Soreide Law Group, PLLC,  is currently investigating alleged claims against a number of the following Real Estate Equity/Mortgage Projects/Funds.  If you feel you have lost money with any of the following funds, please call us, without cost to you, and set up a consultation with a lawyer to pursue your claims.

 Real Estate Equity/Mortgage Projects/Funds –

Bluerock Special Opportunity & Income Fund

Cawley Partners Land Fund I

Cottonwood Capital Development Debenture Program

GHC US Gov’t Subsidized Housing Fund

GK Development/Retail Property Fund

NetREIT $50,000,000 Common Stock Offering

Redstone Land Interest No. 1, LLC Program Review

Sovereign Capital Thoroughbred Single Tenant Asset Fund

Summit CRA Multi-Family Housing Fund I, LLC

Summit CRA Multi-Family Fund II

United Development Funding III

Welsh Midwest Real Estate Fund IV

Western America – American Healthcare Properties 2007 Fund

If you have been an alleged victim of  these or any other real estate equity or mortgage projects funds, call a Securities Arbitration Lawyer for a free consultation on how to recover your losses.  To speak with an attorney, call 888-760-6552, or visit www.stockmarketlawsuit.com. Soreide Law Group, PLLC., representing investors nationwide before FINRA  the Financial Industry Regulatory Authority.

Bluerock Special Opportunity & Income Fund · Cawley Partners Land Fund I · CHS US Gov't Subsidized Housing Fund · Cottonwood Capital Development Debenture Program · Financial Industry Regulatory Authority · FINRA · finra lawyer · finra securities arbitration · Florida Securities Lawyer · fort lauderdale securities fraud lawyer · fort lauderdale securities lawyer · Ft. Lauderdale Securities Lawyer · GK Development/Retail Property Fund · Mortgage Projects Funds · NETREIT · private placements · Real Estate Equity Funds · Redstone Land Interest No. I · securities arbitraton lawyer · securities fraud lawyer · Soreide Law Group PLLC · Sovereign Capital Thoroughbred Single Tenant Asset Fund · stock broker fraud · Stock fraud lawyer · stockbroker misconduct · Summit CRA Multi-Family Housing Fund · United Development Funding · Welsh Midwest Real Estate Fund · Western America--American Healthcare Properties 2007 Fund

Another article from Bruce Kelly of InvestmentNews.com, March 21st., 2011, says that Ameriprise Financial Inc. is taking preliminary steps to help its beleaguered independent broker-dealer subsidiary, Securities America, Inc.

This past Friday, Securities America’s chief financial officer, Kelly Windorski, testified in a federal court in Dallas that the firm could go bust if a federal judge did not approve a $21 million class action settlement. The judge rejected the settlement later in the day.

This class action is part of a litigation that Securities America is facing after its brokers sold $400 million in private placements from 2003 to 2009 that are now in default. The firm has almost $9 million in excess net capital on hand.

Kelly goes on in his article that it’s been widely debated in the industry whether Securities America’s corporate parent, Ameriprise, will step in and infuse the firm with cash. At the moment, the brokerage has dwindling resources, is spending $2 million a month on lawyers and could be in danger of violating its net-capital requirement if it suddenly loses a handful of arbitration claims investors have brought against the firm over allegedly bad private placements. Securities America’s statement gave no specifics about how much money Ameriprise would be willing to contribute to the firm, but a Securities America spokeswoman said the parent company has reached out to the beleaguered firm.

“Ameriprise has reached out to us to determine whether it can help the parties find a reasonable resolution for all constituents,” wrote Janine Wertheim, a spokeswoman for the broker-dealer, which has about 1,800 reps and advisers. “We hope to develop a process in the coming days that would facilitate exploration of such a resolution and to have a good sense by the end of the week.”

“While Ameriprise Financial has no obligation to participate in Securities America’s settlement discussions, we have reached out to Securities America to determine if we can help the parties find a reasonable resolution to all constituents,” Ameriprise said in a statement published on its investor relations website.

