Bob Gonser was contacted by the grandson of an elderly widow who was concerned his grandmother had been fraudulently solicited to place proceeds from the sale of her farm land into approximately $1.7 million in highly speculative securities. After returns on his grandmother’s investments ceased to provide monthly income as promised, our client was left with no income other than her social security. Bob Gonser successfully negotiated a settlement with Respondents after arguing they failed to properly manage her account to reflect her conservative objectives, instead placing our client in investments which were high risk and speculative and only suitable for people who could afford to lose their entire principal.
Following a 7-day evidentiary hearing, a FINRA arbitration panel awarded Bob Gonser’s client over $914,000 for losses against the Respondent brokerage firm and its registered representative. The award included compensatory damages, pre-judgement interest, attorney’s fees and expert witness costs as well as rescission of seven Direct Participation Programs (DPPs). The panel also assessed all forum fees against Respondent brokerage firm and its registered representative. The case involved the sale of 14 investments including non-traded Real Estate Investment Trusts (REITs), Oil & Gas partnerships, a Tenancy in Common (TIC) and one equipment leasing partnership. HG Attorney Robert Gonser represented the Claimant who sought damages for insufficient due diligence by the brokerage firm and the improper conduct of its registered representative who was not adequately supervised.
Gonser Law is investigating Financial Industry Regulatory (FINRA) sales practice violations related to the management of client brokerage accounts with concentrated positions in energy company stocks often collateralized by margin loans. [Read more…]
LPL settled charged in connection with the offer and sale of Non-Traded REIT’s. The investigation stemmed from the complaint filed by the Commonwealth of Massachusetts Securities Division into similar non-traded REIT sales practices with other broker-dealers. [Read more…]