Presidential Brokerage | Jason McBride | Forta Financial Group

Presidential Brokerage Jason McBride at Forta Financial Group – Lawsuit “FINRA”

Haselkorn & Thibaut, P. A., is investigating potential sales practice and supervision issues related to a financial advisor, Jason Scott McBride with Forta Financial Group, Inc., Presidential Brokerage, Inc. and Presidential Wealth Management (1995-present) in Greenwood Village, Colorado.

The investor attorneys of Haselkorn & Thibaut, P.A. have been investigating potential sales practice and supervision issues relating to Jason McBride a financial advisor with Forta Financial Group, Inc. which also conducts (or conducted)  business under the name Presidential Brokerage, Inc. and Presidential Wealth Management.  The experienced team at Haselkorn & Thibaut, P.A. represents investors nationwide in pursuing private Financial Industry Regulatory Authority (FINRA) customer disputes and helping clients recover their investment losses.

Presidential Brokerage | Jason McBride | Forta Financial Group

According to FINRA Brokercheck, Jason McBride is currently registered with FINRA (CRD #1875972) and currently employed by Forta Financial Group, Inc. which also conducts (or conducted)  business under the name Presidential Brokerage, Inc. and Presidential Wealth Management.  In addition, it appears that he has a total of 7 separate customer dispute disclosures appearing on his FINRA Brokercheck report.  Two of those customer dispute disclosures remain pending (as of April 2020), three were settled, one was closed-no action, and one resulted in a FINRA arbitration award for over $653,000.  The allegations of the two pending customer disputes include (between 2014-2020) failure to conduct proper due diligence, unsuitable recommendations, negligence, misrepresentation and omissions, breach of fiduciary duty, failure to supervise, and breach of contract.

investment fraud lawyersRecover Your Investment Losses. Please Contact Haselkorn & Thibaut at 1 888-628-5590 or visit InvestmentFraudLawyers.com for a free consultation on recovering your investment loses.

A number of the customer dispute disclosures appear to involve private placement, limited partnership, non-traded REIT, and non-traded BDC, and real estate related and other investments and securities, and several appear to potentially involve supervision issues for Forta Financial Group, Inc. which also conducts (or conducted) business under the name Presidential Brokerage, Inc. and Presidential Wealth Management.

In October 2017, Financial Advisor Magazine (FA-mag.com) article entitled Firm Does What FINRA Won’t: Rates 30 Worst Brokerage Firms, where the Securities Litigation & Consulting Group (SLCG) had done what regulators have repeatedly declined to do – published the worst-ranked brokerage firms in the securities industry, noting in doing so that FINRA Brokercheck data from 2007-2016 reflects that only 2.6% of brokers at firms of more than 200 brokers have customer complaints.  This is arguably an industry average type benchmark.  According to FINRA Brokercheck (as noted above), Jason McBride currently has seven customer dispute disclosures.

Haselkorn & Thibaut, P.A. has also recently received calls related to Jason McBride and Forta Financial Group, Inc. which also conducts (or conducted)  business under the name Presidential Brokerage, Inc. and Presidential Wealth Management, and some of the investments at issue include non-traded REITs, non-traded BDCs, and other alternative investments including but not limited to:

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Northstar Healthcare Income, Inc. – a non-traded real estate investment trust (REIT)  focused on healthcare real estate.  The last stated estimated value from the sponsor was listed at $6.25/share, while the most recent trading range reported by a secondary market source was in the $2.65/share to $2.80/share range.  See Central Trade and Transfer.  For many investors, this is a big drop from the $10.00/share original sale price.  It should be noted this pricing information is largely prior to the impact of the most recent market events.

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Sierra Income Corporation – The last stated estimated value from the sponsor was listed at $6.03/share, while the most recent trading range reported by a secondary market source was in the $4.05/share to $4.25/share range.  See Central Trade and Transfer.  For many investors, this is a big drop from the $10.00/share original sale price. It should be noted this pricing information is largely prior to the impact of the most recent market events.

Carter Validus Mission Critical REIT II –  The most recent sponsor stated value is $8.65/share, but the most recent trading range reported by a secondary market source was $6.45/share to $6.75/share.  See Central Trade and Transfer.  This non-traded real estate investment trust (REIT) invests in data centers and healthcare assets.  Investors may recall that Comrit Investments I, LP previously made an unsolicited offer at $3.81/share.   In October 2019, Carter Validus Mission Critical REIT I and REIT II completed a merger that retained the REIT II name.  CVMC REIT I investors received $1.00/share in cash plus 4,681 shares of CVMC REIT II class A common stock.  CVMC REIT I originally sold at $10.00/share and by June 2018 it was reporting share value of $5.33/share. It should be noted this pricing information is largely prior to the impact of the most recent market events.

FS Energy and Power Fund – Although the most recent sponsor stated value is $5.75/share, the most recent trading range reported by a secondary market source was $4.35/share to $4.55/share.  See Central Trade and Transfer.  This non-traded business development company (BDC).  BDCs typically make investments in developing companies and firms, in this instance in the energy and power industry.  The original share price was $10.00/share, so investors liquidating at the current price levels are realizing a significant loss. It should be noted this pricing information is largely prior to the impact of the most recent market events.

FS Global Credit Opportunities Fund – The most recent sponsor stated value is $7.51/share, the most recent trading range reported by a secondary market source was $5.15/share to $5.30/share.  See Central Trade and Transfer.  This is a non-traded business development company (BDC).  BDCs typically make investments in developing companies and firms.  The original share price was $10.00/share, so investors liquidating at the current price levels may be realizing a significant loss. The above pricing does not account for the recent market impact in the first quarter of 2020.

