KBS REIT I LIKE OTHER NON-TRADED REITS IS A DISASTER FOR RETIREES THROUGHOUT THE UNITED STATES

Nov. 30, 2012 10:46 AM ET
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Contributor Since 2012

Mr. Pearce has tried, arbitrated and mediated numerous disputes involving complex securities, commodities, administrative, contract, commercial, business tort and employment law issues for over 35 years. He has represented hundreds of clients in Federal and state courts (trial and appellate) as well as administrative, arbitration, and mediation proceedings before the U.S. Securities and Exchange Commission (SEC), Commodities Futures Trading Commission ("CFTC"), Florida Office Financial Regulation (FlaOFR), Florida Division of Securities & Investor Protection ("FDS"), Financial Industry Regulatory Authority (FINRA), National Association of Securities Dealers regulation, Inc. ("NASD"), New York Stock Exchange, Inc. ("NYSE") and/or National Futures Association ("NFA"). Mr. Pearce is a Florida Circuit Court Civil Mediator and a respected mediator in the FINRA Mediation Program. He also acts as a private judge or arbitrator in mini-trials and arbitration proceedings, respectively. Mr. Pearce has also served as a Federal Court-appointed Receiver- an attorney who is called upon by Federal and state regulators (SEC, CFTC and FlaOFR) to take over companies engulfed in legal problems. Areas of Practice • Courtroom Litigation, Arbitration and Mediation Proceedings Involving • Securities and Commodities Law • Business & Commercial Law • Federal, State and Industry Enforcement Actions • Employment Law A Brokerage Employees Only • Trust / Estate / Guardianship Law • Probate & Estate Administration Education • Hofstra University School of Law, Hempstead, New York J.D. - 1979 • Hofstra University School of Business, Hempstead, New York M.B.A. - 1979 • Florida Tech B.S. – 1973 Professional Associations and Memberships • American Association for Justice • Florida Justice Association • Broward County Bar Association • Broward County Justice Association • Palm Beach County Bar Association • Palm Beach County Justice Association • Public Investor Arbitration Bar Association • South Palm Beach County Bar Association Past Employment Positions • Lerner & Pearce, P.A., January 1, 1990 - December 31, 1999 • Lerner, Harris, Pearce, P.A., March 1, 1983 - December 31, 1989 • U.S. Securities & Exchange Commission, May 1, 1980 - February 28, 1983

The Law Office of Robert Wayne Pearce, P.A. has filed KBS REIT I claims to recover losses for investors in KBS Real Estate Investment Trust I ("KBS REIT I") after learning that shares which they purchased for $10 per share now have an "estimated" value of only $5.16. In his March 26, 2012 letter to shareholders, chief executive Charles Schreiber, Jr. also told Mr. Pearce's clients that they would no longer receive their monthly distribution payments, which had been reduced to less than $.53 per share.

Since the company halted its repurchase of shares in 2009, except in cases of death or disability, KBS REIT I investors are left holding illiquid, devalued shares that pay no distributions. Mr. Schreiber's statement to shareholders that the company is focusing its efforts "on attempting to maximize the amount of capital that we return to you over time" is little comfort to investors. His words are especially alarming to retirees, who are suffering from the loss of income they relied upon and have no hope of selling their shares for the price they paid in the foreseeable future. They see little light at the end of the tunnel.

As with most REITs, it appears that investors were routinely told that KBS REIT I was a safe investment whose share price was likely to remain stable. They were also told that it paid good dividends and was suitable for a retirement nest egg. They typically were not told that selling their shares could be problematic and that REITs were high commission products.

The most important of investors' rights is the right to be informed! This Investors' Rights blog post is by the Law Offices of Robert Wayne Pearce, P.A., located in Boca Raton, Florida. For over 30 years, Attorney Pearce has tried, arbitrated, and mediated hundreds of disputes involving complex securities, commodities and investment law issues. The lawyers at our law firm are devoted to protecting investors' rights throughout the United States and internationally! Please visit our website, www.secatty.com, post a comment, call (800) 732-2889, or email Mr. Pearce at pearce@rwpearce.com for answers to any of your questions about this blog post and/or any related matter.

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