A Colorado retiree and his sister are suing Emerson Equity and advisor George Wallace Smith for up to $3,000,000, alleging they were misled into high-risk, illiquid real estate investments that were unsuitable for their financial needs. Represented by Shepherd Smith Edwards and Kantas, the siblings’ FINRA lawsuit claims the firm prioritized high commissions over its fiduciary duties by overconcentrating their accounts in now-troubled financial products.
Shepherd Smith Edwards and Kantas Is Representing These Investors In Their FINRA lawsuit.
Two Claimants, a Colorado retiree and his sister, are suing Emerson Equity, financial advisor George Wallace Smith, and the brokerage firm’s control person Dominic Julio Baldini over losses they suffered in Inspired Healthcare Capital Income Fund 5 (IHC Fund 5) and other alternative investments: CPA Cue Luxury Apartments DST, Vinebrook Homes Trust, and Madison Capital Group’s Go Store It Charleston II, DST. All of these are real estate investments that are totally illiquid, opaque, and unsuitable for these investors. Now, the siblings are pursuing up to $3,000,000 in damages.
Shepherd Smith Edwards and Kantas (investorlawyers.com) is representing these Colorado investors in pursuing damages. We have filed their investment loss recovery claim in the Financial Industry Regulatory Authority (FINRA) arbitration.
This is just one of many investor lawsuits we have recently brought against Emerson Equity on behalf of claimants who sustained losses in alternative investments that were unsuitably marketed and sold to customers. Many of the cases we have filed involve Inspired Healthcare Capital (IHC), which recently filed for Chapter 11 bankruptcy protection. Emerson Equity is the primary broker-dealer and sole underwriter of IHC Funds and Delaware Statutory Trusts (DSTs).
Why Are These Colorado Investors Suing Emerson Equity For Their Investment Losses?
These are retail investors. One of them has health issues that make her unable to manage her own finances or understand most investments. They contend that Emerson Equity broker George Smith promised to construct a portfolio for them that held reasonable growth potential but not any significant risks. Instead, Emerson Equity made unsuitable investment recommendations in risky alternative investments that paid the firm and its registered representatives a multilayer of fees (up to 12.5%) while overconcentrating their clients’ accounts with these troubled financial products.
In their FINRA lawsuit, the claimants are alleging unsuitability, excessive concentration, misrepresentations and omissions, breach of contract, breach of fiduciary duty, fraud, negligence, gross negligence, Regulation Best Interest violations, unjust enrichment, and a failure to supervise.
Other Customers Of George Smith Are Also Suing Over Their Portfolio Losses
George Wallace Smith has spent almost two decades working in the industry. In addition to being an Emerson Equity broker, he is a registered investment adviser with Ridgegate Advisors. George Smith’s BrokerCheck CRD lists three other pending customer disputes, all of which were filed last year. Those Claimants are accusing him of breach of fiduciary duty, Reg BI violations, negligence, and more.
I Am An Investor Who Suffered Alternative Investment Losses. What Should I Do?
- It is important that you DO NOT try to address your concerns directly with your financial advisor. Most brokerage firms are not receptive to allegations of broker misconduct and negligence.
- Gather any information you might have, including brokerage account statements, records of communications with your financial advisor, and offering documents about your investment. Try to remember whatever you can about interactions you’ve had with the firm, including what they may have told you about your investment or how they planned to manage your money.
- Speak with one of our seasoned alternative investment loss recovery attorneys. We are highly experienced when it comes to representing investors against brokerage firms and investment advisors. The majority of our clients have gone on to secure awards and settlements because of our dedicated efforts.
Representing Investors Against Emerson Equity
Shepherd Smith Edwards and Kantas Alternative Investment Loss Attorneys have been fighting for investors against brokerage firms for more than 35 years. Call (800) 259-9010 or fill out this online contact form today to schedule your free case consultation.