Alternative Investments

Sierra Income Investors are Losing Money

Published on: November 17, 2020 | by Shepherd Smith Edwards & Kantas, LLP

Risky, Illiquid Business Development Company Was Not Suitable for Many Investors

If you are someone who invested in the Sierra Income Corporation, you may have lost money. This business development company (BDC) is a non-traded investment.

Earlier this year, Sierra Income suffered losses after its announced merger with Medley Capital Corp. and Medley Management Inc. was terminated because of the economic uncertainty caused by COVID-19. Not long after that, the company announced that it was suspending monthly distributions.

Global Investment Advisory Services’ Felipe Vargas is Named in Customer’s $1.3M Barclays Bank iPath Series B S & P 500 Short Term Futures ETN Claim

Published on: November 13, 2020 | by Shepherd Smith Edwards & Kantas, LLP

Investor Contends Insigneo Securities Broker Unsuitably Handled Account

A former customer of Felipe Henao Vargas, an Insigneo Securities stockbroker, is pursuing a Financial Industry Regulatory Authority (FINRA) arbitration claim against the brokerage firm for $1.3M in damages related to the iPath Series B S & P 500 Short Term Futures ETN (VXX). Henao is also a registered investment advisor with Global Investor Advisory Services, LLC in Miami, Florida.

The investor said that Henao had placed a short-term trade for 20,000 of the Barclays exchange-traded note (ETN) in late February 2020 in the investor’s account and then made another trade a few weeks later to cover the short. The claimant reportedly wrote an email expressing concerns over the brokerage account’s performance, which had depreciated in value, and Henao’s lack of communication.

Customers Accuse Ex-Fortune Financial Services Broker Jonathan Freeze of Alternative Investment Fraud

Published on: October 13, 2020 | by Shepherd Smith Edwards & Kantas, LLP

Former Canonsburg, Pennsylvania Stockbroker Faces Selling Away Allegations

Three years after the Financial Industry Regulatory Authority (FINRA) barred him, Jonathan Douglas Freeze remains the subject of eight pending customer disputes. Most of these investor claims accuse him of selling away and investing customers’ funds in Alternative Investment Holdings, a North Carolina real estate and investment holdings company, without Fortune Financial Services’ authorization.

Freeze worked 21 years in the industry. He also previously was a broker for Summit Brokerage Services, LPL Financial (LPLA), Lincoln Financial Advisors, and The Lincoln National Life Insurance Company.

Investor Filed $150K GPB Private Placement Case Naming Capital Wealth Management Advisor Lee Duckworth

Published on: October 2, 2020 | by Shepherd Smith Edwards & Kantas, LLP

Three Pending FINRA Arbitration Claims Accuse Triad Advisors Broker of Unsuitability

Lee Duckworth, the CEO of investment advisory firm Capital Wealth Management and a Triad Advisors stockbroker, was recently named in three Financial Industry Regulatory Authority (FINRA) arbitration claims accusing him of making unsuitable investment recommendations to customers.

At least one of the disputes involves private placements from GPB Capital Holdings, an alternative asset firm accused of running a more than $1.5B Ponzi scam. Duckworth is a West Warwick, Rhode Island broker and investment advisor.

Florida Retiree Loses Money in GPB Private Placements & REITs While Under Supervision Of CFG Capital Management Advisor Mark Cline

Published on: September 25, 2020 | by Shepherd Smith Edwards & Kantas, LLP

Investor’s FINRA Arbitration Claim Seeks Damages of Up to $100K in GPB Private Placements and Other Securities

A Florida retiree has filed a Financial Industry Regulatory Authority (FINRA) arbitration claim against the brokerage firm, National Securities Corp.

The claimant contends that agents of National Securities Corp overconcentrated his account in real estate investment trusts (REITs), privately traded securities, and private placements. This included a large position in GPB Capital Holdings, which is accused of operating an over $1.7B Ponzi scam.

Ex-UBS Broker and IHT Wealth Management Investment Advisor Frederick Kort Accused Of Unsuitable Investment Recommendations Involving Options Overlay Strategy

Published on: September 15, 2020 | by Shepherd Smith Edwards & Kantas, LLP

Pending Allegations Likely Involve UBS YES Strategy

Frederick Maximillian Kort, a former UBS Financial (UBS) broker, is facing allegations that he made misrepresentations when making unsuitable investment recommendations to customers.

According to his BrokerCheck record, there are two pending customer disputes against him, both involving an options overlay strategy. While the disclosure does not specifically state so, this is likely UBS’s Yield Enhancement Strategy, in which many of the firm’s registered representatives have come under fire for selling to investors.

FS Energy & Power Fund Investors Should Talk To A Broker Fraud Lawyer

Published on: September 8, 2020 | by Shepherd Smith Edwards & Kantas, LLP

Franklin Square Energy and Power Fund’s Board Suspends Repurchase Program

If you are someone who invested in Franklin Square Energy and Power Fund (FSEP), you have likely experienced losses. The non-traded business development company’s (BDC) board recently announced that it was suspending its repurchase program and its share price has once again plunged.

While FSEP has pointed to COVID-19, the resulting turbulence, and oil prices sinking as reasons for its current woes, investors may have reason to pursue broker fraud and negligence claims if their broker-dealer unsuitably recommended this investment or failed to apprise them of the risks involved.

Why Should Many San Francisco Investors Avoid Non-Traded REITs?

Published on: July 8, 2020 | by Shepherd Smith Edwards & Kantas, LLP

Non-Traded Real Estate Investment Trusts Are Risky, Illiquid

If you are a retail investor in San Francisco whose broker is recommending that you invest in non-traded real estate investment trusts (non-traded REITs), you should strongly reconsider.

While often touted as a security that allows investors to make money without having to worry about market volatility – this type of investment is actually still high risk, illiquid, and not suitable for many customers including retail investors, retirees, and other conservative investors with low-risk tolerance levels.

Investors Lose Money After Brokers Recommend FS KKR Capital Corp II Fund

Published on: July 3, 2020 | by Shepherd Smith Edwards & Kantas, LLP

Business Development Company May Have Been Unsuitable For Some Investors

If you are an investor who suffered losses after your stockbroker recommended the Franklin Square KKR Capital II Fund (FSKR), also known as FS KKR Capital Corp II, you may have grounds for pursuing a broker fraud claim for damages.

This business development company (BDC), which is a merger of four non-traded BDCs, reportedly was unsuitably recommended to a number of customers and/or the risks were never fully disclosed to them.

Investors Accuse Purepath Wealth Management Investment Advisor & Crown Capital Securities Broker Dennis Haywood of Making Inappropriate Investment Recommendations

Published on: June 30, 2020 | by Shepherd Smith Edwards & Kantas, LLP

Crown Capital Securities Broker Was Recently Named in Four FINRA Arbitration Claims

Dennis Haywood, a Crown Capital Securities broker, is now named in four customer disputes, all of which were filed in the last two months with the Financial Industry Regulatory Authority (FINRA). Haywood is also a Purepath Wealth Management investment adviser.

The claimants are accusing him of making inappropriate investment recommendations of non-traded real estate investment trusts (non-traded REITs), non-traded business development companies (BDCs), alternative investments, and variable annuities (VA).