(888) 637-5510

Written by 8:10 am Blog, Securities Fraud Articles

Investigation into DBSI, Inc. TIC investments

The White Law Group is investigating securities fraud claims on behalf of numerous investors involving recommendations made by their broker-dealer that they invest in DBSI, Inc., and specifically in DBSI TIC (tenants in common) or DBSI REIT investments.

In the cases we are investigating, the brokerage firms allegedly represented that the DBSI tic (tenants-in-common) investments provided a 6-7% guaranteed return and was a perfect investment for investors seeking to do a 1031 exchange. Unfortunately, unbeknownst to the investors, it appears that the brokerage firms failed to perform reasonable due diligence in recommending the DBSI TIC investments to investors.

It appears that many brokerage firms were selling these DBSI investments to their clients (likely because of the commission that DBSI was paying to these firms to sell their products), including Independent Financial Group, Royal Alliance (formerly known as United Securities Alliance), Steven L. Falk & Associates, Private Capital Management (now known as ACAP Financial), Omni Brokerage, Waveland Capital Partners, Harrison Douglas, among others.

Notwithstanding the guarantees made by these brokerage firms, DBSI, Inc. has since filed for bankruptcy and it appears that the investors’ entire investment may be lost.

The bankruptcy court-appointed investigator, Joshua R. Hochberg, in his first report regarding DBSI, paints a picture of a company in disarray. He details the company’s “serious cash flow problems and operating losses” and indicates that its Accounting ledger entries are “confusing and misleading” because they don’t “fully, fairly and accurately reflect the transactions they purport to describe.”

If you have any information that may assist us in our investigation on behalf of this investor, please contact our Chicago office at 312-238-9650.

A preliminary investigation has also turned up that some of the TIC investments were not properly registered as securities. To the extent that investors purchased “unregistered securities” they could be entitled to recover their entire investment loss. In addition, to the extent that any DBSI sales occurred through misrepresentations or omissions, or because of a failure of the salesperson to conduct “due diligence,” investors may have claims against the salesperson and the brokerage firm involved.

The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm with offices in Chicago, Illinois and Seattle, Washington. With over 40 years of securities law experience, including experience working at FINRA (f/k/a the NASD) and the SEC, The White Law Group has the expertise to help investors defrauded in securities, investment and financial business transactions.

For more information on The White Law Group, please visit our website at https://whitesecuritieslaw.com.

Tags: , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , Last modified: December 2, 2022