The White Law Group is investigating the liability that FINRA registered brokerage firms may have for recommending SCI Real Estate Investments to their clients.

Brokerage firms have a fiduciary duty to their clients to perform due diligence on an investment prior to offering them for sale to their clients.  Based on what is now known about SCI Real Estate Investments and the firm’s investment offerings, it does not appear that the brokerage firms that sold these products did perform the necessary due diligence.

SCI Real Estate Investments, LLC operates as a real estate company in the United States. It acquires multi-family and retail properties in the United States and offers co-ownership interests in those properties as 1031 exchanges and investments to individual real estate buyers. The company was founded in 1994 and is based in Los Angeles, California. On February 11, 2011, SCI Real Estate Investments, LLC filed a voluntary petition for reorganization under Chapter 11 in the U.S. Bankruptcy Court for the Central District of California.  The confirmation hearing for the firm’s liquidation plan is scheduled for June 13, 2012.

SCI Capital Group Mezzanine Fund is one SCI offering that appears particularly problematic.  The Mezzanine Fund did not invest in real estate but invested in unsecured loans to SCI and its affiliates.  These loans appear likely to be discharged by SCI’s bankruptcy filing.

Other SCI tenant-in-common (TIC) real estate investments have also been adversely effected by the real estate market collapse.

To determine whether you may be able to recover investment losses incurred as a result of your purchase of a SCI Real Estate Investments’ offering, please contact The White Law Group at 312-238-9650 for a free consultation.

The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm with offices in Chicago, Illinois and Boca Raton, Florida.

For more information on The White Law Group, visit http://www.whitesecuritieslaw.com.

According to court documents, between Dec. 29, 2006, and Nov. 5, 2010, Guelinas transferred in excess of $800,000 from a client’s account into her personal bank account by forging her client’s name on the wire transfer requests.

Guelinas’ FINRA Broker Report indicates that she was registered with Ameriprise Financial Services during the time of the allegations.

The White Law Group is investigating the liability that Ameriprise may have for failure to adequately supervise Guelinas and her activities.

If you invested with Guelinas and have questions about your investments, please call the securities attorneys of The White Law Group at 312/238-9650 for a free consultation.

The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm with offices in Chicago, Illinois and Boca Raton, Florida.

For more information on The White Law Group, please visit our website at http://www.whitesecuritieslaw.com.

According to the FINRA announcement, users now have:

-  centralized access to licensing and registration information on current and former brokers and brokerage firms, and investment adviser representatives and investment adviser firms;

-  the ability to search for and locate a financial services professional based on main office and branch locations, and the ability to conduct ZIP code radius searches (in increments of 5, 15 or 25 miles); and

-  access to expanded educational content available on BrokerCheck, including new help icons that clarify commonly referenced terms throughout the system and within BrokerCheck reports.

While investors have been able for years to obtain information about, and the disciplinary record of, any FINRA-registered broker or brokerage firm by using FINRA’s BrokerCheck, the updates should make it easier to perform this research.

The foregoing information is provided by The White Law Group.  The White Law Group is a national securities fraud, securities arbitration and investor protection law firm with offices in Chicago, Illinois and Boca Raton, Florida.  The firm represents investors in FINRA arbitration claims against their brokerage firm or financial professional.  These claims often involve various securities fraud violations, including unsuitable investment recommendations in violation of the Know Your Customer Rule, and failure to perform adequate due diligence on the investments recommended.

For more information on The White Law Group, visit http://www.whitesecuritieslaw.com.

The White Law Group is investigating potential securities fraud claims involving broker-dealers’ improper recommendation that investors purchase risky non-traded REIT investments, including Healthcare Trust of America.

FINRA recently announced that it is paying close attention to the sale of REITs and, in particular, the ways in which broker/dealers marketed and sold the products to investors. In many cases, and notwithstanding the risk of REIT investments, broker-dealers marketed these investments as safe and secure.

REITs typically pay a high commission – often as much as 15% (which often explains the stockbroker’s motivation in recommending the REIT investment to the investor).

Due to the relatively high interest or dividend offered by non-traded REITs like Healthcare Trust of America, retired investors are often attracted to these products.

According to its website, Healthcare Trust of America is a “fully integrated, self-administered, self-managed real estate investment trust.” Since its formation in 2006, Healthcare Trust of America has invested approximately $2.5 billion in various real estate projects.

In a recent SEC filing, Healthcare Trust of America announced that it would be taking the REIT public, with an anticipated ticker symbol of “HTA.”

Although, Healthcare Trust of America is seeking an IPO price of at least $10.10 per share, according to the filing, in light of Inland Western REIT’s recent IPO and the fact that the market set the share price considerably lower than Inland Western had anticipated, it is certainly possible that Healthcare Trust of America’s initial share price will be lower than anticipated.

