How Do I Sue My Broker For My Non-Traded REIT Losses?
SEC Fines Legendary Real Estate Investment Trust Advisers Over Alleged Misuse of Investors’ Funds
Investing in a non-traded real estate investment trust can be risky, which is why most non-traded REITs are typically unsuitable for many retail investors, conservative investors, and older seniors. If you suffered significant losses in this type of investment, and you suspect financial advisor misconduct, including investment recommendations that may have been inappropriate given your age or risk tolerance level, it is important that you explore your legal options right away.
In a recent cease-and-desist order, the US Securities and Exchange Commission (SEC) announced that Legendary Capital REIT III, Legendary Hospitality II, and principal Corey Maple have agreed to pay almost $4.8M to settle claims accusing them of using investors’ funds for office rent and payroll. More than $2.7M is disgorgement, over $544K is prejudgment interest, and civil penalties are almost $1.5M. The respondents consented to the order but did not deny or admit to the allegations.
Legendary Capital, which oversees and invests in US hotels, manages the two real estate investment trust advisers. The SEC is accusing the REIT trust advisers of alleged misconduct that purportedly occurred as they were raising about $215M for Lodging Opportunity Fund Real Estate Investment Trust (overseen by Legacy Hospitality II LLC) and Lodging Fund REIT III Inc. (overseen by Legendary Capital REIT III.)
Shepherd Smith Edwards and Kantas Non-traded REIT Loss Attorneys are investigating claims of investor losses related to these REITs. As a matter of fact, Lodge Funding REIT III was under scrutiny over reimbursements purportedly made to Legendary Capital REIT III. The latter, established in 2018, offered $100M in common stock to accredited investors through a private placement.
Now, our savvy Non-traded REIT Loss Attorneys are assessing whether investors who were marketed and sold Legendary Capital investments were the victims of unsuitability or due diligence failures by their brokers. Broker-dealers have a duty to make sure that any investments marketed to a customer, including accredited investors, are appropriate for them given their financial goals and risk tolerance levels. They also need to discover and assess whether there are any issues of concern and apprise investors of anything they should know.
Non-traded REITs are generally high-risk and most appropriate for accredited investors, wealthy investors, and sophisticated investors. However, they tend to be popular with financial advisors who stand to earn high commissions and fees. Unfortunately, the opportunity to make more money can cause brokers to disregard investors’ best interests in favor of making a sale even when this investment is not right for the customer.
How Can Our REIT Loss Law Firm Help?
Shepherd Smith Edwards and Kantas can help you determine whether your REIT losses warrant grounds for suing your broker-dealer. With over a century’s worth of combined experience in securities law and the securities industry, our non-traded REIT fraud attorneys have the skills, resources, and knowledge to pursue even the most complex investment fraud claims against the biggest Wall Street firms. This is not the type of legal case that you want to make without a trusted investor loss law firm representing you and filing your broker misconduct lawsuit on your behalf.
When you work with us you can count on receiving quality securities representation and personalized attention. We are one of the largest and most respected broker misconduct law firms in the US.
How To Contact Us:
To schedule your free, no-obligation case assessment, call (800) 259-9010 today.