NorthStar Healthcare Income and Griffin Capital Essential Asset II Are Too Risky For Novice Investors
Illinois Retirees Files Broker Fraud Lawsuit Against Wintrust Investments
If you suffered serious losses in the non-traded real estate investment trusts (non-traded REITs) NorthStar Healthcare Income and Griffin Capital Essential Asset II (Now Griffin Realty Trust), you may want to explore your legal options by contacting Shepherd Smith Edwards and Kantas Realty Trust Loss Attorney Team. Both non-traded REITs are illiquid, high-risk investments and generally should not be recommended to inexperienced or conservative investors, including retirees.
Recently, our skilled non-traded REIT lawyers filed a broker-dealer negligence lawsuit against Wintrust Investments on behalf of an Illinois couple over their Griffin Trust Essential Asset II and NorthStar Healthcare losses. The claimants, an older retired couple, made it clear from the start to their Wintrust financial advisor Stephen J. Sperling that they were risk-averse, novice investors who even preferred to keep most of their funds in a savings account. Instead, Wintrust Investments allegedly unsuitable recommended these two high-risk non-traded REITs, neglected to fully disclose said risks or that these were illiquid investments and overconcentrated a significant chunk of the couple’s assets in them.
In their non-traded REIT fraud claim seeking up to six figures in damages, these senior investors are also alleging supervisory failures, breach of fiduciary duty, and other claims.
What You Need To Know About Non-Traded REITs
These illiquid, very risky investments are only suitable for sophisticated investors that can handle said risks. Sold exclusively by independent broker-dealers, they pay higher commissions than more traditional investments, which can provide added incentive for these firms’ brokers to market and sell them to customers even when they are an inappropriate fit. That said, even experienced investors can suffer serious non-traded REIT losses especially if the concentration is a factor—not to mention that non-traded REIT investors are subject to high fees in general.
Also, non-traded REITs are, at their core, Ponzi-like scams that nearly always at the beginning offer a high monthly payout. Often, because this is a real estate venture, the underlying real estate usually hasn’t even been bought at the time of the sale. This means that investors’ monthly payments are typically either merely a return of their money—rather than money being earned—or the money of the non-traded REIT’s other investors. While there are successful REITs, a lot of factors have to be in place for that outcome to happen, including a liquidity event that will need to pan out within 3-to-5 years.
Why Speak With One on Our Realty Trust Loss Attorney Team
Shepherd Smith Edwards and Kantas represent non-traded investors in recouping their losses caused by broker misconduct or negligence. We help our clients sue their brokerage firms for damages.
With over a combined century’s worth of experience fighting for investors in arbitration, mediation, and litigation, our securities lawyers have the resources and knowledge to go after the largest Wall Street firms as well as independent broker-dealers. We can help you determine whether you have grounds for a broker fraud claim and help you explore your legal options.
Should we agree to work together, we will prepare your investor fraud lawsuit and provide you with quality securities law representation along with personalized attention. More than 90% of our clients have received full or partial financial recovery with our help.
How To Contact Us About Your NorthStar Healthcare Income and Griffin Realty Trust Loss Attorney:
Call (800) 259-9010 or contact us online.