The White Law Group Files a Lawsuit against McDermott Investment Services
The White Law Group announces the filing of a FINRA arbitration claim against McDermott Investment Services LLC for investment losses involving high-risk alternative investments.
The firm submitted a claim to FINRA Dispute Resolution on behalf of a Florida family, alleging claims for violation of common law fraud, breach of fiduciary duty, negligence, and negligent supervision.
The claim further alleges that McDermott Investment Services LLC unsuitably invested its clients in the following high-risk, alternative investments: NB Taylor Bend, DST, Windsor Properties, Passco Twenty25 Apartments DST and Jacksonville Multifamily DST.
The claim seeks damages of $500,000 to $1,000,000.00.
Broker dealers have a fiduciary duty to adequately disclose the risks involved in an investment before recommending it and must perform the necessary due diligence to determine whether the investment is suitable for the investor. It is alleged that McDermott Investment Services LLC failed to perform the necessary due diligence on these investments prior to recommending them to these particular investors.
FINRA Dispute Resolution is an arbitration venue for investors with claims against their brokerage firm or financial professional. It provides investors with an opportunity to attempt to recoup their investment losses and is an alternative to filing such claims in court.
“We believe there are many more investors who have suffered losses due to unsuitable investment recommendations who may not realize they have recourse, or may be unaware of any wrongdoing,” said D. Daxton White, managing partner of The White Law Group, a national securities fraud, securities arbitration, investor protection and securities regulatory/compliance law firm with offices in Chicago, Illinois and Seattle, Washington.
“Brokerage firms are required to supervise their advisors to make sure that they are complying with 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.