Claimants Are Pursuing Up to $500K in Damage Involving Priority Income Fund, Bluerock Private Real Estate Fund, and TrueLife Companies Elite Fund II

Shepherd Smith Edwards and Kantas is representing a Colorado family in a FINRA arbitration claim seeking up to $500,000 against KCD Financial and broker Daniel Rust. The lawsuit alleges that the firm and broker unsuitably recommended speculative and highly illiquid alternative investments, resulting in significant six-figure losses for the investors’ retirement and family savings.

Shepherd Smith Edwards and Kantas Broker Misconduct Lawyers (investorlawyers.com) are representing a Colorado couple and their elderly father in their FINRA arbitration claim against KCD Financial and Broker Daniel Rust. The Claimants contend that the broker-dealer and its registered representative unsuitably recommended risky alternative investments, including Priority Income Fund and Bluerock Private Real Estate Fund (BPRE) , as well as private placement real estate fund TrueLife Companies Elite Fund II.

While experienced investors may choose to invest in speculative products because they know there can be write offs, there can be no write-offs in IRAs. Besides these investors weren’t looking for write offs. They just wanted the Respondents to properly manage their money, which they were planning to use for retirement, college tuition, to buy a house, and for possible elder care costs. Instead, they are looking at a six-figure loss.

All of the investments that were sold to our Clients were very illiquid. Not only that, but the couple’s money was unsuitably concentrated in some of them. Meanwhile, the brokerage firms and its financial advisor earned high commissions.

In their FINRA lawsuit, the Claimants are suing for up to $500K. They are alleging overconcentration, unsuitability, failure to supervise, misrepresentations and omissions, Regulation Best Interest violations, breach of contract, breach of fiduciary duty, vicarious liability, and more.

Representing Other Priority Income Fund Investors Against Brokerage Firms

Shepherd Smith Edwards and Kantas is also representing other investors who have suffered losses in Priority Income Fund. This closed-end fund, which is heavily concentrated in collateralized loan obligations (CLOS) and below grade investment debt, has been unsuitably recommended to many retail investors and retirees by financial advisors.

Investigating Other Investor Losses Involving Bluerock and TrueLife Companies

What Is Bluerock Private Real Estate Fund and How Did Going Public Affect Investors? 

• Bluerock is a closed-end fund that allows investors to get into private real estate assets.
• Formerly Bluerock Total Income+ Real Estate Fund, it went from being an interval fund to publicly traded after too many repurchase requests were made. Its market price then declined to 30-40% under its appraised value.
• Legacy investors lost money when shares started trading at a huge discount.

What Is TrueLife Companies Elite Fund II and Why Are Investors Exploring Their Legal Options?

 This private placement offering invests in residential real estate and land entitlement projects.

• The minimum investment allowed is around $50,000.
• Shares of this alternative investment have since shown up on the secondary market for $1/share.
• There are growing concerns that this real estate fund was poorly managed and the underlying value of itsreal estate portfolio may have been exaggerated.

Brokers have a duty to properly vet any investment they recommend and ensure suitability and viability before marketing and selling them to customers. When financial advisor misconduct or negligence exposes investors to risky products and this results in portfolio losses, this may be grounds for a FINRA lawsuit against the brokerage firm.

Contact Our Broker Misconduct Lawyers If You Suffered Serious Losses While Working With a KCD Financial Broker

Call (800) 259-9010 or reach out to us here to ask for your free case assessment.