Retiree Sues Independent Financial Group Over Moody National REIT II Losses. His Non-Traded REIT Fraud Lawsuit Alleges Overconcentration and Misrepresentations
Shepherd Smith Edwards and Kantas REIT Fraud Attorneys (investorlawyers.com) is representing an investor who entrusted his retirement savings to Independent Financial Group and one of its brokers.
Unfortunately, instead of receiving prudent investing advice, the respondent unsuitably recommended investment products that were too risky, such as Moody National REIT II, which is a non-traded real estate investment trust. This kind of privately traded real estate venture is particularly bad for retirees looking to take on low-to-no risk. Now, our client is seeking up to six figures in damages for the financial losses he suffered.
This investor contends that the broker-dealer and his financial advisor assured him that all investment recommendations were safe, which is what he wanted. Instead, Independent Financial Group excessively concentrated this investor’s assets in Moody National REIT II.
Not only that, but this retiree was repeatedly assured that all was well with the investment and told he should hang on and everything would pan out. In addition to alleged unsuitability, misrepresentations, and omissions, as well as overconcentration, our client is claiming a lack of supervision by the broker-dealer, negligence, broker fraud, and more.
Why Is Moody National REIT II Unsuitable For Most Conservative Retirees?
A privately traded security, such as Moody National REIT II, should only be offered to accredited investors who have a special understanding of the risks involved and who can weather them in the event that they come into play. Largely illiquid with a limited track record, non-traded real estate investment trusts usually come with limited disclosures.
Unfortunately, because non-traded REITs tend to pay high commissions and fees, this can override many financial advisors’ best judgment, compelling them to unsuitably recommend these investments to investors for whom potential losses could prove devastating.
If Independent Financial Group felt that this investor needed real estate exposure, which he didn’t, then its broker should have recommended a publicly traded REIT, over which there are more than 200 on the AMEX or NYSE that are freely tradable like every mutual fund or stock.
Why Hire Seasoned REIT Fraud Attorneys?
As a non-traded REIT investor who suffered serious portfolio losses. You want to retain our trusted REIT Fraud Attorneys who knows how to provide you with robust securities representation. This is not the kind of case that you want to pursue on your own or with inexperienced attorneys.
Shepherd Smith Edwards and Kantas REIT Fraud Attorneys have more than a century’s worth of collective experience in securities law and the securities industry. More than 90% of our clients have received full or partial financial recovery.
Contact Our Moody National REIT Fraud Attorneys
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