Attorney David Neuman Launches Investigation Into Sales Practices Related to LaeRoc Private Placement

CHICAGO, Aug. 9, 2011 (GLOBE NEWSWIRE) -- Attorney David Neuman announces the launch of an investigation into brokerage firms for sales of LaeRoc funds (LaeRoc 2002 Income Fund; LaeRoc 2004-2005 Income Fund; LaeRoc 2005-2006 Income Fund; LaeRoc Edge Fund; and the LaeRoc Income Fund 2007).

The LaeRoc funds are real estate private placements sold by brokerage firms like Linsco Private Ledger and Commonwealth Financial Network. According to its website, LaeRoc Funds is a real estate investment firm managing over $650 million in assets. The Company focuses on "income producing properties in the western U.S. with a concentration in southern California." Sample properties include the Santa Clarita Plaza Retail Shopping Center, Murdock Plaza and the Vineyard Shopping Center in Ontario, California.

The LaeRoc 2005-2006 Income Fund LP is currently attempting to raise another $11 million to $14.5 million to pay off at least $49 million of debt. In June of 2011, the Fund issued a cash call notice to investors who bought the LaeRoc 2005-2006 Income Fund. According to Investment News, the Fund's lenders have disclosed that they will foreclose on one of its holdings (the Country Club Plaza in Sacramento, California) if more money can't be raised. It defaulted on its loan in November 2010. It had purchased the 432,000-square-foot center during the real estate boom in 2006 for $57.8 million. LaeRoc, which still owes $43.6 million, tried to sell the property this year but bids came in too low. The shopping center was purchased during the real estate boom and was highly leveraged.

The LaeRoc related private placements were recommended to hundreds of clients nationally. Some of the real estate funds that it has created include the following: LaeRoc 2002 Income Fund; LaeRoc 2004-2005 Income Fund; LaeRoc 2005-2006 Income Fund; LaeRoc Edge Fund; and the LaeRoc Income Fund 2007. Multiple brokerage firms were active solicitors of the LaeRoc Funds. SEC filings reveal that the following broker-dealers may have helped the various LaeRoc Funds raise capital by soliciting (or intending to solicit) investors including: Unison Capital Group; Allegheny Investments, Ltd.; Chauner Securities; Capital Strategies Limited; Gramercy Securities; CommonWealth Equity Services; CFG/H.Beck; Kendrick, Stimpfig, & Ryu; TriEqua Capital Corp.; Manarin Securities Corp.; Northstar Securities; Hagen Securities; American Investors Co.; Burch & Co.; La Salle Securities; Metropolitan Investment Securities; Rushmore Securities; Linsco Private Ledger (LPL); May Management; VSR Financial Services, Inc.; and Mid Atlantic Capital Corporation.

According to attorney David Neuman: "We intend on pursuing two types of claims against the brokerage firms who sold LaeRoc 2005-2006 Income Fund on behalf of individual investors. The first set of claims relate to the suitability of the investments. Under FINRA Conduct Rules, brokerage firms must recommend suitable investments. Factors like the client's age, actual investment objectives and financial resources are important factors that must be taken into consideration before a recommendation is made. We believe in some instances, especially for the elderly and retired, these factors were not considered. In addition, brokerage firms must perform reasonable due diligence on the investment products they sell. We believe firms may have failed to perform the necessary due diligence under FINRA Conduct Rules. Investors who have suffered losses investing in any of the LaeRoc Funds upon the recommendation of their broker or financial advisor may be able to recover their losses through securities lawsuits."

To learn more, please contact attorney David Neuman at 312.332.4200 or visit www.RecoverLaerocLosses.com