San Francisco, CA (PRWEB) March 19, 2012
The Law Offices Of Jeffrey A. Feldman currently represents an Arizona couple and their trust, who lost the college tuition money they had set aside for their children, when broker Mitchell Adler of United Securities Alliance, Inc., and later Royal Alliance, located in Phoenix, Arizona, sold them an unsuitable private placement investment called IMH, according to allegations in a statement of claim filed with FINRA (FINRA Case No. 11-03876). More information about the Law Offices of Jeffrey A. Feldman can be found at http://www.jeffreyfeldman.com.
According to allegations in the claim filed with FINRA, the Claimants told Mr. Adler they did not want to take risks with their children’s college tuition funds. At the time the Claimants invested in IMH, they were looking to avoid the risks of the stock market and preserve principal, and per allegations in the FINRA claim, broker Mitchell R. Adler of USA and Royal Alliance, recommended IMH as an investment that would meet these investment objectives. To the contrary, as set forth in the FINRA Arbitration claim, IMH, 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 Royal Alliance and Mr. Adler. Per allegations in the FINRA claim, Mr. Adler, USA, and Royal Alliance relied on IMH’s own marketing materials to sell the product, never explaining the risks involved with this type of investment.
The Claimants would never have invested their children’s college tuition money in something speculative or risky, and as alleged in the claim filed with FINRA, only did so because they were told how safe IMH was. 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. Later, when the Claimants asked for the return of their investment funds, per allegations in the FINRA claim, they were told that the money was “locked up” in the investment. By May 2009, as alleged in the FINRA claim, IMH stopped making any dividend or income payments to investors. Later, IMH units were converted to shares in IMH Financial Corp., and the Claimants liquidated their investment for pennies on the dollar, according to allegations in the FINRA arbitration claim.