According to the recent quarterly report (10Q for Q1), a copy of which can be found here on the company website, Inland American REIT is currently under investigation by the Securities & Exchange Commission (SEC).
According to the report, the SEC investigation is to determine if there have been violations of federal securities laws related to:
- business manager fees
- property management fees
- transactions with affiliates
- timing and amount of distributions to investors
- determination of property impairments
The report states that at the current time the company has not been accused of any wrongdoing and that they are cooperating fully in the investigation.
Considered to be the largest nontraded real estate investment trust in the industry, Inland American Real Estate Trust Inc., has over $11 billion in real estate assets.
The nontraded-REIT industry recently has seen a number of REITs cut their estimated values and drawing increased scrutiny from securities regulators over that issue.We have previously addressed the declining values of other non exchange-traded REITs including a related entity, Retail Properties of America Inc. Formerly known as Inland Western Retail Real Estate Trust Inc., Retail Properties of America (NYSE:RPAI) had an initial public offering last month (following a reverse merger with Inland Western) in which its shares, which were initially sold at $10, were listed at an equivalent of $3.20 per share.
Many non exchange-traded REITs were sold by retail brokerage firms to retirees and others with the promise of steady and dependable distributions and a promise of liquidity in the not too distant future. Many have ceased making distributions and have cancelled buyback programs while watching values drop dramatically.
If you have suffered losses as a result of purchasing non-traded REITs, you may be able to recover those losses through FINRA arbitration. Contact us to discuss your legal rights. 561 391 1900