The White Law Group is investigating potential FINRA arbitration claims involving the improper sale of Behringer Harvard Strategic Opportunity Fund.
Behringer Harvard Strategic Opportunity Fund submitted its Form D with the SEC in April 2005 and thereafter sought to raise funds for the offering. According to that document, the Behringer Harvard Strategic Opportunity Fund was established to "invest in and operate commercial properties, lease such properties and make other real estate investments." The fund was established as a limited partnership by the fund's parent company Behringer Harvard, a Texas based company, with Behringer Harvard Strategic Advisors, LP designated as the fund's General or Managing Partner. Behringer Harvard set out to sell $80,000,000 of the offering.
Unfortunately for investors in the fund, it appears that the Behringer Harvard Strategic Opportunity Fund has suffered catastrophic losses.
In August of this year it was reported that the Behringer Harvard Strategic Opportunity Fund I was under water and its debt far outweighs the fund's equity. The fund appears to have acquired the majority of its assets at the peak of the real estate market (just before the bubble burst) and the fund's holdings are now underwater.
The White Law Group continues to investigate securities fraud claims against the financial professionals and broker-dealers that sold the Behringer Harvard Strategic Opportunity Fund I investment to their clients.
Financial advisors and broker-dealers have a duty to their clients to perform the necessary due diligence on an investment before offering it for sale to their clients and to ensure that any investment recommendation that is made is suitable in light of the client's age, investment experience, net worth, and investment objectives.
Given what is now known about the Behringer Harvard Strategic Opportunity Fund, it is clear that the brokerage firms that sold this product failed to assess the risk of the fund. Additionally, it appears that certain financial professionals improperly sold the fund to investors whose risk tolerance was not in line with the high risk nature of the fund.
For more information on The White Law Group's investigation in to the Behringer Harvard Strategic Opportunity Fund, visit http://www.whitesecuritieslaw.com/2012/12/03/recovery-of-behringer-harvard-strategic-opportunity-fund-losses/.
For more information on The White Law Group, visit http://www.whitesecuritieslaw.com.