The White Law Group continues to investigate investors' ability to recover their losses in Cornerstone Real Estate Funds' various REITs and other investments through the FINRA arbitration process.
Cornerstone Real Estate Funds is a real estate company based in Irvine, California that primarily deals with the acquisition and management of healthcare real estate.
The company has had several private placement offerings over the last few years that have been problematic for investors, including Cornerstone Core Properties REIT, Cornerstone Healthcare REIT and CIP Leveraged Fund.
Prior to making recommendations to an individual investor, brokerage firms are required to disclose all the risks of an investment. A brokerage firm should only recommend an investment if the investment is suitable for an individual investor given their age, investment objections, investment experience and risk tolerance.
Brokerage firms that do not perform adequate due diligence on an investment and/or make unsuitable recommendations can be held accountable for investment losses through securities arbitration.
The following is a breakdown of the status of the most problematic Cornerstone offerings:
(1) Cornerstone Core Properties
Cornerstone Core Properties REIT, Inc., incorporated in 2004, is a non-trade REIT that primarily invests in commercial real estate through the United States. The majority of the REITs properties are multi-tenant industrial properties and healthcare facilities. Cornerstone REIT is sponsored by Cornerstone Realty Advisors, LLC.
According to the REITs' most recent quarterly report (form 10-K), as of Sept. 30, 2012, the common stock value is $0.001 on approximately 290 million authorized common stock shares.
(2) CIP Leveraged Fund
According to online reports, CIP Leveraged Fund was sold from 2004 to 2009.
Upon information and belief, CIP Leveraged Fund was established by Cornerstone to raise funds for other Cornerstone offerings and has declined substantially in value.
(3) Cornerstone Healthcare REIT
According to online reports, Cornerstone Healthcare Plus began raising capital in August 2007 and has raised an estimated$130 million in investor equity.
Cornerstone Healthcare REIT is a real estate investment trust (REIT), which invests exclusively in healthcare related real estate, and is committed to delivering strong and reliable returns to investors.
Unfortunately for investors, it appears that this REIT has also declined substantially in value.
For more information in to The White Law Group's Cornerstone investigation, visit http://www.whitesecuritieslaw.com/2013/02/13/update-on-securities-fraud-investigation-involving-cornerstone-real-estate-funds/.
The White Law Group is a national securities fraud, securities arbitration, and investor protection law firm with offices in Chicago, Illinois and Boca Raton, Florida.
For a free consultation with a securities attorney, please call The White Law Group's Chicago office at 312/238-9650.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.