Florida Investor Sues J Alden Associates Over RAD Diversified Losses. Our Non-Traded REIT Fraud Attorneys Are Representing This Claimant In Her Six-Figure Lawsuit
Shepherd Smith Edwards and Kantas REIT Fraud Attorneys (investorlawyers.com) are representing an investor who is seeking up to $500K in damages from broker-dealer J Alden Associates. This claimant is an older novice investor and a soon-to-be retiree with health issues. We believe that her J Alden broker Nathan Daniel Goad unsuitably recommended too risky products, including RAD Diversified and Key Capital while overconcentrating her portfolio. Goad is also a Florida investment adviser with the Alden Investment Group.
In her FINRA lawsuit, our client is alleging unsuitable investment recommendations, misrepresentations and omissions, failure to supervise, excessive concentration, negligence, gross negligence, breach of contract, and more. She contends that she made it clear about not wanting to take on any undue risk and needed safety. Meanwhile, her J Alden broker purportedly told her the accounts would be structured prudently to satisfy her investment goals. Instead, her money ended up in risky, unproven, illiquid investments that tied up the majority of her assets. These were investments that paid high commissions to this financial advisor.
What Is RAD Diversified REIT and Is It a Ponzi Scam?
This is a non-traded real estate investment trust that invests in residential properties, multi-family properties, mixed-use residential commercial spaces, and income-producing farms. While both retail investors and accredited investors are able to invest in RAD Diversified, there has been concern over investor losses in the wake of a fund withdrawal freeze and the suspension of investor distributions.
There have been allegations that RAD Diversified may be part of a Ponzi scam, especially in light of its purportedly harmful sales practices. Investors were allowed to use credit cards to invest, while others were encouraged to take out equity lines of credit on their houses. A stock buyback program promised investors the chance to resell their shares to the company.
There are investors claiming they were pressured into investing in this non-traded REIT before the price went up but were later told that their money was never placed in RAD Diversified due to oversubscription. Some are contending that they were promised high returns, which can be a red flag indicating possible investment fraud.
Trusted Non-Traded REIT Fraud Attorneys
Shepherd Smith Edwards and Kantas REIT Fraud Attorneys are continuing to speak with other RAD Diversified REIT investors to assess whether they have grounds for an investment loss recovery claim. RAD Diversified appears to have sold investments directly to investors, also, there are broker-dealers, such as J Alden Associates, that marketed and sold this non-traded REIT to customers.
Broker-dealers have a duty to not only properly evaluate any investment that they recommend for safety and legitimacy, but also, it is their responsibility to ensure suitability for each customer. This means conducting the necessary due diligence to verify that any investment recommendation they make is appropriate for an investor and in line with their risk tolerance level, investing goals, age, and other key factors.
Given the nature of RAD Diversified REIT, this was clearly an unsuitable recommendation for our client.
How To Schedule Your Free Case Consultation If You Are A RAD Diversified REIT Investor
Call our REIT Fraud Attorneys at (800) 259-9010 or fill out this contact form to speak with one of our seasoned non-traded REIT loss lawyers.