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.

The White Law Group is currently investigating the liability that brokerage firms may have for recommending these complicated and high risk products.

FINRA is beginning to step up its efforts to regulate nontraditional ETFs and ETNs and to ensure that these complicated products are not sold to unsophisticated investors.

Citigroup Global Markets Inc., Morgan Stanley, UBS Financial Services Inc. and Wells Fargo recently agreed to pay $9.1 million to settle allegations that they sold leveraged and inverse exchange-traded funds to clients who had no business investing in the complex instruments.

In its first actions against firms that put clients in these products, Finra said the four wirehouses experienced supervisory failures and lacked a “reasonable basis” for recommending the securities to certain clients. Together, the firms bought and sold $27 billion of the nontraditional ETFs from January 2008 through June 2009, Finra said.

The firms agreed to pay the fines of $7.3 million and restitution of $1.8 million without admitting or denying the allegations.

These sanctions are likely only the beginning as it is now clear that ETFs and ETNs are a significant problem for the brokerage industry.

In March 2010, the SEC stopped approving applications for ETFs that use derivatives and indicated that it wants to review whether additional investor protections are warranted, particularly for leveraged and inverse ETFs.

FINRA and the SEC’s involvement in these products is a result of the leverage and risks associated with these investments and the concern that such investments can be confused with less risky and more traditional ETFs.

The more exotic ETFs are riskier because they reset daily and use leverage and compounding. Results of leveraged and inverse ETFs can differ significantly from the performance of the underlying index, especially when held for long periods of time and during volatile markets.

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 an inverse ETF or ETN, 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 following is a list of some of the ETFs and ETNs currently available:

BGZ – Direxion Daily Large Cap Bear 3X Shares ETF

BIS – UltraShort NASDAQ Biotechnology ETF

BRIS – Direxion Daily BRIC Bear 3x Shares ETF

BXDB – Barclays Short B Leveraged Inverse S&P 500 Total Return ETN

COWS – Direxion Daily Agribusiness Bear 3x Shares ETF

DDG – Short Oil & Gas ProShares ETF

DGLD – 3x Inverse Gold ETN

DLBS – iPath US Treasury Long Bond Bear ETN

DMM – MacroShares Housing Down ETF

DNO – United States Short Oil ETF

DOG – Short Dow30 ProShares ETF

DOY – MacroShares $100 Oil Down ETF

DPK – Direxion Daily Devloped Markets Bear 3X Shares ETF

DSLV – 3x Inverse Silver ETN

DSTJ – JP Morgan 2X Short US Long Treasury Futures ETN

DSXJ – JP Morgan 2X Short US 10 Year Treasury Futures ETN

DUG – UltraShort Oil & Gas ProShares ETF

DUST – Direxion Daily Gold Miners Bear 3x Shares ETF

DXD – UltraShort Dow 30 ProShares ETF

EDZ – Direxion Daily Emerging Markets Bear 3X Shares ETF

EEV – UltraShort MSCI Emerging Markets ProShares ETF

EFU – UltraShort MSCI EAFE ProShares ETF

EFZ – Short MSCI EAFE ProShares ETF

ERY – Direxion Daily Energy Bear 3X Shares ETF

EUM – Short MSCI Emerging Markets ProShares ETF

EUO – ProShares UltraShort Euro ETF

EWV – UltraShort MSCI Japan ProShares ETF

FAZ – Direxion Daily Financial Bear 3X Shares ETF

FXP – UltraShort FTSE/Xinhua China25 Proshares ETF

GASX – Direxion Daily Natural Gas Related Bear 3X Shares ETF

GLL – UltraShort Gold ProShares ETF

INDZ – Direxion Daily India Bear 3x Shares ETF

IPAL – 2x Inverse Palladium ETN

IPLT – 2x Inverse Platinum ETN

KRS – Short KBW Regional Banking ETF

KOLD – UltraShort DJ-UBS Natural Gas ETF

LHB – Direxion Daily Latin America 3x Bear Shares ETF

MATS – Direxion Daily Basic Materials Bear 3X Shares ETF

MWN – Direxion Daily Mid Cap Bear 3X Shares ETF

MYY – Short MidCap400 ProShares ETF

MZZ – UltraShort MidCap400 ProShares ETF

PSQ – Short QQQ ProShares ETF

PST – ProShares UltraShort 7-10 Year Treasury ETF

QID – UltraShort QQQ ProShares ETF

QLD – Ultra QQQ ProShares ETF

REK – ProShares Short Real Estate ETF

RETS – Direxion Daily Retail Bear 3X Shares ETF

REW – UltraShort Technology ProShares ETF

RINF – ProShares 30 Year TIPS/TSY Spread ETF

RSW – Rydex Inverse 2x S&P 500 ETF

RUSS – Direxion Daily Russia Bear 3x Shares ETF

RWM – Short Russell2000 ProShares ETF

RXD – UltraShort Health Care ProShares ETF

SAGG – Daily Total Bond Market Bear 1x Shares ETF

SBB – ProShares Short S&P SmallCap600 ETF

SBM – ProShares Short Basic Materials ETF

SCC – ProShares UltraShort Consumer Services ETF

SCO – ProShares UltraShort DJ-AIG Crude Oil ETF

SDD – ProShares UltraShort SmallCap600 ETF

SDK – ProShares UltraShort MidCap Growth ETF

SDOW – UltraPro Short Dow 30 ETF

SDP – ProShares UltraShort Utilities ETF

SDS – ProShares UltraShort S&P500 ETF

SEF – Short Financials ProShares ETF

SFK – ProShares UltraShort Russell1000 Growth ETF

SH – ProShares Short S&P500 ETF

SICK – Direxion Daily Healthcare Bear 3X Shares ETF

SIJ – ProShares UltraShort Industrials ETF

SJB – ProShares Short High Yield ETF

SJH – UltraShort Russell2000 Value ProShares ETF

SJL – ProShares UltraShort MidCap Value ETF

SFK – UltraShort Russell1000 Growth ProShares ETF

SKK – UltraShort Russell 2000 Growth ProShares ETF

SMDD – UltraPro Short Mid-Cap 400

SMN – ProShares UltraShort Basic Materials ETF

SOXS – Direxion Daily Semiconductor Bear 3x Shares ETF

SPXU – ProShares Ultra Pro Short S&P 500 ETF

SQQQ – UltraPro Short QQQ ETF

SRS – ProShares UltraShort Real Estate ETF

SRTY – UltraPro Short Russell 2000 ETF

SSG – ProShares UltraShort SemiConductor ETF

SVXY – ProShares Short VIX Short-Term Futures ETF

SZK – ProShares UltraShort Consumer Goods ETF

TBF – ProShares Short 20+ Year Treasury ETF

TBT – ProShares UltraShort 20+ Year Treasury ETF

TBX – Short 7-10 Year Treasury ETF

TBZ – UltraShort 3-7 Year Treasury ETF

TLL – ProShares UltraShort Telecommunications ETF

TMV – Direxion Daily 30-year Treasury Bear 3x Shares ETF

TOTS – Direxion Daily Total Market Bear 1X Shares ETF

TPS – ProShares UltraShort TIPS ETF

TTT – UltraPro Short 20+ Year Treasury ETF

TWM – UltraShort Russell 2000 ProShares ETF

TYBS – Daily 20 Year Plus Treasury Bear 1x Shares ETF

TYNS – Daily 7-10 Year Treasury Bear 1x Shares ETF

TYO – Direxion Daily 10-year Treasury Bear 3x Shares ETF

TYP – Direxion Daily Technology Bear 3x Shares ETF