 Ameriprise said in its annual report that it was setting aside $40 million in reserves due to legal actions stemming from brokers at Securities America selling private placements of Medical Capital Holdings Inc. and Provident Royalties LLC. These were sold by dozens of independent broker-dealers in the last decade, the two series of private placements went into default in 2009 and the sponsor companies were later charged with fraud by the SEC. Securities America was by far the largest seller of Medical Capital notes, with brokers selling about $700 million of the product.

The InvestmentNews article said that Ameriprise previously had reached a proposed $28 million settlement with the class action plaintiffs suing Securities America. That proposed settlement is a separate fund from Securities America’s.

Federal Judge W. Royal Furgeson Jr. temporarily halted three arbitration claims from investors suing Securities America in order to weigh Securities America’s $21 million proposed settlement last month. Under the terms of that deal, the arbitration claims would have been rolled into the class action. Mr. Furgeson’s decision pushes one of two class actions, Billitteri v Securities America, et al., back to where it originated in U.S. District Court in the Central District of California. The case was moved to Dallas and landed before Mr. Furgeson this winter because he is overseeing the class action claim against Securities America and other broker-dealers that sold Provident Royalties investments.

If you feel you have been a victim of the alleged broker-dealer private placement  schemes of  Securities America Financial, Inc., Ameriprise Financial Inc ., Medical Capital Holdings, Inc., or any other broker-dealer, call a Securities Arbitration Lawyer for a free consultation on how to recover your losses.  To speak with an attorney, call 888-760-6552, or visit www.stockmarketlawsuit.com. Soreide Law Group, PLLC., representing investors nationwide before FINRA  the Financial Industry Regulatory Authority.

Ameriprise · Ameriprise bailing out Securities America · Ameriprise Financial Inc · broker-dealer private placement fraud · Financial Industry Regulatory Authority · FINRA · FINRA arbitration · finra lawyer · fort lauderdale securities fraud lawyer · fort lauderdale securities law firm · fort lauderdale securities lawyer · Ft. Lauderdale Securities Lawyer · investment fraud · Medical Capital Holdings Inc · private placement fraud · private placement losses · private placement of securities · private placements · private placements in default · Provident Royalties · Securities America · Securities America Inc. · securities arbitration · securities arbitraton lawyer · securities fraud lawyer · Soreide Law Group PLLC · stock broker fraud · Stock fraud lawyer · stockbroker misconduct

In a March 18th., 2011, article in InvestmentNews by Bruce Kelly, he writes that Securities America Financial Inc. could go out of business if a $21 million lawsuit against the brokerage firm isn’t settled at an agreed-on amount.

The article states that according to Kelly Windorski, the independent broker-dealer’s chief financial officer, the firm could go bust if a federal judge does not approve the class action settlement. Mr. Windorski made the statement while testifying in federal court in Dallas this morning.

The CFO, Mr. Windorski, told U.S. District Court Judge W. Royal Furgeson Jr. that if the judge does not approve the settlement, it could mean the end of the firm, according to three attorneys who represented individual investors suing Securities America.

Janine Wertheim, a Securities America spokeswoman, did not return calls seeking comment from InvestmentNews.

The article goes on to say that from 2003 to 2008, Securities America sold $400 million of private placements that are in default. The firm sold nearly $18 million of Provident Royalties, for example, according to court filings. Dozens of investors have subsequently sued the firm seeking damages.

“‘End of the firm’ was the sum and substance of” Mr. Windorski’s testimony, said John Chapman, a plaintiff’s attorney who represents 70 Securities America investors with claims for losses totaling about $25 million.

Mr. Windorski said that, if a settlement was not approved, the firm would go out of business soon, due to defense costs and arbitration awards.

