Articles Posted in REITs

Hospitality Investors Trust REIT Losses: Inexperienced Investor Entrusted Broker-Dealer With Life Savings

Our non-traded real estate investment trust (non-traded REIT) lawyers are representing a California retiree in her FINRA arbitration claim against NPB Financial Group. The claimant, an older widow with health issues,  suffered losses to her life savings in Hospitality Investors Trust  (HIT REIT). 

Her ex-NPB Financial broker, who had recommended this risky investment vehicle, has since been barred by FINRA. This bar was for the same reasons that the claimant decided to file her case. The investor is requesting up to six figures in damages from the brokerage firm. 

HIT REIT Investors Continue to Report Investment Losses

It is January 2022 and Shepherd Smith Edwards and Kantas (SSEK Law Firm at investorlawyers.com) continues to offer free, no-obligation case consultations to investors who suffered losses in Hospitality Investors Trust.

The non-traded real estate investment trust (non-traded REIT), also known as HIT REIT, is believed to have cost some investors losses of up to 95%. Our savvy securities attorneys are here to help determine whether you have grounds for a FINRA arbitration claim to pursue damages.

Investors Who Weren’t Advised to Exit Before Merger Have Suffered Losses 

If you are an investor who sustained losses in NorthStar Real Estate Investment Trust (REIT), now called N1 Liquidating Trust, you may want to explore your legal options to find out whether your financial advisor gave you improper advice or failed to apprise you of all of the risks involving your investment. 

Our non-traded REIT investment lawyers at Shepherd Smith Edwards and Kantas (SSEK Law Firm at investorlawyers.com) are speaking to NorthStar REIT investors to determine whether they have grounds for a Financial Industry Regulatory Authority (FINRA) arbitration claim against their broker and/or broker-dealer.

Non-Traded REIT Causes Investor Losses of Up To Over 95%  

Our non-traded real estate investment trust (non-traded REIT) lawyers are continuing to look into claims of losses by investors whose financial advisors marketed and sold shares in Hospitality Investors Trust (HIT REIT). This investment was previously named American Realty Capital Hospitality Trust (ARC Hospitality). Unfortunately, some may have lost up to 95% of their investment.  

Please call Shepherd Smith Edwards and Kantas (SSEK Law Firm at investorlawyers.com) at (800) 259-9010 and ask to schedule your free, no-obligation case assessment with one of our seasoned investment fraud lawyers. 

Hospitality Investors Trust Was One of the REITs Marketed

Cetera Advisors Network broker Jeffrey Gerard Meyers, an Overland Park, Kansas financial advisor, is named in two pending customer disputes. 

The claimants are accusing him of making unsuitable investment recommendations involving non-liquid real estate investment trusts (REIT). One of the products was Hospitality Investors Trust (HIT REIT), which declared bankruptcy after the COVID-19 pandemic began. 

FINRA Claims Former Financial Advisor Also Cost Investors Over Variable Annuities 

The Financial Industry Regulatory Authority (FINRA) has filed a complaint accusing ex-Western International Securities registered representative Megurditch Mike Patatian of unsuitably recommending to 59 customers that they purchase non-traded real estate investment trusts (non-traded REITs). According to the self-regulatory organization (SRO), Patatian lacked reasonable grounds to make 81 recommendations to these customers.  Not only that, but for four of the non-traded REIT sales at issue, the ex-financial advisor recommended that they surrender their variable annuities (VAs), which caused them to have to pay surrender fees and incur taxes. 

These purportedly unsuitable recommendations which caused investors to lose money, occurred while Patatian was with Western International Securities in Westlake Village, CA. (After leaving that brokerage firm in 2020, he became a Supreme Alliance broker for less than a year in Charlotte, North Carolina.) 

Ex-Broker Mike Shustek is Accused of Fraudulently Enriching Himself and the Company

Michael Vincent Shustek, an ex-MVP American Securities stockbroker and the CEO of a number of real estate investment trusts (REITs) is facing SEC charges. The ex-broker is being accused of enriching himself and The Parking REIT since 2012. 

He purportedly did this by causing financial harm to Vestin Realty Mortgage I and Vestin Realty Mortgage II, two of the real estate investment trusts that he founded. The Commission contends that Shustek took $29M from the two Vestin REITs to become involved in a number of “money-losing transactions” that involved reselling the same several buildings repeatedly. 

Benefit Street Partners Realty Trust Investors May Be Looking At More Losses 

If you are an investor whose broker unsuitably recommended Benefit Street Partners Realty Trust, you may have grounds for a Financial Industry Regulatory Authority (FINRA) arbitration claim to recover damages. 

On July 26, this publicly registered non-traded real estate investment trust (non-traded REIT) announced its merger with Capstead Mortgage Corporation. The combined company will be named Franklin BSP Realty Trust and is set to become the fourth biggest commercial mortgage REIT with a common stock that will trade on the New York Stock Exchange.

Non-Traded REIT Seeks To Restructure $1.3B in Unsecured Debt

If you are an investor whose broker recommended that you invest in Hospitality Investors Trust (HIT), you may have grounds for a Financial Industry Regulatory Authority (FINRA) arbitration claim to recover damages. 

Hospitality Investors Trust used to be called American Realty Capital Hospitality Trust (ARC Hospitality Trust). In May 2021, the publicly registered non-traded real estate investment trust (non-traded REIT) filed for Chapter 11 Bankruptcy protection as it seeks to restructure its $1.3B in unsecured debt. 

Former Texas Stockbroker is Named in Two Pending Customer Disputes 

Our Dallas non-traded real estate investment trust (non-traded REIT) fraud attorneys at Shepherd Smith Edwards and Kantas (SSEK Law Firm at investorlawyers.com) are investigating claims of customer losses involving former LPL Financial registered representative, Beliveau Bays. The ex-Plano, Texas financial advisor is also the subject of pending customer disputes.

Call (214) 613-5306 to speak with one of our Dallas non-traded REIT fraud attorneys today if you are someone who worked with former LPL broker, Beliveau Bays. For elsewhere in the United States, you can reach SSEK Law Firm at (800) 259-9010

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