August 26, 2013 Comments (0) Blog, Securities Fraud

Recovery of Clearwater REIT Investment Losses

(Last Updated On: July 17, 2015)

Have you suffered investment losses in Clearwater Growth & Opportunity REIT? If so, The White Law Group may be able to help you recover your losses by filing an arbitration claim with the Financial Industry Regulatory Authority (FINRA).

Clearwater Real Estate Investments, located in Boise, Idaho, was formed in 2007 and is the sponsor of several real estate investments. According to their website, “Clearwater acquires everything from raw land to institutional grade commercial real estate across the United States and structures its offerings to afford accredited investors participation in investments while managing risk.”

FINRA has been paying close attention to the sale of REITs, in particular, the ways in which broker/dealers marketed and sold the products to investors. In many cases, and notwithstanding the risk of REIT investments, broker-dealers marketed these investments as safe and secure.

REITs typically pay a high commission, often as high as 15%. Unfortunately, the high commissions provided some brokers with enough motivation to recommend REITs to unsuitable investors.

In addition, the relatively high interest or dividend offered by non-traded REITs like Clearwater, attract retired investors looking for steady income stream. However, REITs are not suitable for most retried individuals who may need liquidity in their investment.

Brokers have a fiduciary duty to adequately disclose all risks associated with any investment. Furthermore, brokerage must perform adequate due diligence on an investment prior to recommending it for sale to its clients to ensure that the investment recommended is appropriate in light of the investor’s age, investment experience, net worth, and investment objectives.

To determine whether you may be able to recover investment losses incurred as a result of your purchase of a risky REIT investment, please contact The White Law Group at (312)238-9650 for a free consultation.

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.