Articles Tagged with REIT attorney

shutterstock_120115444-300x198Current Berthel, Fisher & Company Financial Services, Inc. (Berthel Fisher) broker Jonathan Pyne (Pyne) has been subject to five customer complaints.  According to a BrokerCheck provided by The Financial Industry Regulatory Authority (FINRA), the primary regulator for securities broker dealers, many of the complaints concern alternative investments.  Alternative investments include a group of speculative securities such as non-traded real estate investment trusts (Non-Traded REITs), oil & gas programs, equipment leasing, and other direct participation programs.  Our firm has experience handling investor losses caused by these products.

In July 2017 a customer filed a complaint trying to redeem her investment and is alleging that she was misled by the representative into purchasing an investment that she didn’t know was illiquid.  The claim is currently pending.

In September 2016 another customer filed a complaint alleging that the investments she purchased in 2008 and 2009 were unsuitable and misrepresented to her by the representative.  The claim was settled for $48,175.

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shutterstock_108591-300x199The securities lawyers of Gana LLP are investigating investor losses in Healthcare Trust, Inc. a non-traded real estate investment trust (Non-Traded REIT).  According to the firm’s website, Healthcare Trust is an investment trust which seeks to acquire a diversified portfolio of real estate properties focusing primarily on healthcare-related assets including medical office buildings, seniors housing, and other healthcare-related facilities.

According to a secondary market providers which allow investors to bid and sell illiquid products such as Non-Traded REITs, Healthcare Trust sells for just under $14.99 per share – a significant loss on the original purchase price of $25.00.

Our firm often handles cases involving direct participation products (DPPs), private placements, Non-Traded REITs, and other alternative investments.  These products are almost always unsuitable for middle class investors.  In addition, the brokers who sell them are paid additional commission in order to hype inferior quality investments providing perverse incentives for brokers to sell high risk and low reward investments.

According to studies, non-traded REITs have historically have underperformed even safe benchmarks, like U.S. treasury bonds – meaning that non-traded REITs provide paltry investment returns considering the risk an investor takes.  Alternative investment products like oil and gas partnerships, REITs, and equipment leasing programs are only appropriate for a narrow band of investors under certain conditions due to the high costs, illiquidity, and huge redemption charges of the products, if they can be redeemed at all.

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