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Written by 4:33 pm Blog, Securities Fraud Articles

Investigation: Lightstone Value Plus Real Estate Investment Trust

Have you suffered investment losses in Lightstone Value Plus REIT? If so, The White Law Group may be able to help.

According to SEC records, Lightstone Value Plus REIT was incorporated in 2004 offering up 20,000,000 shares of common stock to investors. The REIT intended to acquire both residential and commercial properties, which would include retail multi-tenanted shopping centers, industrial and office properties.

Private placements, like the Lightstone Value Plus REIT, are unregistered securities products that carry considerable risk and often lack liquidity. Despite the inherent risk associated with private placements, brokers eager to make a sale, often tout the potential for high returns and downplay the risks. Private placements are arguably unsuitable for most investors and generally intended for sophisticated and institutional investors.

Brokers are required by the Financial Industry Regulatory Authority (FINRA) to recommend investments that are suitable for their clients. In order to determine suitability, brokers must take into consideration the investor’s age, risk tolerance, net worth, and investment experience, among other factors.

Unfortunately, the high sales commissions generated by the sale of private placements, often provides some brokers with enough incentive to overlook suitability requirements. According to SEC records, Lightstone Value Plus REIT offered brokers up to 7% in sales commission.

Brokers that overlook FINRA suitability requirements or mislead investors regarding the risks associated with a private placement investment can be liable for losses through FINRA arbitration.

To determine whether you may be able to recover investment losses incurred as a result of your purchase of Lightstone Value Plus Real Estate Investment Trust, 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 Vero Beach, Florida.

For more information on The White Law Group, visit www.WhiteSecuritiesLaw.com.

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