Investor Lawyers Blog

Investors of Nelson Partners’ Skyloft Austin May Be Owed At Least $74M

Published on: July 27, 2022 | by Shepherd Smith Edwards & Kantas, LLP

Broker-Dealers Sold Private Placement Shares In Texas Luxury Student Housing To Retail Customers, Including Retirees

Our Texas brokerage firm of investment lawyers and arbitration attorneys are looking into claims of losses involving Nelson Partners’ Skyloft Austin investors. Many of those who invested in this troubled luxury student housing building close to the University of Texas have sued Nelson Partners. Which is the property management firm that marketed this deal in 2019. They sued Axonic Capital, the hedge fund that provided $30M in additional financing to buy the 18-story property.

Skyloft investors, each invested $100K to $500K, accuse Nelson Partners CEO Patrick Nelson of fraud and allegedly diverting some of their funds to pay for operations at his other properties.

UBS To Pay $25M To Settle SEC Charges Involving Its Yield Enhancement Strategy

Published on: July 26, 2022 | by Shepherd Smith Edwards & Kantas, LLP

Firm Accused of Inadequate Training And Poor Supervision of Brokers That Sold YES

UBS Financial Services has consented to pay about $25M to settle US Securities and Exchange Commission (SEC) charges related to the firm’s Yield Enhancement Strategy (YES). The regulator contends that the broker-dealer, which marketed and sold $2B of UBS YES to about 600 high-net-worth individual investors between February 2016 and February 2017, allegedly failed to adequately train its financial advisors in and supervise this complex iron condor strategy.

This purportedly included the firm knowing about— documenting—the “possibility of significant risk” but not notifying many of its brokers and clients about this.

SSEK Law Firm Investigates Investor Losses Involving JPMorgan Chase Auto Callable Contingent Interest Notes Linked To The S&P GSCI® Crude Oil Index Excess Return

Published on: July 22, 2022 | by Shepherd Smith Edwards & Kantas, LLP

Structured Products Are Not Suitable for Most Retail Investors

Investment Lawyers at Shepherd Smith Edwards and Kantas (SSEK Law Firm) are looking into claims of losses involving JPMorgan Chase Auto Callable Contingent Interest Notes. Which is connected to the S&P GSCI® Crude Oil Index Excess Return (SPGCCLP). This index tends to reflect the theoretical performance of a trader selling and buying crude oil futures.

What Is An Auto Callable Contingent Interest Note?

Former Customers of Newbridge Securities Broker Betsy Whipple Pursue 7-Figure GWG L Bond Claim.

Published on: July 20, 2022 | by Shepherd Smith Edwards & Kantas, LLP

Hiko, Nevada Financial Advisor, BL Whipple Wealth Management, LLC

Three investors have filed a Financial Industry Regulatory Authority (FINRA) arbitration claim against Newbridge Securities. The claimants seek up to $1M in damages over losses they sustained in GWG L Bonds.

These risky, illiquid junk bonds are from GWG Holdings, Inc., which filed for Chapter 11 bankruptcy protection in April 2022. Newbridge Securities is among the more than 140 regional brokerage firms that earned high commissions from selling L Bonds to customers.

SSEK Law Firm Is Investigating Cabot Lodge Securities Over GWG L Bond Sales

Published on: July 15, 2022 | by Shepherd Smith Edwards & Kantas, LLP

Investors Accuse New York-Based Broker-Dealer of Reg BI Violations

Securities lawyers at Shepherd Smith Edwards and Kantas (SSEK Law firm) are looking into claims of losses by investors who were sold GWG Holdings L Bonds by their Cabot Lodge Securities brokers. Cabot Lodge is one of the more than 140 regional brokerage firms that sold high-risk product failures and junk bonds to customers and naive investors. More than a dozen clients were accusing the NY-based brokerage firm of alleged Regulation Best Interest violations when it sold L Bonds to retirees.

GWG Holdings Inc., sold $1.6B of L Bonds, defaulted on $13.6M of payments and interest it owed investors in February 2022. In April 2022, the alternative asset firm filed for Chapter 11 Bankruptcy protection.