Today’s hearing in U.S. District Court in Dallas was part of a process of determining whether Securities America clients who lost money on soured Reg D offerings could continue their individual lawsuits against the firm or be required to drop those claims and become part of a class action. That class action also involves Ameriprise Financial, Securities America’s parent. Ameriprise said recently it had reached a $28 million preliminary settlement with the class plaintiffs.

Kelly goes on to say that the firm had 1,923 reps, as of Sept. 30, 2010, and generated over $400 million in annual revenue in 2009. The firm ranks as the 17th largest independent broker-dealer, according to the InvestmentNews B-D Data Center.

If you feel you have been a victim of the alleged broker-dealer private placement  schemes of  Securities America Financial, Inc., Ameriprise Financial Inc ., or any other broker-dealer, call a Securities Arbitration Lawyer for a free consultation on how to recover your losses.  To speak with an attorney, call 888-760-6552, or visit www.stockmarketlawsuit.com. Soreide Law Group, PLLC., representing investors nationwide before FINRA  the Financial Industry Regulatory Authority.

Ameriprise Financial · broker-dealer private placement fraud · class action Securities America · Financial Industry Regulatory Authority · FINRA · FINRA arbitration · finra lawyer · fort lauderdale securities fraud lawyer · fort lauderdale securities law firm · fort lauderdale securities lawyer · Ft. Lauderdale Securities Lawyer · high-risk private placements · independent broker-dealers · investment fraud · private placement fraud · private placement losses · private placements · Provident Royalties · Reg D offerings · Securities America · Securities America Financial Inc · securities arbitraton lawyer · Soreide Law Group PLLC · stock broker fraud · Stock fraud lawyer · stockbroker misconduct

In an article from InvestmentNews, Darla Mercado writes that an SEC task force recommended that life settlements be defined as ‘securities,’ thus making such transactions subject to federal securities laws.

The article states that bringing life settlements under the definition of security would require market intermediaries, including settlement brokers and providers, to register with the Securities and Exchange Commission and the Financial Industry Regulatory Authority Inc., according to a report by the task force.

This task force, which has been studying the issue since September, found that while there are two regulatory frameworks addressing life settlements — one from the National Association of Insurance Commissioners and the other from the National Conference of Insurance Legislators — there are numerous variations in how the states actually adopt those rules.

Forty-eight states treat life settlements as securities under state laws, but some states exclude the original sale from the insured person or the sale from the policy owner to the provider.

The Financial Industry Regulatory Authority or “Finra,” currently oversees life settlements involving variable life insurance, but federal courts have reached different conclusions as to whether fractional interests in life settlements are indeed securities, according to the SEC report.

The article goes on to say that the task force recommended that SEC staff members ensure that settlement brokers and providers are sticking to legal standards of conduct, and that the staff watches for the development of a life settlement securitization market. Thus far, no securitizations have been registered with the SEC and offered to the public.

The task force also called upon Congress and state legislators to weigh applying stronger regulation to life expectancy underwriters and asked the SEC to consider issuing an investor bulletin on investments in life settlements. Another report released by the Government Accountability Office also criticized the patchwork of life settlement regulation in the states. Disclosure requirements can vary across jurisdictions, and policy owners could sell their policy without knowing whether they received a fair price or how much their brokers made, the GAO said.

Inconsistent laws have also hampered industry participants, as some brokers and providers have had to deal with the cost of complying with different rules in multiple states, the GAO said. The organization called for consistent legal protection for similar products and services, including disclosures, sales practice standards and suitability requirements.

