Investor Lawyers Blog

Investor Files Claim Against FSC Securities Over FS Energy and Power Fund & Northstar Healthcare REIT Losses

Published on: March 2, 2022 | by Shepherd Smith Edwards & Kantas, LLP

California Retiree Was Unsuitably Recommended Illiquid, Risky Investments

An elderly Los Angeles investor has filed a Financial Industry Regulatory Authority (FINRA) arbitration claim against FSC Securities Corporation over investment losses suffered. He was unsuitably recommended certain high-risk investments, including Northstar Healthcare Income REIT (also known as Northstar Healthcare REIT) and FS Energy and Power Fund (FSEP). Now, this claimant is seeking up to six figures in damages.

Our REIT lawyers are representing this investor in his FINRA arbitration claim. If you suffered losses and suspect that your FSC Securities broker may have been negligent, please get in touch with SSEK Law Firm today. We can help you explore your legal options.

MSC-BD Ordered to Pay Widow $221K Over GPB Private Placement Losses

Published on: February 28, 2022 | by Shepherd Smith Edwards & Kantas, LLP

Former MSC-BD Broker Robert Fehrman Made Unsuitable GPB Private Placement Recommendations

A Financial Industry Regulatory Authority (FINRA) arbitration panel has awarded a widow $221K in compensatory damages, legal fees, and costs against brokerage firm MSC-BD, LLC over losses she sustained in GPB private placements. GPB Capital Holdings is accused of running a more than $1.8B Ponzi scam that defrauded over 17,000 investors, including many seniors and retail clients.

MSC-BD is a broker-dealer owned by Austin, Texas-based investment banking firm Madison Street Capital. The widow’s ex-broker, Robert Malone Fehrman, is no longer with the firm. At least one other customer accuses him of selling investments in the GPB Funds.

Emerson Equity Broker Tony Barouti May Have Sold GWG L Bonds to Customers

Published on: February 18, 2022 | by Shepherd Smith Edwards & Kantas, LLP

Firm Owes Millions to Investors of GWG High-Yield L Bonds

Shepherd Smith Edwards and Kantas (SSEK Law Firm at investorlawyers.com) is looking into claims of losses by customers who purchased GWG L Bonds at the recommendation of Emerson Equity broker Tony Barouti.

Unfortunately, it appears that Barouti, who is based out of Los Angeles, may have unsuitably sold L Bonds to several investors, including retirees and older retail customers.

GWG Holdings Defaults On $13.6M Owed To L Bond Investors

Published on: February 17, 2022 | by Shepherd Smith Edwards & Kantas, LLP

Texas-Based Alternative Asset Firm Sends Letter About Failed Payments on Valentine’s Day

On February 14, 2022, GWG Holdings (GWGH) sent a letter to shareholders letting them know that it defaulted on the $3.25M in principal payments plus $10.35M in interest payments owed to L Bond investors.

The Texas-based alternative asset firm had a 30-day grace period to issue the payments beginning on January 15, 2022. GWG Holdings also stated that redemption requests would continue to be deferred. Now, L Bond investors are left with high-yield junk bonds that are not paying them the income promised. These are alternative investments that cannot be redeemed or sold.

Another Bankoh Broker Yoko Farias Customer Files Six-Figure Northstar Financial Services (Bermuda) Claim

Published on: February 16, 2022 | by Shepherd Smith Edwards & Kantas, LLP

Japanese Investor is Requesting Up to $500K in Damages

Another investor in Japan has filed a Financial Industry Regulatory Authority (FINRA) arbitration claim against Bankoh Investment Services over her Northstar Financial Services (Bermuda) losses.

This time, the claimant is a small business owner who lives in Tokyo but who had accounts in the U.S. with Bankoh and Bank of Hawaii. She is seeking up to $500K in damages. Her Bankoh broker Yoko Farias is also a respondent in the case.

