Facts

Steven Badeau, Earl Holasek, Craig Larmon, and several other claimants filed a claim against 1031 & TIC Investments LLC, Ameriprise Financial Services Inc. and several other entities and individuals relating to the purchase and sale of TIC Investments.

Claimants asserted the following claims: negligence; fraud; violations of federal and Minnesota state securities statutes; sale of unregistered securities; and negligent supervision.

CLAIMANTS' CONTENTIONS:
Claimants contended that the TIC interests had no value. Claimants further contended that the interests turned out to be a massive fraudulent investment scheme that was managed by Respondents.

Damages

Claimants sought an unspecified amount for compensatory and punitive damages as well as interest, attorney fees and costs, other relief and rescission.

Result

Claimant Larmon's claims against respondents 1031 & TIC Investments and OMNI Brokerage, Inc. (and affiliated individual respondents) were dismissed without prejudice, claimant Badeau's and claimant Larmon's claims against respondent Berthel Fisher & Co. (and affiliated individual respondents) were denied and dismissed with prejudice, and claimant Holasek's claims against Ameriprise Financial Services Inc. were denied and dismissed with prejudice. The parties were ordered to bear their own costs and expenses and all other relief was denied.

Other Information

ARBITRATORS: Andrew R. Dick, Grant D. Sanders, Morton H. Greenberg.