FS KKR Capital Corp. II – The most recent sponsor stated value is $7.36/share, the most recent trading range reported by a secondary market source was $5.75/share to $6.00/share.  See Central Trade and Transfer.  This is a non-traded business development company (BDC).  BDCs typically make investments in developing companies and firms.  The above pricing does not account for the recent market impact in the first quarter of 2020.

Business Development Corporation of America (BDCA) – Although the most recent sponsor stated value is $7.75/share, the most recent trading range reported by a secondary market source was $5.81/share to $6.22/share.  See Central Trade and Transfer.  This non-traded business development company (BDC).  BDCs typically make investments in developing companies and firms.  This BDC invests in first and second lien senior secured loans and mezzanine debt issued by middle-market companies.  In 2017, investors may also recall there was a previous offer by Mackenzie Capital Management offering $6.00/share.   The above pricing information does not include any potential impact the first quarter of 2020 might have on the value of this security.

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CION Investment Corporation – Although the most recent sponsor stated value is $8.22/share, the most recent trading range reported by a secondary market source was $5.82/share to $6.06/share.  See Central Trade and Transfer.  This is a non-traded business development company (BDC).  Many investors may have been induced by the promises of a 7.65% annual distribution, and some financial advisors and broker-dealer firms offering this and similar investors did not always properly disclose the material risks associated with these investments or product structures as they typically involve a high degree of risk and they are typically illiquid.  It is also notable for investors that in March 2017, the Managing Director and Chief Credit Officer resigned from CION Investment Corporation. The above pricing does not reflect the impact (if any) of the first quarter of 2020.

Griffin-American Healthcare REIT III – is a non-traded real estate investment trust investment (non-traded REIT) primarily focused on healthcare real estate assets such as medical office buildings, hospitals, skilled nursing facilities, senior housing, and other healthcare-related facilities.  In early 2018, Everest REIT Investors I, LLC and Everest REIT Investors II, LLC (private real estate companies) made a $6.5 million total tender offer for up to one million shares at $6.50/share (offer expired 3/30/18).  Since that time, the sponsor’s current stated value is $9.40/share, which is obviously significantly higher than the prior tender offer price, or the most recent trading range reported by a secondary market source was in the $7.15/share to $7.35/share range.  See Central Trade and Transfer.

CIM Real Estate Finance Trust (Cole IV) – CIM Real Estate Finance Trust was formerly known as Cole Credit Property Trust IV.  This non-traded REIT was supposedly planning to reposition its portfolio into commercial mortgage loans and was intending to sell off shopping center assets to do so.  How the first quarter of 2020 has impacted that business plan or the pricing below is still not known.  In a recent letter to investors, Mackenzie Realty Capital, Inc. was offering $4.79/share to investors up until 12/30/19.  The REIT estimates share value at a stated value of $8.65/share.  Notwithstanding those estimates, the most recent trading range reported by a secondary market source was in the $6.35/share to $6.55/share range.  See Central Trade and Transfer.

Potential Claims Under Investigation

That potential claim (still being investigated) involving Jason McBride and Forta Financial Group, Inc., Presidential Brokerage, Inc. and Presidential Wealth Management is based (at least in part) on supervision issues related to the firm based on the manner in which in conducting its due diligence and sales practices related to the sale of some or all of the above securities to a retail investor client.

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Direct Participation Products include products such as non-traded business development companies (BDCs), non-traded REITs, oil and gas offerings, equipment leasing products, and other alternative investments.  These alternative investments rarely produce profits for investors and are often misrepresented or simply unsuitable for many retail investors because of their illiquidity, high fees and cost structure.  Financial advisors selling these products are often paid higher than the average commission in order to incentivize them to hype these otherwise inferior quality investments, thus creating an artificial market for these investments.

Financial advisors and the firms they work for that supervise the approval and sale of such products (such as Forta Financial Group, Inc., Presidential Brokerage, Inc., and Presidential Wealth Management.) have a responsibility to treat investors fairly.  This often includes making suitable investment recommendations, placing investor’s interests ahead of their own interests, and doing so after conducting reasonable and proper due diligence.  Due diligence typically includes an independent investigation by the firm into the investment’s underlying business, its properties including its benefits, risks, tax consequences, issuer, history, and other relevant factors.  Appropriate due diligence would also generally identify that an alternative investment’s high costs, illiquidity, and any potential conflicts of interest.

Haselkorn & Thibaut, P.A. is an investment fraud law firm that specializes in representing investor clients in investment fraud matters and FINRA arbitration cases nationwide. The two name partners have over 45 years of combined legal experience representing investors (both individual and institutional investors) seeking to aggressively pursue their claims and maximizing client recoveries of investment losses for victims of negligence or investment fraud. For investors faced with investment losses, a FINRA Dispute Resolution customer dispute may be the way to go if you want to recover your losses in a private, confidential, and efficient alternative (compared to state or federal court litigation).  One of the best decisions you can make in this process is to consider having experienced securities arbitration attorneys by your side, to help you maximize your potential recovery of investment losses.

The securities arbitration attorneys at Haselkorn & Thibaut, P.A. (InvestmentFraudLawyers.com) can help you from start to finish in this process. This FINRA Dispute process is a private arbitration process between you and your brokerage firm.  There are typically no depositions, and the process is intended to be a faster, more efficient and less expensive alternative to court litigation.

The sole purpose of this notice is to investigate the manner in which Jason McBride or Forta Financial Group, Inc. which also conducts (or conducted)  business under the name Presidential Brokerage, Inc. and Presidential Wealth Management handled investment recommendations and transactions with investors as well as the supervision of same. If you have any knowledge or experience with these matters, please contact Haselkorn & Thibaut at 1-888-628-5590.