Berthel Fisher & Company Financial Services, Inc. Recommended Risky Tenancy-In-Common Interests As Safe Investments For Retiree

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The Law Offices Of Jeffrey A. Feldman Filed A FINRA Arbitration Claim On Behalf Of Northern California Retiree Alleging That A Broker At Berthel Fisher & Company Financial Services, Inc. Misrepresented Risky Tenancy-In-Common Interests (“TICs”) As Safe And Suitable Investments For A Retiree.

The Law Offices Of Jeffrey A. Feldman currently represents a Northern California retiree who lost a substantial portion of his retirement nest egg after a broker with Berthel, Fisher & Company Financial Services, Inc. sold him two risky tenancy-in-common, or “TIC” investments, by misrepresenting them as safe, according to allegations in a statement of claim filed with FINRA (FINRA Case No. 11-02763). The FINRA arbitration claim also names the Control Persons of Berthel, Fisher & Company Financial Services, Inc., and the broker who sold the TICs, Robyn H. Lee. More information about the Law Offices of Jeffrey A. Feldman can be found at http://www.jeffreyfeldman.com.

At the time of the investment, the Claimant was retired and living off of social security and income from his IRA and other investments. A Berthel Fisher broker recommended that the Claimant use a substantial portion of his net worth to purchase “TIC” interests in Geneva Kirkwood Station Plaza, and Moody Westchase Technology Center, according to allegations in the arbitration claim filed with FINRA. The Berthel Fisher broker misrepresented the TIC investments as suitable for an investor seeking to preserve principal, and as alleged in the FINRA arbitration claim, offering above market returns, substantial tax benefits, and a clear exit strategy. According to allegations in the FINRA arbitration claim, none of these representations were accurate, and the broker failed to discuss the many risks and negatives associated with the investment. The TICs are now in foreclosure, and as alleged in the FINRA statement of claim, the Claimant is losing all of the money he invested in the TICs.

The arbitration claim filed with FINRA alleges that each TIC investment was an unsuitable recommendation, as each was highly risky and involved placing a substantial portion of Claimant’s investable assets into one investment, rather than diversifying the amount in order to protect against risk and volatility. The broker also failed to perform adequate due diligence on the TIC investments before recommending them, and failed to disclose his own commissions, according to allegations in the FINRA claim.

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Jeffrey Feldman
Law Offices of Jeffrey Feldman
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