Investors Misled When Advised To Invest In REITs
Investors, who were sold non-traded REIT with the promise of steady dividend income and stock prices that would not fluctuate wildly with the market, are coming forward and filing claims that they were misled by their financial advisor and the brokerage firm recommending these products. Generally, the sales pitch was that the REIT was a safe, low risk investment. REITs are specialized entities that own or manage income producing real estate. Unfortunately for many investors, they were not advised of the underlying financial condition of the REITs or the risks of illiquidity, in addition to a litany of other disclosures such as huge broker fees, commissions, dividend cuts and suspended buyback programs. The question is whether the investment was ever suitable for the people it generally appealed to. Accordingly, FINRA has stepped up its investigation into the way these non-traded REITs are being marketed and recommended to customers.
Some of the predominant players involved in these filings are the Inland Western Retail Real Estate Trust, Inc., Behringer Harvard REIT 1, Cole Credit Property Trust II, Inc. and Wells Real Estate Investment Trust II, Inc.
If you have suffered losses due to investments in REIT, please contact our securities law firm for a no obligation, confidential consultation at 1-800-259-9010.