Berthel Fisher, a securities broker-dealer firm based in Iowa and with branches across the country, has been sanctioned and fined by the securities industry regulators for supervisory failures regarding its sales of non-traded REITs to its customers, among others.
The Peiffer Wolf Carr & Kane securities lawyers represent a number of investors in several cases, from class actions to FINRA arbitrations, against Berthel Fisher and other securities broker-dealer firms, arising out of the sale of Thompson National Properties-sponsored real estate investment programs such as TNP 2008 Participating Notes, TNP Strategic Retail Trust, and TNP 6700 Santa Monica Boulevard.
In the regulatory matter brought against it by the securities regulators, Berthel Fisher agreed to pay a fine of $675,000 and also consented to other sanctions, without denying or admitting the regulators’ charges.
A Berthel Fisher affiliate, Securities Management & Research, has also been sued $100,000.
The Financial Industry Regulatory Authority (“FINRA”) alleged that, from January 2008 to December 2012, Berthel Fisher had inadequate supervisory systems and written procedures for sales of alternative investments such as non-traded REITs, managed futures, oil and gas programs, equipment leasing programs and business development companies. In some cases, Berthel Fisher failed to accurately calculate concentration levels for alternative investments, and thus it failed to correctly enforce suitability standards for a number of the sales of these investments, FINRA alleged in its case against Berthel Fisher.
Berthel Fisher also failed to train its staff on individual state suitability standards, which is part of the suitability review for certain alternative investment sales, the securities regulators charged.
A representative of the Financial Industry Regulatory Authority stated: “[a] strong culture of compliance is an essential element of the proper marketing of complex products. Berthel’s supervision of the sales of non-traded REITs … and other products fell short of this standard, as it failed to ensure that its registered representatives understood the unique features and risks of these products before presenting them to retail clients.”
The Peiffer Wolf Carr & Kane securities lawyers are preparing to bring more claims on behalf of investors in various TNP-sponsored real estate investment programs against a number of securities broker-dealer firms that sold such programs to their clients. They take most cases of this type on a contingency fee basis, advance the case expenses themselves, and only get paid for their expenses and attorney’s fees (calculated after expenses are subtracted) out of money they recover for their clients.
Investors in TNP-sponsored programs such as TNP 2008 Participating Notes, TNP 12% Notes, TNP Strategic Retail Trust, TNP 6700 Santa Monica Boulevard (“TNP Kodak”) and other programs may contact attorneys Jason Kane or Joe Peiffer for a free, no-obligation evaluation of their recovery options, at 585-310-5140 or by using the contact form on this website.