Omni Brokerage to Shut Down
Omni Brokerage Incorporated out of Utah is yet another independent broker dealer to shutter its doors, as reported in Investment News. Omni Brokerage said that it was faced with some $2.8 million worth of claims related to its sales of DBSI tenant in common (TIC) exchanges, however, it says that the reason for its closure is the lack of business rather than claims and related legal costs. DBSI was a leading packager of TIC exchanges, where two or more investors have fractional interest in a property. In 2008, DBSI began to default on payments to investors and then filed for Chapter 11 bankruptcy protection.
Omni now joins the long list of independent broker dealers that have been forced out of business due to failed private placements, TICs or REITs.