DES MOINES, Iowa (AP) — An Iowa-based investment broker has been sued in federal court by investors who lost money in a failed real estate investment deal.
Berthel Fisher & Company Financial Services of Marion promoted securities sold by Thompson National Properties, a California real estate investment company.
The lawsuit, filed in U.S. District Court in Cedar Rapids, seeks class-action status, recovery of losses, and other damages.
The lawsuit is filed by Jon Hanson, a Colorado retiree who invested $75,000. He’s suing on behalf of about 200 other investors who committed about $26 million to the scheme.
The lawsuit alleges Berthel Fisher should have investigated the investment and failed to tell investors the TNP was failing and shuffling money in a “Ponzi-scheme fashion.”
Calls to Berthel Fisher and TNP were not immediately returned.