Ex-Broker Mike Shustek is Accused of Fraudulently Enriching Himself and the Company
Michael Vincent Shustek, an ex-MVP American Securities stockbroker and the CEO of a number of real estate investment trusts (REITs) is facing SEC charges. The ex-broker is being accused of enriching himself and The Parking REIT since 2012.
He purportedly did this by causing financial harm to Vestin Realty Mortgage I and Vestin Realty Mortgage II, two of the real estate investment trusts that he founded. The Commission contends that Shustek took $29M from the two Vestin REITs to become involved in a number of “money-losing transactions” that involved reselling the same several buildings repeatedly.
Shustek, who recently stepped down as a director of The Parking REIT, allegedly deceived the Board of Directors of the two Vestin REITs to get the companies to pay him nearly $10M. He is accused of misleading their investors through false statements made in public filings.
Mike Shustek is the owner of Vestin Mortgage LLC. He is based out of Las Vegas, Nevada. During the period at issue, he was a registered representative with MVP American Securities.
Prior to that, he was a financial advisor with Vestin Capital and First American National Securities. Mike Shustek was in the industry for 19 years.
Now, the SEC is seeking disgorgement, civil monetary penalties, and bars against Shustek. The regulator claims that the money taken from the Vestin REITs prevented the two companies from investing in real property and mortgage loans, which is what investors were told they were involved in.
If you suffered losses in either of the Vestin REITs and these investments were sold to you by a financial advisor, you may have grounds for a FINRA arbitration claim to recover damages. Contact our lawyers at SSEK Law Firm today.
The Parking REIT Investors Also Report Significant Losses
Investors of this publicly registered, non-traded real estate investment trust, which suspended distributions, have also reported significant losses of over 50%. The Parking REIT invests in garages and parking lots in the US and internationally.
This month, Bombe Asset Management completed its $125 million investment in this REIT. The alternative asset management firm acquired 1,549,324 shares of common stock of The Parking REIT at $11.75 per share.
This non-traded REIT has always been a speculative, risky investment. Separate from Mike Shustek’s allegedly fraudulent misconduct, there are the brokerage firms and their financial advisors who earned up to 10% in commissions and fees from marketing and selling The Parking REIT to customers.
A few of the broker-dealers who have reportedly been paid sales compensation for this non-traded REIT include:
- Crown Capital Securities
- Centaurus Financial Accelerated Capital Group
- Forest Securities
- Whitehall-Parker Securities
- NI Advisors
- Coastal Equities
- Great Point Capital
- Sandlapper Securities
Knowledgeable REIT Fraud Attorneys
Broker-dealers have a duty to supervise their registered representatives to make sure that they aren’t engaging in any misconduct or fraudulent behavior. Financial advisors are required to conduct the proper due diligence to make sure any investment is suitable and safe for a client.
SSEK Law Firm represents investors in FINRA arbitration, mediation, and litigation, and we have successfully helped thousands to recover their losses. Call (800) 259-9010 today.