HOSPITALITY INVESTORS TRUST INVESTOR ALERT: KlaymanToskes Investigates Investor Losses in Light of Chapter 11 Bankruptcy Filing

HOSPITALITY INVESTORS TRUST INVESTOR ALERT: KlaymanToskes Investigates Investor Losses in Light of Chapter 11 Bankruptcy Filing

National investor fraud law firm, KlaymanToskes (“KT”), announces an investigation on behalf of investors in Hospitality Investors Trust (“HIT REIT”), formerly known as American Realty Trust, following the filing for Chapter 11 Bankruptcy Protection in the United States Bankruptcy Court for the District of Delaware (Case No. 21-10831).  Hospitality Investors Trust is classified as a Non-Traded Real Estate Investment Trust (“REIT”) that was touted as offering current income to investors with a conservative to moderate risk tolerance. Non-Traded REITs tend to have high expenses and fees, along with limited liquidity which make this type of investment unsuitable for most investors.…

FINRA Barred, NPB Financial Group Ex-Broker, Cynthia Diane Cowden for Unsuitable Investment Recommendations in Illiquid Non-Traded Securities

FINRA Barred, NPB Financial Group Ex-Broker, Cynthia Diane Cowden for Unsuitable Investment Recommendations in Illiquid Non-Traded Securities

The securities industry watchdog, the Financial Regulatory Industry Authority (“FINRA”) barred, NPB Financial Group’s, Ex-Broker Cynthia Diane Cowden, for Unsuitable Investment Recommendations to a retired couple and an individual senior investor.  The recommended investments at issue were illiquid non-traded REITs and non-traded closed end funds.  According to FINRA, the barred broker’s recommendations resulted in unsuitable, securities concentration in illiquid securities that exceeded concentration limits established by the California State Regulations designed to protect investors. FINRA required that Cynthia Diane Cowden’s investment advice should have had reasonable basis for her recommendations, based on the investor’s “age, other investments, financial situation and…

Department of Labor Fiduciary 60-Day Rule Delays Financial Industry Crunch Time

Department of Labor Fiduciary 60-Day Rule Delays Financial Industry Crunch Time

The new Department of Labor (DOL) Fiduciary Rule that was enacted and scheduled to begin this month on April 10th has been postponed 60 days to June 9th.  Brokerage Firms and Financial Advisors are responsible for compliance with the rules as they are now written.  Keeping in mind that the requirements may be modified or eliminated based on the what happens during the 60-day delay. Klayman & Toskes, P.A. is monitoring the developments and will keep investors posted and provide further updates as they become available. Best Interest Contract (BIC) Brokerage firms and financial advisors who recommend investment of retirement funds…

The Securities Arbitration Law Firm of Klayman & Toskes, P.A. Continues to Investigate and Pursue FINRA Arbitration Claims Against VSR Financial Services for Sales Practice Violations Related to Non-Traded Alternative Investments

New York (Globe Newswire) – April 7, 2016 – The Securities Arbitration Law Firm of Klayman & Toskes, P.A. (“K&T”) www.klaymantoskes.com, announced today that it is continuing to investigate and pursue Financial Industry Regulatory Authority (FINRA) securities arbitration claims against VSR Financial Services (“VSR”) for sales practice violations related to solicited investments in non-traded alternative investments. According to K&T, the scope of its investigation is related to investments in non-traded alternative investments, including Real Estate Investment Trusts (“REITs”) and Business Development Companies (“BDCs”) solicited by VSR financial advisors. K&T is pursuing FINRA securities arbitration claims against VSR for unsuitable recommendations, misrepresentations and omissions,…

Correction - The Securities Arbitration Law Firm of Klayman & Toskes, P.A. Launches Investigation into Potential Sales Practice Violations by Cetera Advisors Related to Solicited Investments in Non-Traded REITs and BDCs

