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Nov 4, 2017

FRANKOWSKI FIRM INVESTIGATING LPL FINANCIAL, LLC FOR SALE OF NON-TRADED REITS IN NEW JERSEY

By |November 4th, 2017|REIT|

The New Jersey Bureau of Securities has entered an Administrative Consent Order making findings against LPL Financial and assessing a civil penalty of $950,000 for LPL’s unsuitable sales of alternative investments including non-traded real estate investment trusts (REITs), non-traded business development companies (BDCs), and other non-traded (and therefore illiquid) investments. The Bureau found that LPL [...]

Aug 31, 2017

Frankowski Firm Investigating Broker Bob Wamhoff

By |August 31st, 2017|Broker Check, Broker Negligence, Legal Matters, Ponzi Scheme, REIT|

The Frankowski Firm is investigating potential claims against stockbroker Robert Edward “Bob” Wamhoff. Mr. Wamhoff is currently with the firm of Calton & Associates, Inc. off Saint Charles, Missouri and previously was with VSR Financial Services, Inc. which is also in the Saint Louis, Missouri area. According to Financial Industry Regulatory Authority (“FINRA”) data, eight [...]

Jul 21, 2017

Frankowski Firm Investigating Jerry McCutchen for Multiple Acts of Broker Negligence and Fraud

By |July 21st, 2017|REIT, Suitability|

The Frankowski Firm is continuing its investigation of now-expelled securities broker Jerry McCutchen. McCutchen has been the subject of a multitude of customer complaints since 2000, the vast majority of which were filed since 2012. These complaints contain various allegations of securities law violations, including unsuitable investment recommendations, negligence, and fraud, among other causes of [...]

Jan 24, 2017

FINRA January 2017 Disciplinary Actions

By |January 24th, 2017|Alabama, Bonds, Broker Check, Churning, Conflict of Interest, Conspiracy, Failure To Supervise, Fiduciary Duties, FINRA, FINRA News, Fraud, Georgia, Hedge, Bond & Mutual Funds, Legal Matters, Master Limited Partnership, Misappropriated Funds, Misrepresentation and Fraud, Non Traded Real Estate Investment Trust, Ponzi Scheme, Press Releases & News, Private Placements, Pump-And-Dump, REIT, SEC, Securities Law Violations, Selling Away, Suitability, Variable Annuity|

FINRA takes disciplinary actions against firms and individuals for violations of FINRA rules; federal securities laws, rules, and regulations; and the rules of the Municipal Securities Rulemaking Board. Below are a number of penalties announced by the regulator in January 2017. If you have been a victim of any of the below behavior, you may [...]

Dec 14, 2016

What Investors Should Know about Real Estate Investment Trusts

By |December 14th, 2016|REIT|

A “good” investment portfolio is diverse, consisting of securities in a variety of industries. Brokers and financial advisors may recommend that you invest in real estate, and one way to do that it through a Real Estate Investment Trust, or REIT. REITs are a lot like mutual funds, in that they allow investors of all [...]

Oct 19, 2016

SEC Hits UDF With Wells Notice

By |October 19th, 2016|Fraud, Misrepresentation and Fraud, NASDAQ, Non Traded Real Estate Investment Trust, Ponzi Scheme, Press Releases & News, REIT, SEC, Securities Law Violations|

The Frankowski Firm, LLC currently represents multiple investors who have invested in troubled United Development Funding REITs. Earlier this week, the Securities and Exchange Commission issued a Wells notice against the Texas company, which indicates that the SEC has made a preliminary determination to potentially recommend an enforcement action against it. Meanwhile, the NASDAQ stock [...]

Oct 7, 2016

Texas Broker-Dealer Fined Over Variable Annuities

By |October 7th, 2016|Failure To Supervise, Fiduciary Duties, FINRA News, REIT, Variable Annuity|

An annuity exchange allows brokers to transfer an investor's funds in an annuity to a new policy without incurring tax penalties. IMS Securities, a small broker-dealer firm, was fined $100,000 by FINRA for failing to supervise their brokers who used the annuity exchange to benefit themselves, according to a recent Investment News article. The brokers at IMS were [...]

May 25, 2016

UDF IV Defaults On $35M Loan

By |May 25th, 2016|Fraud, Misrepresentation and Fraud, Non Traded Real Estate Investment Trust, Ponzi Scheme, Press Releases & News, REIT, SEC|

United Development Funding IV (UDF IV), a Texas Real Estate Investment Trust (REIT), has defaulted on a $35 million term loan and has suspended its distributions to shareholders. The trust has been surrounded by trouble since December, when an anonymous post on an investor website claimed that UDF IV was operating as a Ponzi scheme. [...]

Apr 14, 2016

Frankowski Firm Investigating Former Broker Jerry McCutchen

By |April 14th, 2016|Broker Check, FINRA, Press Releases & News, REIT, Securities Law Violations, Suitability|

The Frankowski Firm is investigating ex-broker Jerry McCutchen. If you purchased real estate investment trusts ("REITs") from him and lost money, you may have grounds to bring a securities claim. According to FINRA's BrokerCheck, McCutchen has been accused of making unsuitable investment recommendations. He has also been the subject of numerous broker fraud claims alleging [...]

Mar 2, 2016

UMT Headquarters Raided By Law Enforcement

By |March 2nd, 2016|Fraud, Hedge, Bond & Mutual Funds, Misrepresentation and Fraud, Press Releases & News, REIT, Securities Law Violations|

Law enforcement authorities raided the headquarters of United Mortgage Trust ("UMT") in a suburb of Dallas, Texas this month, looking for documents pertaining to management of the company. A search warrant was issued by a federal magistrate of the United States District Court for the Northern District of Texas. Particular executive offices and employees were [...]

