Stoltmann Law Offices
Reit Fraud Recovery Center
Many elderly, retired, or conservative clients have had billions lost or frozen in non-traded REITS recommended by financial advisors at full service brokerage firms and banks. We are currently representing clients who have invested in non traded REITS like the Behringer Harvard Short Term Opportunity Fund, Desert Capital, Cornerstone, and many others recommended to them by financial advisors. Clients at firms like Merrill Lynch, Citigroup Smith Barney, UBS, Morgan Keegan, Morgan Stanley, LPL Linsco, may have been recommended grossly unsuitable investments in highly illiquid and speculative non-traded REITS like Desert Capital, Apple REITs and others.
In many instances, these were suitable and appropriate recommendations. Nothing is wrong with a non-traded REIT for an investor looking to gamble or be aggressive with a small sum or a client who may not need the funds for a decade. But unfortunately, many retired, elderly or other conservative investors had very large percentages of their liquid or overall net worth put into these investments. We are pursuing claims for these investors through the FINRA arbitration recovery process.
Many non-traded REITS were of an extremely high risk nature and in many cases, the risks were not made known to investors. In some instances, the non traded REITS were pitched as an alternative to more conservative investments like certificates of deposits. Elderly and retired clients were recommended large percentages of their liquid net worth into these highly illiquid and high risk investments. Often, the primary incentive for recommending these investments were commissions and fees as high as 15% of the initial investment.
Dozens of non-traded REITS like Cornerstone, Desert Capital, Apple and Behringer Harvard (Short Term Opportunity Fund) have sustained substantial mark downs in price. In many other instances, the investments are completely illiquid and clients cannot access the funds in the investment. The value of some REITS have been overstated for over 18 months when the brokerage firms new the real value of the REITS were much lower. We believe the massive commissions caused many financial advisors to recommend a grossly unsuitable investment not appropriate for elderly or retired clients or clients who did not wish to gamble or speculative with their portfolio.
To determine if some, or all, of the investment losses or frozen funds can be recouped via a contingency fee basis arbitration claim or lawsuit please contact us. To learn more about the results of our investigation, please see Investigation Results.