NorthStar Healthcare Income REIT Investment Losses

NorthStar Healthcare Income REIT Investment Losses, featured by top securities fraud attorneys, The White Law GroupNorthStar Healthcare Income Inc., Shareholders may have Claims

The White Law Group is investigating potential FINRA lawsuits involving broker dealers who may have unsuitably recommended non-traded REITs such as NorthStar Healthcare Income, Inc. to investors.

Unfortunately for investors it appears that many financial advisors/brokerage firms that sold non-traded REITs such as NorthStar Healthcare Income Inc., may have understated or misrepresented the risks and liquidity problems.

The Net Asset Value ( NAV) continues to decline as does the secondary market sales price. As recently as September 24, shares of NorthStar Healthcare Income sold for just $1.20 per share, according to Central Trade and Transfer. The original offering price for the REIT was $10.00 per share.

This comes after the REIT suspended its SRP in October 2018 and suspended distributions in February 2019. Investors are questioning if and when they will be able to get their money back.

Risks of Non-Traded REITs

Non-traded real estate investment trusts (REITs) are complex and inherently risky products. Unfortunately for investors, many REITs have taken a hit due to the Covid-19 global pandemic, and some have suspended distributions during this  uncertain time.

Compared to traditional investments, such as stocks, bonds and mutual funds, REITs are significantly more complex and often better suited for sophisticated and institutional investors.

Another problem often associated with REIT recommendations is the high sales commissions brokers typically earn for selling  REITs – as high as 15%.  In addition to the high risks, non-traded REITs often lack liquidity. Investors looking to sell these investments often have difficulty finding a buyer, and if they are able to find one can suffer significant losses on the sale.

Filing a Complaint Against your Brokerage Firm

Prior to making recommendations to an individual investor, brokerage firms are required by the Financial Industry Regulatory Authority (FINRA) to disclose all the risks of an investment. Recommendations should only be made if the investment is suitable for an individual investor given their age, investment objections, investment experience and risk tolerance.

Brokerage firms that do not perform adequate due diligence on an investment and/or make unsuitable recommendations can be held accountable for investment losses through FINRA arbitration.

High commissions could be a motivating factor for unscrupulous financial advisors to sell non-traded REITs regardless of whether the investment is in line with the client’s investment objectives and profile.  Moreover, the total commissions and expenses make it difficult for the REIT to perform in line with the market.

Free Consultation with a Securities Attorney

If you are concerned about your investment in NorthStar Healthcare Income Inc., you may be able to file a complaint against your brokerage firm. Please call the securities attorneys of The White Law Group at 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 Franklin, Tennessee.

For more information on The White Law Group, visit https://www.whitesecuritieslaw.com.

 

FS KKR Capital Corp. II (FSKR) Securities Investigation

FS KKR Capital Corp. II Securities Investigaiton, featured by top securities attorneys at The White Law GroupRecovery of Investment Losses in FS KKR Capital Corp. II (FSKR)

The White Law Group is investigating potential securities claims involving broker-dealers who may have unsuitably recommended FS KKR Capital Corp. II (FSKR) to investors.

 FS KKR Capital Corp. II is a business development company (BDC) reportedly “designed to provide a high level of current income.” The fund was launched at the end of 2019 as the product of a merger of four non-traded BDCs –FS Investment Corporation II (FSIC II), FS Investment Corporation III (FSIC III), FS Investment Corporation IV (FSIC IV) and Corporate Capital Trust II (CCT II).

On June 10, 2020, the company reportedly listed its shares of common stock on the New York Stock Exchange under the ticker symbol “FSKR” after a 4 to 1 reverse split of its shares of common stock which resulted in every four shares of FSKR common stock issued and outstanding were automatically combined into one share of FSKR common stock, reducing and the number of outstanding shares from approximately 691.2 million to approximately 172.9 million. 

Due to the reverse stock split, FSKR’s net asset value per share as of March 31, 2020 would have been $24.68, instead of $6.17 per share. Shares of FSKR closed at $14.81 yesterday.

The White Law Group has handled a number of claims involving FSIC II, FSIC III and FSIC IV, (now known as  FS KKR Capital Corp. II.) In those claims, the firm has alleged, among other things, that the investment is (1) high-risk and unsuitable for our clients given their financial situation, needs and investment objectives, (2) that the risks of the investment were not fully disclosed to them, and (3) that the brokerage firms that sold the investments failed to conduct the proper due diligence with respect to the investments. 

Unfortunately, some brokers may have downplayed the risks associated with these non-traded BDCs. They have misled investors into thinking that they are “safe” investment products.  

