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The Securities Arbitration Law Firm of Klayman & Toskes Investigates Ameritas Investment Corp. Relating to the Supervision of Former Ameritas Broker Michael James Blake

NEW YORK, Sept. 11, 2013 (GLOBE NEWSWIRE) -- The Securities Arbitration Law Firm of Klayman & Toskes, P.A. (www.nasd-law.com) announced today that it is investigating Ameritas Investment Corp. relating to the supervision of former Ameritas broker Michael James Blake ("Blake") who allegedly engaged in "selling away" investments. On information and belief, the investments were made in Longest Drive, LLC and/or Grace Communities, LLC. Selling away involves a situation where a broker sells investments to his customers that have not been approved by his broker-dealer.

According to an Order Accepting Offer of Settlement issued by the Financial Industry Regulatory Authority ("FINRA"), Blake participated in private securities transactions involving the investment of more than $3.2 million by approximately 28 investors in 3 investment contracts, without providing prior written notice to his firms of his proposed roles in the transactions. FINRA's Order states that between approximately February 2006 and June 2007, $3,200,000 was invested in real estate properties being developed by "GC", which is believed to be Grace Communities. The invested funds were provided by 28 investors as follows: 6 persons invested $250,000 in Development 1 between August and November 2006; 3 persons invested $200,000 in Development 2 in October and November 2006 and 23 persons invested approximately $2,755,000 in Development 3 between February 2006 and June 2008. According to FINRA, as of September 9, 2013, "none of the investors in the LLC investments have received a return of their principal or any interest or other payments." Based on Blake's alleged conduct, he was fined $10,000 and suspended from associating with any FINRA member firm in all capacities for one year.

From June 2006 to April 2013, Blake was registered with FINRA broker-dealer Ameritas Investment Corp. Under FINRA Rules, Ameritas was obligated to properly supervise the activities of Blake during the time he was registered with the brokerage firm. Accordingly, Ameritas may be liable for failing to supervise Blake's activities while registered at the firm.

If you have information relating to this investigation, please contact Steven D. Toskes, Esquire or Jahan K. Manasseh, Esquire of Klayman & Toskes, P.A., at 888-997-9956.

CONTACT: Klayman & Toskes, P.A. 888-997-9956Source:Klayman & Toskes P.A.