Call a Securities Arbitration Lawyer for a free consultation on how to recover your losses.  To speak with an attorney, call 888-760-6552, or visit www.stockmarketlawsuit.com. Soreide Law Group, PLLC., representing investors nationwide before FINRA  the Financial Industry Regulatory Authority

consistent legal protection · Financial Industry Regulatory Authority · FINRA · FINRA arbitration · finra lawyer · finra securities arbitration · finra securities arbitration lawyer · florida insurance fraud lawyer · Florida Securities Lawyer · Ft. Lauderdale Securities Lawyer · GAO · Government Accountability Office · insurance fraud · insurance fraud lawyer · insurance scam by stockbrokers · investment fraud · life insurance lawyer · life insurance policy · life settlement investments · life settlement securitization market · life settlements · life settlements defined as security · private placements · SEC · Securities and Exchange Commission · securitizations · Soreide Law Group PLLC · stock broker fraud · Stock fraud lawyer · variable life insurance

In a March 2, 2011, article from Investment News, Bruce Kelly writes that Ameriprise Financial Inc. has reached a $27 million settlement with investors who bought private placements that have gone bust from reps at its independent broker-dealer subsidiary, Securities America Inc., according to an attorney with knowledge of the matter.

Securities America is also being sued by securities regulators from Massachusetts and Montana but the status of those suits is not clear in the light of the proposed settlements. Mr. Furgeson will hold a hearing in federal court in Dallas on the proposed settlements on March 18. Lawyers for the plaintiffs in arbitration plan to argue vigorously against any settlement that would freeze investors’ arbitration claims against Securities America.

The InvestmentNews article states that the proposed settlement, which must be approved by a federal judge later this month to become final, comes two weeks after Securities America reached a $21 million potential settlement with the class action plaintiffs who sued Securities America and Ameriprise in 2009.

The article goes on to state that in one allegation from the suit, C. Richard Toomey, et al. v. Securities America Inc., et al, plaintiffs claimed that Securities America handed private placement memorandum to clients that contained untrue statements about the deals and omitted other material information about the deals.

This is all part of a labyrinth of litigation before federal judge W. Royal Furgeson Jr. in Dallas, stemming from dozens of independent broker-dealers, including Securities America, selling two series of private placement deals that have left investors with tens of millions of dollars of losses.

The Securities and Exchange Commission charged both Medical Capital and Provident Royalties with fraud in 2009.

Chris Reese, a spokesman for Ameriprise, said on Wednesday evening he could not confirm or deny the settlement. In its annual report earlier this week, Ameriprise said Securities America clients were facing almost $400 million in losses from the Medical Capital and Provident investments, and the firm also said it had set aside about $40 million in legal reserves for the claims.

It was noted that a key part of the potential Securities America settlement is the fact that it requires investors who have sued the firm through arbitration under the Financial Industry Regulatory Authority Inc. will have those claims halted. Investors would become part of the class. This has infuriated some investors, along with their attorneys, who want their claims to go forward through arbitration with hopes of winning 100 cents on the dollar, plus the potential for damages.

The firm was dealt a costly legal blow on New Year’s Eve when a Finra arbitration panel awarded almost $1.2 million in damages and legal fees to a client who sued the firm and a broker over the sale of Medical Capital private placements. The award included $250,000 in punitive damages.

“A class action settlement treats everyone fairly,” Mr. Girard said. He added that some plaintiff’s attorneys representing clients in Finra arbitration have a “conflict of interest” over the matter because they have clients at the front and the back of the long line of litigation against Securities America. Those at the back of the line run the risk of getting nothing if the firm runs out of money, he said.

InvestmentNews states that threat is substantial. Small to mid-sized independent broker-dealers that sold high risk private placements have gone out of business due to lawsuits and legal costs over the past two years. None have been as substantial as Securities America, which has about 1,800 reps and advisers who generated about $500 million in fees and commissions last year.

If you feel you have been a victim of the alleged broker-dealer private placement fraudulent schemes of  Ameriprise Financial Inc ., Securities America, Inc., or any other broker-dealer, call a Securities Arbitration Lawyer for a free consultation on how to recover your losses.  To speak with an attorney, call 888-760-6552, or visit www.stockmarketlawsuit.com. Soreide Law Group, PLLC., representing investors nationwide before FINRA  the Financial Industry Regulatory Authority.

