It is being reported that Wells Real Estate Funds recently laid off its executive sales staff in a move to cut costs. This is just more bad news for Wells REIT owners worried about whether their investments will bounce back after price drops and dividend cuts.
The White Law Group continues to file FINRA arbitration claims against the brokerage firms that recommended Wells REIT. These claims generally allege that the broker-dealers that sold Wells REIT failed to perform the adequate due diligence on Wells REIT before offering it for sale to their clients.
Brokerage firms have a fiduciary duty to perform adequate due diligence on any investment before offering it for sale to its clients. Based on what is now known about Wells REIT, it does not appear that the firms that sold Wells REIT performed the necessary due diligence on the offering.
Certainly, the extremely high commission offered by Wells REIT to brokerage firms for selling the product may explain the brokerage firms’ motivation in approving an investment with so many issues.
If you are a Wells REIT investor and you would like to discuss your litigation options with a REIT fraud attorney, please call The White Law Group at 312/238-9650 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 Boca Raton, Florida.
For more information on The White Law Group, visit http://www.whitesecuritieslaw.com.