Recovery Options for Tenant-in-Common Investment Losses

Monday, July 1st, 2013

The White Law Group continues to investigate Tenant-in-Common (TIC) investments on behalf of investors who have suffered significant losses.

TIC investments allow a small group of investors, as many as 35, to co-own a piece of commercial property together. The co-owners are not involved in the day to day management of the property, however they do receive a “pro rata” share of the property’s net income/expenses. TICs may seem like a straight forward investment, when in fact, they are complexly structured and inherently risky. Not only are they dependent on the continual performance and condition of the property but also the over all health of the real estate market.

A recent article that appeared on The Huffington Post blog (available here) discussed the risks and downfalls of TIC investments, especially among retired seniors. According to The Huffington Post, “These investments gained popularity (especially among the elderly) in 2002 after the IRS ruled that investors could defer capital gains from the sale of real estate involving an “exchange of properties.” In addition, many investors were attracted to the income stream that such properties could generate.

Unfortunately for many investors the risks associated with TIC investments were not adequately expressed by their broker-dealer, and many investors may have purchased TICs under fraudulent conditions. According to The Huffington Post, “the collapse of real estate markets across the country exposed fraud and deception in connection with TIC investments.”

Brokers that create a false impression of an investment or mislead their clients may be in violation of securities law enforced by the Financial Industry Regulatory Authority (FINRA). If you purchased a TIC under fraudulent conditions the broker-dealer may be liable for investment losses through FINRA arbitration.

The White Law Group’s investigation into the improper sales of TICs to investors includes, but is not limited to, recommendations to invest in the TICs offered by the following sponsors: DBSI, Cabot Investment Properties, Argus Realty, Covington Realty Partners, Evergreen Realty Group, FOR 1031, and Triple Net Properties (NNN).

To determine whether you may be able to recover investment losses incurred as a result of your purchase of a risky TIC investment, 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, visit www.WhiteSecuritiesLaw.com.

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