Articles Tagged with REIT investment attorney

shutterstock_156367568-300x200Advisor Anthony Hobson (Hobson), currently employed by Money Concepts Capital Corp (Money Concepts) has been subject to at least three customer complaints during the course of his career.  According to a BrokerCheck report some of the customer complaints concerns alternative investments such as direct participation products (DPPs) like non-traded real estate investment trusts (REITs), oil & gas programs, annuities, and equipment leasing programs.  The attorneys at Gana Weinstein LLP have represented investors who suffered losses caused by these types of products.

In June 2019 a customer complained that Hobson violated the securities laws by alleging between April 2008 and November 2010, Hobson over-concentrated accounts in high-risk and speculative alternative investments. The claim alleges $218,500 in damages and is currently pending.

In January 2015 a customer complained that Hobson violated the securities laws by alleging that Hobson misrepresented a non-traded REIT. The claim was settled by the firm for $32,500.

DDPs include products such as non-traded REITs, oil and gas offerings, equipment leasing products, and other alternative investments.  These alternative investments virtually never profit investors and are almost always unsuitable for investors because of their high fee and cost structure.  Brokers selling these products are paid additional commission in order to hype these inferior quality investments providing a perverse incentives to create an artificial market for the investments.

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shutterstock_153463763-300x199Advisor Jeffrey Davis (Davis), currently employed by Kovack Securities Inc. (Kovack Securities) has been subject to at least ten customer complaints, one employment termination for cause, and one regulatory action during the course of his career.  According to a BrokerCheck report some of the customer complaints concerns alternative investments such as direct participation products (DPPs) like non-traded real estate investment trusts (REITs), oil & gas programs, annuities, and equipment leasing programs.  The attorneys at Gana Weinstein LLP have represented investors who suffered losses caused by these types of products.

In April 2017 FINRA alleged that Davis consented to the sanctions and to the entry of findings that he recommended and effected unsuitable transactions in the accounts of customers by over-concentrating their assets in illiquid non-traded REITs. FINRA stated that the investments totaled $566,000, and represented between approximately 30% and 52% of the customers’ liquid net worth. FINRA found that this concentration in illiquid investments were excessive and unsuitable in light of the customers’ financial situations, risk tolerances, and investment objectives.

In June 2019 a customer complained that Davis violated the securities laws by alleging that Davis recommended an unsuitability of a fixed index annuity and mutual funds and the overconcentration of REITs in her account. The claim alleges $5,380 in damages.

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shutterstock_62862913-259x300Advisor Wenjinn Chang (Chang), currently employed by Independent Financial Group, LLC (Independent Financial) has been subject to at least two customer complaints.  According to a BrokerCheck report 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 2018 a customer filed a complaint alleging that Chang violated the securities laws by alleging over-concentration of non-traded REITs that were not suitable and that resulted in losses. The claim alleged $50,000 in damages and the claim is currently pending.

In September 2018 a customer filed a complaint alleging that Chang violated the securities laws by Alleging that the broker failed to advise of the risks of the investments made and that the Claimant has suffered losses as a result of the investments made.  The claim alleged $75,000 in damages and the claim settled for $10,000.

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shutterstock_29356093-300x214Former Capital Financial Services, Inc. (Capital Financial) and Questar Capital Corporation (Questar) broker Steven Knuttila (Knuttila) has been subject to at least 25 customer complaints, one employment terminations for cause, and two regulatory actions.  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 June 2018 FINRA barred Knuttila from the securities industry after he refused to appear for FINRA on-the-record testimony relating to an investigation into allegations that Knuttila made unsuitable recommendations to customers.  FINRA’s bar comes after a bar by Knuttila’s home State of Minnesota after it alleged that Knuttila sold numerous unsuitable investments to clients.  In addition, in 2012 Knuttila was terminated by Questar for failing to report customer complaints and wrongful use of discretion in client accounts.

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shutterstock_103079882-300x239Previously, the securities lawyers of Gana Weinstein LLP reported on the decline in value of Healthcare Trust, Inc. a non-traded real estate investment trust (Non-Traded REIT).  However, recent news reveals the health of Healthcare Trust may be in further decline.  A tender offer on Healthcare Trust shares was recently made at only $12.11 per share – a significant loss on the original purchase price of $25.00.  In more bad news for investors, the company lowered its annual distribution rate from $1.45 to $0.85 per share or a cut of over 40%.  Had the company continued to pay the higher dividends those payments would have exceeded the cash flows from operations.

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.

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.

shutterstock_66175306-300x225Current D.H. Hill Securities, LLLP (D.H. Hill) broker Charles Stevens (Stevens) has been subject to four customer complaints and five tax liens.  According to a BrokerCheck report many of the 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 addition, Stevens is subject to massive tax liens totaling hundreds of thousands of dollars.  In March 2017 Stevens disclosed a tax lien of over $202,000.  The fact that a broker cannot manage his own personal finances is material information for a client to consider.  In addition, the types of products clients have alleged were unsuitable are high commission products that may be recommended to generate high profits for the advisor at the expense of the client.

In March 2018 a customer filed a complaint alleging unsuitable recommendations, breach of fiduciary duty, negligence, failure to supervise and breach of contract during period of 2012 to 2017.  The client alleged $150,000 in damages and the claim is currently pending.

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.

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.

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.