NEW YORK, Oct. 30, 2010 (GLOBE NEWSWIRE) -- The Securities Arbitration Law Firm of Klayman & Toskes, P.A. ("K&T") () announced today that it is investigating the sales practices and due diligence of Financial Industry Regulatory Authority ("FINRA") securities broker-dealers who solicited customers to purchase DBSI investments. DBSI Inc., a commercial real estate investment company based in Idaho, based a large portion of its business in Tenants in Common ("TICs") investments. In 2003, the IRS amended its rules which allowed investors to avoid capital gains taxes by investing proceeds from a property sale into TIC investments. Individuals who invest in TICs become fractional owners of a single property.
Between 2003 and 2008, investors purchased about $1 billion of DBSI's TIC investments. FINRA securities brokerage firms who sold DBSI securities products to their customers were required to conduct adequate due diligence into the investments before selling the product. Numerous financial advisors who sold DBSI represented the product as safe and guaranteed, with returns of 7 to 12 percent per year. With the recommendation to invest in the DBSI TICs, however, many advisors failed to properly advise their customers of the risks associated with the products. Moreover, some advisors may have sold DBSI investments to their customers without first receiving their firm's approval. This conduct is called "selling away," and the brokerage firm can be held liable for the investor's losses in the product.
Investors who purchased DBSI securities from a full-service securities broker-dealer and sustained significant losses can contact K&T to explore their legal rights and options. The attorneys at K&T are dedicated to pursuing claims on behalf of investors who have suffered investment losses. K&T, an experienced, qualified and nationally recognized securities litigation law firm, practices exclusively in the field of securities arbitration and litigation. It continues its representation of investors throughout the world in securities arbitration and litigation matters against major Wall Street brokerage firms.
If you have information relating to this investigation or have investment losses of $100,000 or more in DBSI securities, please contact Steven D. Toskes, Esquire or Jahan K. Manasseh, Esquire of Klayman & Toskes, P.A., at 888-997-9956 or visit us on the web at
CONTACT: Klayman & Toskes, P.A. 888-997-9956