Seeking Alpha

D. Daxton White's  Instablog

D. Daxton White
Send Message
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
My company:
The White Law Group
My blog:
The White Law Group's Securities Fraud Blog
View D. Daxton White's Instablogs on:
  • Update On Securities Investigation Involving UBS's V10 Enhanced FX Carry Strategy

    The White Law Group continues to investigate potential claims involving UBS's V10 Enhanced FX Carry Strategy product.

    Not only are investigators at the Department of Justice reportedly examining whether UBS traders shortchanged investors in UBS's V10 Enhanced FX Carry Strategy by overcharging them when they carried out the currency trades needed to execute the strategy, but it appears that some financial advisors may have improperly recommended the investment to their clients.

    Specifically, The White Law Group is investigating the liability that brokerage firm's may have for recommending this risky investment. Brokerage firms are required to perform adequate due diligence on any investment they recommend and to adequately disclose the risks of any investment. Additionally, brokerage firms are required to ensure that all investment recommendations made are suitable in light of the client's age, investment experience, investment objectives, net worth, and income.

    If it can be demonstrated that a brokerage firm failed to perform adequate due diligence, to properly disclose the risks, or recommended an investment unsuitably, the firm may be held responsible for any resulting losses in a FINRA arbitration claim.

    According to the offering materials, investors in UBS's V10 Enhanced FX Carry Strategy bought notes whose value was tied to an index called the V10. Betting on the currency market is extremely risky and should only be undertaken by extremely sophisticated and/or institutional investors.

    Unfortunately it appears that some financial advisors may have downplayed these risks and recommended UBS's V10 Enhanced FX Carry Strategy unsuitably.

    For more information on The White Law Group's UBS V10 Enhanced FX Carry Strategy investigation, visit http://www.whitesecuritieslaw.com/2015/03/02/securities-investigation-involving-ubss-v10-enhanced-fx-carry-strategy/.

    For a free consultation with a securities attorney, please call the securities attorneys of The White Law Group at 312/238-9650.

    The White Law Group is a national securities fraud, securities arbitration, and investor protection law firm with offices in Chicago, Illinois and Vero Beach, Florida. The firm represents investors throughout the country in FINRA arbitration claims against their brokerage firm.

    Mar 04 10:33 AM | Link | Comment!
  • Recovery Of GWG Renewable Secured Debenture Investment Losses

    The White Law Group is investigating the liability some broker-dealers may have for recommending GWG Renewable Secured Debentures. If you purchased a GWG Renewable Secured Debentures, the firm may be able to help you recover your losses through a FINRA arbitration claim.

    According to SEC filings, GWG Holdings acquires life insurance policies on the secondary market at a discount to the face value of the insurance benefit. Once the policy is purchased, GWG continues to pay the policy premiums in order to collect the face value when the insured dies.

    Beginning in 2011, GWG registered a private placement offering in Secured Debentures. According to the offering prospectus, GWG warns that "debentures involves a high degree of risk." The prospectus also highlights the fact that the acquisition and ownership of insurance policies form the secondary market is a "relatively new and evolving market." Private placements, in general, are high risk speculative investments and not suitable for all investors, especially investors who need liquidity in their investments.

    Broker-dealers that recommend private placements, like GWG debentures, are required to perform adequate due diligence on the product. They are also required to make suitable investment recommendations to investors. Brokers should consider a clients age, objectives, risk tolerance, investment experience, and net worth to determine suitable investments. If a broker makes misleading or inappropriate investment recommendations they can be held liable for investment losses.

    If you invested in GWG Renewable Secured Debentures and are concerned about your investment, please call our Chicago office at (312)238-9650 for a free consultation.

    The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm with offices in Chicago, Illinois and Vero Beach, Florida.

    For more information on The White Law Group, please visit our website at WhiteSecuritiesLaw.com.

    The White Law Group is investigating potential claims involving GWG Renewable Secured Debentures.

