Many investors have sustained losses investing with Ameriprise Financial. Upon information and belief, Ameriprise Brokers or Financial Advisors have recommended many Non-Traded REITs to their clients. Allegedly, these advisors are soliciting these REITs to their clients as conservative investments and/or as an alternative to the risks involved with the equity markets.
According to The Securities Law Firm of Menzer & Hill, P.A., many of the individuals we speak with have informed us that their Broker-Dealer(s) have led them to believe that Non-Traded REITs are safe investments that pay a fixed return each month and they will receive their entire principal investment back at the conclusion of the investment period. Unfortunately for many investors, they've learned that is not the case.
The fact of the matter is many Non-Traded REITs contain substantial risks and are not suitable for many investors. Many Brokerage Firms are soliciting these types of investments because they tend to be some of the most profitable investment products the Broker-Dealer offers.
Fortunately for many individuals that have sustained investment losses, they have the opportunity to possibly recover their losses if the Brokerage Firm misrepresented the risks involved with the investment, through a FINRA arbitration.