NEW YORK, May 28, 2014 (GLOBE NEWSWIRE) -- The Securities Arbitration Law Firm of Klayman & Toskes, P.A. ("K&T"), www.nasd-law.com, announced today that it filed a claim against NFP Securities ("NFP") to recover losses sustained in alternative investments, including Hennessey Fund a/k/a Capital Solutions Monthly Income Fund ("Hennessey Fund"). The claim was filed with the Financial Industry Regulatory Authority ("FINRA"), and seeks damages of $800,000.
According to the Claim, this case is about the unsuitable investment recommendations and misrepresentations made by NFP and its financial advisor to the Claimant, a widow with three children whose husband was killed in Tower 1 of the World Trade Center on September 11, 2001. After receiving life insurance proceeds from the passing of her husband, as well as a settlement from the September 11th Victim Compensation Fund, the Claimant sought out to obtain sound, prudent investment advice so that the money could last for the rest of her life, and help support her children. Instead of investing all of the money suitably, NFP and its advisor solicited the Claimant to invest in alternative investments that were illiquid and carried high commissions, including the Hennessey Fund and Inland American Real Estate Investment Trust ("REIT"). Unfortunately, the NFP advisor misrepresented the risk of the investments. Further, unbeknownst to the Claimant, NFP and its advisor failed to do their proper due diligence on the Hennessey Fund. As a result, the Claimant sustained substantial investment losses.
The sole purpose of this release is to investigate, on behalf of our clients, the sales practices of NFP in connection with the sale of alternative investments to their customers. Current and former customers of NFP who purchased alternative investments, and have information relating to the manner in which the firm represented these products, are encouraged to contact Steven D. Toskes or Jahan K. Manasseh of Klayman & Toskes, at (888) 997-9956, or visit us on the web at www.nasd-law.com.
CONTACT: Klayman & Toskes (888) 997-9956Source:Klayman & Toskes P.A.