Articles Tagged with REIT investment attorney

shutterstock_159036452-257x300Former First Allied Securities, Inc. (First Allied) broker Sean Brady (Brady) has been subject to at least six customer complaints, one employment termination for cause, and one regulatory action resulting in a bar from the industry.  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).  The attorneys at Gana Weinstein LLP have extensive experience handling investor losses caused by these types of products.

In October 2017 First Allied terminated Brady on allegations that he violated the firm’s policies pertaining to client falsification of signature on documents, text messaging, and consolidated account reports.  Thereafter, Brady was subject to a FINRA investigation concerning his sales practices.  FINRA found that Brady failed to provide the regulator with information and documents requested resulting in a automatic industry bar.

The most recent customer complaint alleges Brady misrepresented her net worth, made an unsuitable recommendation, and made misrepresentations and omissions with respect to her investment from 2017 causing $265,000.  The claim is currently pending.

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shutterstock_150746-300x199The securities lawyers of Gana Weinstein LLP are investigating investor losses in American Realty Capital New York City REIT (ARC New York REIT) a non-traded real estate investment trust (Non-Traded REIT). According to the firm’s website, seeks to provide its investors with a combination of current income and capital appreciation through strategic investments in high-quality commercial real estate located within the five boroughs of New York City, particularly Manhattan.  The funds’ three primary objectives are stated as to preserve and protect capital, pay monthly stable cash distributions; and increase the value of assets in order to generate capital appreciation.

However, according to secondary market sources for non-traded REITs, shares of ARC New York REIT are currently listed for $11.02 per share a far drop from the sale price of $25 per share when the REIT issued shares to investors.

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.

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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.

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