Category Archives: Unsuitable Investments

Rex Investigates Behringer Harvard Short Term Opportunity Fund I LP

Have you or your loved ones suffered losses as a result of purchasing Behringer Harvard Short Term Opportunity Fund I LP?

We may be able to help you recover some or all of your losses.

The Investment News recently reported that as of December 2011, investors in the Behringer Harvard Short Term Opportunity  I LP  (which originally sold for $10 per share) have seen the value of shares drop to just  $.40 from the $6.48 value  a year earlier.

According to the Investment News article, one elderly investor who had invested nearly $50,000 in this rapidly plummeting REIT from Capital Financial Services, Inc. , was inspired to contact FINRA and the Texas State Securities Board for an explanation why she had lost 96% of her investment. She complained that there was no warning of the upcoming losses or explanation therefore. According
to this investor, an elderly widow, Behringer Harvard “keeps sending me stuff that shows my money is gone.”

Interesting to note, according to article, is that the broker who sold the investment is helping this lady pursue her inquiry with the regulators. It is possible that brokers were misled by the wholesalers of these funds who convinced them to sell these products to their clients.

Many investors were convinced to purchase these investments with promises that distributions would be steady and dependable. Now distributions have ceased, net asset values are plummeting and converting the asset to cash is difficult.

If you were misled about the nature of REIT investments, you may be able to recover your losses.

If you have suffered losses in Behringer Harvard Short Term Opportunity Fund I LP, please do not hesitate to contact us .

Rex Securities Law , located in Boca Raton, FL, provides representation to  investors  nationwide who are seeking recovery of investment losses due to the negligence or fraud of stockbrokers and broker dealers. If you have questions about how your account has been handled, call to speak with an experienced securities attorney. Most cases handled on a contingent fee basis meaning that you do not pay legal fees unless we are successful.

Rex Securities Law

561 391 1900

Rex Investigates Behringer Harvard Short Term Opportunity Fund I LP

Have you or your loved ones suffered losses as a result of purchasing Behringer Harvard Short Term Opportunity Fund I LP?

We may be able to help you recover some or all of your losses.

The Investment News recently reported that as of December 2011, investors in the Behringer Harvard Short Term Opportunity  I LP had seen the value of shares drop to just  $.40 from the $6.48 value  a
year earlier.

According to the Investment News article, one elderly investor who had invested nearly $50,000 in this rapidly plummeting REIT from Capital Financial Services, Inc. , was inspired to contact FINRA and the Texas State Securities Board for an explanation why she had lost 96% of her investment. She complained that there was no warning of the upcoming losses or explanation therefore. According
to this investor, an elderly widow, Behringer Harvard “keeps sending me stuff that shows my money is gone.”

Interesting to note, according to article, is that the broker who sold the investment is helping this lady pursue her inquiry with the regulators. It is possible that brokers were misled by the wholesalers of these funds who convinced them to sell these products to their clients.

Many investors were convinced to purchase these investments with promises that distributions would be steady and dependable. Now distributions have ceased, net asset values are plummeting and converting the asset to cash is difficult.

If you were misled about the nature of REIT investments, you may be able to recover your losses.

If you have suffered losses in Behringer Harvard Short Term Opportunity Fund I LP, please do not hesitate to contact us at 561 391 1900.

Rex Securities Law , located in Boca Raton, FL, provides representation to  investors  nationwide who are seeking recovery of investment losses due to the negligence or fraud of stockbrokers and broker dealers. If you have questions about how your account has been handled, call to speak with an experienced securities attorney. Most cases handled on a contingent fee basis meaning that you do not pay legal fees unless we are successful.

