Investigating Potential Claims Involving KBS REIT II

Posted on August 31, 2017 by The White Law Group

MacKenzie Realty Capital Extends Tender Offer for KBS REIT II $3.87/share

The White Law Group is investigating potential claims against the broker dealers that sold high risk non-traded REIT investments, like KBS REIT II.

KBS REIT II, a publically registered non-traded REIT, went effective in April 2008 and closed its primary offering in March 2011 after raising $1.8 billion in investor equity. The company’s portfolio consists of 10 properties and one real estate loan receivable.

MacKenzie Realty Capital is offering to purchase up to 2.5 million shares of the REIT’s common stock for $3.87 per share, or approximately 1.33 percent of the outstanding shares.

According to SEC filings, the REIT is urging shareholders to reject the unsolicited tender offer from MacKenzie.

KBS REIT II told shareholders that the offer price is “substantially below” the value of the shares, which have an estimated value of $5.49 per share, as of September 30, 2016.

A KBS REIT II special committee determined that it would be in the best interest of stockholders to market certain properties for sale, and based on that effort, could possibly adopt a plan of liquidation in the future, subject to stockholder approval.

The REIT noted that its focus in 2017 is to continue to strategically sell assets and consider special distributions to its stockholders; negotiate lease renewals or new leases; complete capital projects, such as renovations or amenity enhancements, to attract quality buyers; and finalize the strategic alternatives assessment and decide on a course of action.

The White Law Group has handled a number of claims involving non-traded real estate investment trusts (REITs) like KBS REIT II.

For more information on the Firm’s investigation, please visit KBS REIT II Secondary Market Listing $4.50/share

If you invested in KBS REIT II or another non-traded REIT and would like to discuss your litigation options with a securities attorney, please call The White Law Group at 1-888-637-5510 for a free consultation.

The White Law Group is a national securities fraud, securities arbitration, and investor protection law firm with offices in Chicago, Illinois and Vero Beach, Florida.

For more information on The White Law Group and its investigations, visit www.whitesecuritieslaw.com.

SEC Announces New Fraud Charges for Dawn Bennett

Posted on August 31, 2017 by The White Law Group

Dawn Bennett Charges involve Apparel Business and $20 Million Ponzi Scheme

Financial Advisor Dawn Bennett, who was barred from the securities industry by the SEC in 2016 for exaggerating her advisory firm’s assets under management, was hit with a new set of fraud allegations this week.

The White Law Group has represented several of Dawn Bennett’s clients and continues to investigate the liability that her FINRA registered employer, Western International Securities, may have for failure to properly supervise her.

The Securities and Exchange Commission announced Tuesday that it is charging Bennett with defrauding investors and spending their money on herself. Additionally, the SEC alleges Bennett with making Ponzi-like payments to earlier investors in the scheme.

Bennett, who was a top-ranked Barron’s advisor for three years, allegedly raised more than $20 million by selling notes issued by her company, DJB Holdings LLC, a luxury sports apparel firm located in Washington, DC. Purportedly, Bennett sold the notes to 30 investors, some who were elderly, while working as an independent broker at Western International Securities.

The SEC alleges Bennett exaggerated the safety of the notes and success of her firm, claiming it was a profitable business able to pay annual returns as high as 15 percent.

Last year, the SEC barred Bennett for life from the securities industry and ordered her and registered investment adviser Bennett Group Financial Services to pay $4.1 million in fines and disgorgement.

According to her FINRA BrokerCheck report, Bennett has seven pending customer complaints including allegations of unsuitable investments and misrepresentations. Three were filed since May 2016. Her broker report says that Bennett was permitted to resign in December “following discovery of promissory notes with firm customers.”

For more information on the Dawn Bennett investigation, visit Dawn Bennett Loses Again.

The White Law Group is a national securities fraud, securities arbitration, and investor protection law firm with offices in Chicago, Illinois and Vero Beach, Florida.

For more information on The White Law Group and its representation of investors in FINRA arbitration claims, visit http://www.whitesecuritieslaw.com. For a free consultation with a securities attorney, please call the firm at 888-637-5510.

Investigating Potential Claims Involving DiVall Insured Income Properties 2 LP

Posted on August 31, 2017 by The White Law Group

Secondary Market Listing for Divall Insured Income Properites 2 LP

The White Law Group is investigating potential claims against the broker dealers that sold high risk investments, like DiVall Insured Income Properties 2 LP, onto unsuspecting investors.

DiVall Insured Income Properties 2 LP, is a limited partnership organized under the Wisconsin Uniform Limited Partnership Act. The Partnership is currently engaged in the business of owning and operating its investment portfolio of commercial real estate properties. The Properties are leased on a triple net basis primarily by franchisees of national, regional and local retail chains. The lessees are predominantly fast food, family style, and casual/theme restaurants. The General Partner is Provo Group Inc.

According to Central Trade & Transfer, a secondary market for private placements, shares of DiVall Insured Income Properties 2 LP interests are currently listed for just $315.00 per unit. Unfortunately for many investors, it appears that the secondary market price would represent a significant loss on their initial capital investment. The original offering price for the units is $1000/unit.

Broker dealers are required to perform adequate due diligence on any investment they recommend and to ensure that all recommendations are suitable for the investor. Recommendations should be appropriate in light of the investor’s age, risk tolerance, net worth, and investment experience.

If your broker fails to adequately disclose risks or makes unsuitable investment recommendations, they can be held liable for investment losses in a FINRA arbitration claim.

For more information on the firm’s investigation in potential claims involving DiVall Insured Income Properties 2 LP, please visit Divall Insured Income Fund 2 LP Investment Losses.

If you have invested in DiVall Insured Income Properties 2 LP and would like to speak to a securities attorney about the potential to recover your investment losses, please call The White Law Group at 1-888-637-5510 for a free consultation.

The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm with offices in Chicago, Illinois and Vero Beach, Florida. To learn more about The White Law Group visit www.whitesecuritieslaw.com.