According to Investment News, some investors are suing independent broker dealer, Berthel Fisher & Co. Financial Services, for failure to perform adequate due diligence on the TNP 2008 Participating Notes Program. In addition, the claim alleges that Berthel Fishers failed to make the necessary disclosures to investors regarding the deal.
According to the claim filed in US District Court of Iowa “Berthel Fisher had actual knowledge of misrepresentations and omission in the 2008 [private-placement memorandum] and failed to investigate red flags that pointed to other misrepresentations and omissions.”
Brokerage firms have a fiduciary duty to conduct a reasonable investigation into the investment, including the sponsor and manager. Additionally, brokerage firms must perform adequate due diligence to ensure that the investment has a reasonable likelihood of success. When brokerage firms fail to uphold their fiduciary duty or misrepresent an investment they may be liable for investment losses.
According to Investment News, Berthel Fiser, not only helped TNP raise nearly $26 million, they also acted as the deal’s underwriter. This means that other brokerage firms had to go through Berthel Fisher in order to sell the TNP Notes.
The TNP 2008 Participating Notes Program, along with TNP 12% Notes Program went into default. Multiple offerings sponsored by Thompson National Properties, including the both Notes Programs and TNP Strategic Real Estate Trust, have been under investigation by securities regulators.
The White Law Group is investigating brokerage firms, including Berthel Fisher & Co. Financial Services, on behalf of investors seeking to recover investment losses that resulted from a Thompson National Properties offering. To determine if your brokerage firm may be liable for your investment losses, please call the securities attorneys of The White Law Group at (312)238-9650 for a free consultation.
The White Law Group, LLC is a national securities fraud, securities arbitration, and investor protection law firm with offices in Chicago, Illinois and Boca Raton, Florida.
