Kenner Nygaard DeMarea Kendall, LLC represents Ameriprise customers who have lost money in real estate investment trusts. Recently the firm has filed FINRA arbitrations to recover investors’ losses in REITs sold by Ameriprise.
In July 2009, Ameriprise Financial Services, Inc., an American Express subsidiary, was sanctioned by the Securities & Exchange Commission and ordered to pay over $17 million dollars for selling REITs, syndicated by Carey, and hiding $30,000,000 of payments it received from the SEC. The Carey REITs are: CPA 10, CPA:12, CPA:14, CPA:15, CPA:16 and CNL REITs (CNL Hospitality Properties, Inc., CNL Retirement Properties, Inc., CNL American Properties Fund). Apparently not content to make over 15% commissions from their clients who bought these, Ameriprise also demanded $30 million from Carey for “shelf space.” The SEC censured Ameriprise and fined it $17,000,000, thereby allowing Ameriprise to keep $13,000,000 of the under-the-table payment which the SEC knew about. What about the customers, you ask? Did the SEC require Ameriprise to rescind these sales? No—the SEC received $17 million, Ameriprise netted at least $13 million and millions more from selling these over several years, and tens of thousands of customers are stuck in these non-traded real estate deals.
According to the SEC release, Ameriprise sold over $3.5 billion worth of Carey and CNL REITs without disclosing this “extra” revenue, which was in addition to commissions, dealer fees, etc., to purchasers. Non-traded REITs are burdened with very high up front commissions and fees (usually 10-17%), limiting the net amount available for investment, and any return.
If you have losses in a CPA REIT, a CNL REIT, or any other non-traded REIT, including Behringer Harvard, Cole Credit Property Trust II, Cornerstone Core Properties, Lerner Apple REITs, Healthcare Trust of America, Inland American, Inland Western, KBS REIT I, Retail Properties of America, Wells or Wells Timberland REIT, please do not hesitate to contact us. We represent investors seeking recovery of stock market and investment losses. Nationwide representation. Free consultation: (913) 485-5014.Contact Us