Articles Posted in REITs

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

Allegedly Unsuitable Recommendations Caused Senior Investor Loss of Savings

A Brunswick, Georgia retiree has filed a Financial Industry Regulatory Authority (FINRA) arbitration case against broker-dealer MML Investors Services, LLC. The investor contends that a broker from the firm overconcentrated his IRA and a non-IRA account in CNL Lifestyle Properties, which is an illiquid, privately traded real estate investment trust (non-traded REIT). 

This caused him to lose a large portion of his savings. Now, the investor is alleging failure to supervise, unauthorized transactions, securities fraud, broker negligence, breach of duty, breach of contract, violation of state securities laws, and other claims.  He is seeking up to $100K plus interest and costs.  

Investors That Bought NYC Stock When it Was a Non-Traded REIT Hit Especially Hard After NYSE Listing

Our real estate investment fraud attorneys (REIT) at Shepherd Smith Edwards and Kantas (SSEK Law Firm at investorlawyers.com) are investigating the broker-dealers and investment advisors that sold New York City REIT (NYC)  to customers. 

Now available on the New York Stock Exchange (NYSE) and open to any investor with a brokerage account, this real estate investment trust used to be a non-traded REIT and it is the investors that purchased this non-traded real estate trust that have sustained the most significant losses after it went public in August 2020. 

Triad Advisors and its Ex-Florida-Based Broker Placed Claimants Funds In Too Risky GPB Capital & REIT Investments  

Two Utah retirees have filed a Financial Industry Regulatory Authority (FINRA) arbitration claim against Triad Advisors, Inc. over losses they suffered from investing in GPB private placements and privately traded real estate investment trusts (REITs), including American Realty Capital Trust. Now they are seeking up to $500K in damages. 

The couple worked with former Triad Advisors broker Michael Payne, who is now a broker with Proequities, Inc. in Longwood, Florida. He also is a financial representative with Payne Financial Group in Winter Springs, Florida. 

Ex-LPL Broker Marketed Non-Traded Investments To Mississippi Retiree 

A retired investor has filed a Financial Industry Regulatory Authority (FINRA) arbitration claim against LPL Financial and its former broker, Tamber King Proctor, seeking up to $100K in damages. 

The claimant contends that LPL Financial and Proctor should have never recommended that he invest in the business development company (BDC), FS Energy & Power Fund (FSEP), and the Northstar Healthcare Real Estate Investment Trust (REIT). 

After American Realty Capital New York City Real Estate Investment Trust Went Public, Share Price Plunged

If you are a retail investor whose broker recommended that you invest in American Realty Capital (ARC) New York City Real Estate Investment Trust (REIT), you may have grounds for an unsuitable investment recommendation claim. 

ARC NYC REIT is a risky, speculative investment and definitely shouldn’t have been marketed to inexperienced investors, conservative investors, seniors, or retirees. Although initially a non-traded real estate investment trust (non-traded REIT),  and also an illiquid investment, ARC NYC REIT went public on the New York Stock Exchange (NYSE) in August.

Resource Real Estate Opportunity REIT and REIT II Shares Reportedly Trading Under NAV Price 

With shares in Resource Real Estate Opportunity REIT and Resource Real Estate Opportunity REIT II reportedly trading privately at lower prices than their net asset value (NAV), some investors may be wondering why they were never fully apprised of all the risks.

The news of the lower than NAV trading prices comes several months after both non-traded real estate investment trusts announced they were partially suspending share redemptions amidst their plans to merge with Resource Apartment REIT III, Inc.

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