Articles Tagged with REIT fraud lawyer

shutterstock_836360-300x225Advisor Mark Lamkin (Lamkin), currently employed by Calton & Associates, Inc. (Calton & Associates) has been subject to at least three customer complaints and two terminations for cause.  According to a BrokerCheck report some of the customer complaints concern alternative investments and direct participation products (DPPs) such as non-traded real estate investment trusts (REITs), oil & gas programs, annuities, and equipment leasing programs.  The attorneys at Gana Weinstein LLP have extensive experience handling investor losses caused by these types of products.

In August 2018 Lamkin’s then employer, LPL Financial LLC (LPL) terminated Lamkin claiming that advisor received and/or benefited from loans from firm customers, failed to disclose and inadequately disclosed outside business activities, and personally engaged in and solicited other investors to participate in private investments without obtaining Firm approval.

In January 2019 a customer filed a complaint alleging that Lamkin violated the securities laws by making misrepresentations concerning an annuity product.  The claim is currently pending.

In April 2019 another customer filed a complaint alleging that Lamkin violated the securities laws by making misrepresentations and an unsuitable investment in a REIT security.  The claim is currently pending.

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shutterstock_103681238-300x300Advisor William Gordon (Gordon), currently employed by Capital Financial Services, Inc. (Capital Financial) has been subject to at least 13 customer complaints and one regulatory complaint.  According to a BrokerCheck report most of the customer complaints concern alternative investments and direct participation products (DPPs) such as private placements, tenants-in-common trusts, non-traded real estate investment trusts (REITs), oil & gas programs, annuities, and equipment leasing programs.  The attorneys at Gana Weinstein LLP have extensive experience handling investor losses caused by these types of products.

In January 2019 a customer filed a complaint alleging that Gordon violated the securities laws including unsuitability, misrepresentation and omissions, and breach of fiduciary duty causing $200,000 in damages.  The claim is currently pending.

In January 2013 a customer filed a complaint alleging that Gordon violated the securities laws including unsuitability causing $300,964 in damages.  The claim settled.

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shutterstock_103681238-300x300Advisor Daniel Davila (Davila), formerly employed by Purshe Kaplan Sterling Investments (Purshe Kaplan) and currently employed by advisory firm Austin Walth Management, LLC (Austin Wealth) has been subject to at least two customer complaints.  According to a BrokerCheck report some of the customer complaints concern alternative investments and direct participation products (DPPs) such as non-traded real estate investment trusts (REITs), oil & gas programs, annuities, and equipment leasing programs.  The attorneys at Gana Weinstein LLP have extensive experience handling investor losses caused by these types of products.

In October 2017 a customer filed a complaint alleging that Davila violated the securities laws by recommending non-traded REIT and private placement investments that were unsuitable in 2010 through 2011.  The claim alleged $1 million in damages and settled for $670,000

Our firm often handles cases involving direct participation products, Non-Traded REITs, oil and gas offerings, equipment leasing products, and other alternative investments.  These products are almost always unsuitable for investors.  In addition, the brokers who sell them are paid additional commission in order to hype inferior quality investments which provides a perverse incentives by brokers to create an artificial market for products that no honest advisor would sell.

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shutterstock_145368937-300x225The securities lawyers of Gana Weinstein LLP continue to report on non-traded real estate investment trust (Non-Traded REIT) and investor loss recovery options.  According to First Capital REIT’s website the fhe company claims that “when you invest with First Capital Real Estate Trust Incorporated you join those investors who benefit from the dual strategy that makes our REIT stand out from our competitors. We focus on acquiring existing stabilized cash-flowing assets to support stable, consistent distributions to our stockholders.”

However, the company has subsequently reported that multiple investments that First Capital REIT made have filed a voluntary petition for relief in Bankruptcy Court.  Thereafter, the company in November 2016, sought to protect cash.  It’s been reported that First Capital REIT was failing to pay employees on time and missed filing financial statements with the SEC for more than a year.  According secondary market estimates on the value of First Capital REIT the company’s shares have traded at just $4.90/share or over a 50% loss from the $10.00/share offering price.

Our firm handles where brokers recommend investments in 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.

