DeWaay settles two claims in soured investment deal
DeWaay Financial Network LLC has settled two of nine claims brought against it in connection with private placement offerings in an Idaho real estate company that went bankrupt and later was accused of being a Ponzi scheme. An attorney for two people who had invested $142,000 through DeWaay said in a document filed in U.S. District Court in Delaware that their claims had been settled. DeWaay has asked the judge in the case to temporarily block arbitration hearings on seven other claims before the Financial Industry Regulatory Authority. A DeWaay attorney said damage awards in the hearings could force the the company into bankruptcy. In all, DeWaay said it faced a potential $4 million in damages and defense fees if it were forced into arbitration. DeWaay sold private placements for DBSI Inc., an investment house that focused on tenant in common purchases of property. At one time, a DBSI entity owned the Partnership Building at 700 Locust St. A trustee is attempting to collect millions of dollars in investments in various DBSI entities that were placed by DeWaay and other broker-dealers.
DeWaay Financial Network LLC has settled two of nine claims brought against it in connection with private placement offerings in an Idaho real estate company that went bankrupt and later was accused of being a Ponzi scheme.
An attorney for two people who had invested $142,000 through DeWaay said in a document filed in U.S. District Court in Delaware that their claims had been settled. DeWaay has asked the judge in the case to temporarily block arbitration hearings on seven other claims before the Financial Industry Regulatory Authority. A DeWaay attorney said damage awards in the hearings could force the the company into bankruptcy. In all, DeWaay said it faced a potential $4 million in damages and defense fees if it were forced into arbitration.
DeWaay sold private placements for DBSI Inc., an investment house that focused on tenant in common purchases of property. At one time, a DBSI entity owned the Partnership Building at 700 Locust St.
A trustee is attempting to collect millions of dollars in investments in various DBSI entities that were placed by DeWaay and other broker-dealers.
