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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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  • 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!
  • 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!
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