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shutterstock_190371500-300x200Advisor Andrew Scheirer (Scheirer), currently employed by Kovack Securities, Inc. (Kovack Securities) has been subject to at least four customer complaints.  According to a BrokerCheck report many of the customer complaints concern alternative investments and direct participation products (DPPs) such as non-traded real estate investment trusts (REITs), oil & gas programs, annuities, and equipment leasing programs.  The attorneys at Gana Weinstein LLP have extensive experience handling investor losses caused by these types of products.

In December 2014, Scheirer’s former employer First Allied Securities Inc. (First Allied) terminated Scheirer alleging that he did not follow the firm’s procedures concerning an arbitration that had been filed by a customer.

In May 2018 a customer filed a complaint alleging unsuitable investment recommendations, misrepresentation, breach of contract, breach of fiduciary duty, and negligence.  The claim alleged $100,001 in damages and settled for $40,000.

In March 2016 a customer filed a complaint alleging that in approximately 2007 the broker recommended various unsuitable private equity products. The claim alleged breach of contract, material omission, fraud, unsuitability, control person liability, and failure to supervise.  The claim alleged $200,000 in damages and settled for $30,000.

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shutterstock_183544004-300x200Money Concepts Capital Corp (Money Concepts) advisor Ray Reese (Reese) has been subject to at least three customer complaints.  According to a BrokerCheck report many of the customer complaints concern variable annuities or alternative investments and direct participation products (DPPs) such as non-traded real estate investment trusts (REITs), oil & gas programs, annuities, and equipment leasing programs.  The attorneys at Gana Weinstein LLP have extensive experience handling investor losses caused by these types of products.

In May 2018 a client alleged that Reese misrepresented the product as they were not informed it was not publicly traded and therefore illiquid.  The client alleged damages of $75,000 and the complaint was denied by the firm.

In May 2018 another client filed a dispute alleging unsuitability, negligence, breach of contract, and breaches of Missouri statutes in connection with the loss of assets they deposited for a whole life insurance policy.  The claim is currently pending and seeks $650,000 in damages.

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shutterstock_93851422-300x240The attorneys of Gana Weinstein LLP have reported on the many failings of the non-traded real estate investment trust (Non-Traded REIT) industry for years.  One of the common myths is that these products (such as Behringer Harvard, Cornerstone, Inland and KBS) only failed because of the financial crisis and the decline in the real estate industry.  The truth is these expensive and inefficient products never make sense to invest in.

Proving this to be the case is American Finance Trust Inc., (AFIN) which was sold in 2013 by Schorsch affiliated entities.  When American Finance recently went public approximately $1 billion of the company’s claimed value was wiped out exposing investors to massive losses that had long been hidden by the complex and opague ways the Non-Traded REIT industry operates.

The company itself published its own “estimated per share” net asset value of $23.56, only slightly less than the $25 per share that investors spent to acquire it just the month before.  When AFIN went public it traded as low as $14.80 with a market capitalization of about $1.6 billion – a 40% loss.

As regulators continue to turn their attention to this product and the industry works to lower commissions that brokers earn on this product the truth is now starting to come out.  Brokers have been essentially bribed with 7% commissions for over a decade to sell worthless and inferior products.  Now that commissions have declined sales have plummeted as the pressure to sell Non-Traded REITs dissipates.

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shutterstock_168853424-300x200The securities lawyers of Gana Weinstein LLP are investigating investor losses in Summit Healthcare REIT a non-traded real estate investment trust (Non-Traded REIT).  According to the firm’s website, Summit Healthcare REIT is headquartered in Lake Forest, California and its objective is to provide investors with a diversified, income-producing portfolio of assets in the healthcare sector. Summit Healthcare acquires, leases, and manages healthcare real estate and invests in the healthcare sector and diversifies by property type, location, and tenant.  Summit Healthcare REIT focuses on senior housing operators throughout the United States.  The types of facilities the REIT works on are assisted living, memory care and skilled nursing facilities.

Recently, MacKenzie Realty Capital offered to purchase up to 330,000 shares of Summit Healthcare for only $1.34 per share – a significant loss on the original purchase price.

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.