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Erez Law Files Claim for Over $15 Million Against Raymond James & Associates, Inc. for Biscayne Capital Related Losses

Posted on Tuesday, October 22nd, 2019 at 7:09 am    

Biscayne Capital

Erez Law recently filed a FINRA arbitration claim for damages in excess of $15 million against Raymond James & Associates, Inc. on behalf of a group of mostly Ecuadorian investors who suffered losses due to investments in securities sold to them by Biscayne Capital BVI and/or Biscayne Capital related companies.

The claim alleges that Raymond James entered into a relationship with Biscayne Capital BVI and/or other Biscayne Capital related companies (“the “Biscayne Companies”) and served as the brokerage firm for the Biscayne Capital Companies’ offshore customers. Biscayne Capital BVI and/or the Biscayne Capital Companies established accounts for the Claimants with Raymond James & Associates, Inc.

Biscayne Capital BVI and/or the Biscayne Capital Companies sold the Claimants investments in SG Strategic Income Ltd. notes, SBH Diversified Preferred Income notes, ORC Senior Secured Ltd. (currently known as Diversified Real Estate Development Ltd.), and Preferred Income Collateralized Interest Ltd. notes (collectively “Biscayne Capital Notes”). None of the notes were registered with the SEC or were available for sale to US investors. Raymond James & Associates, Inc. carried these investments in the Claimants’ accounts.

Raymond James & Associates, Inc. terminated the relationship with Biscayne Capital BVI and/or the Biscayne Capital Companies in 2016. The Erez Law clients lost their entire investment in the Biscayne Capital Notes, which included SG Strategic Income Ltd. notes., SBH Diversified Preferred Income notes, ORC Senior Secured Ltd. currently known as Diversified Real Estate Development Ltd., and Preferred Income Collateralized Interest Ltd. notes. It is alleged that by the time Raymond James caused the Claimants’ accounts to close, their Biscayne Capital Notes valued in excess of $15 million by Raymond James & Associates, Inc. were, in fact, worthless.

In or about the first quarter of 2017, the Biscayne Capital Notes defaulted on their quarterly interest obligations. In September 2018, the issuers of the Biscayne Capital Notes were placed in voluntary liquidation. The Claimants have not recovered any of their capital invested in the Biscayne Capital Notes, which included SG Strategic Income Ltd. notes, SBH Diversified Preferred Income notes, ORC Senior Secured Ltd. (currently known as Diversified Real Estate Development Ltd.), and Preferred Income Collateralized Interest Ltd. notes, nor any interest due since the default.

By acting as the Claimants’ broker-dealer and other related actions, Raymond James & Associates, Inc. owed their customers certain duties and legal obligations. The Claimants have alleged that Raymond James & Associates, Inc. violated those duties, amongst other things, and is legally liable for the Claimants’ losses.

Erez Law represents investors in the United States and in South America for claims against brokers and brokerage firms for wrongdoing. If and have experienced investment losses, please call us at 888-840-1571 or complete our contact form for a free consultation. Erez Law is a nationally recognized law firm representing individuals, trusts, corporations and institutions in claims against brokerage firms, banks and insurance companies on a contingency fee basis.