Rex Securities Law

561 391 1900

 

Rex Investigates CIP Leveraged Fund Advisors, LLC

Cornerstone Ventures, Inc. is the managing partner of CIP Leveraged Fund Advisors, LLC. The firms that solicited sales of this investment, according to SEC records are:

Pacific Cornerstone Capital, Inc.
Investors Capital Corp.
Private Consulting Group, Inc.
Cullum & Burks Securities, Inc.
Sammons Securities Company, LLC
USAllianz Securities, Inc.
American Investors Company
Equity Services, Inc.
Sigma Financial Corporation
Intervest International Equities Corporation
Cascade Financial Management Inc.
Investment Management Corporation
Royal Securities Company
Financial West Group
RBC Dain Rauscher Inc.
Harvest Capital LLC
Northland Securities, Inc.
Ameritas Investment Corp.
Advisory Group Equity Services, Ltd.
Capital Financial Services, Inc.

It may be possible that other firms not included in the list sold this
investment whose performance was tied to the performance of three other Cornerstone funds:

  • Cornerstone Healthcare Plus REIT (CHP)
  • Cornerstone Healthcare Real Estate Funds (CHREF)
  • Meadowbrook Healthcare Properties (MHP)

The company recently reported that CLFA units have no value, only slim hopes for the future. In February 2010, Pacific Cornerstone Capital Inc. and its former CEO Terry Roussel were fined a total of $750,000 for failing to include full and complete information in private placement offerings of CIP Leveraged Fund Advisors, LLC. Investors were promised 18% rate of return and maturity of the investment in two to four years. Roussel was also suspended.

Rex Securities Law , located in Boca Raton, FL, provides representation to  investors  nationwide who are seeking recovery of investment losses due to the negligence or fraud of stockbrokers and broker dealers. If you have questions about how your account has been handled, call to speak with an experienced securities attorney. Most cases handled on a contingent fee basis meaning that you do not pay legal fees unless we are successful.

Rex Securities Law

561 391 1900

Rex Securities Law Investigates Inland American REIT

Have you or your loved ones suffered losses as a result of purchasing INLAND AMERICAN REIT ?

In a December 2011 the company estimated the value of shares to be $7.22. Since non-traded REITs like Inland American are not traded on ay public market, they can only be sold on a secondary market where they trade at discounts of 10-20% less than the estimated value.

REITs attracted unsophisticated investors who were promised steady, dependable distributions of income. Many investors were not made fully aware of the risks associated with these investments.

If you have losses we may be able to help you recover some or all of your losses.

Rex Securities Law , located in Boca Raton, FL, provides representation to  investors  nationwide who are seeking recovery of investment losses due to the negligence or fraud of stockbrokers and broker dealers. If you have questions about how your account has been handled, call to speak with an experienced securities attorney. Most cases handled on a contingent fee basis meaning that you do not pay legal fees unless we are successful.

Rex Securities Law

561 391 1900

 

Rex Investigates Inland Western Retail Real Estate Trust (Now known as Retail Properties of America)

NOTE NAME CHANGE: On March 9, 2012, in what is likely a damage control move, Inland Western changed its name to Retail Properties of America. Here is a link to Inland’s press release.

According to the company website, no shares are being repurchased by the company and, as is the case with all non-traded REITs, their website goes on to explain “Inland Western shares are not listed on a national exchange and cannot readily be sold”. Many of you already are aware of that sad fact if you have tried selling you shares.

Annualized per share distributions have fallen from $.6425 in 2008 to $.26 in 2011. A recent tender offer from CMG in late 2011 offered $3.50 per share. According to Inland secondary market trades have ranged from $4.08 to $6.00 per share. Any of these values are far less than the $10 initial offering price.

REITs attracted unsophisticated investors who were promised steady, dependable distributions of income. Many investors were not made fully aware of the risks associated with these investments.

If you have suffered losses in Inland Western Retail REIT  , please do
not hesitate to contact us .

Rex Securities Law , with offices in Boca Raton, FL,  and  Austin, TX,   provides representation to  investors  nationwide who are seeking recovery of investment losses due to the negligence or fraud of stockbrokers and broker dealers. If you have questions about how your account has been handled, call to speak with an experienced securities attorney.

Most cases handled on a contingent fee basis meaning that you do not pay legal fees unless we are successful.