The White Law Group’s investigation into the improper sales of non-traded REITs to investors is not limited to Healthcare Trust of America.  The firm is also representing investors in claims against their brokerage firm involving the following non-traded REITs: Behringer Harvard REIT I, Inland America Real Estate Trust, Inland Western Retail Real Estate Trust, Wells Real Estate Investment Trust II, Piedmont Office Realty Trust, Desert Capital REIT, Apple REIT, Crystal River REIT, and KBS REIT.

To determine whether you may be able to recover investment losses incurred as a result of your purchase of a risky REIT investment, please contact The White Law Group at 312-238-9650 for a free consultation.

The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm with offices in Chicago, Illinois and Boca Raton, Florida.

For more information on The White Law Group, visit http://www.whitesecuritieslaw.com.

The Charles Schwab Corp. last year bought optionsXpress Holdings Inc., the parent company of brokersXpress.  It is unclear why brokersXpress would be shutting its doors now.

brokersXpress has attracted independent financial advisors by offering (according to its website) (1) high payouts, low ticket charges and no hidden fees, (2) expert support, (3) trading convenience, and (4) true independence.

If the news about brokersXpress’ closing is true, the reps with brokersXpress will be looking for a new platform for their business.

The foregoing information has been provided by The White Law Group.  The White Law Group is a national securities fraud, securities arbitration, securities regulation and investor protection law firm with offices in Chicago, Illinois and Boca Raton, Florida.

For more information on the firm, visit http://www.whitesecuritieslaw.com.

According to reports, Montford failed to disclose the payments and specifically represented to its clients that the firm did not receive any compensation in connection with giving advice to their clients.

The White Law Group is investigating the legal liability that Montford has to its clients for failing to disclose the payments it received.

For information on the firm’s investigation, please call the firm at 312/238-9650.

The White Law Group is a national securities fraud, securities arbitration, and investor protection law firm with offices in Chicago, Illinois and Boca Raton, Florida.

For more information on The White Law Group, visit http://www.whitesecuritieslaw.com.

The SEC recently announced that it is looking at activity of Inland American REIT to determine if the REIT committed violations related to management fees, the timing and amount of distributions paid to investors, and transactions with affiliates.  It is unclear at this time what the investigation will mean for the value of Inland American REIT but obviously this is not good news.

The White Law Group is investigating potential securities fraud claims involving broker-dealers’ improper recommendation that investors purchase risky non-traded REIT investments, including Inland American REIT.

FINRA has stepped up its regulation of the sale of REITs and, in particular, the ways in which broker/dealers marketed and sold the products to investors. In many cases, and notwithstanding the risk of REIT investments, broker-dealers marketed these investments as safe and secure.

REITs typically pay a high commission – often as much as 15% (which often explains the stockbroker’s motivation in recommending the REIT investment to the investor).

Due to the relatively high interest or dividend offered by non-traded REITs like Inland American REIT, retired investors are often attracted to these products.  Unfortunately, in addition to be risky investments, non-traded REITs are also illiquid (limiting investors ability to access their own money for unforeseen expenses).

Another problem with non-traded REITs is that broker-dealers are not required to frequently update the current price of the investment.  This often leads investors to believe that there REIT investment is doing well even though the widespread real estate market collapse would indicate otherwise.

To determine whether you may be able to recover investment losses incurred as a result of your purchase of a risky REIT investment, please contact The White Law Group at 312-238-9650.

The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm with offices in Chicago, Illinois and Boca Raton, Florida.

For more information on The White Law Group, visit http://www.whitesecuritieslaw.com.

According to the report, the SEC is looking at activity of Inland American REIT to determine if the REIT committed violations related to management fees, the timing and amount of distributions paid to investors, and transactions with affiliates.

Inland American is the largest of the nontraded REITs currently available and the investigation casts a large shadow on the nontraded REIT market.

The White Law Group continues to investigate the liability that brokerage firms have for recommending nontraded REITs like Inland American REIT.

Brokerage firms have a fiduciary duty to perform adequate due diligence on any investment that they recommend and to ensure that the investments recommended are appropriate in light of the client’s age, investment experience, net worth, and investment objectives.

The problems we see involving nontraded REITs generally relates to the financial advisor’s failure to adequately disclose the risks and illiquidity of these investments (as well as the high commission he/she earned for selling the REIT).

One of the other main complaints we continually hear relates to the problems in the valuation of these investments.  Finra rules currently mandate that sponsors of nontraded REITs establish an estimated per-share valuation within 18 months after the REIT stops raising money from investors. The problem with this language is that fund raising often lasts for years which results in the per-share valuation potentially remaining unchanged for years.

The White Law Group’s investigation into the improper sales of non-traded REITs includes, but is not limited to, recommendations to invest in the following REITs: Behringer Harvard REIT I, Inland America Real Estate Trust, Inland Western Retail Real Estate Trust, Wells Real Estate Investment Trust II, Piedmont Office Realty Trust, Desert Capital REIT, Apple REIT, Crystal River REIT, and KBS REIT.

