Zamansky & Associates LLC Investigates DLG Notes Sold By Brokerage Firms

Share Article

Zamansky & Associates LLC is investigating Diversified Lending Group Inc. (“DLG”) notes that were sold to investors by full-service or independent brokerage firms.

Zamansky & Associates LLC is investigating Diversified Lending Group Inc. (“DLG”) notes that were sold to investors by full-service or independent brokerage firms. On March 4, 2009, the Securities and Exchange Commission brought a civil action against DLG, Applied Equities and Bruce Friedman, alleging that they were engaged in a fraudulent investment scheme. This case is SEC v. Diversified Lending Group, Inc. et al., U.S. District Court Central District of California, Case No. 09-1533.

The SEC’s Complaint alleges that DLG and Friedman raised $214 million from investors which were misappropriated Friedman’s personal use. The funds were supposed to be used to invest in real estate and mortgages, according to the SEC’s Complaint, with investors receiving one- or five-year notes with 9 to 12% interest. The SEC’s Complaint alleges that this money was misappropriated and charges DLG with fraud in the offer and sale of securities.

On February 1, 2013, the Financial Industry Regulatory Authority entered into an Order Accepting Offer of Settlement with Forrest Nolan Jackson who, it is alleged, was registered with PlanMember Services, a brokerage firm, and sold $60 million of DLG notes to investors. FINRA charged Jackson with engaging in unauthorized private securities transactions. The case is FINRA Disciplinary Proceeding No. 20100235029-01.

The investigation concerns sales of DLG notes to investors by full-service or independent brokerage firms. According to Jake Zamansky, brokers selling DLG notes had duties to perform research and due diligence on the notes to detect fraud. “Any diligent or responsible financial advisor who looked at these DLG notes should have been highly suspicious of them,” Zamansky states.

Moreover, Zamansky states that “brokerage firms have duties to supervise even private transactions by their employees, and they should have detected any transactions in DLG notes.” If you were sold a DLG note by a full-service or independent brokerage firm, Zamansky believes that you may have a potential claim to recover your losses.

What Investors Can Do

If you would like to discuss your legal rights and how you might recover your losses, you may, without obligation or cost to you, email jake(at)zamansky(dot)com or call the law firm at (212) 742-1414.

About Zamansky & Associates

Zamansky & Associates LLC is one of the leading law firms specializing in securities fraud and financial services arbitration and class action litigation. We represent both individual and institutional investors. Our practice is nationally recognized for our ability to aggressively prosecute cases and recover losses.

To learn more about Zamansky, please visit our website,


Zamansky & Associates, LLC
50 Broadway - 32nd Floor
New York, NY 10004
Jake Zamansky, 212-742-1414

Share article on social media or email:

View article via:

Pdf Print

Contact Author

Jacob Zamansky
Zamansky & Associates LLC
212 742-1414
Email >
Visit website