    Dec 17 4:48 PM | Link | Comment!
  • Ongoing Investigation Of CORE Series 2007 8% Secured Debentures

    The White Law Group continues to investigate potential claims involving the CORE Series 2007 8% Secured Debentures. Specifically, the firm is investigating whether brokerage firms improperly recommended the investment to their clients.

    Brokerage firms have an obligation to perform due diligence on any investment they recommend and to ensure that all recommendations are in line with their clients suitability. To the extent that a firm fails to do either of these two things, the firm can be held responsible for any losses in a FINRA arbitration claim.

    In the claims already filed by The White Law Group with respect to the core Series 2007 8% Secured Debentures, here is what has been discovered thus far:

    CORE Series 2007 8% Secured Debenture was issued starting September 1, 2007. The maturity date of the offering was April 11, 2014. The trustee is Deutsche Bank Trust Company Americas.

    Fully-subscribed the offering was $36,600,000 in aggregate principal.

    The assets of the underlying investment appears to consist of three separate multi-family properties in the Baltimore-Washington DC Metro area, individually known as: Seasons at Bel Air, Ashford at Henson Creek, and Ashford at Coopers Crossing.

    Upon information and belief, in March 2007, Lehman Brothers Holdings, Inc. ("LBHI") made a mortgage loan in the principal amount of $217,000,000, to the "owners" of the properties. LBHI appears to have sold and assigned Note A to a trust securitized through the sale of commercial mortgage backed securities. Note B was sold to Arbor Realty SR, Inc., which later became Arbor Realty Participation, LLC ("Arbor Realty"). On August 28, 2012, Arbor Realty transferred its interest in Note B to an affiliate, Equity Realty Funding Group, LLC ("Equity Realty").

    In September 2008, CORE executed a Purchase and Sale Agreement ("PSA") with Bethany under which Bethany would acquire CORE's interests in CORE-Bethany JV for a total of $44,220,000 by December 31, 2008-later extended into early 2009.

    Bethany was the original Operating Partner of the Joint Venture who's Bethany Management Group managed the properties. In February 2009 Bethany confirmed to CORE that a number of Bethany properties-with the exception of CORE-Bethany JV-were in serious financial condition and may be facing bankruptcy. In late March 2009, most of the Bethany portfolio went into bankruptcy, foreclosure, or receivership.

    Based on Bethany's inability to provide $750,000 in additional escrow deposits as required by the PSA in January 2009, CORE informed Bethany that CORE would be exercising its right to assume property management responsibilities through its CORE Realty Holdings Management, Inc. affiliate, which it appears to have done

    According to CORE, CORE then audited the property and uncovered a number of critical problems, which Bethany had allegedly failed to communicate to CORE.

    In May 2010, CORE requested that the Indenture holders approve a Modification Plan that essentially deferred all base interest payments until Maturity. Based on this modification, investors in CORE Series 2007 8% Secured Debentures that back interest payments were to be paid this past April.

    On April 11, 2014, the maturity date, CORE officially notified the Indenture holders that CORE would not be in a position to repay the debentures. This marks the first time that investors in CORE Series 2007 8% Secured Debentures realize that they have been damaged and that they will not be receiving the interest payments they were promised.

    Given what has been discovered thus far, it appears unlikely that brokerage firms that sold this investment failed to perform adequate due diligence. Had they performed proper due diligence it appears that the outcome of this investment would have been easily ascertained.

    Additionally, given the high cost structure of these investments, it appears likely that some firms pushed the CORE Series 2007 8% Secured Debentures despite the fact that they were not suitable for their clients.

    If you invested in CORE Series 2007 8% Secured Debentures through a brokerage firm and would like to discuss your litigation options, please call The White Law Group's Chicago office 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 Vero Beach, Florida. The firm represents investors in FINRA arbitration claims throughout the country.

    For more information on the firm, visit www.whitesecuritieslaw.com.

    Sep 11 1:41 PM | Link | Comment!
Full index of posts »
Latest Followers

StockTalks

More »

Latest Comments


Most Commented
Posts by Themes
Instablogs are Seeking Alpha's free blogging platform customized for finance, with instant set up and exposure to millions of readers interested in the financial markets. Publish your own instablog in minutes.