Synergy's branch offices. Unfortunately, FINRA is not in the business of recovering funds for investors lost as a result of a brokerage firm's failure to supervise its representatives.
Have you suffered losses resulting from an investment in any private placement offered and sold by a Synergy sales representative? If so, call Robert Pearce at the Law Offices of Robert Wayne Pearce, P.A. for a free consultation. Mr. Pearce is actively investigating and accepting clients with valid claims against Synergy salespersons who fraudulently offered and sold the fund to investors.
The most important of investors' rights is the right to be informed! This Investors' Rights blog post is by the Law Offices of Robert Wayne Pearce, P.A., located in Boca Raton, Florida. For over 30 years, Attorney Pearce has tried, arbitrated, and mediated hundreds of disputes involving complex securities, commodities and investment law issues. The lawyers at our law firm are devoted to protecting investors' rights throughout the United States and internationally! Please visit our website, www.secatty.com, post a comment, call (800) 732-2889, or email Mr. Pearce at pearce@rwpearce.com for answers to any of your questions about this blog post and/or any related matter.

THE WILLOW FUND FRAUD AND MISMANAGEMENT INVESTIGATION

In 2000, UBS Financial Services, Inc. (UBS) and Bond Street Capital (BSC) formed a closed-end mutual fund to purchase debt and other securities of distressed (near bankrupt) companies restructuring their debt financing. Since 2007, the net asset value of the Fund declined by over 300 million dollars. Some investors have lost over 85% of their initial investment capital as a result of gross misrepresentations and mismanagement of the fund.
It appears that many UBS advisors are misinformed by the company about the nature, mechanics and risks of the Willow Fund and in turn, misinformed their clients. Some of UBS's best clients invested in what they were led to believe to be a "safe" and "secure" investment with a "guaranteed income stream." They were unaware of the extensive leverage through the use of derivatives and credit swap contracts. This was a highly speculative investment and unsuitable for many of those clients with income as their primary investment objective.
The Willow Fund managers ratcheted up the risk by failing to perform the rigorous credit analysis on the company's restructuring of their debt financing. In addition, the managers failed to limit the risk positions and diversify the portfolio as represented. It appears that a gross breach of fiduciary duty and negligence occurred in the management of the fund.
Have you suffered losses resulting from an investment in the Willow Fund? If so, call Robert Pearce at the Law Offices of Robert Wayne Pearce, P.A. for a free consultation. Mr. Pearce is actively investigating and accepting clients with valid claims against UBS and other stockbrokers who fraudulently offered and sold the fund to investors.
The most important of investors' rights is the right to be informed! This Investors' Rights blog post is by the Law Offices of Robert Wayne Pearce, P.A., located in Boca Raton, Florida. For over 30 years, Attorney Pearce has tried, arbitrated, and mediated hundreds of disputes involving complex securities, commodities and investment law issues. The lawyers at our law firm are devoted to protecting investors' rights throughout the United States and internationally! Please visit our website, www.secatty.com, post a comment, call (800) 732-2889, or email Mr. Pearce at pearce@rwpearce.com for answers to any of your questions about this blog post and/or any related matter.

