Non-Traded REIT (Real Estate Investment Trust) Losses
There are REITs and there are REITs. Some are publicly-traded; some are not. Brokerage firms seem to have asked themselves, “Why sell our clients publicly-traded REITs that are traded on a stock exchange, cost our clients only $7.95 to buy regardless of the amount, and can be sold whenever the funds are needed, when we can sell our clients non-traded REITs that can’t be easily sold, don’t require public filings and pay us undisclosed commissions of 7-10%?”
Diane A. Nygaard has and is representing many clients who were sold a non-traded REIT (the kind that you can’t get out of easily, and which have cost investors millions of dollars). Berthel Fisher, Ameriprise, LPL, VSR and other firms have sold these in such excessive amounts to their customers that many arbitrations and class actions have been filed. FINRA has also fined securities firms, including Ameriprise and LPL, for selling REITs to people without disclosing that they are high-commission and cannot be liquidated.
Your Right to Recover for REIT Losses
Brokers have sold tens of millions of dollars of United Development Funding, “UDF”), Business Development Corporation of America, American Realty Capital, Healthcare Trust, Walton Barrow Landing, Walton Pecan Woods and other Real Estate Investment Trusts. During the last five years, when the Vanguard REIT index has performed well, these REITs have not performed as promised. Some have never paid a distribution, (including some Walton REITS) and some have stopped paying distributions (including UDF). Brokers told customers that these would provide safe, secure retirement income. That is not true.
Diane Nygaard represents many REIT owners in both class actions and in individual cases against the brokers who sold them. She has also helped investors find secondary markets to sell their REITs and then obtained additional compensation for them.
If you believe your broker misrepresented a real estate investment trust or partnership interest to you, contact Diane Nygaard at firstname.lastname@example.org .