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D. Daxton White
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The White Law Group is a national securities fraud, securities arbitration, investor protection and securities regulatory/compliance law firm with offices in Chicago, Illinois and Boca Raton, Florida. We pride ourselves on providing quality legal services to our clients and handle securities... More
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The White Law Group
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The White Law Group's Securities Fraud Blog
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  • Broker Barred For Falsifying Client Information

    Have you suffered investment losses as a result of your dealings with Gary J. Chackman? If so, The White Law Group may be able to help you recover your losses by filing a FINRA Dispute Resolution claim against the brokerage firm that employed Chackman.

    According to FINRA's monthly report, registered representative Gary J. Chackman has been permanently barred from working in the securities industry. The former LPL Financial broker was accused of falsifying customer purchase forms involving real estate investment trusts (REITs) and alternative investments.

    Chackman allegedly misrepresented clients' liquid net worth on purchase forms to evade concentration limitations set by the brokerage firm. As a result Chackman reportedly increased his sales in high commission products and allegedly made unsuitable investment recommendations.

    LPL Financial was recently fined by the Illinois Security Department for failure to adequately supervise some employees regarding documentation of certain investments. In addition, brokers are required to make suitable investment recommendations that are consistent with the clients age, net worth, risk tolerance and investment objectives. When a registered representative violates securities law or FINRA regulations, the brokerage firm that employs them may be liable for negligent supervision and responsible for investment losses.

    According to FINRA's BrokerCheck, Gary J. Chackman worked in New York with AXA Advisors from 05/1990 - 12/2001. He worked in Maryland with LPL Financial from 12/2001 - 03/2012 and with Summit Brokerage Services from 03/2012 - 04/2013.

    If you purchased REITs or alternative investments from Gary J. Chackman, The White Law Group may be able to help you recover your losses. To speak with a securities attorney to discuss your litigation options, please call the The White Law Group at (312)238-9650 for a free consultation.

    The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection/compliance law firm with offices in Chicago, Illinois and Boca Raton, Florida. To learn more about the firm, visit www.WhiteSecuritesLaw.com.

    Aug 15 1:42 PM | Link | Comment!
  • Securities Fraud Investigation Involving Former VSR Financial Advisor Michael Dan Shaw

    Have you suffered losses investing with former VSR financial advisor Michael Dan Shaw? If so, the securities attorneys of The White Law Group may be able to help.

    The White Law Group is investigating the liability that VSR may have for failing to properly supervise Mr. Shaw while he was in their employ.

    In 2011, Michael Dan Shaw submitted a Letter of Acceptance, Waiver, and Consent (the "AWC") that acknowledged the following:

    Michael Dan Shaw entered the securities industry on November 21, 1986 as a General Securities Representative of a member of FINRA. Shaw, during all periods mentioned herein, was associated with member firm VSR, and was registered with FINRA under Article V of the By-Laws as a General Securities Representative. Shaw remains registered with VSR. He has not previously been the subject of any relevant formal disciplinary actions.

    Michael Dan Shaw made misrepresentations in connection with the sale of private placements to three customers and unsuitable recommendations of private placements to four customers. In addition, Shaw falsified customer account documents by overstating net worth and changing the customer risk profiles in the accounts of the same three customers.

    During the period from on or about March 16, 2007 through on or about December 12,2008, Michael Dan Shaw, acting on behalf of VSR Financial, recommended and effected the sale of high risk private placements to Customers without having a reasonable basis to believe that the transactions were suitable given the financial circumstances and condition of the customers.

    The investments mentioned in the AWC include: Arciterra Note Fund III, Odyssey Diversified Notes LX, Behringer Harvard Opportunity REIT, MPF Income Fund 22, Cole Credit Property Trust, DBSI 2008 Notes Corporation, and Odyssey IX.

    According to FINRA, such acts, practices, and conduct constitute separate and distinct violations of NASD Conduct Rules 2310 and 2110 by Michael Dan Shaw.

    In signing the AWC, Shaw agreed to a permanent bar from the securities industry and that by signing the AWC he was agreeing that "this settlement includes a finding that I willfully violated Section 10(b) and SEC Rule 10b-5 of the Securities Exchange Act of 1934 and that under Article III, Section 4 of FINRA's By-Laws, this makes me subject to a statutory disqualification with respect to association with a member."

    Not only has Shaw been barred from the securities industry, but according to his FINRA Broker Check he has also been the broker of record in 26 customer complaints.

    If you invested with Michael Dan Shaw and would like to discuss your litigation options, please call The White Law Group at 312-238-9650 for a free consultation.

    The White Law Group is a national securities fraud, securities arbitration, and investor protection law firm with offices in Chicago, Illinois and Boca Raton, Florida.

    For more information on The White Law Group, visit www.whitesecuritieslaw.com.

    Disclosure: The author has no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

    Jul 23 11:53 AM | Link | Comment!
  • Update On Strategic Realty Trust Securities Fraud Investigation

    The White Law Group continues to investigate the liability that brokerage firms may have for improperly recommending Strategic Realty Trust (formerly TNP Strategic Realty Trust) to its clients.

    Strategic Realty Trust, formerly the TNP Strategic Realty Trust Inc., is a nontraded real estate investment trust started by Tony Thompson. The REIT, which began raising money in August 2009, was sold at $10 per share by representatives at various independent broker-dealers.

    According to reports, Strategic Realty Trust Inc., recently told investors that the REIT's valuation had been reduced to $7.11 per share from $10, a decline of 29%. The decrease in the REIT's estimated value comes after an appraisal and review of its financial statements from Robert A. Stanger & Co. Inc., an investment bank. This share value is the "book value" of the Strategic Realty Trust. It is unclear whether shareholders could actually get anyone to pay $7.11/share for their shares.

    According to a letter reportedly sent to shareholders announcing the decline in share value, Strategic Realty Trust, which owns a portfolio of 16 shopping centers, has seen transactions costs of $1.54 per share, offering and organization costs of $1.23 per share, return of capital to investors through distributions of $1.04 per share, and a per-share loss of 52 cents on a property in Hawaii.

    The decline in Strategic Realty Trust's share value is surprising given that the REIT was started after the 2008 financial crisis and should have benefited from acquiring depreciated assets. Moreover, the market is up substantially from 2009 to present so a decline of 29% is catastrophic relative to how the market has performed as a whole.

    Unfortunately, this is an all too common story for nontraded REIT investors. The cost structure of these investments makes it difficult for the investments to succeed even in the best of investing climates.

    Depending on the investor's personal circumstances, these losses may be recoverable from the brokerage firm that recommended Strategic Realty Trust.

    Brokerage firms are required to perform adequate due diligence on any investment they recommend and to ensure that all recommendations made are suitable for their clients in light of the clients' age, income, net worth, tax status, investment experience, and investment objectives.

    To discuss your litigation options with a securities attorney, please call The White Law Group at 312/238-9650 for a free consultation.

    The White Law Group is a national securities fraud, securities arbitration, and investor protection law firm with offices in Chicago, Illinois and Boca Raton, Florida.

    For more information on The White Law Group, visit http://www.whitesecuritieslaw.com.

    Disclosure: The author has no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

    Jul 21 7:12 PM | Link | Comment!
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