The White Law Group Files Arbitration Lawsuit Against Emerson Equity LLC for High-Risk Investment Losses
The White Law Group, a national FINRA law firm focused on securities fraud and investor protection, has filed an FINRA lawsuit with FINRA Dispute Resolution against Emerson Equity LLC on behalf of several Cailfornia residents. The claim alleges significant financial losses due to a high-risk alternative investment, Four Springs Capital.
The complaint accuses Emerson Equity LLC of common law fraud, breach of fiduciary duty, negligence, and negligent supervision related to the recommendation of the following non-traded Real Estate Investment Trust (REIT) investment:
Four Springs Capital
The claim seeks compensation for the clients’ losses, ranging from $100,000 and $500,000.
The allegations center on the firm’s failure to adequately supervise the recommendations of this risky investment. Emerson Equity LLC is accused of not conducting sufficient due diligence to ensure that the investment was appropriate for the investors, thus violating their fiduciary responsibilities.
Kevin Barrett, Emerson Equity Broker
The claim further alleges that the broker of record, Kevin Barrett (CRD # 4748518) has a history of misconduct. Barrett has been the subject of at least one customer dispute, 12 judgement/liens and was recently barred from acting as a financial advisor by FINRA in 2021.
“As fiduciaries, brokerage firms are obligated to fully inform their clients about the risks of an investment and to perform thorough due diligence to confirm its suitability for the investor,” explained D. Daxton White, managing partner of The White Law Group. “Emerson Equity LLC seemingly neglected these critical duties, leading to significant losses for our clients.”
FINRA Lawsuits
FINRA, the Financial Industry Regulatory Authority, offers an arbitration platform for investors seeking to resolve disputes with their brokerage firms or financial advisors. This process provides a viable alternative to court litigation, enabling investors to pursue recovery of their losses.
“Investors are often unaware that they have recovery options when they suffer losses due to inappropriate investment recommendations,” White added. “Our firm is dedicated to helping them navigate these options to seek justice and financial recovery.”
In cases where brokerage firms fail to properly supervise their representatives, they can be held accountable for any investment losses suffered by the investors. The White Law Group is committed to holding these firms responsible for their actions through FINRA arbitration.
The White Law Group, with offices in Chicago, Illinois, and Seattle, Washington, focuses on securities fraud, arbitration, and investor protection across the nation.
