The White Law Group is investigating potential securities fraud claims involving broker-dealers' improper recommendation that investors purchase risky non-traded REIT investments, including W.P. Carey REIT investments. The W.P. Carey REITs that the firm is investigating include, but are not limited to, Corporate Property Associates 10, Carey Institutional Properties, Corporate Properties Associates 12, Corporate Property Associates 14, Corporate Property Associates 15, and Corporate Property Associates 16.
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.
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).
Due to the relatively high interest or dividend offered by non-traded REITs like W.P. Carey 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).
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, CNL REITs, and W.P. Carey REITs.
For more information on The White Law Group's investigation visit:
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.