Number of Customer Disputes Involving Ex-Ameriprise Broker James Dunn Skyrockets

Published on: February 14, 2022 | by Shepherd Smith Edwards & Kantas, LLP

16 FINRA Arbitration Claims Have Been Brought Against Broker James Dunn

In December 2021, Shepherd Smith Edwards and Kantas (SSEK Law Firm at investorlawyers.com) published a blog post announcing that we are investigating claims of investor losses involving ex-Ameriprise Financial Services broker James William Dunn.

At the time, according to Dunn’s BrokerCheck record, he had been named in a handful of customer disputes seeking to recover damages for losses. That number has more than tripled to 16 investor cases.

Ex-Morgan Stanley Broker Darryl Cohen, Accused of Defrauding Pro Athletes, To Be Barred by FINRA

Published on: February 10, 2022 | by Shepherd Smith Edwards & Kantas, LLP

Fired California Financial Advisor Allegedly Bilked Pro Athletes of Millions

Darryl Matthew Cohen, a former top-producing Morgan Stanley Smith Barney registered representative of Southern California, faces a FINRA bar beginning February 16, 2022. This bar will come into effect unless he cooperates in the self-regulatory organization’s (SRO’s) probe into allegations that he improperly used customers’ money. A number of the clients who have stepped forward to complain are current and ex-professional athletes.

Morgan Stanley fired Darryl Cohen in March 2021 over allegedly engaging in undisclosed outside business activities and using an unapproved platform to communicate with clients inappropriately. He has nine customer disputes listed on BrokerCheck, with four of them still pending in which the damages sought total millions of dollars.

Ex-Landolt Securities Broker Anthony Cottone Allegedly Misappropriated $2.8M of Client Funds

Published on: February 9, 2022 | by Shepherd Smith Edwards & Kantas, LLP

Ex-Landolt Securities Broker Ran Now-Defunct Retirement Planning Institute

Anthony Matthew Cottone, an ex-Landolt Securities stockbroker, has been charged by the US Securities and Exchange Commission (SEC) with fraudulently running Secured Capital Strategies Fund. This is a private fund in which 11 investors were persuaded to invest about $2.8M. Cottone was permanently barred by the Financial Industry Regulatory Authority (FINRA) in 2018.

The owner and manager of the now-defunct Retirement Planning Institute LLC (RPI), Anthony Cottone, was a securities industry member for 13 years. His Broker Check record notes that he was a registered broker and investment adviser with several firms during this time. Most recently, he worked with Landolt Securities from 2016 to 2017.

SSEK Law Firm Investigates Investors’ Losses From GWG L Bonds Sold By Aegis Capital, Emerson Equity, and Many Others

Published on: February 8, 2022 | by Shepherd Smith Edwards & Kantas, LLP

Deadline for GWG Holdings to Pay L Bond Investors $13.6M is Fast Approaching

Our investment fraud lawyers are speaking with investors who suffered losses in GWG L Bonds. These private placement, high-yield junk bonds were issued by GWG Holdings, Inc. (GWGH) and may have been marketed and sold by many broker-dealers, including Aegis Capital, Emerson Equity, and others.

GWG L Bonds have been available since 2012. However, their sales have been put on “pause” after being reinstated in December 2021 after a suspension of several months. Formerly called Renewable Secured Debentures, it was renamed L Bonds in 2015. GWG Holdings launched a new offering made up of its secured debt known as the Liquidity Bond 2020.

HIT REIT Investor Pursues Six-Figure FINRA Arbitration Claim Against NPB Financial

Published on: February 4, 2022 | by Shepherd Smith Edwards & Kantas, LLP

Hospitality Investors Trust REIT Losses: Inexperienced Investor Entrusted Broker-Dealer With Life Savings

Our non-traded real estate investment trust (non-traded REIT) lawyers are representing a California retiree in her FINRA arbitration claim against NPB Financial Group. The claimant, an older widow with health issues, suffered losses to her life savings in Hospitality Investors Trust (HIT REIT).

Her ex-NPB Financial broker, who had recommended this risky investment vehicle, has since been barred by FINRA. This bar was for the same reasons that the claimant decided to file her case. The investor is requesting up to six figures in damages from the brokerage firm.