New York (Globe Newswire) – April 1, 2016 – In a release issued under the headline “The Securities Arbitration Law Firm of Klayman & Toskes, P.A. Launches Investigation into Cetera Advisors Sales Practice Violations Related to Solicited Investments in Non-Traded REITs and BDCs” on March 24th, 2016 by Klayman & Toskes P.A., please note that the investigation was launched by the law firm into potential sales practice violations. The corrected release follows: The Securities Arbitration Law Firm of Klayman & Toskes, P.A. (“K&T”), www.klaymantoskes.com, announces that it is conducting an investigation into potential sales practice violations by Cetera Advisors related…

The Securities Arbitration Law Firm of Klayman & Toskes, P.A. Launches Investigation into Cetera Advisors Sales Practice Violations Related to Solicited Investments in Non-Traded REITs and BDCs

New York (Globe Newswire) – March 24, 2016 – The Securities Arbitration Law Firm of Klayman & Toskes, P.A. (“K&T”), www.klaymantoskes.com, announces an investigation into Financial Industry Regulatory Authority (FINRA) sales practice violations by Cetera Advisors related to solicited investments in non-traded Real Estate Investment Trusts (“REITs”) and Business Development Companies (“BDCs”).  According to K&T, the scope of the investigation includes whether Cetera Advisors made suitable recommendations related to non-traded REITs and BDCs; whether adequate disclosure was made of the fees, costs and risks of non-traded REITs and BDCs and whether the high commissions paid to Cetera Advisors resulted in conflicts of…

The Securities Arbitration Law Firm of Klayman & Toskes, P.A. Launches Investigation into Sales Practice Violations of Brokerage Firms Related to United Development Funding IV Non-Traded REIT and Initial Public Offering

Boca Raton, Florida (BUSINESSWIRE) – February 26, 2016 – The Securities Arbitration Law Firm of Klayman & Toskes, P.A. (“K&T”), www.klaymantoskes.com, launches an investigation into Financial Industry Regulatory Authority (“FINRA”) sales practice violations of brokerage firms related to United Development Funding IV (“UDF”) Non-Traded REIT and Initial Public Offering. In 2013, UDF was financed through a non-traded REIT Offering distributed through RCS Capital Corp, a division of Realty Capital Securities, LLC, as the dealer manager of a syndication of broker dealers. On January 31, 2016, RCS Capital Corp filed for bankruptcy protection (Case No. 16-10223, U.S. Bankruptcy Court, District of…

The Securities Arbitration Law Firm of Klayman & Toskes, P.A. Comments on Trading Halt in United Development Funding IV Shares Reported in SEC Filings

Boca Raton, Florida (Globe Newswire) February 25, 2016 – The Securities Arbitration Law Firm of Klayman & Toskes, P.A. (“K&T”), www.klaymantoskes.com, comments on the recent SEC Form 8-K filing reported by United Development Funding IV (NASDAQ:UDF) to shareholders. The United Development Funding IV SEC filing, dated February 22nd, reported “law enforcement authorities executed a search warrant at the corporate office of United Development Funding IV.” According to the SEC filing, following law enforcement actions United Development Funding IV received a notice from The NASDAQ Global Select Market (“NASDAQ”) of a trading halt in the company’s stock which is still in…

LPL Financial LLC Ordered To Pay Restitution To Investors and Fines To FINRA for Failure To Supervise Sale of Non-Traded REITs, Variable Annuities and Exchange Traded Funds

Financial Industry Regulatory Authority (FINRA) sanctioned LPL Financial, LLC with fines of $10 million for, “broad supervisory failures in a number of key areas, including the sales of non-traditional exchange-traded funds (ETFs), certain variable annuity contracts, non-traded real estate investment trusts (REITs) and other complex products”.  Additionally, FINRA ordered that $1.7 million in restitution be paid to investors by LPL Financial to certain customers who purchased non-traditional ETFs.   FINRA Examination Findings According to FINRA regulators, “LPL’s supervisory breakdowns resulted from a sustained failure to devote sufficient resources to compliance programs integral to numerous aspects of its business.” This lack…