TZA – Direxion Daily SmallCap Bear 3x Shares ETF

TWQ – ProShares UltraShort Russell 3000 Index ETF

UDN – PowerShares US Dollar Bearish ETF

YCS – ProShares UltraShort Yen ETF

YXI – Proshares Short FTSE / Xinhua China 25 ETF

ZSL – ProShares UltraShort Silver ETF

AGA – PowerShares DB Agriculture Double Short ETN

BOM – PowerShares DB Base Metals Double Short ETN

DDP – PowerShares DB Commodity Short ETN

DEE – PowerShares DB Commodity Double Short ETN

DGZ – PowerShares DB Gold Short ETN

DRR – Market Vectors Double Short Euro ETN

DTO – PowerShares DB Crude Oil Double Short ETN

DTUS – iPath US Treasury 2-year Bear ETN

DTYS – iPath US Treasury 10-year Bear ETN

DZZ – PowerShares DB Gold Double Short ETN

EMSA – iPath Short Enhanced MSCI Emerging Markets Index ETN

IVOP – iPath Inverse S&P 500 VIX Short-Term Futures ETN

JGBS – PowerShares DB Inverse Japanese Government Bond Futures ETN

JGBD – PowerShares DB 3x Inverse Japanese Government Bond Futures ETN

MFSA – iPath Short Enhanced MSCI EAFE Index ETN

MLPS – UBS E-TRACS 1x Monthly Short Alerian MLP Infrastructure Total Return Index ETN

ROSA – iPath Short Extended Russell 1000 TR Index ETN

RTSA – iPath Short Extended Russell 2000 TR Index ETN

SBND – PowerShares DB 3X Short 25+ Year Treasury Bond Exchange Traded Note

SFSA – iPath Short Extended S&P 500 TR Index ETN

SZO – PowerShares DB Crude Oil Short ETN

UDNT – PowerShares DB 3x Short US Dollar Index Futures ETN

XXV – Barclays ETN+ Inverse S&P 500 VIX Short-Term Futures ETN

XIV – VelocityShares Daily Inverse VIX Short Term ETN

ZIV – VelocityShares Daily Inverse VIX Mid Term ETN

Each of these investments are examples of some of the high-risk inverse ETFs and ETNs which are not suitable for unsophisticated, long-term investors.

Without admitting or denying the allegations, the firm consented to the described sanctions and to the entry of findings that the firm’s vice president and chief compliance officer (CCO) failed to reasonably supervise a registered representative who was able to continue engaging in a scheme through which he sold fictitious investments to firm customers and misappropriated more than $1.6 million of their funds.

This information which is publicly available on FINRA’s website has been provided by The White Law Group, LLC.

If you have questions about investments you made with Cantone Research Inc. and/or Christine L. Cantone, the securities attorneys of The White Law Group may be able to help.  To speak with a securities attorney, please call the firm’s Chicago office 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, please visit our website at http://www.whitesecuritieslaw.com.

Citigroup failed to disclose potential conflicts of interest inherent in their business relationships in certain research reports it published from January 2007 through March

2010. Citigroup and/or its affiliates managed or co-managed public securities offerings, received investment banking or other revenue from, made a market in the securities of and/or had a 1 percent or greater beneficial ownership in covered companies, and did not make these required disclosures in certain research reports. In addition, Citigroup research analysts failed to disclose these same potential conflicts of interest in connection with public appearances in which covered companies were mentioned.

FINRA found that Citigroup failed to disclose the required information because the database it used to identify and create the disclosures was inaccurate and/or incomplete due primarily to technical deficiencies. In addition, Citigroup failed to have reasonable supervisory procedures in place to ensure that the firm was populating its research reports with required disclosures.

In concluding this settlement, the firm neither admitted nor denied the charges, but consented to the entry of FINRA›s findings.

This information which is publicly available on FINRA’s website has been provided by The White Law Group, LLC.

If you have questions about investments you made with Citigroup Global Markets, the securities attorneys of The White Law Group may be able to help.  To speak with a securities attorney, please call the firm’s Chicago office 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, please visit our website at http://www.whitesecuritieslaw.com.