T. ROWE PRICE FINED FOR FAILURE TO DELIVER PROSPECTUSES TO INVESTORS

T. Rowe Price Investment Services, Inc. (T. Rowe Price) has been fined by the Financial Industry Regulatory Authority (FINRA) for violation of securities industry rules and regulations relating to the protection of investors. T. Rowe Price failed to implement and maintain adequate supervisory systems and procedures to monitor and ensure the timely delivery of mutual fund prospectuses as required by Section 5 of the Securities Act of 1933 (the "Securities Act"), NASD Conduct Rule 3010 and FINRA Rule 2010. FINRA investigators discovered that T. Rowe Price failed to provide prospectuses to its customers who purchased mutual funds and other securities products during the period of its investigation - 2009 through 2011 (the "relevant period"). FINRA estimated that T. Rowe Price may have failed to deliver at least 2,500 prospectuses to its customers in a timely manner during that period.
The federal and state securities laws require the delivery of a prospectus to investors because it provides them with important information about the product being purchased. Our federal and state securities laws require disclosure of the details of the enterprise in which an investor's putting money so that he can be fully apprised and can intelligently appraise the risks involved in his or her particular investment. Not only has T. Rowe Price violated the Section 5 of the Securities Act, but it has also violated Section 10 (b) of the Securities Exchange Acts of 1934 (the "Exchange Act"), which states the time a prospectus must be delivered. A prospectus is required to be delivered by securities broker-dealer before the transaction is complete on the settlement date of the transaction, which in the case of mutual fund transactions and most stock transactions is no later than 3 business days after the order is placed.
The failure to deliver prospectuses in a timely manner is an extremely serious violation. It is not only a violation that can result in sanctions by securities regulator such as FINRA, but it can also give rise to a civil action or arbitration claim by an investor for rescission (to unwind the transaction) under both federal and state securities laws. Alternatively, an investor may recover damages for losses suffered in connection with an investment he or she made through T. Rowe Price if that investor did not receive a prospectus in a timely manner.
Have you suffered losses resulting from a T. Rowe Price stockbroker's failure to deliver a prospectus relating to an investment made through that brokerage firm? If so, call Robert Pearce at the Law Offices of Robert Wayne Pearce, P.A. for a free consultation.
The most important of investors' rights is the right to be informed! This Investors' Rights blog post is by the Law Offices of Robert Wayne Pearce, P.A., located in Boca Raton, Florida. For over 30 years, Attorney Pearce has tried, arbitrated, and mediated hundreds of disputes involving complex securities, commodities and investment law issues. The lawyers at our law firm are devoted to protecting investors' rights throughout the United States and internationally! Please visit our website, www.secatty.com, post a comment, call (800) 732-2889, or email Mr. Pearce at pearce@rwpearce.com for answers to any of your questions about this blog post and/or any related matter.

STATE FARM VP MANAGEMENT CORP. FINED FOR FAILURE TO DELIVER PROSPECTUSES TO INVESTORS

State Farm VP Management Corp. (State Farm) has been fined by the Financial Industry Regulatory Authority (FINRA) for violation of securities industry rules and regulations relating to the protection of investors. State Farm failed to implement and maintain adequate supervisory systems and procedures to monitor and ensure the timely delivery of mutual fund prospectuses as required by Section 5 of the Securities Act of 1933 (the "Securities Act"), NASD Conduct Rule 3010 and FINRA Rule 2010. FINRA investigators discovered that State Farm failed to provide prospectuses to its customers who purchased mutual funds and other securities products during the period of its investigation - 2009 through 2011 (the "relevant period"). FINRA estimated that State Farm may have failed to deliver at least 150,000 prospectuses to its customers in a timely manner during that period. Further, FINRA investigators found that State Farm failed to send updated prospectuses, which is also required under the law and industry rules to thousands of investors from 2001 through 2012.
The federal and state securities laws require the delivery of a prospectus to investors because it provides them with important information about the product being purchased. Our federal and state securities laws require disclosure of the details of the enterprise in which an investor's putting money so that he can be fully apprised and can intelligently appraise the risks involved in his or her particular investment. Not only has State Farm violated Section 5 of the Securities Act but it has also violated Section 10 (b) of the Securities Exchange Acts of 1934 (the "Exchange Act"), which states the time a prospectus must be delivered. A prospectus is required to be delivered by securities broker-dealer before the transaction is complete on the settlement date of the transaction, which in the case of mutual fund transactions and most stock transactions is no later than 3 business days after the order is placed.
The failure to deliver prospectuses in a timely manner is an extremely serious violation. It is not only a violation that can result in sanctions by securities regulators such as FINRA, but it can also give rise to a civil action or arbitration claim by an investor for rescission (to unwind the transaction) under both federal and state securities laws. Alternatively, an investor may recover damages for losses suffered in connection with an investment he or she made through State Farm if that investor did not receive a prospectus in a timely manner.
Have you suffered losses resulting from a State Farm stockbroker's failure to deliver a prospectus relating to an investment made through that brokerage firm? If so, call Robert Pearce at the Law Offices of Robert Wayne Pearce, P.A. for a free consultation.
The most important of investors' rights is the right to be informed! This Investors' Rights blog post is by the Law Offices of Robert Wayne Pearce, P.A., located in Boca Raton, Florida. For over 30 years, Attorney Pearce has tried, arbitrated, and mediated hundreds of disputes involving complex securities, commodities and investment law issues. The lawyers at our law firm are devoted to protecting investors' rights throughout the United States and internationally! Please visit our website, www.secatty.com, post a comment, call (800) 732-2889, or email Mr. Pearce at pearce@rwpearce.com for answers to any of your questions about this blog post and/or any related matter.

