National investment loss lawyers KlaymanToskes is investigating Jeffrey Gitterman (CRD# 1910332) of Gitterman Wealth Management following the filing of 8 customer complaints, including a pending complaint which alleges $200,000 in damages due to unsuitable recommendations to invest in a Business Development Company (“BDC”).
Gitterman’s settled customer complaints have alleged unsuitable recommendations to invest in other alternative investments, including Direct Participation Programs and Limited Partnerships (DPP & LP Interests).
Investors that suffered losses with Jeffrey Gitterman or any other broker/advisor at Gitterman Wealth Management are encouraged to contact attorney Lawrence L. Klayman, Esq. at (888) 997-9956 or lawrence@klaymantoskes.com to discuss recovery options. We do not collect attorney’s fees unless we are able to obtain a financial recovery for you.
According to FINRA BrokerCheck, Jeffrey Lewis Gitterman is currently registered as a broker/investment advisor with Vanderbilt Securities, and is doing business as Gitterman Wealth Management in Edison, NJ.
Gitterman has eight customer complaints filed against him. Seven complaints have been settled in favor of the investors, while one is pending.
As defined by FINRA (Financial Industry Regulatory Authority), a Direct Participation Program (“DPP”) is “a program which provides for flow-through tax consequences regardless of the structure of the legal entity or vehicle for distribution,” including, but not limited to:
DPPs are generally organized as a partnership whereby the investors or “limited partners” deliver their funds to a “general partner” who invests the pooled capital for the benefit of the group. DPP investors may gain tax benefits as a result of its business structure, however, they also generally require that potential investors meet certain net worth requirements. While DPPs may provide investors with high returns and tax advantages when managed correctly, investors in DPPs may face severe losses as a result of poor management.
Many investors may be encouraged to invest in DPPs for the passive income they can potentially generate. However, DPPs are considered illiquid due to not being traded on a market exchange. Typically when investors buy into DPP’s, they are unable to liquidate until their target maturity date.
DPPs are likely only suitable for investors who can afford to have their funds tied up for long holding periods, sometimes decades. Investors who want to withdraw their funds early may face high and unexpected fees.
Brokerage/advisory firms and their registered representatives may be held liable for DPP & LP Investment losses under the the Securities Act of 1933 and the Financial Industry Regulatory Authority’s (“FINRA”) Rule 2310. This rule includes the requirement for brokers/advisors to provide their customers with the per share estimated value of their DPP or REIT investment in a yearly report.
Unfortunately, some brokers/investment advisors may misrepresent the risks and liquidity problems associated with alternative investments, including Direct Participation Partnerships (DPPs) & Limited Partnerships (LP Interests), Non-traded REITs, Business Development Companies (BDCs), and Oil & Gas investments.
If your stockbroker or financial advisor recommended unsuitable alternative investments based on your investment profile or disregarded your risk-tolerance when making investment recommendations, you may be entitled to a financial recovery through FINRA arbitration.
Customers of Jeffrey Gitterman, Gitterman Wealth Management, and/or Vanderbilt Securities who suffered investment losses are encouraged to contact attorney Lawrence L. Klayman, Esq. at (888) 997-9956 or lawrence@klaymantoskes.com for a free and confidential consultation to discuss legal options. We do not collect attorney’s fees unless we are able to obtain a financial recovery for you.
KlaymanToskes is a leading national securities law firm which practices exclusively in the field of securities arbitration on behalf of retail and institutional investors throughout the world in large and complex securities matters. The firm has recovered over $250 million in FINRA arbitrations and over $350 million in other securities litigation matters. KlaymanToskes has office locations in California, Florida, New York, and Puerto Rico.
KlaymanToskes, P.A.
Lawrence L. Klayman, Esq.
888-997-9956
lawrence@klaymantoskes.com
www.klaymantoskes.com