unsuitable REIT attorney

Advisor Victor Rigoni (Rigoni), currently employed by Summit Brokerage Services, Inc. (Summit Brokerage) has been subject to at least three 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 2018 a customer filed a complaint alleging that Rigoni violated the securities laws by being recommended alternative investments causing breach of contract, fraud, misrepresentation, breach of fiduciary duty, and violation of FINRA rules. The claim alleges $125,000 in damages and is currently pending.

Rigoni is also the subject of multiple tax liens in amounts totaling over $50,000. Large tax liens on a broker’s CRD can be a red flag that the broker may be influenced to engage in high commission activity in order to satisfy personal debts. In addition, a broker’s inability to manage their own finances is relevant in a customer’s decision to use their services.

The 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.

Articles Tagged with unsuitable REIT attorney

Summit Brokerage Advisor Victor Rigoni Subject to Complaint Over Alternative Investments

First Capital REIT Investment Loss Options