Dan Lempe (CRD#: 1265798) of New Smyma Beach, Florida, a registered representative with Presidential Brokerage, Inc., based in Englewood, Colorado, is currently involved in a pending customer dispute. The allegations include “negligence, misrepresentation, omission, failure to supervise, breach of fiduciary duty and breach of contract in the sale of a private placement to claimants in April 2006,” according to his BrokerCheck record accessed on November 21, 2019. While the broker claims that the foreign real estate investment performed poorly due to the 2008 financial crisis, the client is seeking $400,000 in damages. In response to these allegations, Dan Lempe writes in his Broker Comment that “The disclosure document [the claimant] accepted had nine pages of itemized risks and the word “risk” occurring over 80 times; detailed regular shareholder updates were provided and audited financials were filed annually.”
What Dan Lempe does not mention, however, is that what is “risky” to one investor may not be “risky” for another and brokers should take into account each client’s risk tolerance, current portfolio composition, and investment goals when recommending investments. This is particularly important when dealing with private placements, also known as “Reg. D offerings.” For more information on Reg. D, also known as Regulation D, see our article “What is Reg. D?”
Why is Dan Lempe interested in Reg. D, particularly real estate transactions? His outside business activities give further insight into his involvement in the real estate world. In addition to his role as a stockbroker, Daniel Lempe is also a licensed Realtor with Collodo Real Estate, serving Volusia County. According to the detailed report of his BrokerCheck, he is “Controlling owner and member of the general partnership “Toucan Partners LLC” since January 2003 developed for the purpose of managing real estate development projects. The business is investment related to the extent that fundng for projects had come from Regulation D offerings.” This business is located in Greenwood Village, Colorado. He reports spending five hours per month on this endeavor, including three hours during trading hours.
If Dan Lempe was your broker or if you have questions about real estate investments, don’t hesitate to contact a securities attorney who can fight for your interests as an investor. Call (877) 238-4175 or email email@example.com for your free case consultation with the securities attorneys of Fitapelli Kurta.