Vernon Healy Files Claim Against Berthel Fisher for Alleged Risky Investments

(Newswire.net — June 11, 2014) Naples, Florida — According to the Claim recently filed in FINRA arbitration, the advisor, registered with Berthel Fisher & Company Financial Services, Inc., met with investors regarding their 401k funds and retirement planning. With retirement for both the husband and wife  approaching, the couple wanted to ensure their retirement funds would be safe and in good position to supplement their pensions.  

            Despite the client’s objectives, the claim alleges that the assets were invested in multiple illiquid, speculative alternative investments. According to the claim, these investments were presented as safe investments. The investors later retired and discussed with Mr. McCutchen the investment of the remainder of the couple’s nest egg.  With the now considerable retirement funds of both husband and wife, the claim states that respondents sold more illiquid, speculative investments to the couple.  These investments included TIER REIT, Inc. (formerly Behringer Harvard REIT I) and Icon Leasing Fund Twelve LLC, among others. 

            According to the claim, the advisor represented to the investors that these funds would provide monthly income of approximately 7 percent and could be liquidated in five to seven years for a full return of the initial investment.  Regretfully, according to the claim, the investments sold by respondents were speculative, illiquid investments.  In addition to being high risk, the portfolio built by McCutcheon for the retirees lacked proper allocation and diversity.  The investors allege that it was inappropriate to place a high concentration of their funds in illiquid, high-risk alternative investments.  Further, the claim states that the investments were not suitable for the investors in violation of the industry suitability standards.

            In the claim, the investors assert that Berthel Fisher and Mr. McCutchen, among other wrongdoing, acted in a negligent manner.  The investors cite to material misrepresentations and omissions in support of these claims.  Further, the claim alleges the advisor’s failure to recommend suitable investments to meet the investors objectives and failure to allocate and diversify the investments as evidence of respondents’ wrongdoing.  

            The lawyers at Vernon Healy Attorneys at Law, continue to represent investors across the country who have suffered considerable losses from alternative investments, such as Icon Leasing Fund Twelve and Behringer Harvard REIT (n/k/a TEIR REIT, Inc).  If you are concerned about your investments with Berthel Fisher & Company Financial Services or Jerry McCutchen, or the circumstances under which any of the investments were offered and sold to you by any other financial institution, please call Vernon Healy as soon as possible.