DEUTSCHE BANK SECURITIES INC. FINED FOR FAILURE TO DELIVER PROSPECTUSES TO INVESTORS

Deutsche Bank Securities Inc. (DBSI) has been fined by the Financial Industry Regulatory Authority (FINRA) for violation of securities industry rules and regulations relating to the protection of investors. DBSI failed to implement and maintain adequate supervisory systems and procedures to monitor and ensure the timely delivery of mutual fund prospectuses as required by Section 5 of the Securities Act of 1933 (the "Securities Act"), NASD Conduct Rule 3010 and FINRA Rule 2010. FINRA investigators discovered that DBSI failed to provide prospectuses to its customers who purchased mutual funds and other securities products during the period of its investigation - 2009 through 2011 (the "relevant period"). FINRA estimated that DBSI may have failed to deliver at least 75,000 prospectuses to its customers in a timely manner during that period.
The federal and state securities laws require the delivery of a prospectus to investors because it provides them with important information about the product being purchased. Our federal and state securities laws require disclosure of the details of the enterprise in which an investor's putting money so that he can be fully apprised and can intelligently appraise the risks involved in his or her particular investment. Not only has DBSI violated the Section 5 of the Securities Act, but it has also violated Section 10 (b) of the Securities Exchange Acts of 1934 (the "Exchange Act"), which states the time prospectus must be delivered. A prospectus is required to be delivered by a securities broker-dealer before the transaction is complete on the settlement date of the transaction, which in the case of mutual fund, other initial public offering (IPO) transactions and most stock transactions is no later than 3 business days after the order is placed.
The failure to deliver prospectuses in a timely manner is an extremely serious violation. It is not only a violation that can result in sanctions by securities regulator such as FINRA, but it can also give rise to a civil action or arbitration claim by an investor for rescission (to unwind the transaction) under both federal and state securities laws. Alternatively, an investor may recover damages for losses suffered in connection with an investment he or she made through DBSI if that investor did not receive a prospectus in a timely manner.
Have you suffered losses resulting from a DBSI stockbroker's failure to deliver a prospectus relating to an investment made through that brokerage firm? If so, call Robert Pearce at the Law Offices of Robert Wayne Pearce, P.A. for a free consultation.
The most important of investors' rights is the right to be informed! This Investors' Rights blog post is by the Law Offices of Robert Wayne Pearce, P.A., located in Boca Raton, Florida. For over 30 years, Attorney Pearce has tried, arbitrated, and mediated hundreds of disputes involving complex securities, commodities and investment law issues. The lawyers at our law firm are devoted to protecting investors' rights throughout the United States and internationally! Please visit our website, www.secatty.com, post a comment, call (800) 732-2889, or email Mr. Pearce at pearce@rwpearce.com for answers to any of your questions about this blog post and/or any related matter.