Articles Tagged with Non-traded REITs

Cetera Investment Services Broker Chang Vung Named in Six-Figure Non-Traded REIT Claim

A self-employed New York investor has filed a Financial Industry Regulatory Authority (FINRA) arbitration claim against Cetera Investment Services and its broker Chang Jen Vung. The claimant sustained losses in non-traded real estate investment trusts. 

The claimant is pursuing up to $500K in damages and contends that Vung used their shared cultural affinity when recommending that he concentrate his portfolio on high commission, illiquid products. These products included Healthcare Trust Inc., Griffin Realty Trust, and NorthStar Healthcare Income REIT

Investors’ Worked With Ex-McNally Financial Broker Michael O’Meara 

An older couple from Washington State has filed a Financial Industry Regulatory Authority (FINRA) arbitration claim against McNally Financial Services and its former broker Michael Charles O’Meara. The claimants seek up to six figures in damages and contend that they were unsuitably recommended and sold Lightstone Real Estate Income Trust. 

This private, non-traded real estate investment trust (non-traded REIT) was too risky and complex for inexperienced investors like them. In September 2021, Lightstone Real Estate Income Trust changed its name to Lightstone Value Plus REIT IV, Inc. 

Cetera Broker-Dealer Unsuitably Recommended Non-Traded REITs to Retired Couple

Shepherd Smith Edwards and Kantas, LLP (SSEK Law Firm at investorlawyers.com) and Menzer & Hill, PA, are pleased to announce that a Financial Industry Regulatory Authority (FINRA) arbitration panel has awarded our clients a $2.6M award against First Allied Securities. This includes $1.1M in compensatory damages, $818K in market-adjusted damages, more than $660K in legal fees, and $40K in other expenses.

This was a unanimous decision by the three-person panel of arbitrators, which awarded the retired couple the total amount they requested. The arbitration panel was just as troubled as our knowledgeable broker misconduct attorneys were about the actions of First Allied Securities and its financial advisors. First Allied is a Cetera Financial Group broker-dealer. 

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. 

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

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.

Unsuitable Investment Recommendation May Be a Factor in Brokerage Firm Customers’ Losses  

Investors in RW Holdings NNN REIT, Inc., a non-traded real estate investment trust formerly called the Rich Uncles NNN REIT, have suffered significant losses this year.

Not only did RW Holdings NNN REIT announce in May 2020 that it was suspending its offering and plans to revise its net asset value (NAV)/share, but also, any NAV and distribution rate would likely be lower in the wake of the impact that COVID-19 is having on the markets. The company pointed to its inability to collect 100% of all contractual rents because of the pandemic as a reason for re-evaluating its distribution rate. 

NorthStar Healthcare Investors Should Explore Legal Options to Recover Losses

Eighteen months after NorthStar Healthcare REIT suspended distributions, investors are still grappling with the losses they’ve sustained. Now, the non-traded real estate investment trust’s (non-traded REITs) share price appears to have lost most, if not all, of its value.

If you are a Northstar Healthcare investors, our non-traded REIT fraud lawyers at Shepherd Smith Edwards and Kantas (SSEK Law Firm) would like to help you explore your legal options. You very well may have grounds for a broker negligence claim to recover your losses and damages. 

Non-Traded Real Estate Investment Trusts Are Risky, Illiquid 

If you are a retail investor in San Francisco whose broker is recommending that you invest in non-traded real estate investment trusts (non-traded REITs), you should strongly reconsider. 

While often touted as a security that allows investors to make money without having to worry about market volatility – this type of investment is actually still high risk, illiquid, and not suitable for many customers including retail investors, retirees, and other conservative investors with low-risk tolerance levels.

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