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Written by 7:38 pm Blog, Current Investigations, Securities Fraud Articles

Securities Fraud Investigation: First Allied Securities Advisor

The White Law Group is currently investigating a securities fraud claim involving a former First Allied financial advisor and his recommendation that an investor over-concentrate his portfolio in a multitude of high commission and risky private placements.

Based on our initial review, it appears the investor suffered investment losses in Cawley Partners Real Estate Investors, Provident Share Royalties, Peregrine Financial Group, Behringer Harvard, and IMH Secured Loan Fund.  The investor may also have suffered investment losses in Commonwealth Income and Growth Fund, Medical Provider Financial Corp., Divident Capital, Quadriga Superfund, Grubb & Ellis Healthcare REIT, and ProFunds.

Private placements are generally high-risk and complicated investments, appropriate only for experienced accredited investors.  Private placements also generally pay a high commission to the broker that sells the investment (likely the broker’s motivation for recommending these investments in the case we are reviewing).  Broker-dealers have a fiduciary duty to its clients to only recommend investments that are appropriate for the client.  Brokerage firms are also required to perform due diligence on every investment prior to recommending it.  It appears that First Allied failed to perform the necessary due diligence prior to recommending that this investor invest almost his entire life savings in these high-risk private placements as many of them are now bankruptcy or have suffered enormous declines.

If you have questions about an investment you made with First Allied, or you have suffered losses in any of these investments, The White Law Group may be able to help.  For a free consultation, please contact the firm’s Chicago office at 312-238-9650.

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 Boca Raton, Florida. With over 30 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.

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