Securities Lawyers Blog
Advisor Rena Morris (Morris), currently employed by Lighthouse Capital Group, LLC (Lighthouse Capital Group, LLC), has been subject to at least two customer complaints during the course of her career. According to a BrokerCheck one of the customer complaints concerns private placement sales of Tenant-in-Common (TIC) real estate products. The attorneys at Gana Weinstein LLP have represented hundreds of investors who suffered losses caused by these types of high-risk products.
In December 2019 a customer complained that Morris violated the securities laws by alleging that Morris engaged in sales practice violations by conducting limited due diligence regarding a DST investment in 2015. The claim alleges $798,350 and is currently pending.
TIC investments have led to devastating investor losses and are in almost all cases unsuitable products. The near certainty of failure of investing in TICs as a whole has led to the product virtually disappearing as an offered investment from most reputable brokerage firms. According to InvestmentNews “At the height of the TIC market in 2006, 71 sponsors raised $3.65 billion in equity from TICs and DSTs…TICs now are all but extinct because of the fallout from the credit crisis.” In fact, TICs recommendations have been a major contributor to bankrupting brokerage firms. For example, 43 of the 92 broker-dealers that sold TICs sponsored by DBSI Inc., a company whose executives were later charged with running a Ponzi scheme, a staggering 47% of firms that sold DBSI are no longer in business.
