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D. Daxton White
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The White Law Group is a national securities fraud, securities arbitration, investor protection and securities regulatory/compliance law firm with offices in Chicago, Illinois and Boca Raton, Florida. We pride ourselves on providing quality legal services to our clients and handle securities... More
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  • Recovery Of CNL REIT Losses 0 comments
    Mar 1, 2012 5:16 PM

    The White Law Group is investigating potential securities fraud claims involving broker-dealers' improper recommendation that investors purchase risky non-traded REIT investments, including CNL REIT investments. The CNL REITs that the firm is investigating include, but are not limited to, CNL Hospitality Properties, Inc., CNL Retirement Properties, Inc., CNL Properties Fund, and CNL Lifestyle Properties REIT.

    FINRA recently announced that it is paying close attention to the sale of REITs and, in particular, the ways in which broker/dealers marketed and sold the products to investors. In many cases, and notwithstanding the risk of REIT investments, broker-dealers marketed these investments as safe and secure.

    Due to the relatively high interest or dividend offered by non-traded REITs like CNL REITs, retired investors are often attracted to these products. Unfortunately, in addition to be risky investments, non-traded REITs are also illiquid (limiting investors ability to access their own money for unforeseen expenses).

    REITs typically pay a high commission - often as much as 15% (which often explains the stockbroker's motivation in recommending the REIT investment to the investor).

    Another problem with non-traded REITs is that broker-dealers are not required to frequently update the current price of the investment. This often leads investors to believe that there REIT investment is doing well even though the widespread real estate market collapse would indicate otherwise.

    The White Law Group's investigation into the improper sales of non-traded REITs to investors includes, but is not limited to, recommendations to invest in the following REITs: Behringer Harvard REIT I, Inland America Real Estate Trust, Inland Western Retail Real Estate Trust, Wells Real Estate Investment Trust II, Piedmont Office Realty Trust, Desert Capital REIT, Apple REIT, Crystal River REIT, KBS REIT, and CNL REITs.

    For more information on The White Law Group's investigation, visit:
    http://www.whitesecuritieslaw.com/2012/03/01/recovery-of-cnl-reit-losses/

    Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

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