Ameriprise Financial Inc · Financial Industry Regulatory Authority · FINRA · FINRA arbitration · finra lawyer · finra securities arbitration · finra securities arbitration lawyer · fraud · Ft. Lauderdale Securities Lawyer · investment fraud · life insurance lawyer · Medical Capital · private placement fraud · private placement losses · private placement of securities · private placements · Provident Royalties · SEC · Securities America · Securities America Inc. · Securities and Exchange Commission · securities arbitration · securities arbitraton lawyer · securities fraud lawyer · Soreide Law Group PLLC · Stock fraud lawyer · stockbroker misconduct · unregistered private placements

Workman’s Security Corporation, a broker-dealer that was a prominent seller of high-risk private placements that wound up going bust has almost wiped the slate clean of costly litigation that could have impaired the firm’s financial condition writes Bruce Kelly of Investmentnews in a February 14, 2011, article.

Workman’s reached an agreement with the Financial Industry Regulatory Authority Inc. this month to pay $700,000 for partial restitution to more than a dozen clients who had sued the firm over investments in Medical Capital Holdings Inc. and Provident Royalties LLC — two series of private placements that the Securities and Exchange Commission charged were fraudulent in 2009.

The Medical Capital and Provident deals were widely distributed by dozens of independent broker-dealers, some of which have shut down because they were unable to face the burden of litigation costs.

“Workman views this as a terrific resolution so it can move forward,” said Benjamin Skjold, partner at Skjold Barthel PA and attorney for Workman, which has 171 reps. The firm has “effectively” paid the $700,000 and now turns to face about a half dozen remaining individual securities arbitration claims from clients.

The insurance carrier for Workman’s, Catlin Specialty Insurance Co., has paid $2.3 million to clients who sued the firm, Mr. Skjold said, adding that the process of settlement and restitution took about a year. “We’ve worked diligently internally, with the insurance carrier and with Finra to get claims resolved,” he said.

Workman’s reps sold a little more than $9 million of Provident Royalties private placements, from last summer in the Northern District of Texas. The amount of Medical Capital notes the firm’s reps sold to investors is not known. According to Workman’s profile on Finra’s BrokerCheck system, the firm’s supervision and due diligence when selling Regulation D private placements had big holes.

“The firm failed to have reasonable grounds to believe that a private placement offered by an entity pursuant to Regulation D was suitable for any customer after the firm received red flags that the entity had financial issues and was not timely making interest payments,” Finra alleged. “The firm failed to enforce a supervisory system reasonably designed to achieve compliance with applicable securities laws and regulation and Finra rules in connection with the sale of the private placement offered by the entity pursuant to Regulation D. The firm failed to conduct adequate due diligence of the private placement offered by the entity pursuant to Regulation D.”

James Shorris, executive vice president and executive director of enforcement with Finra, noted that Regulation D private placements and non-traded real estate investment trusts are listed as the first and second areas of focus for Finra, in a meeting of brokerage executives this month in Phoenix. 

Kelly goes on to say in the Investmentnews article that other broker-dealers have not fared well in settling the gusher of litigation that erupted after the SEC charged Medical Capital and Provident with fraud. On Friday, QA3 Financial Corp., another leading seller of Provident deals, submitted a request with Finra and the SEC to terminate it’s license as a broker-dealer (b-d). QA3 and its insurance carrier, also Catlin, had been sparring in court and exchange lawsuits in the past six months about the amount of coverage owed to the firm.

