Due Diligence Firm Provides Expert Witness Testimony on Behalf of Broker Dealers and Financial Advisors
FactRight LLC, a leading provider of independent research and due diligence of alternative investments, has announced the launch of a new consulting service related to arbitration and litigation of alternative investment securities. FR Consulting Services provides expert witness services and consultation regarding due diligence, compliance and suitability to broker dealers and financial advisors who are involved in lawsuits and arbitrations or acting proactively to avoid them. In addition, FR Consulting Services provides valuation and damage calculation support to its clients.
"Broker dealers and financial advisors are facing increased legal inquiries on alternative investments," says Barbara Halper, principal at FactRight and CEO of FR Consulting Services. "We are receiving more requests for expert testimony to assist broker dealers and financial advisors in support of their prior investment recommendations. Accordingly, we are stepping up our compliance and due diligence avoidance and mitigation consulting as this area of our business increases. It has become a growing area of concern for broker dealers and advisors who are overwhelmed by arbitration and litigation claims."
FR Consulting Services conducts an analysis of the facts as they relate to the contested issues of due diligence, suitability, compliance, and damages. Precise information about the value of the asset at the time it was bought, as well as at the time of the litigation, is used to evaluate the claims for damages. Broker dealers, financial advisors or their insurance carriers retain the firm's expert witnesses, who work in partnership with the company's attorneys to determine the merits of each case and settlement negotiations. If the matter goes to a hearing, FR Consulting provides expert witness testimony.
"Broker dealers are going out of business because of frivolous lawsuits and they need to be protected," says Tony Chereso, president and CEO of FactRight. "We have an array of experts with legal, due diligence, audit and fraud experience who have led due diligence efforts for broker dealers. They know the issues; they know the regulatory landscape and they possess the expertise to handle arbitration and court cases by providing unbiased, experienced expertise regarding alternative investments."
With alternative investments such as non-traded REITs coming under increased scrutiny by regulators, broker dealers with even the best procedures can quickly become overburdened by multiple claims. Professional expert witness services are highly valued by broker dealers because they allow firms to assess the strength of a claim. Real data and opinions provided by experienced third parties provide the credibility needed to defend broker dealers from suits. FR Consulting provides the perspective and the services firms need for risk management.
In a recent arbitration case, attorneys for a broker dealer were able to use data produced by FR Consulting Services to lower the negotiate settlement amount by approximately 40 percent. The claimant asserted the assets were worthless; FR Consulting Services staff armed with market data and property research helped the broker dealer prove that valuation was substantial.
About FactRight
Founded in 2006, FactRight provides the only comprehensive three-tier resource addressing the unique needs for private placement and non-traded securities due diligence in a wide variety of categories including broker dealer risk management solutions, and education and training for the registered investment advisor (RIA) and registered representative (RR) communities.
With its diverse expert team of legal, due diligence, financial, audit, analyst and accounting professionals, FactRight is unmatched in its methodology of addressing the securities industry compliance and transparency requirements. FactRight strives to improve the investor experience by serving as their advocate in the alternative investment industry.
Contacts:
FactRight LLC
Anthony Chereso, President
866-357-7779
info@factright.com
