(888) 637-5510

Written by 4:45 pm Blog, Securities Fraud Articles

Update on DBSI Inc Trial

According to The Associated Press, the DBSI trial is on hold after FBI agent, Rebekah E. Morse, died of a self-inflicted gunshot to the head following her testimony. Authorities have not released the details of Morse’s suicide note, and it is unknown if her testimony had any bearing on her death.

However, the report says that during her testimony Morse was accused of texting, which she denied. Morse’s phone was confiscated and reviewed by U.S. District Court Judge B. Lynn Winmill who determined that Morse was in fact texting, and that she lied about it under oath.

According to the Associated Press Winmill said, “It was innocuous banter back and forth with her husband,” and that “It was not in any way connected with the case.”

DBSI’s president, Douglas Swenson, and three top executives are are on trial for 89 criminal counts, including multiple counts of securities, wire fraud, and conspiracy. The now bankrupt company was once a multi-billion dollar real estate investment company that offered a number of TIC and private placements to investors.

According to the Associated Press, “More than 22,000 claims have been filed with the bankruptcy trustee by investors, property owners, vendors and state and local governments[.]” The White Law Group continues to investigate other avenues of recovery on behalf of investors.

Brokerage firms have a fiduciary duty to perform adequate due diligence to determine that investment products have a reasonable likelihood of success. In addition, brokerage firms must take the necessary steps to determine if an investment is suitable for each individual client. Based on what is known about DBSI, it appears that some brokerage firms may have sold DBSI investments that were not consistent with their clients’ risk tolerance, investment objectives, net worth, and investment experience.

If your brokerage firm failed to perform the necessary due diligence or overlooked suitability requirements, they can be held liable for investment losses through a claim with the Financial Industry Regulatory Authority (FINRA).

To determine if you may be able to file a FINRA claim to recover DBSI losses, please call The White Law Group at (312)238-9650 for a free consultation.

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.

For more information on The White Law Group, visit www.WhiteSecuritiesLaw.com.

Tags: , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , Last modified: July 17, 2015