Wadsworth is the subject of 9 disclosures, eight of them customer disputes, starting in 1999.
Wadsworth was the CEO of IMS Securities, which was the underwriter and wholesaler for United Development Funding IV (UDF IV), a real estate investment trust (REIT). In 2016 the FBI raided the offices of UDF IV, and the price of its shares subsequently collapsed.
Clients of IMS Securities have sued the firm, Jackie Wadsworth, and other brokers with the firm for overconcentration, negligence, misrepresentation, failure to supervise, fraud, deceptive trade practices, breach of fiduciary duty, and other causes.
In October, 2017, IMS Securities lost an arbitration claim relating to investments in REITS, including UDF IV. The firm was ordered to pay clients $1.3 million, and other brokers at the firm were ordered to pay $976,000. Investors alleged that Wadsworth and other brokers “overconcentrated [their] retirement portfolios in illiquid alternative investments in annuities and private placements,” such as UDF IV.
IMS has withdrawn its Financial Industry Regulatory Authority (FINRA) registration and notified FINRA of its intention to close.
Investors who were sold UDF IV, or other REITS, by IMS Securities may not have clearly understood what they were investing in and may be able to make a claim for damages.
Silver Law Group has significant experience representing investors in REITs who have fallen victim to a host of abuses levied upon them. Whether through excessive fees or wrongfully withheld distributions or preferential distributions made to REIT-insiders, investors have come to us seeking assistance in recovering the funds they believe are rightfully theirs or in punishing those who have wrongfully abused their financial well-being. Most cases are handled on a contingent fee basis, meaning that you won’t owe us until we recover your money for you. Contact us today and let us know how we can help.