April 4, 2014 Comments (0) Blog, Securities Fraud

Investigation into Colony Investors VIII LP

(Last Updated On: July 17, 2015)

Have you suffered investment losses in Colony Investors VIII LP? If so, The White Law Group may be able to help.

According to their website, Colony Capital, LLC is a global real estate investment firm founded in 1991 with offices in nine countries. The company was founded by Thomas J. Barrack Jr and has approximately $20 billion in assets under management. Colony Capital has sponsored a number of private placements, and launched a real estate investment trust (REIT), Colony Financial, Inc., in 2009.

Following the financial crisis in 2008 many real estate investment firms were hit hard. According to Bloomberg, “Colony Investors VIII LP, a $4 billion fund launched by Barrack in 2007, had paper losses of about 60 percent as of the first quarter [in 2010].” The article refers to an $8.5 billion buyout of Stations Cassion, a bankrupt gaming company, as one of Colony’s “biggest missteps.”

The trouble with private placements, especially real estate investments, is that they are inherently risky and are generally more complexly structured compared to more traditional investments, such as stocks or mutual funds. In addition, private placements lack the same regulatory oversight as more traditional investments, significantly increasing the level of risk.

Unfortunately for many investors, broker-dealers often overlook suitability requirements when selling private placements due to the high commissions they generate. Broker dealers are required to make appropriate investment recommendations that are consistent with a clients age, risk tolerance, investment experience, net worth, and financial objectives. If your broker dealer sold you a Colony Capital private placement unsuitably, you may be able to recover your losses in a FINRA arbitration claim.

To speak with a securities attorney about your potential to recover your investment losses in Colony Investors VIII or another Colony Capital investment, 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.

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