Written by The White Law Group• June 21, 2024• 3:26 pm• Securities Fraud Articles

FINRA Claim Against Emerson Equity LLC

The White Law Group Files Another Claim against Emerson Equity LLC Alleging High Risk Investments

The White Law Group announces the filing of a FINRA arbitration claim against Emerson Equity LLC for investment losses involving high-risk alternative investments.

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The firm submitted a claim to FINRA Dispute Resolution on behalf of a Tennessee resident and his real estate companies alleging claims for violation of common law fraud, breach of fiduciary duty, negligence, and negligent supervision.

The claim further alleges that Emerson Equity LLC failed to supervise unsuitable recommendations in several high-risk alternative investments including the following:

LRT Leesburg DST
River Forest Grocery GK DST
Bridgeview BV Designs DST
Southern Star Self Storage-Montrose II, DST
Southern Star Self Storage-Carolinas DST
NAI Legacy-I-94 WB DST
Southern Star Self Storage-Airports, DST

The claim seeks damages ranging between $1,000,000 and $2,000,000.

Broker Due Diligence

Brokerage firms have a fiduciary duty to adequately disclose the risks involved in an investment before recommending it to its clients. It must perform the necessary due diligence to determine whether the investment is suitable for the investor. Emerson Equity LLC allegedly failed to perform the necessary due diligence on these investments before recommending them to these investors.

FINRA, the regulator who oversees brokers and brokerage firms, provides FINRA Dispute Resolution as an arbitration venue for investors with claims against their brokerage firm or financial advisor. It provides investors with an opportunity to attempt to recoup their investment losses and is an alternative to filing a claim in court.

“Investors often suffer losses due to unsuitable investment recommendations by their brokers and don’t realize they have recovery options,” said D. Daxton White, managing partner of The White Law Group, a national securities fraud and FINRA arbitration firm.

Brokerage firms are required to supervise their representatives to make sure that they are following FINRA rules. If it can be determined that the financial advisor’s employers failed to adequately supervise him, these firms can be held responsible for any resulting losses in a FINRA arbitration claim.

The White Law Group is a national securities fraud, securities arbitration, and investor protection law firm with offices in Chicago, Illinois and Seattle, Washington.