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Robert V Cornish Jr.

Robert Cornish’s Answers

2,136 total


  • A financial advisor recommended real estate. The individual recommended ran off with all investors money.

    Financial Advisor (FA) recommends real estate investments with a Real Estate contact/builder (RE). The RE sent contracts, paperwork for buying new built homes in the Texas oil fields. investment money to put towards down payments was withdrawn by ...

    Robert’s Answer

    Depending on whether the financial advisor was registered with a broker/dealer, you may have causes of action against the FA, supervisors and their broker/dealer. Such clams are generally brought in FINRA arbitration under color of what are called "selling away" violations. I cannot surmise how a broker/dealer would have approved the original r/e project or the FA's subsequent conduct.

    For FINRA purposes, there is also something called "eligibility," which essentially means your claims cannot be more than 6 years old. Having precise dates as to injurious or wrongful conduct will be of significant interest to your securities attorney.

    In addition to pursuing legal action in court or arbitration as the case may be, you and your counsel should coordinate to file a complaint with the CA securities regulations, as well as a potential Dodd-Frank whistleblower submission to the SEC.

    Whatever you do, hire counsel to assist you on these things. There cases are complex, paper intensive and require the eye of a professional.

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  • I want to know if i would be considered a real estate investment trust and would i be considered a investment advisor? im starti

    i want to start a real estate company when i take investments from individuals and use the investment money to buy homes to rental the income from the rent will go to investors and me as the homes will be in my companies name and i will manage the...

    Robert’s Answer

    You can't just provide returns out of thin air without something to which the investors have ownership unless you are structuring the deals through loans or promissory notes. That of course means that you must pay the money back to investors. Whether you intend to do that is unclear from your question.

    Further, a real estate investment trust (REIIT) has to with the distribution of profits and returns under the federal tax code.

    In any event, your venture requires discussion with skilled securities counsel so that documents may be crafted to meet your objectives, as well as to comply with applicable laws.

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  • Does the investment for EB-5 visa has to be made in the enterprises listed in the Regional centers or could it be any US c-corp?

    I am looking to obtain EB-5 visa under Immigrant investor program. I currently have a registered C-corporation entity under my name in USA, I have a non-immigrant F2 Visa status right now.

    Robert’s Answer

    In general, it is somewhat less burdensome to work with an established Regional Center, but there are direct investment providers out there. You will need not only immigration counsel, but securities counsel to assist in your due diligence efforts on the people running the investments and the project itself.

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  • I was ill advised by my financial planner regarding my Annuity. The Financial planner advised it is his fault.

    At the age of 61 I was not advised that when I started to draw from my Annuity it would affect the investment/guarantee amount unless I was 65 yrs old. My financial planner states that it is his fault because he was not aware. However he did state...

    Robert’s Answer

    You should not only consult an attorney to handle your specific case through FINRA arbitration or a demand letter, but also submission of a formal complaint to Georgia securities and insurance regulators, as well as FINRA. There are different interpretations of the law in different states as to how one is "bound" to language of an insurance policy sold by an insurance agent. Your client agreement with your brokerage firm should state what law applies in the event Georgia law does not.

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  • How do I set up a branch office in the USA from a foreign company I am a partner in in South America

    There is a company in Uruguay and also Belize that I would use as a base to facilitate a branch office in the USA

    Robert’s Answer

    Having lived in practiced in Memphis for several years, if you are bringing a South American country's business to the region, the Memphis Regional Chamber of Commerce has dozens of partnerships and programs that will assist in facilitating your company's presence. The economic incentives to have non-US businesses locate operations or a presence in Memphis are quite attractive, but need to be as much given some of the odd tax burdens in Shelby County (inventory tax, wheel tax, etc).

    But you should definitely consider forming a properly structured corporation to serve as the basis for operations. It may well be easier to form a corporation in a traditional jurisdiction (Delaware, Wyoming or Nevada) and then register it as a foreign corporation in Tennessee if you will have non-US owners.

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  • How do I properly incorporate contract assignment in my nascent real estate investment business in Pittsburgh?

    Just getting started in real estate investment business in PA. I formed and organized my LLC in Indiana Wife got transferred to Pittsburgh. Having start all over again.

    Robert’s Answer

    You can simply change the address of your Indiana corporation and register it as a foreign corporation in Pennsylvania. You should be cognizant, however, of what the tax effects are.

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  • I need a lawyer who can write a web page for real estate investing. Some one aware of SEC laws.

    Does anyone have a lead?

    Robert’s Answer

    if you're offering r/e for investment via a website, you're likely engaging in a public offering of securities, which requires registration under state and federal laws, proper disclosures and timely filings. No one page disclosure for a web page is ever going to protect you.

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  • I am a Kuwaiti National who got an offer to be a partner at a venture capital startup. With 50K to invest what are visa options

    I am a current student at Chicago Booth's executive MBA but with no student visa as I travel to campus once a month for a weeks stay. I have a ten year tourist visa. I am planning to invest up to $100K in this venture and will be employed full...

    Robert’s Answer

    The amount of money of which you are speaking will not by itself serve as the basis for an investment-centric visa such as EB-2 or EB-5. As others have stated, you need to consult immigration counsel to discuss your specific situation.

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  • Need advice on filing a counter claim and how to defend myself through a FINRA arbitration case.

    Am a former financial advisor, and am currently being sued by my former employer for solicitation and stealing trade secrets. Both claims are completely false. I am not even licensed anymore. My former employer used verbiage on my U-5 that has ...

    Robert’s Answer

    Pro se defendants in these sorts of cases almost never (emphasis on "never") prevail, and you can look through the arbitration award history of similarly situated registrants in the arbitration award section of www.finra.org. That being said, you can file a counterclaim for libel, slander and other torts not only against the firm but the branch manager and others who may have been involved. But be aware that the counterclaims cost money to file, although in limited instances you can request that FINRA grant you a fee waiver. Then there is the other issue as to your work in the business in the future, or lack thereof. You are going to need to speak with counsel to assist you on evaluating your options. Many law schools have securities arbitration clinics that may be able to assist you, or you may be able to find counsel to work on contingency.

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  • We are an LLC that oversees a mobile app. Do we have to submit foreign qualification taxes in every state our app is used in?

    We have no physical location, and do no physical business. Everything we do is virtual. Our LLC is based in Delaware however. Our app lists bars people can go to at night (similar to Yelp or Yellowpages). If we have Los Angeles, San Fransisco and ...

    Robert’s Answer

    If you are generating income from the residents of a particular state, in a preponderance of instances you will owe tax to that state on that income. There are limited exceptions from state to state. Physical business has little to do with the analysis. Contact an experienced tax attorney or accounting firm who has handled similar issues in the past.

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