If you feel you have been a victim of the alleged broker-dealer private placement fraudulent schemes of   Workman’s Securities Corp.,or any other broker-dealer, call a Securities Arbitration Lawyer for a free consultation on how to recover your losses.  To speak with an attorney, call 888-760-6552, or visit www.stockmarketlawsuit.com. Soreide Law Group, PLLC., representing investors nationwide before FINRA  the Financial Industry Regulatory Authority.

brokercheck · Catlin Specialty Insurance Co · Financial Industry Regulatory Authority · FINRA · FINRA brokercheck · finra lawyer · finra securities arbitration · finra securities arbitration lawyer · Ft. Lauderdale Securities Lawyer · high-risk private placements · investment fraud · leveraged inverse ETF's · Medical Capital Holdings Inc · non-traded real estate investment trusts · private placement fraud · private placement losses · private placements · Provident Royalties LLC · QA3 · QA3 Financial Corp · Regulation D private placements · SEC · Securities and Exchange Commission · securities arbitraton lawyer · securities fraud lawyer · Soreide Law Group PLLC · stock broker fraud · Stock fraud lawyer · stockbroker misconduct · Workman's Securities Corporation

Yesterday, Bruce Kelly’s article from InvestmentNews stated that National Securities Corp. is the latest broker-dealer to face disciplinary action from Finra over the sale of private placements gone bust.

According to National Securities’ profile on Finra’s BrokerCheck system, the firm received a Wells notice last month from the Financial Industry Regulatory Authority Inc. A Wells notice indicates that the regulator intends to bring an enforcement action against an individual or a firm.

Kelly goes on to say that National Securities reps sold investors about $3.7 million of notes issued by Provident Royalties LLC, according to the latter’s bankruptcy court filings. The Regulation D offering from Provident involved a series of oil and gas private placements that the Securities and Exchange Commission in 2009 claimed were fraudulent,Mark Roth, the firm’s general counsel for National Holdings Corp., the parent of National Securities, did not return phone calls Tuesday seeking comment.

In the Investment News article they say that National Securities received the Wells notice regarding violations of product suitability rules, e-mail supervision rules, and standards of commercial honor and principles-of-trade rules, according to the BrokerCheck report. The product mentioned in the report was a “private placement.”

The Finra officials have made broker-dealers’ sale of private placements that failed during the market collapse their No. 1 enforcement priority this year.

Broker-dealers have begun to feel the pinch. Workman Securities Corp. this month reached an agreement with Finra to pay $700,000 for partial restitution to more than a dozen clients who had sued the firm over investments in Medical Capital Holdings Inc. and Provident Royalties. Like Provident, the SEC charged Medical Capital with fraud in 2009.

In a meeting of brokerage executives this month in Phoenix, James Shorris, executive vice president and executive director of enforcement with Finra, said Reg D private placements and non-traded real estate investment trusts are listed as the first and second areas of focus for Finra, respectively.

If you feel you have been a victim of the alleged broker-dealer private placement fraudulent schemes of  the brokerages listed above , National Securities Corp., Medical Capital Holdings, Workman’s Securities Corp.,or Provident Royalties,call a Securities Arbitration Lawyer for a free consultation on how to recover your losses.  To speak with an attorney, call 888-760-6552, or visit www.stockmarketlawsuit.com. Soreide Law Group, PLLC., representing investors nationwide before FINRA  the Financial Industry Regulatory Authority.

broker-dealer sale of private placements · broker-dealers · brokercheck · Financial Industry Regulatory Authority · FINRA · FINRA arbitration · FINRA brokercheck · finra lawyer · Ft. Lauderdale Securities Lawyer · investment fraud · Medical Capital Holdings Inc · national securities corporation · non-traded real estate investment trusts · private placement fraud · private placement losses · private placements · Provident Royalties · Regulation D private placements · SEC · Securities and Exchange Commission · securities arbitraton lawyer · securities fraud lawyer · Soreide Law Group PLLC · stock broker fraud · Stock fraud lawyer · stockbroker misconduct · unregistered private placements · workman securities corporation

Athena Premium Funding is a regulation D private placement that was believed to be thinly capitalized and only offered to accredited investors. This investment was created to be sold to Florida investors only and may have been unsuitable for some investors. This investment may have questionable liquidity and investors may not recoup their investment in this product and could sustain an investment loss.

