REIT fraud

Moody National REIT II Announces Postponement of Valuation of Shares

Published on: November 11, 2021 | by Shepherd Smith Edwards & Kantas, LLP

More Bad News for The Non-Traded REIT’s Investors

Publicly registered non-traded real estate investment trust, Moody National REIT II, announced in August 2021 that its Board had made the decision to postpone the valuation of its shares. Considering that the non-traded REIT has not updated its net asset value (NAV) since December 2019, this announcement is cause for further concern for investors.

Our securities fraud attorneys have been speaking to investors of this non-traded REIT who have suffered significant losses, most of whom likely paid $25/share. Contact Shepherd Smith Edwards and Kantas (SSEK Law Firm at investorlawyers.com) today at (800) 259-9010 so that we can help you explore your legal options.

Cetera Advisors Broker Jeffrey Meyers Accused of Making Unsuitable REIT Investment Recommendations

Published on: November 10, 2021 | by Shepherd Smith Edwards & Kantas, LLP

Hospitality Investors Trust Was One of the REITs Marketed

Cetera Advisors Network broker Jeffrey Gerard Meyers, an Overland Park, Kansas financial advisor, is named in two pending customer disputes.

The claimants are accusing him of making unsuitable investment recommendations involving non-liquid real estate investment trusts (REIT). One of the products was Hospitality Investors Trust (HIT REIT), which declared bankruptcy after the COVID-19 pandemic began.

SEC Investigates Ex-MVP American Securities Broker Mike Shustek Over REIT Investors’ Losses

Published on: September 7, 2021 | by Shepherd Smith Edwards & Kantas, LLP

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.

Florida Retiree Files $500K REIT Arbitration Case Against Securities America

Published on: July 28, 2021 | by Shepherd Smith Edwards & Kantas, LLP

Broker Alan Douglass Unsuitably Overconcentrated Investor’s Funds in Non-Publicly Traded Products

An investor based in Lutz, Florida has filed a Financial Industry Regulatory Authority (FINRA) arbitration claim against Securities America. This investor suffered losses in real estate investment trusts (REITs) and other non-publicly traded investments. The claimant, who is a retiree, suffered up to $500K in investment losses, which he is seeking in damages.

Securities America broker, Alan Duane Douglass, was this claimant’s financial advisor. He not only unsuitably recommended private placements and real estate investment trusts (REITs) to this customer but also, overconcentrated the customer’s portfolio with these risky investments.

Hospitality Investors Trust Files For Chapter 11 Bankruptcy Protection

Published on: June 23, 2021 | by Shepherd Smith Edwards & Kantas, LLP

Non-Traded REIT Seeks To Restructure $1.3B in Unsecured Debt

If you are an investor whose broker recommended that you invest in Hospitality Investors Trust (HIT), you may have grounds for a Financial Industry Regulatory Authority (FINRA) arbitration claim to recover damages.

Hospitality Investors Trust used to be called American Realty Capital Hospitality Trust (ARC Hospitality Trust). In May 2021, the publicly registered non-traded real estate investment trust (non-traded REIT) filed for Chapter 11 Bankruptcy protection as it seeks to restructure its $1.3B in unsecured debt.

Brokers May Have Unsuitably Recommended Lodging Fund REIT III

Published on: May 7, 2021 | by Shepherd Smith Edwards & Kantas, LLP

SEC Looks at Reimbursements Made to Legendary Capital REIT III

If your financial advisor recommended that you invest in Lodging Fund REIT III and you suffered losses, you may have grounds for a broker fraud claim to recover damages.

The publicly registered non-traded real estate investment trust (REIT) disclosed in a recent filing with the US Securities and Exchange Commission (SEC) that since December 2020 the latter has been looking into certain reimbursements made to Legendary Capital REIT III, LLC, as well as at disclosures involving reimbursement procedures and policies.

Georgia Retiree Files Non-Traded REIT Fraud Claim Against MML Investors Services

Published on: April 5, 2021 | by Shepherd Smith Edwards & Kantas, LLP

Allegedly Unsuitable Recommendations Caused Senior Investor Loss of Savings

A Brunswick, Georgia retiree has filed a Financial Industry Regulatory Authority (FINRA) arbitration case against broker-dealer MML Investors Services, LLC. The investor contends that a broker from the firm overconcentrated his IRA and a non-IRA account in CNL Lifestyle Properties, which is an illiquid, privately traded real estate investment trust (non-traded REIT).

This caused him to lose a large portion of his savings. Now, the investor is alleging failure to supervise, unauthorized transactions, securities fraud, broker negligence, breach of duty, breach of contract, violation of state securities laws, and other claims. He is seeking up to $100K plus interest and costs.

SSEK Law Firm Investigates Brokerage Firms That Sold New York City REIT to Customers

Published on: March 25, 2021 | by Shepherd Smith Edwards & Kantas, LLP

Investors That Bought NYC Stock When it Was a Non-Traded REIT Hit Especially Hard After NYSE Listing

Our real estate investment fraud attorneys (REIT) at Shepherd Smith Edwards and Kantas (SSEK Law Firm at investorlawyers.com) are investigating the broker-dealers and investment advisors that sold New York City REIT (NYC) to customers.

Now available on the New York Stock Exchange (NYSE) and open to any investor with a brokerage account, this real estate investment trust used to be a non-traded REIT and it is the investors that purchased this non-traded real estate trust that have sustained the most significant losses after it went public in August 2020.

Not All Resource Real Estate Opportunity REIT Investors May Have Been Apprised of Risks

Published on: November 19, 2020 | by Shepherd Smith Edwards & Kantas, LLP

Resource Real Estate Opportunity REIT and REIT II Shares Reportedly Trading Under NAV Price

With shares in Resource Real Estate Opportunity REIT and Resource Real Estate Opportunity REIT II reportedly trading privately at lower prices than their net asset value (NAV), some investors may be wondering why they were never fully apprised of all the risks.

The news of the lower than NAV trading prices comes several months after both non-traded real estate investment trusts announced they were partially suspending share redemptions amidst their plans to merge with Resource Apartment REIT III, Inc.

Ex-Kalos Capital Broker Curtis Whipple Accused of Unsuitability & Misrepresentation Involving UDF IV

Published on: September 28, 2020 | by Shepherd Smith Edwards & Kantas, LLP

Latest FINRA Arbitration Claim Allege REIT Losses

A number of investors recently filed a customer complaint against former Kalos Capital broker, Curtis Leroy Whipple, who was with the firm out of Plymouth, Michigan until this year. He faces allegations of unsuitability, misrepresentations, and lack of due diligence related to the claimants’ United Development Funding IV (UDF IV) losses.

UDF IV is a real estate investment trust (REIT) that mostly invests in secured loans for acquiring and developing land into single-family home lots, as well as to construct homes and model homes. UDF IV and the other UDF non-traded REITs have been accused in recent years of being part of a $1B Ponzi scam. United Development Funding is based out of Dallas, Texas.