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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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  • 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.

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

    Sep 11 1:41 PM | Link | Comment!
  • 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!
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