The $247 million deal could be good for Mr. Schorsch and partners, but shareholders may not profit as much.
While terms were not released, the price tag could be as much as $70 million, according to one industry executive.
Company founded by one-time real estate mogul Nicholas Schorsch announces $3 million settlement with Massachusetts Securities Division and said it will lay off nearly 150 employees.
Regulator: "There is concern that retail customers may not fully understand the risks and the potential impact on their portfolios."
Make sure your clients fully understand the tax implications and overall risk profile of what they're buying.
Preferred Apartment Communities Inc. is selling nontraded preferred shares to help fund its growth, giving brokers a 7% commission.
Plus: Jim Cramer's mad method, prime money funds shrink, and how to have fewer regrets when you retire
Move comes at a time when industry is struggling from new regulations.
Plus: Saving society through active management, hedge fund investors head for the hills, and eating healthier food that actually tastes like food
Plus: The Fed goes after Goldman, shorting Deutsche Bank, and apps to make you more financially savvy
High demand, stock market valuations, stingy bond yields and unorthodox monetary policy may be stoking the rally, which seems to have legs.
Thanks to the Fed, outlook stays positive for stocks
Financial advisers should diversify into credit-risk strategies.
Plus: Public pensions will need lots of taxpayer help, this fund keeps beating the S&P, and the dire state of the golf course business
Gold mining stocks continue to leverage rising gold prices.
Mutual fund firms move defensively toward active ETFs.
As broker-dealers move toward uniform commissions to comply with Labor Department rule, investors could end up paying higher prices than in an unregulated environment. <b><i>(More: <a href="http://www.investmentnews.com/section/fiduciary-focus" target="_blank">The DOL rule from all angles</a>)</i></b>
Plus: The end of hedge fund fees, a mutual fund for the marijuana industry, and the economics of not getting married.
Leaning on technology to streamline the process.
Agency's Advisory Committee on Small and Emerging Companies wants people with a Series 7, 65 or 82, or a CFA, to be eligible to buy unregistered securities.
