Have you suffered investment losses in the Desert Capital REIT? If so, The White Law Group may be able to help.
The White Law Group continues to file FINRA arbitrations on behalf of investors in Desert Capital REIT. These claims are against the financial professionals and brokerage firms that recommended Desert Capital REIT to their clients.
Brokerage firms and financial advisors have a fiduciary duty to perform due diligence on an investment prior to recommending it for sale to their clients. Based on what is now known about Desert Capital REIT, it appears clear that the broker-dealers that sold Desert Capital failed to perform the necessary due diligence.
At this point, this much is known:
(1) Desert Capital REIT suspended its dividend and redemption programs in or about 2008;
(2) Desert Capital REIT filed for Chapter 11 bankruptcy in the summer of 2011; and
(3) It has been reported that Desert Capital REIT has been subpoenaed by the Securities and Exchange Commission pertaining to fraudulent payments and transactions between Desert Capital and CM Capital (a related entity).
Desert Capital REIT also paid an extremely high commission to the brokerage firms that sold the investment (somewhere between 7-10% depending on whether the brokerage firm was entitled to an additional “due diligence” fee). This likely explains the financial advisors and broker-dealers’ motivation in recommending and selling this investment.
To determine whether you may be able to recover investment losses incurred as a result of your purchase of Desert Capital REIT, 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.com.