Mar 2, 2016

Frankowski Firm Investigating UDF REITs

By |March 2nd, 2016|FINRA, Fraud, Legal Matters, Misrepresentation and Fraud, Non Traded Real Estate Investment Trust, Ponzi Scheme, Press Releases & News, REIT, Securities Arbitration, Securities Law Violations, Suitability|

The Frankowski Firm is continuing its investigation into United Development Funding III and IV (UDF) on behalf of investors in the company's real estate investment trusts (REITs). The FBI recently raided the company's offices in Texas, and immediately afterward UDF IV's price dropped to $3.20 per share, more than 81% lower than its December 2015 [...]

Feb 22, 2016

Texas REIT Subpoenaed Following FBI Raid

By |February 22nd, 2016|Fraud, Hedge, Bond & Mutual Funds, Misrepresentation and Fraud, NASDAQ, Ponzi Scheme, Press Releases & News, REIT, SEC, Securities Law Violations|

Management of real estate investment trust United Development Funding IV, a hedge fund accused of operating as a Ponzi scheme, has been subpoenaed to turn over company documents to a grand jury. Last week, the FBI raided the REIT's offices outside of Dallas. While performing their search, “law enforcement officers served executive officers of the trust [...]

Feb 19, 2016

Texas REIT Offices Raided By FBI

By |February 19th, 2016|Fraud, Hedge, Bond & Mutual Funds, Misrepresentation and Fraud, Non Traded Real Estate Investment Trust, Ponzi Scheme, Press Releases & News, REIT, SEC, Securities Law Violations|

The FBI raided the office of a Texas REIT, United Development Funding IV, this week. The firm saw its stock price drop 81% in the past two months after a hedge fund alleged it was operating for years like a Ponzi scheme. “The FBI is lawfully present and conducting law enforcement activity” at the UDF [...]

Feb 9, 2016

Broker Lies About Charging $11M In Commissions For Nontraded REITs and BDCs

By |February 9th, 2016|Failure To Disclose, Failure To Supervise, FINRA, FINRA News, Fraud, Misrepresentation and Fraud, Non Traded Real Estate Investment Trust, REIT|

FINRA charged a broker for lying to a Native American tribe about the $11 million in commissions he charged when he sold the tribe $190 million in nontraded real estate investment trusts and business development companies. Between June 2011 and January 2015, broker Gopi Krishna Vungarala “regularly lied to his customer, a Native American tribe, regarding [...]

Jan 22, 2016

Top Investor Threats

By |January 22nd, 2016|Non Traded Real Estate Investment Trust, Oil / Gas Investments, Ponzi Scheme, Press Releases & News, REIT, Securities Law Violations, Unregistered broker dealer, Unregistered Securities|

The following is a list compiled by the North American Securities Administrators Association of the top financial products and practices that threaten to trap unwary investors and small business owners: Unregistered Products / Unlicensed Salesmen: The offer of securities by an individual without a valid securities license should be a red alert for investors. Con artists [...]

Dec 28, 2015

FINRA December 2015 Disciplinary Actions: Part II

By |December 28th, 2015|Failure To Supervise, FINRA, FINRA News, Misrepresentation and Fraud, Non Traded Real Estate Investment Trust, Press Releases & News, Private Placements, REIT, Securities Law Violations, Variable Annuity|

Wunderlich Securities, Inc. (Memphis, TN) submitted an AWC in which the firm was censured and fined $50,000. FINRA found that it failed to establish, maintain, and enforce an adequate supervisory system and written procedures regarding the preparation and dissemination of consolidated reports. The findings stated that although the firm’s WSPs expressly permitted the preparation and dissemination [...]

Dec 14, 2015

Texas REIT Plummets Following Ponzi Allegations

By |December 14th, 2015|Fraud, Misrepresentation and Fraud, NASDAQ, Non Traded Real Estate Investment Trust, Ponzi Scheme, Press Releases & News, REIT, SEC|

Stock in United Development Funding IV has gone into a free fall following a report published on an investor website that alleged the real estate investment trust has operated for years like a Ponzi scheme. Harvest Exchange, an online professional network for investors, published an anonymous post about UDF called "A Texas-Sized Scheme: Exposing the [...]

Nov 17, 2015

AR Capital Halts Creation Of New Nontraded REITs

By |November 17th, 2015|Fiduciary Duties, Non Traded Real Estate Investment Trust, Press Releases & News, REIT|

AR Capital, the massive real estate investment trust sponsor established by Nicholas Schorsch, will cease creating and selling new alternative investment products. “As a result of regulatory and market uncertainty affecting capital raising for both new and existing offerings in the direct investment industry,” AR Capital will stop taking new investor funds for the programs [...]

Nov 16, 2015

Cetera Stops Selling AR Capital REITs

By |November 16th, 2015|Press Releases & News, REIT|

Cetera Financial Group, which is a network of retail brokerages owned by RCS Capital Corporation, has stopped selling ARC-branded real estate investment trusts and other alternative investments. All ten of Cetera's broker-dealers ceased the sale of all AR Capital products until a review of the products is completed. AR Capital products are distributed by Realty [...]

Oct 15, 2015

FINRA Fines Six IBDs For Failing To Discount Large REIT Sales

By |October 15th, 2015|Failure To Supervise, FINRA, FINRA News, Non Traded Real Estate Investment Trust, Press Releases & News, REIT, Securities Law Violations|

Voya Financial Advisors Inc., Transamerica Financial Advisors Inc. and four other independent broker-dealers failed to give clients appropriate discounts on large sales of nontraded real estate investment trusts and business development companies. In turn, FINRA fined the six over $500,000 combined. The fines comes as part of FINRA's crackdown on firms not properly giving their customers [...]

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