The Athena Notes claimed to offer an 8% return to be obtained through the investment in life insurance policies. Incorporated by Shl Holdings, LLC, Athena Structured Premium Finance II, LLC is located at 950 Peninsula Corporate Circle, Suite 2015, Boca Raton, FL 33487. Athena Structured Premium Finance II, LLC was incorporated on Sunday, August 03, 2008 in the State of FL and is currently active. Shl Holdings, LLC represents Athena Structured Premium Finance II, LLC as their registered agent.

If you have lost money in Athena Premium Funding, contact Soreide Law Group, PLLC, securities fraud attorneys located in Fort Lauderdale, FL, for a free consultation on how to recover your losses.  To speak with an attorney, call 888-760-6552, or visit www.stockmarketlawsuit.com. Soreide Law Group, PLLC., representing investors nationwide before FINRA  the Financial Industry Regulatory Authority.

athena premium funding · Athena Premium Funding I · Athena Premium Funding II · Financial Industry Regulatory Authority · FINRA · FINRA arbitration · finra help · finra investor help center · finra lawyer · finra securities arbitration · Florida Securities Lawyer · fort lauderdale securities fraud lawyer · Ft. Lauderdale Securities Lawyer · investment fraud · LLC · private placements · securities arbitraton lawyer · Stock fraud lawyer · workman securities · workman securities corporation

On New Years’ Eve, Securities America Inc. was dealt a costly legal blow when a Finra arbitration panel awarded almost $1.2 million in damages and legal fees to a client who sued the firm and a broker over the sale of private placements that regulators have alleged were fraudulent.

The award, from three Financial Industry Regulatory Authority Inc. arbitrators, included compensatory damages of $734,000 and punitive damages of $250,000, plus attorney and expert witness fees of $171,000. The claimant, Josephine Wayman, also sued Randall Ray Talbott, a Newport Beach, Calif.-based rep, who is also liable for the award, according to the arbitrators’ decision, which was filed with Finra Dec. 31.

It is uncommon for punitive damages  in Finra arbitration awards.

“This is a powerful win for the claimants,” said a plaintiff’s attorney who represents more than 100 clients in similar arbitration claims seeking more than $35 million in damages against Securities America. The punitive damages in this award shows that the three arbitrators were “shocked” by Securities America’s action involving Medical Capital notes, he said.

After checking his profile on Finra’s BrokerCheck system, Mr. Talbott has 11 other pending customer disputes involving the sale of Medical Capital notes, but he is not named as a defendant in many of the arbitration cases. When asked about the award, Mr. Talbott said, “I don’t know anything about it.” He added that the matter was “very unfortunate.”

Securities America has tried to pin blame for the losses on Medical Capital Holdings Inc., the issuer of the private placements.

Securities America could be on the hook for millions of dollars more in legal damages involving the sale of private placements before the market collapse of 2008. The securities divisions of Massachusetts and Montana are also suing the firm.

“If there’s a problem here, Medical Capital is to blame, not Securities America,” Bruce Bettigole, a partner at Sutherland Asbill & Brennan LLP who is serving as lead attorney for the broker-dealer, said during a September hearing with before Massachusetts Securities Division.

In November, Jim Nagengast, the firm’s CEO said, “We feel very strongly we did industry-leading due diligence and are vigorously defending” the firm and its advisers.

This particular arbitration award appears to be the first involving Securities America’s sale of private placements issued by Medical Capital, which the Securities and Exchange Commission charged with fraud in 2009. Dozens of independent broker-dealers sold private Medical Capital notes, which raised $2.2 billion from 2003 to 2008. Securities America was by far the biggest seller of the Medical Capital product, with 400 brokers selling almost $700 million of notes. Medical Capital is in bankruptcy, and the receiver estimated that about half of investors’ money, $1.1 billion, is gone.

It was noted that a spokesman for Ameriprise, said the firm had no comment.