The high sales commission brokers earned for selling such products may provide some brokers with enough incentive to push the product to unsuspecting investors. Your typical stock or mutual fund offers 1%-2% commission. The commission for non-traded BDCs like FS KKR Capital Corp. II, are often 7% – 10%. 

Broker dealers are required to inform clients of the risks associated with investment recommendations and to ensure that those recommendations are suitable for the investor in light of the investor’s age, risk tolerance, net worth, and investment experience.

Filing a complaint against your Brokerage Firm

If you have suffered losses investing in FS KKR Capital Corp. II you may be able to file a complaint against your brokerage firm, please contact The White Law Group at 1-888-637-5510. 

The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm. The firm has offices in Chicago, Illinois and Franklin, Tennessee. 

For more information on The White Law Group, please visit our securities website at www.whitesecuritieslaw.com

 

 

CIM Real Estate Finance Trust (CCPT IV) – Illiquid Investment

CCPT IV (CIM Real Estate Finance Trust) – Illiquid Investment, featured by Top Attorneys, The White Law GroupSecondary Sales Prices of CIM Real Estate Finance Trust Suggests Losses for Investors

If your financial advisor unsuitably recommended investing in CIM Real Estate Finance Trust (CCPT IV), and you incurred losses, you may be able to recover your losses by filing a FINRA Arbitration claim.

Non-Traded REITs such as a CIM Real Estate Finance Trust are generally speculative, high risk investments and due to these risks are often unsuitable for most investors.

Net Asset Value Continues to Decline

According to new filings with the SEC, the REIT’s board has reportedly approved an $8.65 per share net asset value of the company’s common stock as of December 31, 2018. The board previously approved a per share NAV of $9.37 as of December 31, 2017, $10.08 as of December 31, 2016, $9.92 as of September 30, 2016, and $9.70 as of August 31, 2015.

The Company’s board of directors approved the change of the corporate name from Cole Credit Property Trust IV to CIM Real Estate Finance Trust, Inc., on August 14, 2019.

Liquidity Problems – Decrease in Secondary Sales Price 

Investors looking to sell non-traded REITs, like CIM, often have difficulty finding a buyer, and can suffer significant losses on the sale. According to filings with the SEC, the REIT’s Share Repurchase Program is oversubscribed.

On March 2, 2020, Comrit Investments LP, a Tel Aviv-based investment fund, has launched an unsolicited tender offer to purchase up to 16 million shares of CIM Real Estate Finance Trust for $5.27 per share. This may mean losses for investors.

The White Law Group is continuing its investigation in regards to the liability that some broker dealers may have for improperly recommending CIM Real Estate Finance Trust to investors.

Your financial advisor has a responsibility to perform due diligence on any investment before recommending it to you. If your advisor unsuitably recommended a non-traded REIT and you lost money, the securities attorneys at The White Law Group may be able to help you by filing a FINRA Arbitration claims against the brokerage firm that sold you the investment.

If you have suffered losses investing in CIM or another Cole REIT, the securities attorneys at the White Law Group may be able to help you. For a free consultation with a securities attorney, please call the offices at 888-637-5510.

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 Franklin, Tennessee.

FINRA Rule 8210 Inquiry

FINRA Rule 8210 Inquiry, featured by Top Securities Attorneys at The White Law Group

Concerned about a FINRA Rule 8210 Request for Information?

If you are a financial advisor and have received a FINRA Rule 8210 request for information from the Financial Industry Regulatory Authority (FINRA), the White Law Group may be able to help you.

Under Rule 8210, FINRA may demand documents, information or testimony from broker-dealers or employees.  Rule 8210 enables FINRA staff to inspect and copy virtually all of the books and records of member firms, associated persons and any other person over whom FINRA has jurisdiction.

This includes all electronically stored data including email, text messages, IMs, etc. FINRA is then permitted to share your documents with domestic federal agencies or foreign securities regulators.

Why did you receive a FINRA Rule 8210 Information Request?

Typically, the request is sent after FINRA gets a tip, referral, complaint, examination or termination of registration (Form U-5).

Similar to a subpoena, the information request may require the production of documents or require written responses to requests for information.  Individuals may be required to appear for testimony in an “on the record interview” (OTR) at a date and location set by FINRA’s staff. FINRA may also request a written statement.

What are your next steps after receiving a FINRA Rule 8210 Information Request?