Nationwide Representation

Rex Securities Law

TollFree: 877-224-3199

Florida-561 391 1900 

Texas-512-329-2870

Rex Investigates Wells Timberland REIT

In November 2011, FINRA fined Wells Investment Securities, Inc. $300,000 for using misleading marketing materials in the sale of Wells Timberland REIT, Inc., a non-traded Real Esate Investment Trust. Here is a link to FINRA’s press release.

Wells Securities was the wholesaler for the public offering of Well
Timberland REIT, which invested in timber producing real estate. FINRA found that from May 2007 to September 2009, Wells distributed over 100 advertising and marketing materials that contained misleading, unwarranted or exaggerated statements. In addition the Wells ads did not make it clear that the investment did not yet qualify as a REIT for tax treatment, one of the selling points highlighted to potential investors.

Many investors nationwide suffered losses in Wells Timberland, Wells REIT II and other non-traded REITs.

If you have losses we may be able to help you recover some or all of your losses.

Rex Securities Law , located in Boca Raton, FL, provides representation to  investors  nationwide who are seeking recovery of investment losses due to the negligence or fraud of stockbrokers and broker dealers. If you have questions about how your account has been handled, call to speak with an experienced securities attorney. Most cases handled on a contingent fee basis meaning that you do not pay legal fees unless we are successful.

Rex Securities Law

561 391 1900

 

 

Rex Investigates Tenant in Common, TIC, 1031 Exchange Real Estate Investment Losses

Have you or your loved ones suffered losses as a result of purchasing Tenant in Common Real Estate Investments? We are investigating schemes involving the sale of private investments in real estate (office buildings, shopping centers, etc) in investments knows as TIC’s, 1031 exchanges or Tenant in Common real estate investment schemes.

Brokerage firms nationwide sold these investments to unsuspecting
investors, many who are retirees on fixed income who can ill afford to lose capital. Oftentimes the selling firm did little or no due
dilligence to determine the safety of the investment or the suitablity
of the investment for the particular investor involved.

The brokers generally highlighted selling points like the guaranteed
annual income distributions (often 7% or more), but failed to discuss
the risks associated with this type of investment. Since TIC investments are private investments, not traded on any securities market, they can not be readily sold, making them virtually illiquid. This can be  critical for those needing liquidity for living and health expenses.

In February 2012 LPL Financial was hit with a $1.4 million arbitration award for an elderly couple who was sold tenant in common real estate investments. DBSI Inc., one of the largest sellers of TICs declared bankruptcy in 2008, however the broker dealers that sold those deals remain liable for selling these products.

Brokerage firms that sold TIC investments include the following:

Alternative Wealth Strategies
American Wealth Management
Berthel Fisher & Co

Cambridge Investment Research
CapWest Securities Inc.
DBSI Securities
DeWaay Financial Network, Inc.
Equity Services Inc.
FINTEGRA LLC
F.A. Repple & Co.

Grubb & Ellis
INVEST Financial Corp.
Investment Security Corporation
Investors Capital
J.P. Turner Co. LLC
LaSalle St. Securities

KMS Financial Services, Inc.
LPL Financial
MCL Financial Group Inc.
Meridian Capital Partners
Next Financial Group
NPV/Direct Invest
Omni Brokerage Inc.
Orchid Securities
Pacific West Securities

QA3 Financial Corp.
Quest Securities
Questar Capital Corp.
Regent Financial Group
Sanders Morris Harris
Sagepoint Financial

Securities Network LLC
Sigma Financial
U. S. Advisors LLC
U. S. Commercial
WFP Securities
Workman Securities

Rex Securities Law , located in Boca Raton, FL, provides representation to  investors  nationwide who are seeking recovery of investment losses due to the negligence or fraud of stockbrokers and broker dealers. If you have questions about how your account has been handled, call to speak with an experienced securities attorney. Most cases handled on a contingent fee basis meaning that you do not pay legal fees unless we are successful.

Rex Securities Law

561 391 1900