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Lawsuit Filed Against Forta Financial Group Alleges Unsuitable Investment Recommendations

Mar. 24, 2021 9:19 AM ET
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  • The White Law Group announces the filing of a FINRA arbitration claim against Forta Financial Group involving high-risk illiquid investments.

The White Law Group has submitted to FINRA Dispute Resolution on behalf of a Louisiana couple alleging claims for violation of common law fraud, breach of fiduciary duty, negligence, and negligent supervision.

The claim further alleges that Forta Financial Group unsuitably invested its clients in the following non-traded REITs and high risk alternative investments: FS Energy and Power Fund, Global Net Lease, United Development Funding, Carter Validus Mission Critical REIT (Sila Realty Trust), American Finance Trust, American Realty Capital, Northstar REIT, Prospect Capital Corp., and Energy XXI.

The claim seeks damages between $100,000 and $500,000.

Before recommending an investment, a broker-dealer has a fiduciary duty to adequately disclose the risks involved in the investment and to perform the necessary due diligence to determine whether the investment is suitable for the investor. It is alleged that Forta Financial Group failed to perform the necessary due diligence on these investments prior to recommending them to these particular investors.

Brokerage firms are required to supervise their advisors to ensure that they are complying with FINRA rules. If it can be determined that Forta Financial Group failed to adequately supervise its advisor, the firm can be held responsible for any resulting losses in a FINRA arbitration claim.

"We believe there are many more investors who have suffered losses in high risk alternative investments who just don't realize they have recourse, or may be unaware of any wrongdoing," said D. Daxton White, managing partner of The White Law Group.

FINRA Dispute Resolution is an arbitration venue for investors with claims against their brokerage firm or financial professional. It provides investors with an opportunity to attempt to recoup their investment losses and is an alternative to filing such claims in court.

For more information on the claim filed by The White Law Group, please contact the firm at 1-888-637-5510.

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

For more information on The White Law Group and its representation of investors in FINRA arbitration claims, visit https://www.whitesecuritieslaw.com.

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