As is common in Finra arbitration awards, the decision gives no reasoning for the award. However, the arbitrators did offer comments about their decision, a point of great interest to other clients suing Securities America.

Securities America, with about 1,900 reps and advisers, is owned by Ameriprise Financial Inc., one of the largest retail brokerage firms in the country. “The award was based on the specific facts of this investor’s case, and we disagree with the outcome,” wrote Janine Wertheim, a company spokeswoman, in an e-mail. “Securities America does not believe it acted inappropriately in the sale of these investments.”

“The panel’s decision is based on what was actually known by Randall Talbott and Securities America Inc. at the relevant times and is not based on what additional information could or could not have been discovered by respondents regarding the subject investments or the company offering the investments,” according to the award. “The decision is based on what was actually known by Randall Talbott and Securities America Inc. at the relevant times.”

This information was obtained from Investment News’ website in an article by Bruce Kelly.

If you feel you have been a victim of these alleged fraudulent schemes of  Securities America, Inc., Randall Ray Talbott, Ameriprise Financial, Inc., or Medical Capital Holdings, Inc., call a Securities Arbitration Lawyer for a free consultation on how to recover your losses.  To speak with an attorney, call 888-760-6552, or visit www.stockmarketlawsuit.com. Soreide Law Group, PLLC., representing investors nationwide before FINRA  the Financial Industry Regulatory Authority.

Ameriprise Financial Inc · Financial Industry Regulatory Authority · FINRA · FINRA arbitration · FINRA brokercheck · finra lawyer · finra securities arbitration · Florida Securities Lawyer · Ft. Lauderdale Securities Lawyer · investment fraud · Medical Capital Holdings Inc · Medical Capital notes · private placements · Randall Ray Talbott · Securities America · Securities America Inc. · securities arbitration · securities arbitraton lawyer · Stock fraud lawyer

 By Bruce Kelley

Mass. securities regulator looking for more info from independent firms Massachusetts securities regulators are chasing down information from six independent broker-dealers concerning the sales of two private placements that blew up last summer. Secretary of the Commonwealth William Galvin said in a statement today that subpoenas have been sent to QA3 Financial Corp., National Securities Corp., CapWest Securities Inc., Independent Financial Group LLC, Investors Capital Corp. and Centaurus Financial Inc. The Massachusetts Securities Division is requesting information on due-diligence efforts, suitability data and promotional materials related to the sale of private placements marketed by Medical Capital Holdings Inc. and Provident Royalities LLC, according to the statement. The regulator has been increasing its scrutiny of sales of private placements by independent broker-dealers. In late January, the Securities Division slapped Securities America Inc. with a lawsuit, alleging that the firm misled investors who were sold high-risk private placements. Specifically, the agency alleged that Securities America advisers sold $7.2 million in promissory notes to Massachusetts investors without disclosing all the risks involved. That case is pending. Medical Capital and Provident issued billions in notes and other securities sold by a number of broker-dealers, according to today’s statement. “It also has become apparent that Securities America Inc. was not the only broker-dealers selling these” private placements, according to the statement. Mark Goldwasser, CEO of National Securities, said he hadn’t yet seen the subpoena and therefore could not comment. Officials at the five other broker-dealers were not immediately available for comment. Dale Hall, the CEO of CapWest, said that the firm had done a preliminary search of its records so far, and it appeared that it had one client in Massachusetts. The information that Massachusetts regulators are looking for about the sale of private placements was similar to what the Securities and Exchange Commission and the Financial Industry Regulatory Authority had requested he said.

Call a FINRA Securities arbitration lawyer for a free consultation on how to recover stock losses and tax loss selling. Call 888-760-6552, or visit www.stockmarketlawsuit.com. Soreide Law Group, PLLC. Representing investors nationwide before FINRA and the NFA.

broker · FINRA · fraud · high-risk · lawsuit · misled investors · non-disclosure · private placements · securities · unauthorized trades