It is being reported that CNL Securities Corp. and Behringer Securities LP are teaming up to raise capital for a pair of nontraded real estate investment trusts, Global Growth Trust Inc. and Global Income Trust Inc.
These investments are sponsored by CNL but will be marketed by both broker-dealers. This deal is further evidence that non-traded REITs are not going away any time soon (notwithstanding the litany of problems with these types of investments).
The White Law Group continues to file FINRA arbitration claims against the brokerage firms that sell non-traded REITs, like CNL REIT and Behringer Harvard REIT. These claims generally allege that the broker-dealers that sold these investments failed to perform the adequate due diligence before offering it for sale to their clients.
Certainly, the extremely high commission offered by non-traded REITs to brokerage firms for selling the products may explain the brokerage firms’ motivation in approving an investment with so many issues.
If you are a non-traded 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.