Shepherd Smith Edwards and Kantas Is Representing Claimant, Who Sustained Losses in Blue Rock, Cottonwood, and Other Real Estate Investment Trusts

Our REIT Loss Recovery Attorneys at Shepherd Smith Edwards and Kantas are representing a Texas retiree in a six-figure FINRA arbitration claim against Independent Financial Group for nearly total principal losses in Cottonwood, Blue Rock, and other unsuitable REITs. The lawsuit alleges that advisor Darrel Dominic Delphen recommended high-risk, illiquid real estate products to a vulnerable senior, failing to align with her conservative risk profile and retirement needs.

A senior investor is suing Independent Financial Group after suffering what she contends were unsuitable investment recommendations in high-risk real estate investment trusts (REITs). Shepherd Smith Edwards and Kantas (investorlawyers.com) is representing her in FINRA arbitration.

This Claimant has health issues. She made it clear from the start that she was not interested in exposing her retirement money to undue risk. Instead, Independent Financial Group unsuitably recommended Cottonwood, Blue Rock, and other REITs. The broker that she entrusted a portion of her life savings to is Darrel Dominic Delphen, who has been a registered representative for nearly 40 years.

This REIT investor suffered a near total lack of her principal. In her FINRA lawsuit, she is also alleging misrepresentations and omissions, failure to supervise, breach of contract, negligence, gross negligence, negligent misrepresentation, breach of fiduciary duty, vicarious liability, and more.

Are REITs Unsuitable for Retirees?

• While some real estate investment trusts can be appropriate for retirement portfolios because of the diversification, income, and inflation protection they can offer, others may be too risky and illiquid and not in line with an older investor’s investment profile.
• Other REIT risks to retirees may include market volatility, interest rate sensitivity, falling valuations, specific sector problems, no guarantee of income depending on issues that can arise, and more.
• Your financial advisor is supposed to make sure that any investment recommendation they make is appropriate for you given your age, risk tolerance level, financial goals, liquidity needs, and other key factors.

Why Should You Sue Your Broker Over Your REIT Losses?

• Even if your broker had nothing to do with why your investment failed, they may have committed some type of broker misconduct or negligence that inadvertently exposed you to an REIT that was unsuitable for you.
• They should have been monitoring your account and investments to detect red flags indicating something was going wrong and helped to mitigate your losses.
• Privately traded REITs should only be marketed and sold to accredited investors and not to retail investors. They tend to be risky, illiquid, and unsuitable for retirees who need to be able to easily access their funds.
• Brokers are usually paid high commissions and fees, which can compel some financial advisors to push real estate investment trusts onto investors even when they are a bad investment for them.

Talk To Our Seasoned REIT Loss Recovery Attorneys

Shepherd Smith Edwards and Kantas REIT Loss Recovery Attorneys represent many real estate investment trust investors against brokers. We offer skilled securities representation and personalized attention. More than 90% of our Clients have secured awards or settlements.

Call (800 259-9010 or contact us online today.