KBS REIT I Drops More Than 50%

Tuesday, December 31st, 2013

Have you suffered investment losses in KBS Real Estate Investment Trust?  If so, The White Law Group may be able to help you recover your losses through FINRA arbitration.

The White Law Group continues to investigate potential securities fraud claims involving broker-dealers’ improper recommendation that investors purchase risky non-traded REIT investments, such as KBS REIT I.

KBS REIT I is a non-traded REIT that closed its initial public offering on May 31, 2008 for $10 per share. Unfortunately for many investors the value of the KBS REIT has dropped significantly. According to a recent document filed with the Securities and Exchange Commission (SEC), on December 18, 2013, the Company’s board of directors approved an estimated net asset value of $4.45 per share (a drop of over 50% from the original $10/share).

Non-traded RIETs, like KBS, are high risk complex investment products intended for institutional and sophisticated investors

The problems that often arise these types of non-traded REITs generally involves the failure of broker-dealers to adequately disclose the risks and illiquidity of these investments.  Nontraded REITs like KBS are also extremely high commission products, incentivizing unscrupulous advisors to push these products regardless of whether the investments are appropriate for their clients.

Broker-dealers have a fiduciary duty to perform adequate due diligence on any investment that they recommend and to make recommendations that are suitable given the client’s age, investment experience, net worth, and investment objectives. If a broker-dealer or one of their registered representatives fails in this responsibility, they can be liable for investment losses in a claim through FINRA dispute resolution.

If you suffered losses investing in KBS REIT I and would like to discuss your litigation options,please call 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.

For more information on The White Law Group, visit http://www.whitesecuritieslaw.com.

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