Broker At Berthel Fisher & Company Financial Services, Inc. Allegedly Recommended A Risky Tenancy-In-Common Interest As A Safe And Secure Investment

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The Law Offices Of Jeffrey A. Feldman Filed A FINRA Arbitration Claim On Behalf Of A Northern California Family And Their Family Trust, Alleging That A Broker At Berthel Fisher & Company Financial Services, Inc. Misrepresented A Risky Tenancy-In-Common Interest (“TIC”) As A Safe And Secure Investment.

San Francisco, CA (PRWEB) July 28, 2011 – The Law Offices Of Jeffrey A. Feldman currently represents a Northern California family, who lost a substantial portion of their life savings after a broker with Berthel, Fisher & Company Financial Services, Inc. (“Berthel”) sold them a risky tenancy-in-common, or “TIC” investment by misrepresenting it as safe, according to allegations in a statement of claim filed with FINRA (FINRA Case No. 12-02323). The FINRA arbitration claim also names the Control Persons of Berthel, Fisher & Company Financial Services, Inc. More information about the Law Offices of Jeffrey A. Feldman can be found at http://www.jeffreyfeldman.com.

After attending a lunch seminar relating to 1031 exchanges, per allegations in the claim filed with FINRA, the Claimants were contacted by a Berthel broker to discuss 1031 exchanges and TIC investments. The Claimants informed the Berthel broker that they desired a conservative, safe investment, as the money to be invested was for their two children’s college savings, according to allegations in the FINRA claim. The Berthel broker recommended that the Claimants use a substantial portion of their children’s college savings to purchase a “TIC” interest in Geneva Kirkwood Station Plaza (“the Geneva TIC”), a mixed residential and commercial development, according to allegations in the arbitration claim filed with FINRA.

Per allegations in the FINRA claim, the Berthel broker told the Claimants that a master lease agreement for the Geneva TIC provided additional security for the investment, and that as a result, distribution payments to the Claimants were essentially guaranteed. According to allegations in the FINRA arbitration claim, these representations were inaccurate, and the broker failed to discuss the many risks and negatives associated with the investment. The Geneva TIC is now in foreclosure, and as alleged in the FINRA statement of claim, the Claimants are losing all of the money they invested in it.    

The arbitration claim filed with FINRA alleges that the Geneva TIC investment was an unsuitable recommendation, as it was highly risky and involved placing a substantial portion of Claimants’ investable assets into a single 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 Geneva TIC investment before recommending it, and failed to disclose the commissions that he and Berthel would receive for selling it, according to allegations in the FINRA claim.

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Jeffrey Feldman
Law Offices of Jeffrey Feldman
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