Have you suffered investment losses in a Canyon Creek Development Inc., Canyon Creek Financial LLC or Sunwest Management Inc. tenants in common (TIC) investment? If so, The attorneys of the White Law Group may be able to help.
The White Law Group is investigating potential securities fraud claims on behalf of investors involving broker-dealers recommendations that investors purchase risky TIC (tenant-in-common) 1031 exchange investments, including those related to Canyon Creek Development Inc. and Sunwest Management Inc. Investors may be able to recover these losses through FINRA arbitration.
Sunwest Management Inc. managed nursing home properties until it closed for business in 2010. At one time Sunwest managed more than 200 facilities. Sunwest would come under heavy scrutiny from the SEC in 2009 for selling TIC investments to investors through their related entities created to manage the TICs and facilitate their sale. According to SEC documents “Sunwest raised at least $300 million from more than 1,300 investors nationwide by promising a steady income stream and touting its success in running the properties.”
According to documents publicly available from the Oregon Department of Consumer and Business Services, John Harder and his company Sunwest Management, established Canyon Creek Development to facilitate the acquisition of properties and then sponsorship of the private placement of tenants in common (TIC) investments and other securities vehicles. They also established Canyon Creek Financial LLC as a registered broker dealer to sell the TIC investments.
A TIC investment is when a property is sold to multiple investors who then own fractional interests in the property as co-owners. The co-owners enjoy his/her share of the “pro rata” share of the net income (or expenses), appreciation, and share of the proceeds at the sale of the property. Tenants in common investors are not involved in the day to day management of the property but do retain certain other rights regarding the management of the property.
TIC (tenant-in-common) 1031 exchange investments typically pay a high commission, sometimes more than 10%, which in some cases may explain broker-dealers’ motivation to recommend clients to invest in TIC investments.
Canyon Creek Financial LLC was not the only entity to sell the investment vehicles offered through Canyon Creek Development. If you invested in a Canyon Creek/Sunwest property through a registered broker-dealer, you may still be able to recover your investment losses.
To determine whether you may be able to recover investment losses incurred as a result of your purchase of a TIC investment such as those offered by Canyon Creek Development Inc. and Sunwest Management Inc., please contact The White Law Group at 312-238-9650.
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 Boca Raton, Florida.
For more information on The White Law Group, please visit our website at http://www.whitesecuritieslaw.