Emerson Equity Wholesalers That Pitched GWG L Bonds Leave The Firm

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

Leading Broker-Dealer Pitched Regional Broker-Dealers To Sell These Risky Junk Bonds

Securities lawyers at SSEK are investigating Emerson Equity wholesalers that pitched risky junk bonds. According to InvestmentNews, a review of BrokerCheck data suggest several Emerson Equity wholesalers across the US have left the firm since the beginning of 2022. They are the same wholesalers responsible for pitching GWG L Bonds to regional broker-dealers.

Emerson, the managing brokerage firm in selling these risky, life settlement-backed bonds for GWG Holdings, Inc., has partnered with over 140 regional brokerage firms to market and sell L Bonds to investors, including retail customers and retirees.

UBS Must Pay Over $2.5M to Yield Enhancement Strategy Investors

Published on: July 13, 2022 | by Shepherd Smith Edwards & Kantas, LLP

Two FINRA Arbitration Panels Order Firm To Pay UBS YES Customers for Their Losses

In separate UBS Yield Enhancement Strategy (UBS YES) investor cases, two Financial Industry Regulatory Authority (FINRA) arbitration panels have awarded UBS Financial Services customers $1.18M and $1.4M, respectively. These are the latest awards against the broker-dealer, whose high-net-worth investors have lost significant sums of money in the firm’s proprietary, complex options trading strategy.

Due to the most recent rulings, the broken dealer will have to pay UBS YES customers more than $7.6M in 2022. In May, two investors were awarded $3.9M. Various other UBS YES customers were awarded $1.2M in March, and In February 2022, a claimant and two of his family trusts were also awarded $1.875M.

Shomir Mukherjee, Western International Securities Broker in Los Angeles Allegedly Concentrated GWG L Bonds & Non-Traded REITs

Published on: July 6, 2022 | by Shepherd Smith Edwards & Kantas, LLP

Texas Retiree Files Six-Figure FINRA Arbitration Claim Over Her Investment Losses

An Austin, TX investor has filed a Financial Industry Regulatory Authority (FINRA) arbitration claim against Western International Securities, Inc. The investor sustained losses in GWG Holdings L Bonds and the following non-traded real estate investment trusts (non-traded REITs):

Griffin Realty Trust Class E

FINRA Fines National Securities $9M Over GPB Private Placement Sales

Published on: July 5, 2022 | by Shepherd Smith Edwards & Kantas, LLP

Broker-Dealer Ordered to Pay Customers More Than $625K in Restitution

The Financial Industry Regulatory Authority (FINRA) sanctioned National Securities Corporation for about $9M, including $4.77M disgorgement in net profits. The broker-dealer allegedly tried to artificially impact the market for GPB private placements involving several public offerings while serving as the underwriter. GPB Capital Holdings is accused of operating a more than $1.7B Ponzi scam that defrauded over 17,000 investors.

National Securities must pay over $625K in restitution for allegedly not disclosing certain material information to customers who bought GPB private placements. FINRA fined the firm $3.6M for alleged broker misconduct and other violations.

SSEK Law Firm Investigates National Realty Investment Advisors Over Alleged $630M Investor Fraud

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

New Jersey Accuses Real Estate Development Company of Defrauding 1,800 Investors

Shepherd Smith Edwards and Kantas (SSEK Law Firm at investorlawyers.com) is investigating claims of losses by 1,800 investors. These investors may have been fraudulently sold at least $630M in securities by National Realty Investment Advisors (NRIA) between 2018 and 2022. The New Jersey-based real estate development company filed for Chapter 11 bankruptcy protection on June 8, 2022.

An affidavit filed in US bankruptcy court notes about $600M in claims against approximately $300M of assets. On June 21, 2022, the New Jersey Bureau of Securities ordered NRIA to stop operations and accused the company of fraudulent investment sales. Investors were purportedly fraudulently sold units in the NRIA Fund. The minimum investment that investors could make was $100K.