  • The first step would be to discuss the request with your member firm. It’s important to continue to follow procedures within your organization, although they most likely will have also received the request, and you may need their help providing documents and records.
  • The second step is often to contact FINRA and establish a chain of communication and ask for an extension of time if needed, since the time for responding is often short.
  • The third step is hiring an experienced attorney who is familiar with FINRA disciplinary matters. An 8210 Request is a serious matter, and you should not be using a general litigator or other attorney who does not focus their practice on FINRA work.  It will be important for you to have an attorney who understands the securities industry and deals with FINRA staff on a regular basis. Choose the wrong attorney and you may end up answering FINRA’s questions in a way that may inadvertently cause you harm.

 What should you send to FINRA?

Theoretically, FINRA’s requests must be in connection with an investigation, complaint, examination or proceeding.   However, FINRA’s staff has great latitude to decide what does or does not involve an investigation, complaint, examination or proceeding.

FINRA is supposed to limit the information request to information relating to the operation of the broker-dealer or the person’s association with the member.  However, it may decide that documents concerning outside business activities or private securities transactions are relevant to its investigation.

Since FINRA now requires that you provide any documents that you have in “possession, custody or control,” that means that if you can possibly acquire it, you must share it with FINRA. Don’t forget that FINRA may obtain some documents from third parties, so it wouldn’t be a good idea to try to hide something that you think may not put you in the best light.

Make you sure you make copies of everything that you plan to send to FINRA. You may need to provide financial records, trading records, opening account documents, emails, and other documentation and your firm can help you access any documents you may not have.

Your written response may be the most important part of the process, and that is where an experienced FINRA lawyer can come into play. This is an opportunity for you and your attorney to put yourself in the best light and present your side of the story – hopefully persuading FINRA that their investigation is unnecessary by explaining away the allegations.

Once you have submitted the information to FINRA, don’t be surprised if you don’t hear anything back for while — it may take months to receive a response. FINRA may come back asking for more information or request an on- the- record interview.

Free Consultation with a Securities Attorney

If you are concerned about a FINRA 8210 Request for information, the securities attorneys at The White Law Group may be able to help you. Please call the offices at 888-637-5510 for a free consultation with one of our experienced securities attorney.

The White Law Group is a national securities arbitration, securities employment and securities regulatory law firm with offices in Chicago, Illinois and Franklin, Tennessee.

For more information on the firm, please visit https://www.whitesecuritieslaw.com.

 

GPB Holdings II LP Investment Losses

GPB Holdings II LP Investment Losses, featured by Top Securities Fraud Attorneys, The White Law GroupGPB Audit Committee Reportedly Resigns after Indictment of Chief Compliance Officer

The White Law Group continues its investigation into the liability that brokerage firms may have for recommending GPB offerings such as GPB Holdings II LP to its clients. The firm has had numerous calls from investors who have lost money investing in GPB Capital.

GPB Holdings II LP is one of several private placement funds sponsored by GPB Capital Holdings, LLC, a New York-based global asset management firm.

GPB Capital Holdings has recently been accused of operating as a Ponzi scheme in numerous class action lawsuits and is currently under investigation by the FBI, Securities & Exchange Commission and the Financial Industry Regulatory Authority.

According to a letter to investors on November 22nd, the company is once again delaying the outstanding financial statement audits that investors have been waiting on for over a year and “will not be able to meet our previously communicated target completion date of year-end 2019.”

The letter states that the indictment of GPB’s former Chief Compliance Officer, “may impact the timing of completing the Partnership level audits. In light of his indictment, we have engaged a third party law firm to perform an independent investigation of the allegations related to Michael Cohn’s hiring and employment at GPB Capital.”

According to the letter, the Partnership’s auditor has “decided to suspend work on outstanding financial statement audits. In addition, the Audit Committee has elected to resign effective upon the earlier date of the completion of the Rosenberg investigation or by November 27, 2019.”

Recovery of Investment Losses

If you suffered losses investing in GPB Holdings II LP or another GPB Capital offering, please call the securities attorneys of The White Law Group at (888) 637-5510 for a free consultation.

These claims are distinct from the class action filed directly against GPB Capital and could be pursued concurrently.

The Financial Industry Regulatory Authority (FINRA) operates the largest securities dispute resolution forum in the United States, and has extensive experience in providing a fair, efficient and effective venue to handle a securities-related dispute.

The White Law Group is a national securities fraud, securities arbitration, and investor protection law firm with offices in Chicago, Illinois and Franklin, Tennessee. The firm represents investors in FINRA arbitration claims throughout the country.

To learn more about the firm’s representation of investors, please visit www.whitesecuritieslaw.com.