San Francisco, California (PRWEB) October 10, 2011
The Law Offices Of Jeffrey A. Feldman currently represents a northern California couple who lost a substantial portion of their retirement funds when broker Rey Frimmersdorf of Independent Financial Group, located in Santa Rosa, California, sold them an unsuitable private placement investment called IMH, according to allegations in a statement of claim filed with FINRA (FINRA Case No. 11-03670). More information about the Law Offices of Jeffrey A. Feldman can be found at http://www.jeffreyfeldman.com.
At the time the Claimants invested in IMH they were very close to retirement, and according to allegations in the claim filed with FINRA, did not want to take risks with their retirement funds. As alleged in the FINRA arbitration claim, Broker Rey Frimmersdorf of IFG, recommended IMH as an investment that would allow the Claimants to avoid the risks of the stock market, and provide them with income and safety of principal. To the contrary, as set forth in the FINRA Arbitration claim, IMH, which was not publicly traded at that time, was in fact a high risk private real estate investment trust that made real estate loans. IMH loaned money on speculative raw land, not yet approved for development, and according to allegations in the FINRA claim, this information was glossed over in IMH marketing materials and representations made by IFG and Mr. Frimmersdorf. Per allegations in the FINRA claim, Independent Financial Group and Mr. Frimmersdorf relied on IMH’s own marketing materials to sell the product, never explaining the risks involved with this type of investment.
Contrary to the representations made to the Claimants, the investment in IMH was speculative, risky and highly concentrated, according to allegations in the FINRA arbitration claim. The Claimants had never before put so much of their money into one investment, and as alleged in the claim filed with FINRA, only did so because they were told how safe IMH was. By May 2009, IMH stopped making any dividend or income payments to investors, and at this point, it appears that the Claimants’ IMH investment is practically worthless, according to allegations in the FINRA arbitration claim.