Tampa Attorney Files a FINRA Arbitration Proceeding Against Allen & Company Concerning Odyssey Secured Notes and Limited Partnership Units

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Scott Ilgenfritz, a partner with the Johnson, Pope, Bokor, Ruppel & Burns, LLP, law firm in Tampa, Florida, has filed a FINRA arbitration proceeding on behalf of an investor against Allen & Company of Florida, Inc., concerning Odyssey secured notes and limited partnership units.

The claim, filed February 24, 2012, arises from the sale of $200,000 of Odyssey Diversified VII, LLC, and Odyssey Diversified IX, LLC, secured notes and $50,000 of Odyssey Operating Partnership VIII, Ltd., limited partnership units. The claim alleges that Allen & Company and its registered representatives fraudulently sold the grossly unsuitable, illiquid investments to a conservative investor who was approaching retirement.

"The Odyssey investments at issue in the claim are substantially similar to Odyssey notes and limited partnership units issued by several other Odyssey entities," according to Scott Ilgenfritz. The private placement memorandum for Odyssey VII states that the Odyssey entities identified below raised the indicated amounts of funds from investors. Odyssey Operating Partnership II, Ltd., raised $30 million from investors through the sale of limited partnership units. Odyssey Residential, Inc.; Odyssey Residential II, LLC; Odyssey Properties III, LLC; and Odyssey Diversified VI, LLC, collectively raised in excess of $69 million from investors through the sale of secured notes. Based upon information available to Scott Ilgenfritz, Odyssey Diversified VII and IX and Odyssey Operating Partnership VIII also raised millions of dollars from investors.

Documents filed by the various Odyssey entities with the Securities and Exchange Commission state that the Odyssey secured notes and limited partnership units were sold to investors by a number of broker/dealers, including Allen & Company, located in Lakeland, Florida; Calton & Associates, Inc., located in Tampa, Florida; Capital Financial Services, Inc.; and VSR Financial Services, Inc.

Scott Ilgenfritz had the following to say about investors to whom the Odyssey investments were sold: "Investors to whom these secured notes were sold may have sought yields on a fixed income investment which were higher than those available on traditional fixed income investments such as US Treasury bonds, tax-free municipal bonds, and taxable bonds. Sales presentations made to potential investors may not have disclosed the risks associated with the secured notes and limited partnership units or the illiquidity of those investments."

The securities arbitration and litigation attorneys of Johnson, Pope, Bokor, Ruppel & Burns, LLP, represent investors across the nation who have been victims of the negligence or fraud of stockbrokers, broker/dealers, and investment advisors. The firm's securities arbitration and litigation attorneys have in excess of sixty years experience in representing institutional and individual investors seeking to recover losses caused by the negligence or fraud of financial professionals and their firms.

For more information, contact:
     Scott C. Ilgenfritz, Esq.
     Board Certified Business Litigation Specialist
     403 E. Madison Street, Suite 400
     Tampa, Florida 33602
     Telephone: 813-225-2500
     Toll Free: 800-775-0005


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