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Robert Van Zandt's Firms Facing Investment Real Estate Arbitration

Monday, January, 2, 2012


MetLife Securities, The Investment Center, and JHS Capital Advisors are currently being investigated for securities and real estate arbitration due to the alleged fraudulent investing activity of former employee Robert Van Zandt.  The arbitration lawyers of The Securities Arbitration Law Firm of Klayman & Toskes, P.A. are suggesting that these companies may be liable for the damage he caused to investors. Allegedly, he sold notes on unregistered securities in a real estate Ponzi Scheme promising as much as 12%, and spending the funds on personal expenses. This amounts to an estimated 20 million dollars in damages to more than 100 investors.

 

The Backstory Leading to Arbitration Attorneys Involvement

 

In the timeframe between December 2004 and February 2007, Van Zandt worked for MetLife Securities. After that, he joined GunnAllen Financial, which is now defunct. In 2010, he bounced back and forth between JHS Capital Advisors and The Investment Center. Because these companies were responsible for overseeing his activities during his time with them, they may have to compensate the investors that lost money through Van Zandt.

 

Van Zandt's activities came to the public's attention when the Financial Industry Regulatory Authority (FINRA) began examining Van Zandt starting in May of 2011. His response to their inquiry was that he was “not in a position to respond.” He was subsequently banned from any and all involvement with all FINRA member firms. The Office of New York State's Attorney General was also investigating him.

 

More Arbitration Attorneys Join the Fray

 

The precise number of possibly defrauded investors has not been disclosed, but apparently the magnitude of this case has drawn in at least one other team of arbitration attorneys. The former SEC Prosecutor, David R. Chase, has announced that his law firm is also joining in the fray. As time goes on, more and more law firms are endorsing their services in this case.

 

Unfortunately, Robert Van Zandt will not meet justice, either in a criminal or civil sense. He was found dead in his apartment in April 2011 from a gunshot wound to the head. This also adds another reason why the investment firms he used to work for are being pursued for damages.