Claimants Allege Broker Unsuitably Recommended Moody National REIT II and Strategic Student and Senior Housing Trust

Shepherd Smith Edwards and Kantas Non-Traded REIT Investor Lawyers are representing a California retiree couple in a FINRA arbitration lawsuit against Independent Financial Group, seeking up to $500,000 for losses in illiquid, high-risk non-traded REITs. The retirees allege that advisor Peter Shen unsuitably recommended and overconcentrated their portfolio in Moody National REIT II and Strategic Student and Senior Housing Trust despite their low-risk preferences.

In FINRA arbitration, Shepherd Smith Edwards and Kantas Non-Traded REIT Investor Lawyers (investorlawyers.com)  are representing two California investors who are suing Independent Financial Group for up to $500,000 in damages. The Claimants are a retiree couple who entrusted the broker-dealer and financial advisor Peter Shen to take care of their assets. Instead, they contend, the Respondents went on to  give them bad investment advice and involve them in non-traded real estate investment trusts (non-traded REITs) Moody National REIT II and Strategic Student and Senior Housing Trust.

This is a couple who made it clear they were not interested in exposing their retirement money to risk. They now say that despite assurances by the Respondents, not only did they end up invested in non-traded REITs that were illiquid, high-risk obscure, but also their account was excessively concentrated with them. In their FINRA lawsuit, our Clients are also unsuitability, alleging failure to supervise, misrepresentations and omissions, negligence, gross negligence, violation of California elder abuse statute, and more.

According to Peter Shen’s (AKA Lei Shen’s) BrokerCheck CRD, he has worked 15 years in the industry. Since leaving Independent Financial Group in 2020, Shen has been a broker for Ni Advisors, Realta Equities, and now Emerson Equity.  Four other customer disputes that are listed resulted in settlements, including one for $850,000. Most Claimants accused Shen of making unsuitable investment recommendations.

Why Are Non-Traded REITs Unsuitable For Most Retirees?

• Most retirees and seniors aren’t looking to expose their savings and retirement funds to a lot of risk.
• These are illiquid investments that are hard to sell.
• High upfront fees and commissions can shave off up to 15% of the initial investment from the start.
• Opaque and complex valuations can make it hard to know what non-traded REITs and their shares are actually worth.
• Distributions could come from debt  or new investor funds instead of actual earnings. Payouts are not a guarantee.
• There tends to be a lack of transparency with these types of investments.
• Market volatility, fluctuations in real estate, and undisclosed conflicts of interest can prove problematic.

How Can Our Non-Traded REIT Investor Lawyers Help?

Shepherd Smith Edwards and Kantas represents many non-traded real estate investment trust investors, including other Moody National REIT II investors, against brokerage firms. During your free case consultation, we can help you determine whether you have grounds for an investment loss recovery claim. If we decide to work together, you can trust that you will receive quality securities representation to maximize your chances for a full financial recovery.

Call (800) 259-9010 or contact us online to ask for your free case consultation.