DALLAS--(Richard Elliott, a Dallas attorney specializing in investor claims, announced that he has filed an arbitration claim against Gramercy Securities on behalf of a widow who lost her life savings at the hands of her investment advisor. The securities arbitration claim was filed with the Financial Industry Regulatory Authority (“FINRA”) and seeks damages in excess of $500,000.00.)--
According to the claim, Dora Davis turned over her entire life savings, which included the life insurance proceeds on her husband’s life, to Gramercy Securities, Inc. and its broker. This was barely one month after the death of her husband. The brokerage firm is alleged to have placed her assets in unsuitable, risky private placement offerings, investments only suitable for sophisticated investors with large net worth. The claim alleges that the Claimant was neither sophisticated in securities transactions nor an “accredited investor” as required by the Securities Act.
Among the investments the Claimant purchased were the Inland American Real Estate Investment Trust and LaeRoc Edge Funds. Additionally, the claim seeks recovery for investing in the Arciterra Whitefish Opportunity Fund, another private placement offering.
According to the statement of claim, the LaeRoc funds are real estate private placements sold by many brokerage firms. LaeRoc Partners is a real estate investment firm managing over $650 million in assets. The LaeRoc private placement was promoted by brokers as a relatively safe, conservative investment. However, the arbitration claim asserts, these representations were misleading. The Statement of Claim filed with FINRA claims that these investments were both unsuitable for the client and generated large commissions for the brokers who sold them. The arbitration filing goes on to state that the Edge Fund has been dissolved and the client’s investment is worthless.
Investors who have purchased Inland American REITs or LaeRoc Funds from brokerage firms may contact Richard Elliott to explore their legal rights. If you wish to discuss this announcement, you may contact him at (830) 997-7715 in Fredericksburg or (214) 358-7600 in Dallas, or by visiting his website at www.richardelliottattorney.com.