To determine whether you may be able to recover investment losses incurred as a result of your purchase of Inland American REIT, please contact The White Law Group at 312-238-9650.

The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm with offices in Chicago, Illinois and Boca Raton, Florida.

For more information on The White Law Group, visit http://www.whitesecuritieslaw.com.

The White Law Group is currently investigating the liability that brokerage firms may have for recommending complicated and high risk ETF’s like TVIX.

The VelocityShares Daily 2x VIX Short-Term ETN (TVIX) offers leveraged exposure to VIX contracts; the note is linked to an index comprised of front month futures with a 200% leverage on the movements in volatility. TVIX is clearly a risky investment.  However, because it is an ETF, many unsophisticated investors may have confused it with the more traditional (and conservative) ETFs that have become so popular.

On March 22, 2012, TVIX lost 29.3% of its total share price as investors scrambled to sell off their positions. The following trading day saw losses that were even more severe, 29.8%, as the fund was then trading at $7.16 per share. The net losses of the two days (after closing at $14.43 on Wednesday) totaled just over 50%, a massive swing that left many with big losses in a matter of hours.

FINRA and the SEC are beginning to step up their efforts to regulate nontraditional ETFs and ETNs live TVIX ETF and to monitor the manner in which these products are marketed and sold to the investing public.

FINRA and the SEC published a joint investor alert in 2009 warning that leveraged and inverse ETFs are complicated investments that focus on meeting daily performance goals. The agencies said long-term performance is likely to be very different than the investment’s stated daily objectives, and recommended that investors discuss the products with an investment professional.

If you have suffered losses in the TVIX ETF, the securities attorneys of The White Law Group may be able to help.  For a free consultation, please call the firm at 312/238-9650.

The White Law Group is a national securities fraud, securities arbitration, and investor protection law firm with offices in Chicago, Illinois and Boca Raton, Florida.  The firm exclusively represents investors in FINRA arbitration claims against their brokerage firm or financial professional.

For more information on The White Law Group, visit http://www.whitesecuritieslaw.com.

The problems with these investments generally relates to the financial advisor’s failure to adequately disclose the risks and illiquidity of these investments (as well as the high commission he/she earned which was no doubt the real driving force in recommending the investments).

One of the other main complaints we continually hear relates to the problems in the valuation of these investments.  Finra rules currently mandate that sponsors of nontraded REITs establish an estimated per-share valuation within 18 months after the REIT stops raising money from investors. The problem with this language is that fund raising often lasts for years which results in the per-share valuation potentially remaining unchanged for years.

Also, the conflict of interest in having the sponsor of the nontraded REIT establish the valuation of the REIT is obvious.  Notwithstanding this obvious conflict, certain non-traded REITs are still fighting the manner in which valuations will be done in the future.

The Investment News recently reported that the nontraded-REIT industry is deeply divided about valuations as regulators prepare to codify rules on creating an estimated share value for these products.

A key sticking point is whether REITs and other private investments should use an independent third party to conduct appraisals.

Apparently certain non-traded REIT sponsors argued that the wide variety of private-investment products makes mandatory third-party appraisals inappropriate.  This position is ludicrous and touches on the main problems with these investments – transparency.

Is it not problematic enough for investors that the investment is illiquid, but the industry would like for these investors to also have no reasonable way of knowing what an independent valuation of the shares actually is?

It also appears that the proposed changes may be moving in the wrong direction.  Under the new proposal, broker-dealers no longer would be required to provide a per-share estimated value, unless the issuer provided an estimate based upon an appraisal of assets and liabilities in a periodic or current report under the Securities and Exchange Act of 1934.

Instead, during the initial offering period, broker-dealers would have the option of using a modified net offering price or designating the securities as “not priced.”

We have already seen at least one brokerage firms use the “not priced” method on its account statements and this allows for the possibility that the firm’s advisors could misrepresent the price to assuage fears and concerns about the pricing of the non-traded REIT.

What the non-traded REIT industry needs is complete transparency – transparency regarding pricing, transparency regarding the commissions generated, and transparency regarding the secondary market prices available to those investors looking to sell.

The reason that the industry fights so hard to oppose these things is that if they existed, people would quickly discover that non-traded REITs are created to be sold and not bought.

If you are a non-traded REIT investor interested in your litigation options, please call the securities attorneys of The White Law Group at 312-238-9650 for a free consultation.

The White Law Group is a national securities fraud, securities arbitration, and investor protection law firm with offices in Chicago, Illinois and Boca Raton, Florida.  The firm exclusively represents investors in FINRA arbitration claims against their brokerage firm or financial professional.

For more information on The White Law Group, visit http://www.whitesecuritieslaw.com.