He invested in a private equity thing--sounds like it was a private REIT. The REIT is still in business but has never returned a dime to him in about 10 years. Won't return his calls, etc. It looks like FINRA and SEC are mainly ways to complain about your broker--that isn't the problem. Does anyone know if he has any recourse other than getting his own attorney? It's unlikely that anyone competent will take this case--it's complicated and we are only talking about less than one million dollars. Not sure where to post this-suggestions welcome and thank you in advance.
So he just forgot? Why did he wait 10 years before making an issue of it? If I saw any dividend missing the first day it was supposed to be paid I would be on the phone asap.
I assume this is a limited partnership or some other security. This falls under the SEC and the state secruities division for the states where it was formed and sold. It probably had to be registered with both unless it met some safe harbor exemption. Read the prospectus and see what the obligations are of the principals and the rights of the investors are before contacting the securities divisions.
If he invested just $ 5,000, he could go to small claims court. If he invested over $ 100,000, then yes hire an attorney. All he needs is proof of investment. Sometimes a lawyer just writing to demand payment can help. Most people will not go all the way to trial, do you think they want to also spend money on lawyers? I had a problem with a bank, and had someone help me for free in filing for small claims, and I then had a manager of their branch office served. Day before trial, they said the money was back in my account. By the way this was Washington Mutual that had many security issues, and guess what, they are no longer in business.
It depends on what he signed. If he signed an agreement that stated explicitely that dividents payments can be delayed or re-invested then nothing he can do. These investments are based on private agreements and he will have to prove intentional fraud to win.
As intradaybill said, check the contract. If he has every right to withdraw his money and they don't return calls, the next step is to go to their office and talk to them in person. Good luck.
I will tell you how I would do it. I would go down to their office and not leave until my questions were answered. If that meant sitting in their lobby all day then thats what I would do. If they ultimately made me sit in the lobby, then I would start getting angry and demonstrate that anger to them. The squeaky wheel gets the grease and when a mean hombre is in the lobby then they will take care of him.